UT BUAD 3010 test 3

Which of the following is an example of horizontal channel​ conflict? Answers: A consumer complaining to a retailer about the service he received. A retailer complaining about receiving damaged goods from a wholesaler. A Ford dealer complaining that another Ford dealer is advertising in its territory. A consumer complaining to a producer about the quality of a product. E.A retailer complaining about a​ producer's pricing.

A Ford dealer complaining that another Ford dealer is advertising in its territory.

What is the most common type of a contractual​ VMS? Answers: A retailer A wholesaler A supplier A channel intermediary A franchise

A franchise

Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this​ represent? Answers: Administered VMS Franchise Corporate VMS Contractual VMS Conventional distribution channel

Administered VMS

________ advertising would most likely result in attack ads between competitors. a. Reminder b. Comparative c. Personal d. Informative e. Classified

Comparative

Consumers rely less on price to judge the quality of a product when they ________. Answers: have prior experience with the product lack information about the product are unable to judge the quality of the product are unable to research the product rely on cues from sellers to differentiate a high or low price

Correct have prior experience with the product

What are the two major elements in developing advertising​ strategy? Answers: Determining the advertising budget and evaluating results Determining the target audience and selecting advertising media Creating advertising messages and selecting advertising media Creating advertising messages and selecting advertising agencies Creating advertising messages and setting the advertising budget

Creating advertising messages and selecting advertising media

________ refers to setting price based on​ buyers' perception of value rather than on the​ seller's cost. Answers: Customer​ value-based pricing Value-added pricing Cost Cost-based pricing Good-value pricing

Customer​ value-based pricing

What is the overall goal when retailers choose their product​ assortment? Answers: Offer products that will appeal to as many segments as possible. Offer the same products as their competitors. Only choose products that will maximize profits. Differentiate the retailer while matching target​ shoppers' expectations. Offer as many products as they can fit on the shelves.

Differentiate the retailer while matching target​ shoppers' expectations.

Which promotional tool engages directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer​ relationships? Answers: Public relations Advertising Personal selling Sales promotion Direct and digital marketing

Direct and digital marketing

Sadie's Restaurant has listened to its customers over the years and is now able to offer the right combination of quality and good service at a fair price. Which pricing strategy is​ Sadie's using? Answers: Breakeven pricing Cost-based pricing Value added pricing Good-value pricing High-low pricing

Good-value pricing

Which of the following correctly describes the retail practice known as​ high-low pricing? Answers: High-low pricing means the retailer does not have to run sales on selected items. High-low pricing means retailers charge an everyday low price. High-low pricing means retailers do not have to use promotions. High-low pricing means some products are priced high and others are priced low. High-low pricing means charging higher prices on an everyday​ basis, coupled with frequent sales and other price promotions.

High-low pricing means charging higher prices on an everyday​ basis, coupled with frequent sales and other price promotions.

Which advertising objective is used heavily when introducing a new product​ category? Answers: Reminder Attack Informative Comparative Persuasive

Informative

Which of the following is a shortcoming of advertising? Answers: It can be too customized and only attracts small, niche markets. It does not allow dramatization of the brand or company. It reaches targeted customers too slowly in most cases. It is the most costly promotion tool for companies. It only provides one-way communication with customers.

It only provides one-way communication with customers.

Which of the following is a shortcoming of advertising? a. It does not allow dramatization of the brand or company. b. It only provides one-way communication with customers. c. It can be too customized and only attracts small, niche markets. d. It reaches targeted customers too slowly in most cases. e. It is the most costly promotion tool for companies.

It only provides one-way communication with customers.

Which of the following is true of an intensive distribution strategy? Answers: It gives sole rights to select dealers in a given area. It strives to make products available where and when consumers want them. It discards traditional intermediaries and uses direct marketing to reach customers. Compared with other distribution strategies, it uses the least number of intermediaries to sell products. Compared with other distribution strategies, it provides the best support for dealers of luxury products.

It strives to make products available where and when consumers want them.

Which of the following is a reason that producers use marketing channels and channel​ intermediaries? . Answers: Marketing channel decisions only require a​ short-term commitment. The reduced costs of using channel intermediaries offsets the inefficiencies of marketing channels. Using channel intermediaries increases the number of contacts with customers. Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers. Using marketing channels allows producers to retain control over how and to whom they sell their products.

Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.

Which of the following statements about major retail trends is​ true? Answers: Retail convergence has decreased competition for retailers. The green movement has not yet affected retailing. The lifecycle of new retail forms is getting longer. Online buying is growing at a much brisker pace than retail buying as a whole. The global expansion of major retailers into other countries has slowed down.

