The REAL Chapters 7-14 review
A(n) ________ marketing system combines successive stages of production and distribution under single ownership, where channel leadership is established through common ownership.
B) corporate vertical
A ________ is a small open-air mall with upscale stores, convenient locations, and nonretail activities such as a playground, dining establishments, and a movie theater.
B) lifestyle center
Which wholesaler channel function is demonstrated when a wholesaler's sales force helps a manufacturer reach many small customers at a low cost?
B) selling and promoting
GameStop, a video game retailer, offers a deep assortment of video games and video game consoles. GameStop is best described as a(n) ________.
C) specialty store
A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.
D) value delivery network
________ are offers of a trial amount of a product.
E) Samples
A ________ is defined as a name, term, sign, symbol, design, or a combination of these, that identifies the maker or seller of a product or service.
E) brand
In which of the following cases is little or no test marketing most likely recommended for a new product?
E) when the costs of developing and introducing the product are low
Which of the following is an example of a shopping product?
television
A laundry detergent that consumers purchase frequently, with minimum comparisons, is an example of a(n) ________ product.
convenience
Which contractual system is distinguished by the fact that it is normally based on some unique product or service?
C) franchise
McPherson's, an ice cream retailer, recently entered into an agreement that allows independent businesspeople at select stores and locations across the country to sell its famous ice creams and milk shakes for a monetary consideration. Which type of contractual retail association is described in the above example?
C) franchise organization
PinWheel, a renowned electronics company, has an arrangement with SoundBite, an audio equipment retailer. Through the agreement, Soundbite is to promote and sell PinWheel's audio electronics and give PinWheel products better shelf space than competitors' products. The agreement also requires that SoundBite sell additional non-audio PinWheel products at all SoundBite stores. Which term best describes PinWheel's strategy?
C) full-line forcing
Customers at Carat, a premium jewelry store, are encouraged to make an appointment before a visit so that a customer service representative is assigned to them. These representatives help every customer make a purchase that meets his or her needs and budget after considering numerous options. The different styles and special features of the jewelry are explained to each customer to aid the purchase decision. In this case, Carat is an example of a(n) ________.
C) full-service retailer
Flax is a chain of stores that carries several product lines including clothing, home furnishings, and household appliances. Each line is operated as a separate department, and employees are available to assist and advise customers in every phase of the shopping process. Flax is most likely a ________.
C) full-service retailer
Which types of stores are characterized by specialty goods for which customers need assistance and higher operating costs that are passed along to customers as higher prices?
C) full-service stores
Consumers rely less on price to judge the quality of a product when they ________.
C) have prior experience with the product
The Toby's chain of first-class department stores carries a wide range of product lines, including clothing, jewelry, kitchenware, and home furnishings. Toby's typically charge higher prices on an everyday basis and then holds frequent sales and price promotions to increase store traffic. Toby's most likely uses ________.
C) high-low pricing
In supply chain management, moving products and materials from suppliers to the factory is known as ________ logistics.
C) inbound
A product line is most likely too long if managers can ________.
C) increase profits by dropping items
When demand hardly changes with a small change in the price of a product, then the demand for the product is best described as ________.
C) inelastic
Which of the following is generally regarded as the toughest issue of public policy and ethics confronting the direct marketing industry?
C) invasion of consumer privacy
Which packaging component identifies the product or brand?
C) label
Rage, a leading motor vehicle manufacturer, introduces a new superbike model. It invites proposals from independent dealers who are willing to set up exclusive showrooms that only sell Rage's superbikes. Chosen dealers will sell and service the superbikes, and Rage will oversee national advertising. This is most likely an example of a(n) ________.
C) manufacturer-sponsored retailer franchise system
If a company assigns individual teams of salespeople to big retail customers, it most likely has a(n) ________ sales-force structure.
C) market
In which of the following structures does a company organize its sales force along client or industry lines?
C) market sales-force structure
When a product hits the ________ stage, profits level off or decline because of increased marketing outlays to defend the product against competition.
C) maturity
Which of the following would most likely provide on-the-go product information, instant access to price comparisons and customer reviews, and instant digital coupons?
C) mobile marketing
Sportware, a leading shoe manufacturer, markets sneakers under the brand name "Athletix" and dress shoes under the brand name "Cameo" in order to target the two different market segments. What branding strategy is most likely being used by Sportware?
C) multibrands
Product mix width refers to the ________.
C) number of different product lines the company carries
Barry's is a chain of retail stores that stocks a large variety of goods and practices high-low pricing. This means that Barry's is likely to ________.
C) offer numerous sales or discounts
Under ________, the market consists of a few large sellers who are highly sensitive to each other's pricing and marketing strategies.
C) oligopolistic competition
The use of both rail and trucks for transporting goods is called ________.
C) piggybacking
The second part of a marketing strategy statement describes the ________ of a new product.
C) planned price
Cream Bay has come out with a new range of ice creams. To promote the new products, Cream Bay has set up shopping mall kiosks to offer free ice cream samples to potential customers. Which promotion tool is Cream Bay most likely using?
C) point-of-purchase promotions
]Which of the following is a difference between storage warehouses and distribution centers?
B) Storage warehouses store goods for moderate to long periods, while distribution centers are used to move goods rather than just store them.
________ pricing is when a firm tries to determine the price at which it will break even or make the profit it is seeking.
B) Target return
Which of the following statements is true of consumer promotions?
B) They include a wide range of tools like samples, coupons, and refunds.
In which of the following cases is a firm employing multichannel marketing?
B) Wingate Retail sells its products through e-tailers and hundreds of physical superstores.
Which of the following is an example of a horizontal conflict in a distribution channel?
B) a Ford car dealer complaining that another Ford dealer is underpricing the same models
A product concept is ________.
B) a detailed version of a product idea stated in meaningful consumer terms
In which of the following situations is a producer guaranteed full control over product sales?
B) a direct marketing channel
Which of the following would be considered an upstream partner in a company's supply chain?
B) a firm that provides technical expertise in the production of a product
Which of the following promotion mix approaches involves a producer promoting a product to different channel members who in turn promote the product to customers?
B) a push strategy
Which of the following is most likely an example of a business promotion tool?
B) a trade fair showcasing a new audio system developed by an electronics firm
The aim of ________ is to make ads so engaging or useful that people want to watch them.
B) advertainment
An innovation management system would most likely be used by ________.
B) brand managers to collect, review, and evaluate new product ideas
Which of the following conditions is most likely essential for implementing a successful market-penetration pricing strategy for a product?
C) The market for the product is highly price sensitive.
Which aspect of niche online social networks makes the medium most appealing to marketers?
C) They cater to the needs of small communities of like-minded people.
How do firms that use captive-product pricing make up for the low prices of their main products?
C) They set high markups on the captive products.
Jupiter Steel is the chief provider of metals to Greystone Motors. Greystone Motors has two models of cars-one for commercial and ordinary consumers and another for professional car racing teams. Greystone Motors has designated dealers to sell its commercial cars to consumers, while racing cars are sold directly to the racing teams. In such a distribution channel, which of the following would be considered a horizontal conflict?
C) a conflict between two Greystone Motors car dealerships
Which statement about convenience products is most likely true?
They are bought by consumers frequently and with minimal comparison.
Which of the following is most likely a true statement about services?
D) A service is intangible before it is purchased.
Kevin Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research. These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain?
D) Abundon
________ involves using an existing brand name for a new product category.
D) Brand extension
Which of the following examples represents a product sales-force structure?
D) Cartlon Computers sells its range of highly specialized computers through special teams, each of which has received training in the configuration, uses, and USPs of a single model in the range.
Which of the following statements is most likely true about direct marketing?
D) Direct marketing provides opportunities for building customer engagement.
