Busml 3150 Exam 3

Front 1

In marketing's four Ps, Place refers to all activities required to get

Back 1

the right products to the right customer when that customer wants it.

Front 2

Amazon.com was an early leader in online retailing. Part of the firm's success was due to a well-designed and efficient EDI system with book publishing companies, allowing just-in-time delivery. Even with a well-designed EDI system, Amazon.com would not have been successful without

Back 2

a commitment to partnering with publishing companies

Front 3

At the BMW plant, suppliers deliver parts every four hours when the plant is in operation and are responsible for removing any packaging or pallets used to deliver their products. BMW uses a ___ inventory control system.

Back 3

JIT

Front 4

Colin has just received a delivery from the company's distribution center. He opens the containers and finds the popcorn and snacks are all bar-coded, priced, and the package includes an end-of-the-aisle display rack. Colin has received a ___ shipment.

Back 4

floor-ready

Front 5

In an administered vertical marketing system,

Back 5

there is no common ownership, and the dominant member has significant power to impose its ideas and objectives.

Front 6

A ___ is a supply chain whose members act like a unified system.

Back 6

vertical marketing system

Front 7

Stores like Home Depot and Costco act as wholesalers when they

Back 7

sell to contractors or restaurant owners.

Front 8

Students of marketing often overlook or underestimate the importance of Place in the marketing mix simply because

Back 8

it happens behind the scenes

Front 9

Felicia had just taken over her family's business after spending ten years in the marketing department of a large corporation. She met with a representative from one of her firm's biggest customers, who told her, "We should think about how we can make the pie bigger rather than fighting over the size of the slices." She had expected a more cutthroat approach rather than this call for a

Back 9

partnering relationship

Front 10

Some retailers require their suppliers to ship merchandise ____, thus eliminating the time and expense associated with ticketing and marking.

Back 10

floor-ready

Front 11

By reducing the number of transactions needed to move a product from the manufacturer to the consumer, wholesalers and retailers make a supply chain

Back 11

more efficient

Front 12

A distribution center is typically operated by

Back 12

retailers, manufacturers, or distribution specialists

Front 13

A ___ is a facility for the receipt, storage, and redistribution of goods to company stores or customers.

Back 13

distribution center

Front 14

In a corporate vertical marketing system,

Back 14

participants -- such as warehouses, transportation companies, and retail outlets -- are typically owned by a parent company to ensure harmonious relations throughout the supply chain.

Front 15

Each time a politician or celebrity writes a book, bookstores can expect at least some customers to want the book, but whether or not it will become a bestseller is uncertain. The bookstore's primary inventory management challenge is

Back 15

having enough books to satisfy customer demands versus the cost of having the inventory

Front 16

In a ___ marketing channel, none of the participants has any control over the others

Back 16

conventional

Front 17

Yesterday, Lorna overheard a surprisingly unpleasant encounter between the manager of the hardware store where she works an a sales rep who sells a well-known line of tools. The rep insisted that his tools should be more prominently displayed and that a better assortment would mean more sales. The manager had other plans and told him so, and the conversation turned into a loud argument. What Lorinda observed was an example of

Back 17

channel conflict

Front 18

Franchising involves a ___ marketing system

Back 18

contractual

Front 19

Compared to conventional supermarkets, warehouse clubs have

Back 19

a lower level service

Front 20

If a manufacturer wasn't happy with either intensive or exclusive distribution, a logical choice, which incorporates some features from both, would be ___ distribution.

Back 20

selective

Front 21

Brian, an industrial equipment sales rep, purchases a quick snack to eat on the way to work. He buys lunch on the road while visiting customers, and grabs bread and milk on the way home. Brian probably does the majority of his shopping at a

Back 21

convenience store

Front 22

Supercenters have become the fastest growing retail category by combining broad assortments of groceries and general merchandise products. ___ dominates this category with the vast majority of supercenters in the US.