Online buying is growing at a much brisker pace than retail buying as a whole

________ advertising is utilized most often by​ mature, well-known brands. Answers: Attack Persuasive Informative Reminder Comparative

Reminder

________ refers to the activities involved in selling products or services directly to final consumers for their​ personal, nonbusiness use. Answers: Warehousing Manufacturing Shopper marketing Retailing Wholesaling

Retailing

________ is a​ short-term incentive to encourage the purchase or sale of a product or service. Answers: Public relations Advertising Direct and digital marketing Sales promotion Personal selling

Sales promotion

_______ involves focusing the entire marketing process toward turning shoppers into buyers as they approach the point of sale. Answers: Showrooming Internal marketing Shopper marketing Retailing Warehousing

Shopper marketing

Which type of retailer carries a narrow product line with deep assortments within those​ lines? Answers: Specialty stores Department stores Supermarkets Convenience stores Superstores

Specialty stores

Which of the following statements regarding the changing communications landscape is​ correct? Answers: Marketers today are shifting their efforts to mass marketing. The digital age has had little impact on marketing communications. The dominance of​ television, magazines, newspapers and other traditional mass media is declining. More than​ ever, consumers are relying on marketers for information. In terms of​ communication, today's consumers are less empowered.

The dominance of​ television, magazines, newspapers and other traditional mass media is declining.

Which of the following statements about public relations is​ correct? Answers: The lines between advertising and public relations are becoming more and more blurred. Trade associations do not use public relations. Public relations is only used to promote products. The impact of public relations on public awareness comes at a much higher cost than advertising. Public relations cannot be used to engage consumers.

The lines between advertising and public relations are becoming more and more blurred.

Internal factors that affect pricing include​ ________. Answers: The​ company's overall marketing​ strategy, objectives and the nature of the market The​ company's overall marketing​ strategy, objectives, and marketing mix The​ company's overall marketing​ strategy, objectives and demand The​ company's overall marketing​ strategy, the nature of the​ market, and demand. The nature of the​ market, demand, and the economy.

The​ company's overall marketing​ strategy, objectives, and marketing mix

What is the goal of integrated marketing​ communications? Answers: To lower overall marketing expenditures To have different media carry different messages about a brand To integrate communications via online and mobile technologies To deliver​ clear, consistent, and compelling messages about the organization and its brands To maximize return on investment

To deliver​ clear, consistent, and compelling messages about the organization and its brands

________ includes all the activities involved in selling goods and services to those buying them for resale or business use. Answers: Franchising Crowdsourcing Wholesaling Sole sourcing Showrooming

Wholesaling

In which of the following situations is a producer guaranteed full control over product sales? Answers: a contractual distribution channel a corporate marketing channel an administered marketing system a direct marketing channel a horizontal marketing system

a direct marketing channel

In the promotion​ mix, ________ refers to any paid form of nonpersonal presentation and promotion of​ ideas, goods, or services by an identified sponsor. Answers: public relations advertising crowdsourcing sales promotion personal selling

advertising

As with other types of marketers, a primary goal in wholesaling is to ________. a. match competitors' strategies b. establish a greater number of locations c. build value-adding customer relationships d. hold prices constant e. maintain the status quo

build value-adding customer relationships

Gillette charges a fairly low price for its razors​ (relative to​ costs) and a high price for razor blades. It is using a strategy of​ ___________ pricing. Answers: product line captive-product two-part pricing product-bundle by-product

captive-product

A(n)_______ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to find the final buyer. Answers: channel level supply chain value delivery network contact marketing channel

channel level

Which of the following sets the upper limit for a product's pricing? a. profits b. product costs c. consumer perceptions of value d. elements of the product mix e. competition

consumer perceptions of value

Sherwin-Williams sells its paint and other branded products exclusively through​ company-owned retail stores.​ Sherwin-Williams has established​ a(n) _________. Answers: contractual VMS administered VMS vertical marketing system conventional distribution channel corporate VMS

corporate VMS

Owning the entire distribution chain - from its own design and manufacturing operations to distribution through its own managed stores - has turned French sunglasses chain Air Optics into the world's fastest-growing glasses retailer. This is an example of a(n) ________ marketing system. a. contractual vertical b. corporate vertical c. administered vertical d. horizontal e. direct

corporate vertical

The local movie theater 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. a. time-based b. location-based c. customer-segment d. by-product e. product form

customer-segment

Macy's carries several product lineslong dashtypically ​clothing, home​ furnishings, and household goodslong dashwith each line operating as a separate department managed by specialist buyers or merchandisers.​ Macy's is best described as​ a(n) ________. Answers: superstore department store discount store specialty store off-price retailer

department store

Leading "big-box" stores, such as Walmart and Target, now dominate the retail scene. However, even "small-box" stores like Dollar General, are thriving in the current economic environment. All three retailers are considered ________. Answers: specialty stores discount stores convenience stores designer shops full-service retailers