________ pricing involves charging a constant low price with few or no temporary price discounts.
D) Everyday low
________ distribution gives a limited number of dealers the sole rights to distribute a company's products in their territories.
D) Exclusive
Which of the following statements is most likely true about the product life cycle?
D) Growth is a period of rapid market acceptance and increasing profits.
Which statement is most likely true about idea generation in the new product development process?
D) Idea generation is usually followed by procedures that reduce the total number of ideas.
________ advertising is used heavily when introducing a new product category.
D) Informative
Which of the following is most likely true about e-mail marketing?
D) It is used by marketers to send highly targeted messages.
What is the primary disadvantage of outdoor advertising?
D) It provides little audience selectivity.
________ are the largest group of wholesalers and can be divided into two broad types of wholesalers: full-service and limited-service.
D) Merchant wholesalers
Which of the following is a disadvantage of a team-based approach to new product development?
D) Organizational confusion and tension are likely to affect the process.
Which of the following is a type of identity theft that uses deceptive e-mails and fraudulent Web sites to fool consumers into revealing their personal data?
D) phishing
Carleese, a leading fashion brand, sets up small temporary boutiques across numerous locations during its year-end sale, promoting its outdated products at half the price. These temporary boutiques are referred to as ________.
D) pop-up stores
In the ________ stage of new product development, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them.
D) product development
Tavera, an automobile company, experienced a significant decline in sales over the last 10 months of its flagship car, Tetra. In response, Tavera reduced its R&D, advertising, and sales expenditures for Tetra in an attempt to improve short-run profits. Which term best describes Tavera's actions with regards to Tetra?
D) product harvesting
Some companies are now appointing ________, whose job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems.
D) product stewards
When Luxury Motors gives price reductions to its new car dealers to reward them for participating in advertising and sales support programs, the firm is granting ________.
D) promotional allowances
What type of pricing is being used when a company temporarily prices its products below the list price to create buying excitement and urgency?
D) promotional pricing
A ________ strategy involves a company spending a lot of money on advertising and promotion to induce consumers into buying the product by creating a demand vacuum.
D) pull
Some products that have entered the decline stage can be cycled back to the growth stage through ________.
D) repositioning
Which of the following is a marketing intermediary?
D) retailers
Mercury Electric, a leading manufacturer of kitchen appliances, releases a new line of blenders called SpinPro. To boost sales, Mercury Electric gives scratch-and-win coupons to all buyers and provides a three-day trip to Hawaii for the winner. Which element of the promotion mix has Mercury Electric used in this scenario?
D) sales promotion
Weekly or monthly work plans used by management to get information about salespeople are referred to as ________.
D) sales reports
Which of the following is a form of online advertising?
D) search-related ad
Which of the following is the first step in developing an advertising program?
D) setting advertising objectives
The presentation stage of the selling process most likely involves ________.
D) showing how a company's products can solve a customer's problems
The use of traditional business marketing concepts and tools to create behaviors that will create individual and societal well-being is called ________ marketing.
D) social
Lengthening a product line beyond its current range is referred to as product line ________.
D) stretching
Which type of store is much larger than a regular supermarket and offers a large assortment of routinely purchased food products, nonfood items, and services?
D) superstores
The first part of a marketing strategy statement describes the ________ of a new product.
D) target market
Under a ________ new product development approach, company departments work closely together in cross-functional groups, overlapping the steps in the product development process to save time and increase effectiveness.
D) team-based
Which of the following promotion tools would best reach a geographically dispersed mass audience in a short period of time?
D) television advertising
When a firm varies the price of a product by the season, month, day, or even hour, without changing product features, it is using ________ pricing.
D) time-based
Product mix length refers to the ________.
D) total number of items a company carries within its product lines
Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers are collectively called ________ promotions.
D) trade
Vac "N" Sew, a consumer electronics outlet, offers a price reduction of $100 when customers bring in a used vacuum cleaner and exchange it for a new vacuum cleaner or sewing machine. This is an example of a ________.
D) trade-in allowance
Which of the following is a type of off-price retailer?
D) warehouse club
Computer Works is a computer accessories manufacturer based in Brazil. All customers in South America pay the same freight charge, $20, when they order products from the company. All customers in North America pay a freight charge of $50. The company's pricing strategy is referred to as ________ pricing.
D) zone
Which method of setting advertising budgets best helps management think about the relationship between promotion spending, selling price, and profit per unit?
E) percentage-of-sales method
In a promotion mix, ________ occurs when a firm's sales force makes individual presentations to consumers for the purpose of promoting sales and building customer relationships.
E) personal selling
What is the primary goal of trade promotions?
E) persuading resellers to carry a brand
The primary objective of ________ advertising is to build selective demand.
E) persuasive
In which step of the selling process does a salesperson learn as much as possible about a prospective customer before making a sales call?
E) preapproach
Kartoffel, a food processing company, offers a free toy inside every 50g packet of their potato chips. Which of the following promotion tools does this exemplify?
E) premium
Howard Genks works as a sales representative for Med-Tex, a firm that manufactures hospital supplies. Recently, a prospective buyer walked into the Med-Tex store seeking beds for the children's ward in his private clinic. Howard quickly showed the client the range of beds available that were designed specifically for children. In which of the following steps of the selling process was Howard?
E) presentation and demonstration
In a promotion mix, ________ performs the functions of building a good rapport with entities outside the company, building up a good corporate image, and handling unfavorable rumors and events.
E) public relations
Which of the following is a cost-effective mode for shipping large amounts of bulk products-coal, sand, minerals, and forest products-over long distances?
E) railroads
Sales promotions targeted at ________ are called trade promotions.
E) retailers and wholesalers
A company that offers an early bird discount to the first fifty purchasers of a new product is using the promotional tool of ________.
E) sales promotion
Service inseparability means that ________.
E) services become a part of their providers, whether the providers are people or machines
Checking out products in traditional stores and purchasing them online is referred to as ________.
E) showrooming
Unsolicited and unwanted commercial e-mail is referred to as ________.
E) spam
What is the purpose of a sales manager using a time-and-duty analysis?
E) supervising salespeople
A company's external sources of new product ideas include its ________.
E) suppliers
The Fashion Store, a new startup, sets product prices so that revenues will equal manufacturing and marketing costs. The pricing strategy used by the company is referred to as ________ pricing.
E) target return
Loretta Inc., a U.S.-based watch manufacturer, sells its products in France, China, Russia, and India. To manage sales, Loretta appoints a number of sales representatives to each location. Sales representatives report to area managers, and area managers coordinate sales in their respective areas before reporting to regional managers. Loretta has most likely adopted a ________ sales-force structure.
E) territorial
________ refer to a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible.
Services
________ products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.
Shopping
Which of the following is most likely a true statement about shopping products?
Shopping products are purchased less frequently than convenience products.
Fox Scully received an e-mail promoting a new financial services institution that offers surprisingly low mortgage rates. The e-mail asked customers to provide their address, date of birth, Social Security number, and current mortgage information in order to receive a free loan quote. Suspicious of the offer, Fox researched the company and discovered that the e-mail was fraudulent. This is an example of ________.
phishing
Which category of industrial products includes repair and maintenance?
supplies and services
Consumer products that the buyer either does not know about or knows about but does not normally consider buying are referred to as ________ products.
unsought
________ products are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort.
Unsought
________ costs are also known as overhead.
A) Fixed
What is the last step in the selling process?
A) follow-up
Which of the following is most likely true of a product in the maturity stage of the product life cycle?
C) A slowdown occurs in sales growth.
________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
C) Advertising
Which of the following sets the upper limit for a product's pricing?
C) consumer perceptions of value
Outbound logistics refers to moving ________.