Back 22

Walmart

Front 23

Of the following, the best example of a category killer is

Back 23

Staples

Front 24

One of the greatest constraints faced by store-based retailers -- and one that the Internet channel can address -- is

Back 24

the amount of merchandise that can be carried in a physical store

Front 25

It is often difficult for retailers to distinguish themselves from their competitors through the merchandise they carry because

Back 25

competitors can purchase and sell many of the same popular brands

Front 26

___ is the term used to describe the situation when retailers use some combination of store, catalogs, and the Internet to sell merchandise.

Back 26

Multichannel retailing

Front 27

Personal selling is particularly important for retailers selling

Back 27

products that are complicated or expensive

Front 28

Mira purchased some eyeliner from an Internet-based beauty supply house, and now she often receives online recommendations for other products from the same cosmetics line. These recommendations were probably the result of

Back 28

the purchases she had made

Front 29

When Sheila decided to sell her shoe racks on eBay, she stated the price and a shipping rate according to the delivery area. Which method of pricing was Sheila using?

Back 29

zone pricing

Front 30

Ben owns a lawn care business. From experience, Ben has found that John Deere equipment lasts almost twice as long as competitors' machines. For John Deere, Ben's perception about its products makes ___ pricing possible.

Back 30

cost of ownership

Front 31

Retailers use ___ to get rid of slow moving or obsolete merchandise.

Back 31

markdowns

Front 32

Pricing ___ products is especially challenging because little or nothing is known about consumers' perceptions of value.

Back 32

new-to-the-world

Front 33

Supermarkets often offer great deals on milk, beef, or eggs to get customers into their stores, knowing that many customers will also purchase items that have higher markups for the store. These supermarkets are using a ___ pricing tactic.

Back 33

leader

Front 34

Value based pricing methods include approaches to setting prices that focus on the overall value of the product offering

Back 34

as perceived by the consumer

Front 35

An everyday low pricing strategy stresses the continuity of retail prices

Back 35

at a level somewhere between the regular price and the deep-discount sales price competitors may offer.

Front 36

Compared to other pricing methods, ___ pricing is relatively simple.

Back 36

cost-based

Front 37

Everyday low pricing (EDLP) provides value to consumers by

Back 37

reducing their search costs

Front 38

One of the difficulties associated with value-based pricing is that

Back 38

it necessitates a great deal of consumer research to be implemented successfully

Front 39

Dan is especially price sensitive. He has been known to line up on "Black Friday" at 4am in order to be among the first to buy sale items. Dan would likely respond to a ___ pricing strategy.

Back 39

high/low

Front 40

The saying "leave the money on the table" is associated with

Back 40

using a market penetration strategy when there is an opportunity for price skimming

Front 41

Price skimming focuses on selling products to ___ and ___ in the consumer adoption process model.

Back 41

innovators and early adopters

Front 42

Firms using a ___ pricing method set their prices relative to what other firms are charging.

Back 42

competitor based

Front 43

In determining the price for his company's new pocket digital camera, Matt determines what consumers consider the regular or original price for similar cameras available in the market. Matt is assessing the influence of ___ on price strategy.

Back 43

reference prices

Front 44

Marketers use a price skimming strategy for any or all of the following EXCEPT

Back 44

to gain market share quickly

Front 45

A weakness associated with cost-based pricing methods is that they

Back 45

do not recognize the role that consumers or competitors' prices play in the marketplace

Front 46

In a ___ pricing strategy, marketers rely on the promotion of sales, during which prices are temporarily reduced to encourage purchases.

Back 46

high/low

Front 47

In determining the price for his company's new personal computer photography printer, Raymond is assessing the total cost of owning his printer as compared to alternative products available in the market. Raymond is using ___ pricing.

Back 47

cost of ownership

Front 48

A reference price is

Back 48

the price against which buyers compare the actual selling price.

Front 49

___ lowers the price below the store's cost.

Back 49

loss leader pricing

Front 50

Developing price strategies for ___ is one of the most challenging tasks a manager can undertake.