discount stores

Changes in technology and the explosive growth of direct and online marketing are having a profound impact on the nature and design of marketing channels. One major trend is toward ________ insofar as product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones. Answers: horizontal marketing systems intermediation vertical marketing systems disintermediation corporate vertical marketing systems

disintermediation

For over 10 years, Choppy, a publishing and educational company that produces college textbooks, has been selling its books through off-campus bookstores. Recently, it stopped selling its books through retail stores and set up its own Web site to sell its books. This change in channel organization is called ________. a. disintermediation b. intensive distribution c. brokering d. franchising e. selective distribution

disintermediation

Online marketers taking business from traditional​ brick-and-mortar retailers is an example of​ _____. Answers: vertical conflict disintermediation franchising an administered VMS horizontal conflict

disintermediation

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? a. direct marketing b. exclusive dealing c. disintermediation d. horizontal integration e. vertical integration

exclusive dealing

Carefully orchestrating the​ store's layout and​ displays, background​ music, colors, and smells is related to​ ________. Answers: megaretailing online retailing green retailing social media retailing experiential retailing

experiential retailing

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? Answers: full-service stores discount stores convenience stores self-service stores off-price stores

full-service stores

Lush Lawns, a new landscaping company, uses the same logo and shade of green in all forms of communication including its online ads, truck signage, Web site, and business cards. Which technique is being used by Lush Lawns to promote its business? Answers: logistics information management inventory control segmentation global marketing management integrated marketing communications niche market penetration

integrated marketing communications

Pretty Petunias, a new fresh flower company, uses the same logo and shade of pink in all forms of communication including its online ads, truck signage, Web site, and business cards. Which technique is being used by Pretty Petunias to promote its business? a. logistics information management b. inventory control segmentation c. niche market penetration d. integrated marketing communications e. global marketing management

integrated marketing communications

Producers of convenience products typically use​ ______ distribution. Answers: franchise direct intensive selective exclusive

intensive

Techgear, a sportswear equipment manufacturer, releases a new line of nutrition drinks called NutriJuice. The television ad for the drink shows people jogging, working out in a gym, and doing aerobics. The actors then take a break to drink NutriJuice, which visibly re-energizes them and leads them to continue exercising. Which advertising style is most likely used in the NutriJuice ad? a. scientific evidence b. technical expertise c. personality symbol d. testimonial evidence e. lifestyle

lifestyle

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? Answers: time-based pricing market-penetration pricing location-based pricing market-skimming pricing product-form pricing

location-based pricing

Many state colleges and universities charge one price for​ in-state students and a higher price for​ out-of-state students. Which form of segmented pricing are these schools​ using? Answers: time-based pricing customer-segment pricing location-based pricing promotional pricing product form pricing

location-based pricing

The first generation Samsung watch was introduced for $500. The following year the price was reduced to $450. Samsung uses a ________ strategy to price its tech products a. market-skimming b. target costing c. deceptive d. market-penetration e. predatory

market-skimming

Maddie's Sneakers, a manufacturer of fine sneakers, sells its products through its online Web site, a catalogue, and specialty boutiques that target women. Which kind of channel arrangement does Maddie's Sneakers employ to distribute its products? a. horizontal marketing system b. multichannel distribution system c. administered vertical marketing system d. contractual vertical marketing system e. corporate vertical marketing system

multichannel distribution system

According to the text, the most logical budget-setting method in advertising is the ________ method. Answers: competitive-parity percentage-of-sales objective-and-task affordable adaptive-control

objective-and-task

A car buyer can choose a base model at one​ price, or one with a premium sound and navigation system at a higher price. This is an example of​ _______ pricing. Answers: optional-product product-bundle captive-product by-product product line

optional-product

Circuit City 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 b. optional-product c. by-product d. product bundle e. captive-product

product line

Starbucks has signed a contract with a television production company to have its brand featured prominently in a new situation comedy about empty nesters. The conditions of the agreement state that the situation comedy will feature only the Starbucks brand of coffee. What kind of advertising technique is being used in this example? Answers: product placement advertainment vertical integration geofencing subliminal advertising

product placement

Bath​ & Body Works offers​ "three-fer" deals on its soaps and lotions​ (such as three antibacterial soaps for​ $10). This is an example of​ _______ pricing. Answers: by-product two-part pricing product line product-bundle captive-product

product-bundle

A retailer temporarily prices a few select items below cost to create excitement and pull consumers into the store. This is an example of​ _________ pricing. Answers: segmented geographical optional product psychological promotional

promotional

In ________, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities. Answers: a pure monopoly pure competition oligopolistic competition a pure monopsony monopolistic competition