D) products from the factory to resellers
________ products are consumer products and services with unique characteristics or brand identifications for which a significant group of buyers is willing to make more effort than usual to purchase.
Specialty
Which of the following is an example of a convenience product?
candy
Which of the following is an industrial product categorized under materials and parts?
cement
Which of the following is an example of an industrial product grouped under capital items?
factory
A&B's Smarter Planet campaign markets A&B as a company that provides innovative solutions that improve the world's IQ. This activity of A&B is an example of ________ marketing.
organization
Which of the following is a pure tangible good?
shampoo
A refrigerator is an example of a(n) ________ product
shopping
Silkskin Cosmetics is advertising its newest line of eye makeup. Made from all-natural ingredients, the products are hypoallergenic. Silkskin is selling the products in specially designed tubes that make application easier. Which of the following is a core customer value for Silkskin's line of eye makeup?
the desire for having beautiful eyes
AirNetwork, a telecommunications company, sponsors a rock concert by a famous band in order to further its brand visibility. This is an example of a(n) ________.
A) event marketing program
Which of the following creates the shortest distribution channel between a producer and a customer?
D) direct marketing
In which of the following promotion tools does a customer send a proof of purchase to a manufacturer, who then refunds part of the purchase price by mail?
A) rebate
Retail convergence most likely leads to ________.
A) reduced differentiation
How have social media tools most likely affected personal selling?
A) reducing the use of person-to-person selling efforts
In a just-in-time logistics system, ________.
A) retailers carry small inventories of merchandise to last for only a few days
Using ________, researchers measure consumer responses to new products and marketing tactics in laboratory stores or virtual online shopping environments.
A) simulated test markets
Which of the following media is most suitable for advertising a product that needs to be demonstrated?
A) television
Parvon, a cleaning product, is in the maturity stage of the product life cycle, and Parvon managers have decided to modify the market. Which of the following steps should Parvon managers most likely take to achieve this goal?
A) find new market segments for the brand
NerdHerd Electronics sells three different sizes of televisions at three different prices. In this case, the company's pricing strategy is referred to as ________ pricing.
A) product line
The third part of a marketing strategy statement describes the ________ of a new product.
A) profit goals
In ________, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities.
A) pure competition
There are more than 20 stores on a street in Sao Paulo that specialize in selling the same quality and brand of wheat products. An individual seller cannot charge more than the going market price without the risk of losing business to the other stores. What type of market does this example represent?
A) pure competition
BerryBerry is a fruit juice company that has traditionally sold three varieties of mixed-fruit juices: DazzleBerry, AquaBerry, and GloBerry. The company wants to add more products to its product line. Which of the following is an example of brand extension for BerryBerry?
A) The company introduces BerryBliss, a dried berry snack mix for kids.
Which of the following is most likely true of a sales force?
A) The performance difference between an average salesperson and a top salesperson is generally substantial.
In which of the following cases is crowdsourcing used for new product development?
A) A company creates a forum where anyone can contribute new product ideas.
Which of the following statements is true of a product sales-force structure?
A) A product sales-force structure is characterized by specialization along product lines.
Which of the following is true of advertising in the new marketing communications model?
A) Advertisers are increasingly shifting toward digital media.
________ are online journals where people and companies post their thoughts and other content, usually related to narrowly defined topics.
A) Blogs
________ refer to two or more outlets that are commonly owned and controlled.
A) Corporate chains
________ uses buyers' perceptions of what a product is worth as the key to pricing.
A) Customer value-based pricing
Which of the following is true of a territorial sales-force structure?
A) It clearly defines each salesperson's job and establishes accountability.
Which of the following is true of a conventional distribution channel?
A) It has each channel member acting as a separate business unit trying to maximize its own profits.
What is the primary advantage of using television as an advertising medium?
A) It involves a low cost per exposure.
Which of the following is true of viral marketing?
A) It is the digital version of word-of-mouth marketing.
Which statement is most likely true about the affordable method of setting an advertising budget?
A) It typically overlooks how promotion affects sales.
________ occurs when a company uses its existing brand name for new forms, colors, sizes, ingredients, or flavors of an existing product category.
A) Line extension
________ have filled the ultralow-price, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail.
A) Off-price retailers
________ is the only element in the marketing mix that produces revenue.
A) Price
Which of the following is most likely an advantage of social media marketing?
A) Social media are targeted and personal.
Which of the following is an example of inbound telemarketing?
A) Sterrns Media advertises its services by sending letters to potential customers and prompting them to contact the firm through a toll-free number.
Which of the following conditions is most likely essential for implementing a successful market-skimming pricing strategy for a product?
A) The product's quality and image support its high price.
Which of the following is true of marketing strategies that are being developed in the new marketing communications model?
A) They are more targeted, social, and engaging.
Which of the following is most likely true about salespeople in a field sales force?
A) They build relationships with customers by traveling to see them.
Which of the following is an advantage of printed catalogs?
A) They drive online and mobile sales.
Which of the following is most likely true of branded community Web sites?
A) They provide engaging content.
________ are sales promotion tools used to generate new business leads, stimulate purchases, educate customers, and motivate salespeople.
A) Trade shows
________ are off-price retailers that operate in huge facilities offering few frills but ultra-low prices and surprise deals on selected branded merchandise.
A) Warehouse clubs
________ includes all the activities involved in selling goods and services to those buying them for resale or business use.
A) Wholesaling
Which of the following is an example of branded entertainment?
A) a company placing its product in a movie scene
For over ten years, Erudite, a publishing and educational company that produces college textbooks, has been selling its books online through studysmart.com, a popular online retailer that sells textbooks published by different companies. Recently, Erudite stopped selling its books through studysmart.com and set up its own website for selling its books. This change in channel organization is called ________.
A) disintermediation
Remington Motors releases a new line of hybrid electric vehicles called Electra. The line promises superior mileage and excellent horsepower in an environmentally friendly automobile. Remington decides to use advertising as the promotional tool for the car's launch. Which of the following would qualify as an advertisement for Electra?
A) a front-page notice of the release of Electra in all leading newspapers with the caption "Green Speed"
Which of the following would most likely have the longest duration in a market and be characterized by several periods of renewed interest?
A) a style
Sheldon Parks works as a salesperson in a large company that sells vending machines and beverages like coffee, tea, and hot chocolate. He meets Rosa Thoms, a potential client who heads the administration department of a large MNC, and speaks to her at length to determine the kind of vending machine and beverages her company would need. After understanding the specifications, he provides her team of employees with samples to obtain their feedback. At which step of the selling process is Sheldon in the above scenario?
A) approach
A value-based pricing strategy most likely begins with ________.
A) assessing customer needs
Wilkinson & Company sells plumbing supplies across the United States. Wilkinson uses Chicago as its central location for determining freight costs regardless of the city from which products are actually shipped. For example, a Dallas customer pays the freight cost from Chicago to Dallas even if the goods are shipped from Dallas. Wilkinson most likely uses ________ pricing.
A) basing-point
Which of the following costs is most likely associated with commercialization?
A) building or renting a manufacturing facility
Which term refers to a tool used by managers to supervise their salespeople?
A) call plan
When a manufacturer offers a ________, a customer buys a product from a manufacturer's dealer within a specified time period, and the manufacturer sends the customer a check.
A) cash rebate
The promotion of products and services through printed material with multiple pages that sell multiple products is referred to as ________ marketing.
A) catalog
Which of the following is a traditional direct marketing tool?
A) catalog
Which term refers to a giant specialty store with a very deep assortment of a particular product line?
A) category killer
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
The stage in which a product concept is presented to groups of target consumers physically or symbolically is referred to as ________.
A) concept testing
Which of the following is the largest form of online advertising?