Back 50

new products

Front 51

With a ___ pricing strategy, marketers set a low initial price for the introduction of a new product or service.

Back 51

market penetration

Front 52

Retailers often require manufacturers to pay ___ in order to obtain shelf space for new products

Back 52

slotting allowances

Front 53

The ___ occurs when unit cost drops as the quantity sold increases.

Back 53

experience curve effect

Front 54

Yurgen is opening a financial consulting service for high-income retirees in his area. This target market is used for paying for quality and associates high quality with high prices. Surgeon should probably NOT use a market penetration pricing strategy because

Back 54

a low price might signal low quality

Front 55

When Burroughs-Wellcome introduced the first anti-AIDS drugs, they initially set the price at $10,000 for a year's supply. Burroughs-Wellcome was probably pursuing a ___ pricing strategy.

Back 55

skimming

Front 56

Mario is the first retailer in town to sell games for Sony's new PS3. Mario wants to quickly capture as much of the market for the new games as possible. Mario will likely use a ___ pricing strategy.

Back 56

market penetration

Front 57

When Apple introduced the iPhone, it was priced at $499 - considerably higher than either the iPod or competing cell phones. Apple was probably pursuing a ___ pricing strategy.

Back 57

skimming

Front 58

For marketers using a price skimming strategy, once the initial demand is met for new and innovative products, they will likely

Back 58

lower the price to capture the next most price sensitive market segment.

Front 59

When Toyota introduced its Scion line of cars, the lowest priced model was listed for $15k while the highest priced model was for $21k with 2 or 3 other prices in between. Toyota used a ___ pricing approach.

Back 59

price lining

Front 60

For a price skimming strategy to be successful,

Back 60

it must be difficult for competitors to enter the market.

Front 61

In determining the price for his company's new small business accounting software, Raymond is assessing how much better the software is as compared to alternative products available in the market. Raymond is using ___ pricing.

Back 61

improvement value

Front 62

When the first hybrid automobiles became available on the market, manufacturers had only minimal production capacity. They used a price skimming strategy primarily to

Back 62

limit demand

Front 63

The major objectives associated with a market penetration pricing strategy are to

Back 63

quickly build sales and market share

Front 64

Charging a relatively high price for a new and innovative product to those consumers most willing and able to pay the high price is called price

Back 64

skimming

Front 65

What do the BRIC countries have in common?

Back 65

They are experiencing significant levels of economic growth

Front 66

Which of the following trade agreements is designed to manage and promote trade activities for the US, Canada, and Mexico?

Back 66

NAFTA

Front 67

Tariffs, quotas, and currency exchange policies affect global

Back 67

pricing strategies

Front 68

The most important consideration when a firm chooses global product strategy should be

Back 68

the needs of the target market

Front 69

Which of the following best describes the direct investment global entry strategy?

Back 69

With direct investment, a firm maintains total ownership of its plants, operation facilities, and offices in a foreign country

Front 70

The term "trade deficit" refers to

Back 70

higher levels of imports than exports

Front 71

Developed countries are experiencing ___ population growth.

Back 71

Zero or negative

Front 72

Gerald is assessing global entry strategies for his gourmet sandwich business. He does not want to take a lot of risk and he is wiling to limit his control of international stores. Gerald will likely use ____ strategy.

Back 72

franchising

Front 73

Cultural nuances, subcultures, and consumers' different views of their roles in different countries can make ____ complicated.

Back 73

segmentation, targeting, and positioning

Front 74

Of the 5 strategies for entering new markets, direct investment creates the

Back 74

greatest potential risk

Front 75

When a company decides to minimize risk and enter a global market by shipping its products to buyers in other countries, this is known as

Back 75

exporting

Front 76

Which of the following is currently a negative factor for foreign investment in India

Back 76

India's infrastructure for supply chain management is not up-to-date.