pure competition

There are more than 15 wheat farmers in Bowling Green, Ohio, that grow, package, and distribute the same quality wheat. An individual farmer cannot charge more than the going market price per unit without the risk of losing business to the other farmers. This is an example of ________. a. pure competition b. monopolistic competition c. oligopolistic competition d. a pure monopoly e. a black market

pure competition

Act mouthwash has used a ________ style of advertising to convince buyers that Act is better than other brands at fighting bad breath and gingivitis since it uses a special flouride compound that adheres to your teeth. a. testimonial evidence b. technical expertise c. scientific evidence d. mood or image e. fantasy

scientific evidence

Stores that provide very limited, if any, sales assistance because they carry convenience products which customers need very little, to no, information are called ________ retailers. a. self-service b. full-service c. off-price d. limited-service e. convenience

self-service

Hotels and​ motels, banks,​ airlines, restaurants,​ colleges, hospitals, movie​ theaters, tennis​ clubs, bowling​ alleys, repair​ services, hair​ salons, and dry cleaners are all examples of​ ________. Answers: service retailers specialty stores franchises non-retailers Wholesalers

service retailers

Scott and his fiancé visit several electronics stores in and around their hometown of Boston. They use their smartphones to capture information about manufacturers and pricing, and ultimately decide to purchase their favorite items online. This is referred to as ________. a. warehousing b. wholesaling c. retailing d. franchising e. showrooming

showrooming

The practice of coming into retail stores to check out merchandise and prices but making purchases online using a computer or mobile device is called​ _______. Answers: experiential retailing shopper retailing off-price retailing showrooming. mobile retailing

showrooming.

The ________ style of advertising shows ordinary people clearly using a product in a normal setting. Answers: mood or image slice of life testimonial evidence technical expertise personality symbol

slice of life

The​ _____________ message execution style shows one or more​ "typical" people using the product in a normal setting. Answers: lifestyle fantasy scientific evidence slice of life mood or image

slice of life

The American Tie Company, a necktie retailer, offers a deep assortment of men's neckties. The American Tie Company is best described as a(n) ________. Answers: discount store specialty store supermarket department store off-price retailer

specialty store

The French Purse Company, a purse retailer, offers a deep assortment of ladies' purses. The French Purse Company is best described as a(n) ________. a. department store b. supermarket c. specialty store d. discount store e. off-price retailer

specialty store

Which type of retailer is much larger than a regular supermarket and offers a large assortment of routinely purchased food products, nonfood items, and services. a. discount stores b. specialty stores c. factory outlets d. superstores e. off-price outlets

superstores

When setting channel​ objectives, companies should state the objectives in terms of​ ______. Answers: the length of the channel targeted levels of customer service exclusive distribution arrangements expected profitability competitor's objectives

targeted levels of customer service

A firm that uses direct marketing would most likely sell its products through ________. Answers: big box retailers multiple intermediaries one marketing intermediary large wholesalers the company Web site

the company Web site

The length of a channel is indicated by​ ___________. Answers: the number of wholesalers in the channel the number of final consumers the number of intermediary levels the number of retailers in the channel the number of producers

the number of intermediary levels

Which of the following is an impact of the Great Recession on retailing trends? Answers: lower costs for retailers economic shift toward higher prices tighter consumer spending patterns prohibition on new retail forms longer retail life cycles

tighter consumer spending patterns

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. a. manufacturing chain b. distribution center c. marketing intermediary d. value delivery network e. disintermediation system

value delivery network

A ________ pricing strategy for an offering begins with an assessment of customer needs and perceptions. Then a target price is set based on customer perceptions of worth. Answers: value-added target costing value-based cost-based competition-based

value-based

Each PC produced by HP involves a cost of computer chips, wires, plastic, packaging, and other inputs. Although these costs tend to be the same for each unit produced, they are called ________ costs because the total changes based on the number of units produced. Answers: payroll fixed capital variable target

variable

A ________ consists of producers, wholesalers, and retailers acting as a unified system. The system can be dominated by any one of the interdependent members. Answers: vertical marketing system lateral marketing system conventional distribution channel horizontal distribution channel direct marketing system

vertical marketing system

One major objective associated with a​ market-penetration pricing strategy is to​ ________. Answers: attract buyers willing to pay a higher price win a large market share skim off small but profitable market segments avoid everyday low pricing prevent customer dissatisfaction

win a large market share

When Apple Computer Company introduced its​ iPhone, its priced the new product at​ $599, considerably higher than either their iPod or competing cellular phones. Apple Computer was pursuing a​ ___________________ new product pricing​ strategy. Answers: ​market-skimming by-product captive-product optional-product market-penetration

​market-skimming