A) contextual advertisements
Which of the following would most likely trigger a price increase?
A) cost inflation
A company adding new features to a product will most likely compare each feature's value to customers with its ________.
A) cost to the company
Producers use marketing intermediaries because they ________.
A) create greater efficiency in making goods available to target markets
When an end user's problems and experiences define a new product, the approach is called ________.
A) customer-centered new product development
A product has hit the ________ stage when sales plunge to zero, or they drop to a low level where they continue for many years.
A) decline
The relationship between the price charged for a product and the resulting demand level can be shown in a ________.
A) demand curve
In a promotion mix, ________ involves personally connecting with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.
A) direct marketing
Which of the following is the fastest-growing form of marketing?
A) direct marketing
Eric Dylan is the marketing director of a charity that raises funds to help provide educational services to children and families in developing countries. Eric targets a selective market of individuals who have recently donated to international charities by sending letters with charity information and donation instructions. Eric uses ________ in this scenario.
A) direct-mail marketing
Which of the following direct marketing forms includes infomercials?
A) direct-response television marketing
A ________ is highly automated and designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible.
A) distribution center
Which of the following characteristics of a product is defined as "freedom from defects"?
A) quality
Rent, electricity, and executive salaries that do not vary with production level are referred to as ________ costs.
A) fixed
Rhonda recently entered into a contractual agreement with StellarCutz, a national chain of affordable, walk-in hair salons. Under the agreement, Rhonda uses the StellarCutz trade name and receives support from StellarCutz in terms of business methods and processes. Rhonda paid a start-up fee to StellarCutz and will pay annual licensing fees for the use of the StellarCutz brand. Which of the following best describes Rhonda's business?
A) franchise
In the ________ stage, a firm most likely faces a trade-off between high market share and high current profit.
A) growth
In which of the following steps of the selling process does a salesperson seek out, clarify, and overcome any customer disapproval to buying?
A) handling objections
Which of the following is most likely a consequence of permission-based e-mail marketing?
A) higher return rates
Zephyr Inc., an electronics manufacturer, wants to enter the commercial tracking device market with its latest product, FindIt. Unlike other tracking devices, FindIt is very small and relatively cheap, but it can be used only within small areas as it has a low detection-range. Which type of advertising would be best for FindIt?
A) informative advertising
Green Gardens sells gardening and landscaping goods and equipment. The marketing department places an unmanned machine in the store with touchscreen technology to provide product information. Consumers can use this machine to learn about the company's products and services. The company's marketing form is best referred to as ________ marketing.
A) kiosk
Busch Stadium in St. Louis charges different prices for seats in different areas of the ball park, even though each seat costs the same for the owners of the stadium. What is this form of pricing called?
A) location-based pricing
Lemony Inc. sells its popular bottled lemonade-the company's only product-in various geographic locations through tie-ups and agreements with retailers. Each location is represented by two salespersons, one of whom serves current customers while the other finds new ones. Which of the following sales-force structures has most likely been combined to form the complex sales-force structure at Lemony Inc.?
A) market and territorial
A firm uses ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future.
A) market-skimming pricing
Which of the following marketing forms enables consumers to learn about products by scanning Quick Response codes?
A) mobile marketing
The Sherman Act, Clayton Act, and Robinson-Patman Act are all federal laws that were initially adopted to curb the formation of ________.
A) monopolies
Selective distribution is a strategy in which ________.
A) more than one but fewer than all willing intermediaries are used by a seller
Product mix depth refers to the ________.
A) number of versions offered for each product in the line
Glenda is searching airline schedules on HolApp, a mobile Web application. While browsing the application, a banner appears on the mobile screen showcasing offers and discounts on air tickets. The banner is best referred to as a(n) ________.
A) online display advertisement
In which step of the selling process does a salesperson set call objectives?
A) preapproach
Which consumer promotion tool involves selling two products for the price of one?
A) price packs
Which of the following sets the lower limit for a product's pricing?
A) product costs
Wayne Industries, a retail and home improvement store, is developing a new lawnmower. The marketing strategy for the product has already been developed and presented. A prototype has also been developed by the company's R&D team. The prototype is now being tested rigorously to ensure that there are no product liability issues. Once the prototype of the lawnmower passes product tests, the next step is most likely to be ________.
A) test marketing
Which group is most likely offered functional discounts by manufacturers?
A) trade-channel members that perform sales tasks
Reverse logistics refers to moving ________.
A) unwanted, excess products from resellers to producers
A product is in the maturity stage of the product life cycle, and the company decides to modify the marketing mix. Which of the following steps is the company most likely to take?
A) use aggressive sales promotions
________ is used to study the course of a product's sales and profits for the duration that it is produced and sold in the market.
B) A product life cycle
Which of the following is most likely a difference between advertising and sales promotions?
B) Advertising is an invitation to buy the product, while a sales promotion is an incentive to buy the product immediately.
Which of the following is an example of licensing?
B) Berry, a fruit juice company, uses a well-known cartoon character to promote the company's line of children's products and pays the creator of the cartoon character a fee.
________ occurs when two established brand names of different companies are used on the same product.
B) Co-branding
________ advertising would most likely result in advertising wars between competitors.
B) Comparative
Which of the following is most likely true about the digital age with regards to marketing?
B) Digital networks allow marketers many ways to build customer relationships.
________ refer to retailers that sell standard merchandise at lower prices by accepting lower margins and selling higher volume.
B) Discount stores
Which of the following is a disadvantage of using a magazine as an advertising medium?
B) It involves high costs.
What is telemarketing?
B) It is a form of marketing that uses the telephone to sell directly to businesses and consumers.
Which of the following is true of public relations?
B) It is not a sales-directed form of communication.
Which of the following is true of direct marketing?
B) It is suited for highly targeted marketing efforts and for building one-to-one customer relationships.
Which of the following is a shortcoming of advertising?
B) It only provides one-way communication with customers.
Which of the following is true of the Privacy Promise launched by the Direct Marketing Association?
B) It requires all DMA members to notify customers when any personal information is sold to others.
Which of the following is true of an intensive distribution strategy?
B) It strives to make products available where and when consumers want them.
_______ marketing features marketing messages, promotions, and other content delivered to on-the-go consumers through their portable electronic devices.
B) Mobile
________ prices are carried in buyers' minds and used when looking at a given product.
B) Reference
________ refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.
B) Retailing
________ are the standards stating the amount salespersons should sell and how sales should be divided among the company's products.
B) Sales quotas
________ distribution gives producers good market coverage with more control and less cost than does intensive distribution.
B) Selective
Which statement is most likely true about the affordable method of setting an advertising budget?
B) Spending on advertising is calculated after operating expenses, and capital outlays are deducted from total revenues.
In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features?
B) introduction
According to the text, today's large and progressive wholesalers have successfully reacted to rising costs by ________.
B) investing in information technology systems
A ________ brings buyers and sellers together and assists in negotiations.
B) broker
Which of the following is an external factor that affects pricing decisions?
B) competition
Every time a search is made using keywords related to construction, search engines display text-based advertisements and links to Regan Builders, a construction firm. The marketing tool used by Regan Builders is best referred to as a ________.
B) contextual advertisement
Kallton is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its Web site that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Kallton is using ________ to generate new product ideas.
B) crowdsourcing
Jones & Company, a major retail chain across the United States, offers a wide range of consumer goods such as clothing, furniture, home appliances, cosmetics, jewelry, and food. Jones & Company is best described as a ________.
B) department store
Vertical conflicts in distribution channels are conflicts that occur between ________.
B) different levels of the same channel
The process in which printed catalogs, brochures, samples, and DVDs are distributed to customers using highly selective mailing lists is known as ________.