Front 77

The Big Mac Index is a novel measure of

Back 77

purchasing power parity

Front 78

The major advantage of primary data collection is that

Back 78

it can be tailored to meet the specific research needs

Front 79

Marketing research includes all of the following except

Back 79

creating data ANSWER: collecting, recording, interpreting, and analyzing

Front 80

Quitman had no idea how consumers would respond to a survey about attitudes toward a program opening up space travel to private citizens. He could use _____ to allow respondents to answer in the own words.

Back 80

a survey with open-ended questions

Front 81

In a focus group, researchers usually videotape the session in order to

Back 81

assess both verbal and nonverbal responses

Front 82

When the market research problem is not clearly defined, a researcher will likely engage in _____ research

Back 82

experimental

Front 83

Which of the following is NOT one of the guidelines for developing a market research questionnaire?

Back 83

Sensitive questions should be asked first (THEY SHOULD NOT)

Front 84

A _____ is a small group of people brought together for an intensive discussion of a topic

Back 84

focus group

Front 85

Zan wants to collect considerable information about the current opinions of his ten most important customers. Zan will probably use the _____ research method

Back 85

in-depth interview

Front 86

From charitable giving to medical records to Internet tracking, consumers are more anxious than ever about

Back 86

preserving their rights to privacy

Front 87

When conducting a research study attempting to understand what features were most important to automobile consumers, Gary used a questionnaire containing ____ questions, with a predetermined set of response options.

Back 87

structured

Front 88

Pick out the single FALSE statement about channel functions from the following

Back 88

These functions cannot be shifted. RIGHT ANSWERS: functions are universal; performing the functions makes products available when, where, and how customers want them; the functions were "paired up" in class discussion

Front 89

Economies of scale and specialization are _____

Back 89

potential advantages for middlemen

Front 90

Scrambled merchandising occurs when retailers expand _____ of the merchandise they carry

Back 90

the breadth

Front 91

Which one of the following American retailing institutions is still gaining market share

Back 91

chain store organizations

Front 92

Which one of the following American retailing institutions provided a model that other types of stores literally moved into

Back 92

food supermarkets

Front 93

Retailers frequently offer products within a category at a range of several prices, a practice called _____.

Back 93

price lining

Front 94

Private label products are usually sold with ____ pricing

Back 94

below the market

Front 95

Pick out the single false statement:

Back 95

The current CPI shows that consumer prices have about tripled since the base period 1982-1984 RIGHT ANSWER: The US has experienced some inflation every year since the start of WWII; price competition in the US is now very high even though the rate of inflation is low; price consciousness in the US is now very high, even though the the rate of inflation is low.

Front 96

Off-pricing and follow the leader pricing are both examples of pricing that appears to be based almost entirely on

Back 96

competition

Front 97

____ pricing is best done by airlines, although hotels and colleges have gotten very good at it too.

Back 97

Revenue yield maximization

Front 98

Commitment, risk, and control are greatest with _____.

Back 98

direct investment

Front 99

Accidents of geography, a large internal market, and relative isolation from the rest of the world all combine to ____

Back 99

make the US less dependent on global trade than most countries

Front 100

Pick out the single FALSE statement about global marketing

Back 100

In general, global brads make branding harder to manage and a consistent image harder to maintain. RIGHT ANSWER: teenagers and the "really rich" re examples of global segments, global brands enjoy economies of scale, "thinking globally" is a better of degree (not an either-or proposition)

Front 101

The Nielson TV ratings are an example of ____ for companies that use them.

Back 101

external secondary data

Front 102

Techniques borrowed from anthropology have recently changed the way _____ marketing research is carried out.

Back 102

observational

Front 103

Pick out the single FALSE statement about marketing research

Back 103

The mall intercept method has just about disappeared due to lack of consumer co-operation. RIGHT ANSWER: Almost anything done in marketing research is now being attempted online; doing marketing research definitely does not guarantee that good decisions will be made; marketing research has been extensively outsourced in recent years