OLS 274 Exam Chapters 11-13

The utility that is created when a salesperson at a car dealership completes the sales contract is ________ utility.
A food producer’s goods are carried by thousands of grocery stores across the country. Which of the following distribution channels is the manufacturer most likely to use?
producer to wholesaler to retailer to consumer
Some products can be highly profitable during the later stages of their life cycle because the initial development costs already have been recovered.
Luke works as a marketing researcher and goes online to obtain information from government publications for census data and demographics. What type of data is Luke researching?
Elizabeth and Tom have an in-ground swimming pool installed in their back yard. About one week after installation, the salesperson telephones and asks if everything about the pool has met with their approval. The salesperson is ________________.
conducting a follow-up
Many marketers pay placement fees to promote their products in television shows or movies.
In which stage of the product life cycle do sales reach a saturation level, making further sales expansion difficult?
maturity stage
The fundamental purpose of promotion is to persuade and influence customers to purchase a product.
Barnes and Noble starts earning 30 percent more profit a month after their new e-reader hit the shelves. Consumers continuously recommend the new product to friends. The e-reader is in the growth stage.
If a company’s target market is small and buyers are concentrated in a specific geographical area, which distribution channel would be most effective?
direct channel
A consumer who is at the stage of brand insistence will go out of their way to buy a product belonging to that brand, whether it be traveling to a store farther away or making an online purchase.
The breakeven point determines at which point to halt production because sales beyond the breakeven point result in losses to the firm.
The Internet is considered an indirect method for connecting with customers.
Genuine Products has been involved in intensive price competition with one of its products. Profits are low and market researchers are concerned that losses will soon occur due to a reduced market for the item. This product has reached the ________ stage of the product life cycle.
A university offers alumni a special Visa card with the university’s logo printed on the front. Each time the cardholder uses the card, the university receives a small percentage of the amount charged. This is an example of ________.
an affinity program
Personal selling is often used for technically complex products.
________ involves the use of innovative, low-cost marketing efforts to attract customer attention.
Guerrilla marketing
One product may be considered a shopping product by one consumer and a convenience product by another consumer.
Gender is an example of a factor in demographic segmentation.
In which stage of the product life cycle do competitors enter the field with similar offerings?
growth stage
The end of the supply chain is when goods or services are delivered to marketing intermediaries.
Salespeople determine if prospects have the financial ability and authority to buy through ________.
One of the most common forms of segmenting consumer markets uses characteristics such as age, income, household size, and/or ethnic group. This is known as ________ segmentation.
A manufacturer of a new moisturizing shampoo offers free samples to all potential consumers. The product is generally in the introductory stage.
The new-product development stage that deals with the elimination of ideas that do not mesh with overall company objectives is ________.
Goods and services such as haircuts, GPS systems, and computers that are purchased for end users are examples of ________.
consumer products
One of the most difficult areas of marketing decision making is pricing because these decisions are often subject to government regulation and public scrutiny.
If a product sells for $20 and the variable costs are $14, then the per-unit contribution to fixed costs is $34.
Luis wants a particular brand of golf ball, but his local pro shop is out of stock. Instead of buying a substitute, Luis goes home and orders his preferred brand online. Luis is at which stage of brand loyalty?
brand insistence
Advertising can be a global activity.
In the movie, The Social Network, the actor portraying Mark Zuckerberg is featured wearing products by Gap and the North Face. This form of promotion is known as ________.
product placement
An outdoor store sells rafting and camping permits for a close-by national park. The store is creating place utility.
In breakeven analysis, the costs that change with the level of production are considered ________ costs.
The buyer-seller communication in _________ occurs during a face-to-face meeting or via telephone, videoconference, or interactive computer link.
personal selling
Wal-Mart’s pricing objective is based primarily on ________ while a jewelry store’s pricing objective is based primarily on ________.
volume; prestige
Maria owns a store that prepares gourmet chocolates, which are hand-made and sold on the premises. What type of product is Maria selling?