B) direct-mail marketing
When compared to merchant wholesalers, brokers and agents ________.
B) do not take title to goods
Bateman Gray Motors sells the cars it produces using dedicated dealers who only sell Bateman Gray's products at their outlets. What kind of marketing strategy has Bateman Gray adopted with its car dealers?
B) exclusive dealing
An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods is called a ________.
B) factory outlet
Dina loves branded apparel and accessories but cannot afford to buy them too often. Fortunately, Dina lives close to an off-price retail store that is owned and operated by a famous brand. The company utilizes this store to sell its surplus, discontinued, or irregular goods at significantly lower costs. The retail store is best referred to as a ________.
B) factory outlet
In which of the following steps of the selling process does a salesperson make sure that there is proper installation and support after a buyer receives the initial order?
B) follow-up
TruMart, a leading retail chain, decides to open a restaurant inside its stores, so the firm partners with MeatMe, a popular burger chain. MeatMe opens a restaurant inside TruMart. The MeatMe chain of restaurants also has a deal with Westman Cola to serve only Westman soft drinks at its outlets. This arrangement will benefit all three companies. What kind of channel arrangement is being followed in this case?
B) horizontal marketing system
The new product development process usually starts with ________.
B) idea generation
Quest Inc. recently conducted a brainstorming session that generated a large number of ideas for adding new products and services. Quest managers will most likely use ________ next to arrive at a realistic number of ideas to adopt.
B) idea screening
Which of the following steps of the new product development process would most likely use an R-W-W framework?
B) idea screening
Allstocks.com is an online retailer that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices. Allstocks then charges customers less than retail. Allstocks is an example of a(n) ________.
B) independent off-price retailer
A 30-minute or longer advertising program on television that markets a single product is called a(n) ________.
B) infomercial
Haynes, a manufacturer of consumer electronics, created a 30-minute program describing the various ways in which its products could be used and aired the program on television with a toll-free number that interested consumers could call. In this case, Haynes' program is referred to as a(n) ________.
B) infomercial
Inglast, a chocolate producer, is faced with a class action suit when customers find pieces of plastic in boxes of cocoa powder. Inglast settles the case and then releases an advertising campaign to show the new and improved safety seals on all containers of cocoa powder. Which kind of advertisement has Inglast most likely used?
B) informative
The dependence of service quality on the quality of the buyer—seller communication during the service encounter is referred to as ________ marketing.
B) interactive
In a logistics system, minimizing distribution costs most likely involves ________.
B) large shipping lots
Combining several products and offering the collection at a reduced price is referred to as ________ pricing.
B) product bundle
In a sequential new product development process, once a product or service passes the business test, it moves into ________.
B) product development
Sweet & Cream, a popular frozen yogurt chain, attracts new customers by adding new flavors to its famous frozen yogurt product line. In this case, the company has developed its brand with ________.
B) line extensions
C & G Retail, a chain of local supermarkets, procures all its goods directly from the producers' factories. This type of wholesaling is usually done in ________.
B) manufacturers' offices
Qriosity Inc. released a new antivirus program at half-price to attract buyers. This is most likely an example of ________.
B) market-penetration pricing
The strategy of setting a low initial price to attract a large number of buyers quickly and win a large market share is referred to as ________.
B) market-penetration pricing
In a sequential new product development process, concept testing is most likely to be followed by ________.
B) marketing strategy development
Craft Inc.'s Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Competitors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the ________ stage of the PLC.
B) maturity
Hamilton Wholesaling, an electronics wholesaling firm, provides many services to customers including buying, storing, and transporting expensive and delicate electronics equipment. Hamilton takes title of ownership to all goods that the firm handles. Hamilton is most likely a(n) ________.
B) merchant wholesaler
Under ________, the market consists of many buyers and sellers trading over a range of prices rather than a single market price.
B) monopolistic competition
Clara's, a cosmetics manufacturer, sells many of its products through retail outlets. However, the firm sells a few expensive, popular products only through direct selling methods. What kind of channel arrangement does Clara's follow for all of its products together?
B) multichannel distribution system
Specialty stores are characterized by ________.
B) narrow product lines with deep assortments
According to the text, the most logical budget-setting method in advertising is the ________ method.
B) objective-and-task
Selling accessory products along with the main product is referred to as ________ pricing.
B) optional-product
As a result of ________, a company cannot make its product illegally similar to a competitor's already established product.
B) patent laws
Which of the following promotion tools will most likely make a consumer feel the need to listen and immediately respond to a seller?
B) personal selling
Which of the following types of promotion tools requires the most interaction with a customer?
B) personal selling
A product mix is also known as a product ________.
B) portfolio
The Children's Online Privacy Protection Act requires online operators targeting children to ________.
B) post privacy policies on their sites
Simpson Ltd., located in San Diego, provides a range of household and healthcare goods to consumers within the region. The firm also runs a number of local hotels and resorts under its brand name. Simpson employs different sales forces for each major division, so there are sales teams for household goods, healthcare goods, hotel management, and resort management. Simpson has most likely adopted a(n) ________ sales-force structure.
B) product
Easy Life manufactures a wide range of kitchen appliances, healthcare products, and cosmetics. Its salespeople are divided on the basis of their expertise in a product category. Again, within each category, they are divided into teams addressing large retail customers, convenience stores, and the general public. Which of the following sales-force structures has most likely been combined to form this complex sales-force structure?
B) product and market
Flores Fashions promotes its clothing by emphasizing the durability and quality of the fabrics it uses. The company has positioned its brand based on ________.
B) product attributes
A company launching a new product must first decide ________.
C) when to launch the product
What is the first step in the selling process?
B) prospecting
Pricing a product based on consumers' reference prices is referred to as ________ pricing.
B) psychological
In a marketing communications mix, ________ refers to any short-term incentives to encourage the purchase of a product or service.
B) sales promotion
Fruity Loop, a leading manufacturer of fruit-juices, introduces a new range of potato chips. To promote this new product, it offers a packet of potato chips free with every bottle of Fruity Loop juice. Which of the following promotion tools is Fruity Loop using in this case?
B) samples
Glow, a gift card store, offers a price reduction to customers who buy Christmas cards the week after Christmas. In this case, the store offers a ________.
B) seasonal discount
Service variability means that ________.
B) service quality depends on when, where, and how they are provided
A ________ refers to a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit.
B) shopping center
Which of the following is an example of narrowcasting using advertisements?
B) showing ads for diapers to would-be mothers in hospitals
The ________ style of advertising shows ordinary people clearly using a product in a normal setting.
B) slice of life
Which of the following would a firm most likely use to share video content?
B) social media sites
Which type of retailer typically carries deep product assortments of narrow product lines?
B) specialty stores
A company that sells only one product line to one industry with customers in many locations would typically use a ________.
B) territorial sales-force structure
An ad that shows real-life examples of people whose lives have changed due to a product is an example of the ________ style of advertising.
B) testimonial evidence
Providing extra amenities to differentiate and support high-priced products is referred to as ________ pricing.
B) value-added
Costs that change directly with the level of production are referred to as ________ costs.
B) variable
Under ________, a customer shares real-time data on sales and current inventory levels with a supplier, and the supplier then takes full responsibility for managing inventories and deliveries.
B) vendor-managed inventory systems
Clenzo is a company that provides house cleaning services in major urban and suburban areas. Marketers at Clenzo developed a short, humorous video promoting the company's services and hope that customers who see the video will be so entertained that they will pass the video on to their friends and colleagues. The marketers at Clenzo are using techniques to facilitate ________.
B) viral marketing
Consistency of a product mix refers to the ________.
B) ways in which the various product lines are related
Which of the following conditions increases the chances of a retailer opting to be categorized as a self-service retailer?
