Reference no: EM131340328

Q1. When using price steps, the seller must establish perceived ________ that support the price differences among the products in the line.

a. images

b. nonprice competition

c. value differences

d. quantity levels

e. strategies

Q2. It is most typical for producers who use captive-product pricing to set the price of the main product ________ and set ________ on the supplies necessary to use the product.

a. high; low markups

b. moderately; moderate markups

c. low; high markups

d. high; high markups

e. low; low markups

Q3. Busch Stadium in St. Louis charges different prices for seats in different areas of the ballpark, even though their costs are the same. What is this form of pricing called?

a. penetration

b. location-based

c. skimming

d. product-form

e. time-based

Q4. When Circuit Town Electronics sets its televisions at three price levels of $699, $899, and $1,099, it is using ________.

a. target return pricing

b. product line pricing

c. market-penetration pricing

d. break-even pricing

e. market-skimming pricing

Q5. If Canon Camera Company follows a high-price, high-margin strategy, what will competitors most likely do?

a. They will advertise less.

b. They will want to compete by undercutting Canon's price.

c. They will use market-skimming pricing.

d. They will unbundle their products.

e. They will go out of business.

Q6. Value-based pricing is the reverse process of ________ pricing.

a. variable cost

b. value-added

c. good-value

d. cost-plus

e. cost-based

Q7. General Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment. This approach is called ________.

a. target return pricing

b. value-based pricing

c. cost-plus pricing

d. low-price image

e. going-rate pricing

Q8. Which of the following is a cost-based approach to pricing?

a. going-rate pricing

b. good-value pricing

c. break-even pricing

d. value-based pricing

e. A and C

Q9. Mach 3 razor blades must be used in the Mach 3 razor. Which type of pricing is most likely used?

a. optional-product pricing

b. captive-product pricing

c. by-product pricing

d. allowance pricing

e. product line pricing

Q10. Which of the following statements about a break-even chart is true?

a. It is a tool marketers use to examine the relationship between supply and demand.

b. It is used to determine how the customer-perceived value changes with value-added pricing.

c. It uses variable costs, the unit price, and fixed costs.

d. It is a tool used to calculate fixed costs.

e. It shows the level of earnings a company has during an accounting period.

Q11. Marketing channel management calls for selecting, managing, ________, and evaluating channel members over time.

a. reducing conflict

b. terminating

c. reducing waste

d. reinstating

e. motivating

Q12. Which of the following is an example of a manufacturer-sponsored retailer franchise system?

a. Starbucks operating within Target stores

b. Ford and its network of independent franchised dealers

c. fast-food restaurants such as McDonald's and Burger King

d. motels such as Holiday Inn and Ramada Inn

e. licensed bottlers that bottle and sell Coca-Cola to retailers

Q13. Julie Newmar recognizes that her company needs to provide better customer service and trim distribution costs through teamwork, both inside the company and among all the marketing channel organizations. Julie should begin the practice of ________.

a. horizontal marketing system management

b. supply chain management

c. integrated logistics management

d. disintermediation

e. customer relationship management

Q14. In choosing a transportation mode for a product, shippers must balance the considerations of speed, dependability, cost, and ________.

a. customer choice

b. availability

c. weight

d. distance

e. company reputation

Q15. Max Samuelson is a high-end fashion designer who markets his clothing lines through a limited number of highly reputable retailers. Max uses ________.

a. exclusive distribution

b. full-line forcing

c. tying agreements

d. exclusive territorial agreements

e. exclusive dealing

Q16. Hybrid marketing systems are also called ________.

a. horizontal multichannel systems

b. administered franchises

c. multichannel distribution systems

d. dual distribution systems

e. contractual marketing systems

Q17. To a producer of goods, a greater number of channel levels means ________ and greater channel complexity.

a. fewer channel members

b. less distance between producer and end consumer

c. more potential ideas

d. less control

e. higher taxes

Q18. Steve's Physco Skates sells its products to Wal-Mart, who then sells them to the consumer. This is an example of a(n) ________.

a. direct marketing channel

b. indirect marketing channel

c. corporate vertical marketing system

d. retailer channel

e. producer channel

Q19. A distinguishing feature of a contractual VMS is that coordination and conflict management among the independent members of the channel are attained through ________.

a. contractual agreements

b. working partnerships

c. agents and brokers

d. natural competitive forces

e. limited liability incorporation

Q20. Producers benefit from using intermediaries because they ________.

a. refuse to store products for longer than a few days

b. bring a fresh point of view to strategy development

c. eliminate risk

d. are generally backlogged with orders

e. offer greater efficiency in making goods available to target markets

Q21. A retailer that uses ________ creates realistic environments that encourage customers to try products before they buy them.