What method of transportation accounts for the majority of finished goods finding their way to consumers?
Since potential customers are unaware of a product during its introductory stage, initial promotion concentrates on ________.
informing the market about the item and explaining its features, uses, and benefits
Coppertone manufactures sunscreens with various SPF factors, which constitutes the company’s ________.
product line
Trademark protection extends to pictorial designs and slogans.
Explaining the hidden benefits of ownership can enhance a product’s value.
Goods and services are classified as either consumer or business, depending on the ________.
purchasers of the particular item
A buyer’s market is one characterized by a shortage of goods and services.
Many large retailers sell both a private brand and a manufacturer’s brand, which are produced by the same manufacturer.
Price decreases become common during a product’s maturity stage.
Logistics is the process of coordinating the flow of goods, services, and information among all members of the supply chain.
Devin obtains research data based on the number of unique visitors to his company’s Web site, as well as tracking types of orders and amount of money spent. Devin is acquiring what type of research data?
Peapod is an online grocery service that saves customers time by selecting, packing, and delivering groceries to customers. Peapod is utilizing a ________ retail strategy.
customer service
The future attitudes of most prospects are affected by the first impression they form of the salesperson. Therefore, salespeople ________.
should carefully prepare their approach to potential customers
If you did a breakeven analysis for your firm, it would be possible for you to show management the point at which ________.
the level of sales that will cover all of the company’s costs
Dell Computer is offering $100 cash back on the purchase of a computer. This is an example of a(n) ________.
Tabitha is a research specialist in a marketing division. She is working on a project that involves searching through customer files to detect spending patterns or trends that her company could target to increase sales. Tabitha is ________.
data mining
Water transportation is generally more expensive than transportation by truck.
A singles business aims its promotions toward singles between the ages of 25 and 40 who reside in a specific county. The business has ________.
selected a target market
The current marketing period where companies emphasize customer satisfaction is referred to as the ________ era.
McDonalds including a toy in each Happy Meal purchase is an example of a premium.
Physical distribution is a major focus for logistics management.
Ida works on creating ways to ensure that customers receive goods at the right time and correct location. Ida is involved in her firm’s ________ strategy.
Customers who choose one brand over another are displaying ________.
brand preference
Television is an attractive advertising medium because it ________.
offers mass coverage and flexibility
Philippe owns a store that sells lampshades. The process of receiving money in return for lamp shades is ________.
Some firms will avoid the process of test marketing in order to avoid having their competition learn of their strategies.
A company includes an “instant coupon” as part of a product’s package, giving the buyer a reduction off the retail price. What is the company attempting to do?
increase sales
Products purchased only after the consumer has compared competing products in competing stores on the basis of price, quality, style, and color would be classified as ________.
shopping products
Promotion activities increase substantially when a product begins to enter the decline stage.
Dunkin’ Donuts uses __________ advertising when it tells people that “hard-working” people prefer their coffee over the high-priced Starbucks.
Aidan is tired of doing his laundry at the local laundromat and would like to buy a washer and dryer for his apartment. In the Saturday paper, he notices that a retail store is having a half-price sale. Aidan is at what step of the consumer behavior process?
searching for alternatives
The era in marketing history characterized by the notion that a good product will sell itself is known as the ________ era.
Which classification of business goods is consumed over a long period and usually involves large sums of money?
capital items
The first step in developing a competitive retailing strategy is identifying a target market.
The first step in the sales process is to identify the potential customer.
Karen is aware of both Coke and Pepsi, but she buys whichever is on sale. Karen is at the stage of brand recognition but not yet at the stage of brand preference.
An example of secondary data is an interview with 500 reliable consumers.
What can a firm do if it is too difficult or expensive to have salespeople meet all potential customers in person?
use telemarketing
When Kroger’s grocery store puts its own line of detergent on the shelf next to Tide, the store is promoting its ________ brand.