B) when customers are willing to conduct their own locate-compare-select process
________ represent buyers or sellers on a more permanent basis than brokers.
C) Agents
________ involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy a company's objectives.
C) Business analysis
Which of the following is an effect of the advancement of technology on marketing?
C) Consumers rely less on marketer-supplied information than in the past.
________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk.
C) Cost-based
________ are certificates that save buyers money while they purchase specified products.
C) Coupons
________ pricing occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers.
C) Deceptive
_______ consists of connecting directly with carefully targeted consumers, often on a one-to-one, interactive basis.
C) Direct marketing
________ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its products.
C) Full-line forcing
________ distribution is a product distribution strategy that involves stocking a product in as many outlets as possible.
C) Intensive
Which of the following is true with regard to kiosk marketing?
C) It can be used to provide customized product recommendations.
Which of the following statements is most likely true of team selling?
C) It can unearth problems and provide solutions that no individual salesperson could.
Which of the following is true of a direct marketing channel?
C) It does not use any intermediaries.
Which of the following is true of the product life cycle (PLC)?
C) It is generally difficult to forecast the sales level at each PLC stage.
Which of the following is a disadvantage of standardization of advertising messages?
C) It is less responsive to local market needs.
Which of the following is true of personal selling?
C) It is the most expensive promotional tool for companies to utilize.
Jacob Kendler works in a wholesale business which specializes in industrial goods needed in automobile industries. Jacob's job involves locating and contacting potential buyers and sellers and facilitating the negotiation process. Which of the following, if true, would strengthen the argument that Jacob works as an agent and not as a merchant wholesaler?
C) Jacob represents his company but is not liable for any damaged or low-quality goods.
Which of the following is a primary disadvantage of viral marketing?
C) Marketers have little control over who receives a viral message.
________ are sets of interdependent organizations that help make the product or service of a company available for use by consumers or business users.
C) Marketing channels
________ might appear anywhere on an Internet user's screen when a user is browsing through an article and are often related to the information being viewed.
C) Online display ads
________ refers to the amount of money charged for a product or service.
C) Price
Which of the following statements is true of shopping centers?
C) Shopping centers are groups of retail businesses built on a site that is planned, developed, owned, and managed as a unit.
Which of the following is a disadvantage of using social media tools for selling?
C) Social media tools can intimidate low-tech sales people or clients.
________ is the stage where a product and its proposed marketing program are introduced into realistic market settings.
C) Test marketing
Which of the following is a disadvantage of using online, mobile, and social media for advertising?
C) The audience controls ad exposure.
Which of the following is a drawback of using blogs as a marketing medium?
C) The content of a blog is difficult to control.
How has the Internet most likely affected direct marketing?
C) The expenditures of marketers on direct marketing have increased.
Hollingsworth is a retail company that is planning to release a new line of luxury personal care products. Its managers are now reviewing the sales history of similar products and conducting marketing surveys to estimate minimum and maximum sales for the product. In which of the following stages of the new product development process is the product?
C) business analysis
A convenience store ________.
C) carries a limited line of high-turnover goods for consumer self-service
Bradley Springs, a chain of superstores, promotes its business by handing out printed materials which contain lists and descriptions of an assortment of its products. In this case, the company's promotional strategy is referred to as ________.
C) catalog marketing
Pawz is a larger retailer that specializes in pet products and services such as pet food, accessories, grooming, toys, and medical treatment. Pawz also has animals available for adoption at all of its many stores located across the nation. Pawz is most likely an example of a ________.
C) category killer
Gershwin, a musical toy for toddlers, is in the maturity stage of the product life cycle, and Gershwin managers have decided to modify the product. What will Gershwin managers most likely do to achieve this goal?
C) change the packaging of the toy
In which of the following steps of the selling process does a salesperson ask a buyer for an order?
C) closing
A(n) ________ marketing system is a marketing system in which independent firms at different levels of production and distribution join together through binding agreements.
C) contractual vertical
Which type of channel arrangement does a franchise organization most likely follow?
C) contractual vertical marketing system
Evans and Hills, a beverages manufacturing company, has developed a new line of specialty teas and is seeking regular input from the test marketing process. To facilitate this process, the firm uses BuyerScan, a software that generates store-by-store, week-by-week reports on the actual sales of tested products and the impact of in-store and in-home marketing efforts. Which of the following approaches does this scenario illustrate?
C) controlled test markets
Value-based pricing is the reverse process of ________ pricing.
C) cost-based
A company designs what it considers to be a good product, calculates the expenses of making the product, and sets a price that adds a standard markup to the cost of the product. This approach to pricing is called ________ pricing.
C) cost-plus
For most companies, the first step in conducting online marketing is to ________.
C) create a Web site
Which of the following is the primary purpose of branded community Web sites?
C) creating customer-product engagement
Metro Museum has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________ pricing.
C) customer-segment
A product life cycle has five distinct stages: product development, introduction, growth, maturity, and ________.
C) decline
Dazed is a bar which mostly plays trance music and has a dedicated day every week for local bands to perform. To build strong customer relations, Dazed sends text messages to customers, telling them about happy hours, bands playing that week, dedicated genre nights, and other activities. Which of the following promotion mix tools does Dazed employ to reach target customers in this scenario?
C) direct marketing
Chef Brown's Health Food Store sells nutritional, energy-producing foods. Product prices are adjusted frequently to meet the needs of individual customers and situations. For example, long-time customers receive discounts. This strategy is most likely an example of ________ pricing.
C) dynamic
Which of the following is a transaction site?
C) eBay
The Memphis Rock chain of restaurants has a deal with WestEnd Cola, according to which it will serve only WestEnd sodas at its restaurants. What strategy has most likely been adopted by WestEnd Cola?
C) exclusive dealing
Flurrbies, a line of winter accessories by a leading fashion label, quickly fell in and out of favor with customers. Flurrbies represents an example of a(n) ________.
C) fad
Which kind of marketing involves sending an offer, announcement, reminder, or other item to a person at a particular postal address?
D) direct-mail marketing
Penny Bank, a discount store, is highly competitive. When entering a new market, Penny Bank often cuts prices so deeply that it sells below costs, effectively pushing smaller retail stores with less purchasing power out of the market. In this case, Penny Bank is using ________.
C) predatory pricing
Store brands are also known as ________ brands.
C) private
A ________ is the way consumers perceive an actual or potential product.
C) product image
Lazer Telecom, a cell phone manufacturer, has signed a contract with a production house to fund a new movie. The conditions of the agreement state that the movie will feature Lazer Telecom phones onscreen. What kind of advertising technique has Lazer Telecom most likely adopted in this example?
C) product placement
In which step of the selling process does a salesperson or company identify qualified potential customers?
C) prospecting
Robert Solis is a salesman in a company that specializes in event management. He uses the Internet to identify potential companies with which his company can build long-term profitable relationships. Which step in the selling process does this scenario depict?
C) prospecting
Power centers are characterized by the ________.
C) provision of individual entrances to each store
A company which uses a press release to explain the resignation of a former CEO is using ________ to maintain its brand image.
C) public relations
Pearl Sands is a resort in the town of Willington. It attracts the maximum number of customers in the summer. In the spring, Pearl Sands sponsors shows on TV and puts up billboards in Willington and the surrounding towns. The billboards advertise Pearl Sands as an ideal holiday spot, whether for a weekend getaway in the summer heat or for a family vacation. This is an example of a ________ strategy.
C) pull
Which term refers to the fixed amount in a salesperson's compensation?
C) salary
What is most likely the first major marketing decision that a retailer must take?
C) segmentation
Under a ________ product development approach, one company department works to complete its stage of the product development process before passing the new product along to the next department and stage.
