Marketing Fundamentals – Test 4

_____ is the exchange value of a product or service in the marketplace.
Price
Fixed costs _____ as the number of units produced increases.
Remain the same
_____ are the sum of the _____ and ______ for any given level of production.
Total costs; fixed; variable costs
_____ establishes a price based on the cost to manufacture a product or deliver a service.
Cost-based pricing
The break-even volume is the point at which _____.
The total revenue and total costs lines intersect
Which of the following is a drawback of cost-based pricing?
**A. This method ignores demand.**
B. Without a standard markup, consumers don’t know when they are being overcharged.
C. By tying the price to cost, sellers simplify pricing.
D. Sellers earn a fair return on their investment.
E. When all firms in the industry use this pricing method, prices tend to be similar.
Ascot Tires has decided to decrease its prices. The company can expect that _____ for their product will increase.
Demand
Price elasticity of demand is _____ divided by _______.
Percent change in quantity demanded; percent change in price
The Pure Drug Company produces insulin, a product with a very stable demand, even though the price has changed several times in the past two years. Insulin is a product with _____ demand.
Inelastic
______ refers to the sale of two or more goods or services as a single package for one price.
Price bundling
The practice of ______ involves a firm injuring competition by charging different prices to different members of its distribution channel.
Price discrimination
A company that sets prices of its exports low with the intention of harming local manufacturers or producers would most likely be found in violation of ______.
Antidumping laws
A firm is using a(n) ______ strategy when it introduces a product at a very low price to quickly generate sales volume or market segment penetration.
Penetration pricing
In Vin del Mar, Chile, there are a dozen stores specializing in selling the same quality of seafood products on one street. An individual store dare not charge more than the going price without the risk of losing business to the other stores that are selling the fish at a common price. This is an example of what type of market?
Pure competition
Which of the following is an example of a variable cost for an amusement park?
A. Salary of the park manager
B. Liability insurance
C. Interest on the property’s mortgage
**D. Food cart supplies**
E. Property taxes
Which of the following is defined as the process of delivering products and services to customers?
A. Logistics
B. Supply chain management
**C. Distribution**
D. Channel management
E. Transportation management
Which of the following is in place when a manufacturer makes use of more than one type of channel?
A. Vertical marketing system
**B. Multichannel distribution system**
C. Third-party logistics
D. Intermediation
E. Supply chain management
When marketers determine the distribution intensity for a product, they are determining the _____ of a channel level.
Width
An intensive distribution strategy is most suitable for which consumer product category?
Convenience products
_____ conflict occurs between different levels of the same channel, while _____ conflict occurs among firms at the same level of the channel.
Vertical; horizontal
______ is the coordination of all activities related to the transportation or delivery of products and services that occur within the boundaries of a single business or organization.
Logistics
Which of the following is the term for resellers, brokers, and facilitators that improve the effectiveness of a marketing channel?
A. Logistics managers
**B. Channel intermediaries**
C. Channel leaders
D. Consignees
E. Third-party logistics providers
Which of the following is NOT an area of responsibility for a logistics manager?
A. Storage location
B. Inventory
C. Information
**D. Marketing**
E. Production
To reduce inventory management costs, many companies use a system called ______, which involves having goods delivered exactly when they are needed.
Just-in-time inventory management
SKU numbers and bar codes are both used to _______.
Monitor inventory
Through the use of ______ tags, a company can use a computer that receives information from an electronic chip to locate exactly where a product is from production to shipment.
RFID
When two Taco Bell restaurants have a disagreement over who should be able to sell in quantity at a discount to the local high school band, they are in a _____ conflict.
Horizontal
Which of the following is NOT a typical marketing channel intermediary?
A. Wholesaler
B. Agent
C. Retailer
D. Facilitator
**E. Government agency**
Which of the following statements about retailers and retailing activities is true?
A. About half of all U.S. workers are employed by retailers.
B. Retailers generate most of their revenue through selling to institutions.
C. Retailers sell only to businesses.
D. Wholesalers cannot generate revenue through retailing.
**E. Retailers sell products to consumers for nonbusiness use.**
_____ combine an economy supermarket and a discount store.
Superstores
Which of the following is any method a firm uses to complete an exchange that does not require a customer to visit a store?
**A. Non-store retailing**
B. E-commerce
C. Direct selling
D. Kiosk merchandising
E. Exchange retailing
______, such as Best Buy and Sears, allow customers to serve themselves, but also have knowledgeable sales associates available to provide guidance.
Limited-service retailers
A wholesaler who ______ legally owns the goods being handled.
Takes title
Limited service merchant wholesalers are less likely than full-service merchant wholesalers to do which of the following?
A. Suffer financial losses if the merchandise they sell is damaged or stolen.
B. Take title to the merchandise they sell.
C. Set the prices of there merchandise they sell.
**D. Offer marketing assistance or delivery for the products they sell.**
E. Use their own sales force.
The owner of a grocery store wants to have non-food items delivered, priced, displayed and inventoried by a wholesaler. Which type of wholesaler best fits the owner’s needs?
A. Mail-order wholesaler
B. Drop shipper
C. Cash-and-carry wholesaler
**D. Rack jobber**
E. Truck jobber
Mail-order wholesalers are associated with all of the following EXCEPT which one?
**A. Automatically replenishing merchandise for retailers**
B. Selling office supplies and computer hardware
C. Selling products to small retailers and other industrial customers
D. Selling products to retailers in remote locations
E. Selling through catalogs
A ______ brings buyers and sellers together and assist in negotiations.