a. experiential retailing

b. atmosphere control

c. store differentiation and positioning

d. hypermarketing

e. product positioning

Q22. In-store demonstrations, displays, contests, and visiting celebrities are all examples of ________.

a. public relations

b. sales promotions

c. advertising

d. agent promotions

e. direct marketing

Q23. The main difference between ________ organizations and other contractual systems is that these systems are normally based on some unique product or service.

a. independent

b. franchise

c. retailer cooperative

d. warehouse-club

e. voluntary chain

Q24. Which type of small store carries a limited line of high-turnover convenience goods and makes most of its revenues from cigarette, beverage, and gasoline sales?

a. convenience

b. department

c. hypermarket

d. supermarket

e. chain

Q25. A growing number of outlet malls now feature upscale brands such as Coach, Polo Ralph Lauren, Dolce & Gabbana, and Giorgio Armani. Which of the following are most likely to protest about this trend to the manufacturers of these brands?

a. department stores

b. agents

c. factory outlets

d. membership warehouses

e. brokers

Q26. ________ is the basis of all discount operations and is typically used by sellers of convenience goods. Retailers offering this level of service require customers to perform their own 'locate-compare-select' process in order to save money.

a. Full-service

b. Specialty-service

c. Self-service

d. Wholesale

e. Limited-service

Q27. ________ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.

a. Franchising

b. Disintermediation

c. Wholesaling

d. Retailing

e. Brokering

Q28. You own an independent store in your neighborhood. You still like to offer fresh seafood in your meat display case. Which type of wholesaler might best serve you?

a. mail-order wholesaler

b. rack jobber

c. agents and brokers

d. cash-and-carry wholesaler

e. drop shipper

Q29. ________ are flourishing due to increased use of market segmentation and market targeting.

a. Off-price stores

b. Chain stores

c. Specialty stores

d. Discount stores

e. Superstores

Q30. Which type of store carries a deep assortment, has knowledgeable staff, and might actually be viewed as a giant specialty store?

a. independent

b. chain

c. category killer

d. factory outlet

e. shopping center

Q31. ________ is the company's most expensive promotion tool.

a. Mass media

b. Advertising

c. Public relations

d. Personal selling

e. Publicity

Q32. Tara Keegan owns Live Well, a small chain of health stores offering a variety of natural health products and related services. In order to implement integrated marketing communications, Tara has hired a marketing communications director, whose job it will be to ensure that each ________ will deliver a consistent and positive message about the company.

a. media vehicle

b. public relations message

c. logo

d. advertisement

e. brand contact

Q33. An amateur video showing the result of mixing Diet Coke with Mentos candies is an example of which growing trend in advertising?

a. competitive consumer messages

b. consumer-driven promotions

c. YouTube webisodes

d. consumer-generated messages

e. multiple minicampaigns

Q34. Kathy Champe, a public relations specialist for a regional chain of pharmacies, regularly contacts members of the local and state-wide media with information about community events and charity fundraisers sponsored by her company. This is an example of the ________ function of public relations.

a. press relations

b. lobbying

c. development

d. product publicity

e. public affairs

Q35. ________ tend to be plain, straightforward outlines of benefits and positioning points that the advertiser wants to stress.

a. Execution styles

b. Message strategy statements

c. Branded entertainment plans

d. Advertising appeals

e. Creative concept strategies

Q36. In selecting media vehicles, the planner must balance media costs against several media effectiveness factors. First, the planner should evaluate the media vehicle's ________.

a. market coverage

b. pass-along audience

c. audience attention

d. audience quality

e. editorial quality

Q37. After creating message strategy statements, the advertiser must develop a(n) ________ that will bring the message strategy to life in a distinctive and memorable way.

a. execution style

b. media vehicle

c. customer benefit

d. customer strategy

e. creative concept

Q38. To succeed, an advertisement must ________.

a. have a significant budget

b. be placed during prime time

c. gain attention and be engaging

d. interrupt or disrupt

e. be high frequency

Q39. One way to measure the ________ effects of advertising is to compare past sales with past advertising expenditures.

a. interest and return

b. sales and profit

c. promotion and cost

d. communication

e. loyalty

Q40. Mariah Goldberg, a marketing manager for a manufacturer of children's toys, is looking for ways to reach potential customers who typically avoid salespeople and advertisements. Which of the following would be the most economical promotional tool for Mariah to use?

a. direct marketing

b. public relations

c. sales promotions

d. brand contacts

e. personal selling