C) sequential
Service perishability means that ________.
C) services cannot be stored for later sale or use
At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance departments work in cross-functional groups to save time and money in the new product development process. From this description, it can be inferred that Fantastic Flavors uses a(n) ________ approach.
C) team-based new product development
If a product passes both the concept test and the product test, the next step is most likely to be ________.
C) test marketing
In the competitive-parity method of setting an advertising budget, the budget is set based on ________.
C) the amount spent by similar companies in the same industry
Which of the following is an impact of the Great Recession on retailing trends?
C) tighter consumer spending patterns
Which of the following channel functions of wholesalers is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than are producers?
C) transportation
Which of the following is most efficient for short hauls of high-value merchandise and is highly flexible in its routing and time schedules?
C) trucks
Which of the following pricing strategies is the opposite of FOB-origin pricing?
C) uniform-delivered pricing
Which of the following has been limited in recent years by the implementation of the National Do Not Call Registry?
C) unsolicited outbound telemarketing by businesses
Fads are characterized by their ________.
C) unusually high sales and rapid decline
The growth of the Internet caused many traditional companies to ________ in response to customer demands and a changing marketplace.
C) use multichannel marketing
Which of the following best describes the personality symbol style of advertising?
C) using an animated character or mascot to represent a product in an advertisement
Which wholesaler channel function helps reduce the inventory holding costs and risks of suppliers and customers?
C) warehousing
Amazon.com and Expedia.com are best described as ________ that sell products and services directly to final buyers via the Internet.
D) e-tailers
Internal sources of new product ideas for a company include its ________.
D) employees
In a sequential new product development process, which of the following is true of the product development step?
D) Product development is usually followed by test marketing.
________ advertising primarily maintains brand relationships and is important for mature products.
D) Reminder
Which of the following statements is true of retailing?
D) Services like hotels, banks, airlines, restaurants, colleges, and hospitals can be retailed.
Which of the following is an advantage of exclusive dealing between a seller and a dealer?
D) The dealer obtains a steady source of supply and more support from the seller.
Which of the following is true about trends in wholesaling?
D) The demand for lower prices and higher quality has increased.
Which of the following is a desirable quality for a brand name?
D) The name should translate easily into foreign languages.
Which of the following is most likely true about direct and digital marketing?
D) They provide buyers with anytime, anywhere access to products.
Which of the following statements is true of salespeople?
D) They represent a company to its customers by communicating and selling.
________ costs refer to the sum of the fixed and variable costs for any given level of production.
D) Total
Which of the following is an advantage of a territorial sales-force structure?
D) Travel expenses are relatively small.
Pastaliano is a restaurant based in Illinois that exclusively sells Italian food. Pastaliano sells the rights to its recipes to a British firm, Clover Trading, which then opens an outlet in London under the Pastaliano brand name. Which kind of channel arrangement does Pastaliano most likely have with Clover Trading?
D) a contractual vertical marketing system
Crowbar Records used to sell its music CDs through a network of retail outlets, record stores, and music dealers but stopped using these agents with the advent of MP3 technology. Crowbar now sells its music independently on its Web site, through personal mail, and on social networking sites. Which type of marketing system has Crowbar most likely adopted?
D) a direct marketing channel
Which of the following is an example of a firm utilizing public relations as a promotion tool?
D) a firm providing interesting information about a product to the news media
Wholesalers most likely discourage less-profitable customers by ________.
D) adding service charges to small purchase orders
Koffee, a brand of instant coffee, gives away a free coffee mug with its logo imprinted on it with every purchase of a 500g packet of its instant coffee powder. Which promotion tool is Koffee using?
D) advertising specialties
Which mode of transportation is best for carrying perishable goods to distant markets?
D) air carriers
Millie Foods, producers of baby food, offers a monetary sum to retailers who agree to feature its new products on their shelves for a considerable time period. In this case, the promotion tool used by the company is referred to as a(n) ________.
D) allowance
Mintel Agro provides raw materials in the form of agricultural products to Kiltmark Food Company. Kiltmark produces flour-based edible products, which it distributes to a wholesale company called Yellowstar Trading. Yellowstar Trading then sells Kiltmark products to the discount retailer, Stroos. Stroos sells the products to consumers. Which of the following is considered a marketing intermediary in these transactions?
D) both Yellowstar Trading and Stroos
Conventions, trade shows, and sales contests are types of ________.
D) business promotions
Salespeople write up their completed activities in a(n) ________.
D) call report
Introducing a new product into the market is called ________.
D) commercialization
For a retailer to be able to differentiate from competitors and match target shoppers' expectations, the retailer's product assortment should most likely be ________.
D) constituted by national brands on which the store holds exclusive rights
The team-based new product development approach saves times because departments work closely together in ________.
D) cross-functional teams
Which of the following is a function of an integrated marketing communications system?
D) delivering a consistent message on the product to each brand contact
Which of the following is the fastest-growing form of direct marketing?
D) digital marketing
Which of the following is true of downstream channels in a company's supply chain?
E) They form an intermediary link between the company and its customers.
Campbell is one of the oldest retailers in the country. While the service offered at Campbell is fairly mediocre, the retailer is famous for its surprise offerings of seconds, overstocks, and closeouts-occasionally including expensive gadgets and jewelry. Posco, a new chain of retail stores, offers products that are similar to Campbell's offerings;however, Posco is known for encouraging customers to ask questions and for providing service representatives to assist customers in the purchasing decision process. From this scenario, which of the following statements is most likely true?;E) Posco better utilizes the services mix to differentiate itself from Venture Zone, a hiking and climbing equipment retailer, has a rock climbing wall inside the store so that consumers can test products prior to purchase. Venture Zone most likely differentiates itself from its competitors through ________.
D) experiential retailing
ABM Connect is one of the largest Internet service providers in India. The company's salespersons regularly contact buyers to make sure that the installation and services have been properly executed. Which of the following steps of the selling process does this scenario depict?
D) follow-up
ColaBlue, a soft drink manufacturer, is sued by an environmental group for not meeting certain safety standards in its waste disposal. ColaBlue remedies the problem by adding higher-grade filters and purifiers. Which of the following actions by ColaBlue would constitute a public-relations effort to address the effects of the lawsuit and the consequent damage to its brand image?
D) holding a press conference to explain the remedial steps that ColaBlue has taken
A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n) ________.
D) horizontal marketing system
The objective of ________ advertising is to build primary demand.
D) informative
Which technique is used by firms to deliver a unified and consistent image about their organizations and brands to consumers?
D) integrated marketing communications
Orienting and motivating customer-contact employees and supporting service people to work as a team to provide customer satisfaction is known as ________ marketing.
D) internal
Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers.
D) limited-service
Sandy Bayes works at Hilton Brews as a senior sales executive and manages all the key national accounts of his company. His job involves ensuring that key customers receive the best service from Hilton Brews. Sandy is also responsible for acquiring new customers with high consumption needs on a nation-wide basis. Despite his lack of product specialization in all the product lines, Sandy is hired for this position because of his excellent interpersonal skills. Hilton Brews has most likely adopted a ________ sales-force structure.
D) market
Which of the following best describes the term "Madison and Vine"?
D) merging advertising with entertainment
Faber Motors manufactures three lines of cars: high-end security cars for government agencies, commercial cars for consumers and individuals, and professional racing cars. The high-end security cars are sold directly to government buyers by the company. The consumer cars are sold through dedicated dealers who only sell Faber's lines at their outlets. For its professional racing cars, Faber collaborates with Radium Tires, an innovative and renowned tire manufacturer. Faber provides the engine and body, while Radium provides the tires and its expertise on the racing industry. Which term best describes Faber's channel arrangements?