Merchandise broker
GameStop sells video games and systems, offering a narrow product line with a broad range of choices within that line. GameStop is a(n) _______.
Specialty store
Avon is successful at giving customers alternatives to traditional store outlets. Avon uses _______, which does not require a customer to visit a store.
Non-store retailing
Costco’s surprise offerings of seconds, overstocks, and closeouts – occasionally including diamonds – is an example of how a retailer can differentiate itself through its ________.
Merchandise assortment
Apparel manufacturers send overruns and factory seconds to ______, while they send new merchandise to department stores.
Off-price retailers
The goal of _______ is to influence how consumers think, feel, and act toward a brand or market offering.
Marketing communications
A marketing communications objective to ______ has the goal of influencing the consumer to take the next step toward buying.
Stimulate action
Which of the following is aimed at encouraging consumers to share a company’s marketing message with friends?
**A. Viral marketing**
B. Sponsorships
C. Sales promotions
D. Advertising
E. Personal selling
Any paid form of non-personal communication of a marketing message by an identified sponsor through mass media is called ______.
Advertising
In 2008, ______ were the top advertising spending category in the United States.
Automobile manufacturers
Marketing communication is also known as _______.
Promotion
To be successful, an advertisement must ______.
Gain the attention of consumers
Which of the following is a direct communication that marketers can use to communicate with a target market?
A. Sales promotions
**B. Personal selling**
C. Sponsorships
D. Public relations
E. Advertising
Which of the following reward consumers for repeat purchase of a product or brand?
**A. Loyalty programs**
B. Trial offers
C. Exhibits
D. Advertising allowances
E. Rebates
Which of the following is a promotional technique that returns some or all of the purchase price to the buyer to encourage product trial or repurchase?
A. Allowance
B. Premium
C. Contest
D. Loyalty program
**E. Refund or rebate**
Branded Coca-Cola cups have been prominently featured on episodes of American Idol. This is an example of ______.
Product placement
The purpose of a sponsorship is to _______.
Influence brand awareness and attitudes
An ad for Maybelline age-minimizing makeup in Ladies’ Home Journal magazine featured actress Melina Kanakaredes and offered readers a $1-off coupon when they try the new makeup. In terms of the communication model, which of the following would be the best way for the source to measure feedback?
A. The number of people to whole Melina Kanakaredes is an appealing spokesperson.
B. The nuber of subscribers to Laides’ Home Journal.
C. The number of people make up the target market.
**D. The number of people who redeem the coupon.**
E. The number of people who were exposed to the ad.
Mercy University’s initial ads for the school’s new MBA program are most likely intended to create _____.
Awareness and interest
The AFLAC duck and Kellogg’s Tony the Tiger are examples of _______ used in successful advertising campaigns.
Personality symbols
In the marketing communications process, a consumer request for additional information on a product is an example of ______.
Feedback
In the traditional model of the marketing communication process, the marketer is the ______ and the consumer is the _______.
Sender; receiver
Which of the following marketing communication tools invokes a representative of a company interacting directly with a consumer to provide information that helps the consumer make a buying decision?
**A. Personal selling**
B. Public relations
C. Publicity
D. Advertising
E. Sponsorship
Examples of ______ that can be used in the prospecting stage of personal selling include LinkedIn.com, Biznik.com, and WomanOwned.com.
Professional online social networks
The salesperson makes contact with the customer for the first time in the ______ step of the selling process.
Approach
What should a sales person do during the fifth step of the personal selling process?
Anticipate and address objections
Using a(n) ______ close, a salesperson would ask a prospect how much she would like to order.
Assumptive
It is the responsibility of a ______ to organize, motivate, and lead the salespeople.
Sales manager
Which of the following is NOT part of the sales management process?
A. Motivating individual salespeople
B. Recruiting and hiring salespeople
C. Evaluating the performance of individual salespeople
D. Determining the size of the sales force
**E. Setting company objectives**
A disadvantage of personal selling is a high turnover rate. The turnover rate refers to which of the following?
A. The percentage of customers who stop doing business with a company in a given year.
B. The rate at which qualified prospects are turned into customers.
C. The rate at which prospects are turned into qualified prospects.
**D. The percentage of a sales force that leaves a company in a given year.**
E. The percentage of a sales force that moves into management positions in a given year.
The sales management process begins with ______.
Setting sales force objectives
Which of the following is most important for direct marketing to be effective?
A. Catalogs
B. An online presence
**C. A good customer database**
D. Telephone marketing
E. A well-trained sales force
Psychographics data in a customer database used by direct marketers include information regarding a customer’s _______ and _______.
Activities; opinions
The ______ was established by the Direct Marketing Association.
Do Not Mail List
The sales force of Conway Pools has identified a number of prospects. Which of the following will most likely occur next?
A. The outside sales force will call on all prospects.
B. The outside sales force will close the deal with one of the prospects.
C. The inside sales force will attend meetings with qualified prospects.
**D. The outside sales force will learn as much as possible about the prospects.**
E. The inside sales force will put together a presentation for the prospects.
Marlene Arau is a member of the sales force at Urban Fashions, a clothing manufacturer. Marlene is preparing for a first meeting with a wholesaler who is a potential customer. Marlene is learning as much has she can about the wholesaler’s organization. Marlene is in the ______ step of the personal selling process.
Preapproach
Prospecting is the step in the selling process in which the salesperson _____.
Identifies potential customers