D) multichannel distribution system
Xenon, a leading consumer-electronics manufacturing company, markets its products under the company's own brand name. In this case, Xenon has sponsored its products by promoting them as ________ brands.
D) national
Tilt Entertainment, a gaming design firm, has developed a new game called World Below. In order to get wider distribution, Tilt participates in the Gaming Entertainment Expo, which is attended by both sellers and consumers. Tilt sends a team of representatives for game presentation and negotiation and a team of professional gamers to showcase World Below at the Expo. The company also sends a team to sell its other games to consumers at the Expo. Which promotion mix tool has Tilt used in this scenario?
D) personal selling
Which of the following is a disadvantage of using social media for marketing?
E) They are largely user controlled.
Which of the following is true of RFID or "smart tag" technology?
E) "Smart shelves" can tell when it is time to reorder and can place orders automatically.
BerryBerry is a fruit juice company that has traditionally sold three varieties of mixed-fruit juices: DazzleBerry, AquaBerry, and GloBerry. The company wants to add more products to its product line. In this case, which of the following is an example of co-branding by BerryBerry?
E) BerryBerry teams up with SFX, a sporting goods company, to introduce a line of energy bars called BerryBerry SFX.
Which of the following is true of marketing through blogs?
E) Blogs are an inexpensive yet personal way to connect with consumers.
Which of the following statements is most likely true about the new product development process?
E) Customers, competitors, and suppliers are major sources of new product ideas.
________ allows consumers to gain additional information about a product or purchase a product through the use of a remote control.
E) Interactive TV
Which of the following is a characteristic of an inside sales force?
E) It conducts business from an office via telephone.
Which of the following is true of an exclusive dealing arrangement between a producer and a dealer?
E) It does not allow other producers to sell to that dealer.
Which of the following statements about break-even analysis is most likely true?
E) It fails to consider customer value and the relationship between price and demand.
Which of the following is true of a vertical marketing system?
E) It has one channel member owning all the other channel members or has contracts with all other channel members.
________ involves combining two or more systems of transportation to move products.
E) Multimodal transportation
Which of the following examples represents a territorial sales-force structure?
E) Oriental Meals, producers of precooked Chinese meals, markets its products throughout the country using a network of regional sales offices.
________ pricing refers to selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business.
E) Predatory
Which of the following is true about the introduction stage of a new product?
E) Sales growth tends to be slow.
Which of the following is true of the growth stage of the product life cycle?
E) Sales start climbing quickly.
_______ refers to using point-of-purchase promotions and advertising to extend brand equity to "the last mile" and encourage favorable point-of-purchase decisions.
E) Shopper marketing
Which of the following is true of consumers in the new marketing communications model?
E) They are better equipped to find product and brand information on their own.
Elise Philips, a leading fashion designer, connects with her followers through a strong online presence, promoting her brand and discussing fashion tips through articles and videos on her personal fan page. In this case, which of the following marketing forms does Elise use?
E) a blog
Which of the following is an example of a combination of sales promotions and direct marketing?
E) a company sending an e-mail to a customer about a discount on a product during a holiday season
Orion Steel is the chief provider of metals to Accline Cars, which manufactures two models of vehicles-cars and large buses. Accline dealers sell the firm's cars to individual citizens, but buses are sold directly to government entities. In such a distribution channel, which of the following would be considered a vertical conflict?
E) a conflict between Accline Cars and its dealers
In a(n) ________ marketing system, leadership over production and distribution is assumed through the size and power of one or a few dominant channel members.
E) administered vertical
Which of the following is a promotion tool used for trade promotions?
E) allowances
In which step of the selling process does a salesperson most likely meet a customer for the first time?
E) approach
Which of the following is a direct digital marketing tool?
E) blog
Setting a price for products that must be used along with a main product is known as ________ pricing.
E) captive-product
A ________ sales-force structure combines several types of sales force organizations.
E) complex
Marque, a high-end maker of designer watches, has started making inexpensive watches to take advantage of enormous growth rates in low-end market segments. Marque is most likely engaging in ________.
E) downward stretching
Brand ________ is the differential effect that knowing the brand name has on customer response to the product and its marketing.
E) equity
When a seller requires that only certain dealers carry its products, its strategy is known as ________.
E) exclusive distribution
Expanding a product line by adding more items within the present range of the line is known as product line ________.
E) filling
GreatWords is a book retailer. Due to the increasing demand for audiobooks, the firm decides to sell audiobooks in its stores. GreatWords signs a deal with Carpem, a leading producer of educational audiobooks. According to the deal, GreatWords will sell only Carpem's audio titles in its stores, while Carpem will not sell its books through other retailer stores. GreatWords profits from Carpem's popularity while Carpem, in return, enjoys better sales. This is most likely an example of a(n) ________ marketing system.
E) horizontal
A product line is most likely too short if managers can ________.
E) increase profits by adding items
Which of the following is an economic factor that affects the pricing decisions of a company?
E) interest rates
Which link in the service chain emphasizes superior employee selection and training?
E) internal service quality
Which of the following is an internal source of new product ideas for a company?
E) intrapreneurial programs
Trainstar, a sportswear equipment manufacturer, releases a new line of energy drinks called VitaZing. The television ad for the energy drink shows people jogging, working out in a gym, and doing aerobics. The actors then take a break to drink VitaZing, which visibly re-energizes them and leads them to continue exercising. Which advertising style is most likely used in the VitaZing ad?
E) lifestyle
Wayne Wholesaling fulfills many channel functions for its customers. The company mainly focuses on helping retailers to train their salespeople, improve store layouts, and set up inventory control systems. Based on this description, which channel function is provided by Wayne Wholesaling?
E) management services and advice
Corell Inc. has an online tool that offers a wide variety of Corell shoes for direct purchase. The tool even allows customers to individually design their shoes. Which of the following has Corell most likely used?
E) marketing Web site
Which of the following is an online tool designed to interact with customers to move them closer to a direct purchase or other marketing outcome?
E) marketing Web site
JP Wholesalers is one of the largest wholesalers of wooden furnishings in the country. Recently, the company opened a chain of stores called JP Designer Homes that has become popular due to the good reputation the company has as a wholesaler. The company has now started acquiring smaller retail chains and consolidating its position in the market. Which of the following trends is reflected in this scenario?
E) the blurring of distinctions between retailers and wholesalers
A firm that uses direct marketing would most likely sell its products through ________.
E) the company Web site
From the economic system's point of view, the role of marketing intermediaries is to ________.
E) transform the assortments of products made by producers into the assortments wanted by consumers
The difference between an inside sales force and an outside sales force is that an outside sales force ________.
E) travels frequently to call on customers in the field
Which of the following pricing strategies charges the same price plus freight to all customers, regardless of their location?
E) uniform-delivered pricing
In a ________, producers, wholesalers, and retailers act as a unified system. In such a structure, one channel member owns the others, has contracts with them, or has so much power that they all cooperate.
E) vertical marketing system
Which term refers to a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising?
E) voluntary chain
Department stores are most likely characterized by ________.
E) wide varieties of product lines
Which of the following statements is most likely true about unsought products?
Marketers use aggressive advertising to convince consumers to buy unsought products.
Which of the following is an industrial product categorized under supplies and services?
coal
Which of the following types of products are generally priced the lowest?
convenience products
A company that uses telephone marketing to sell its products to customers is most likely using the promotion tool of ________.
direct marketing
Which of the following is an example of an unsought product?
life insurance
Iron ore is an example of an industrial product that is categorized under ________.
materials and parts
Which of the following would be considered part of an augmented product rather than that of an actual product or core customer value?
warranty
Specialty products are consumer products and services that customers generally buy ________.
without making comparisons
