the marketing part 2

The rate of sales decline during the decline stage of the product life cycle is largely governed by:
a. the amount of money spent on advertising
b. the number of competitors in the market
c. the intensity of the competition’s marketing efforts
d. the amount of shelf space allotted to the product
e. how rapidly consumer tastes change or substitute products are adopted
how rapidly consumer tastes change or substitute products are adopted
You are a product manager for a manufacturer of trampolines. You have determined that the trampoline is in the maturity stage of the product life cycle. To keep your product from entering the decline stage, you should:
a. use promotion to increase primary demand for trampolines
b. abandon peripheral target markets for trampolines
c. raise the price of your trampolines because customers are not price sensitive in this stage
d. eliminate all unnecessary marketing expense
e. promote trampolines heavily to dealers and customers
promote trampolines heavily to dealers and customers
Which of the following statements about the product life cycle (PLC) is true?
a. The PLC concept encourages marketing managers to think reactively.
b. Marketers do not yet understand the relationship between the adopter categories and the stages of the PLC.
c. There are as many new buyers in the maturity stage of the PLC as in the growth stage.
d. The PLC is especially useful as a predicting tool.
e. Just as there are five adopter categories, there are five PLC stages.
The PLC is especially useful as a predicting tool.
Refer to Fitbit. The company marketing the Fitbit does not currently market a product like this. Which of the following best represents the category of new product the Fitbit is for this company?
a. New-to-the-world product
b. New product line
c. Addition to existing product lines
d. Repositioned product
e. Incremental product
New product line
Refer to Fitbit. The idea for the Fitbit was generated from an employee retreat in which everyone was encouraged to think of unlimited product ideas for the fitness-minded consumer. Participants did not critique any of the ideas, as the goal at that point was just to generate ideas. What idea-generating technique does this illustrate?
a. Brainstorming
b. Brain dumping
c. Snowball sampling
d. Laddering
e. Entropy
Brainstorming
Refer to Fitbit. In terms of the new-product development process, Fitbit’s availability in retail stores and online shows that it is in the _____ stage.
a. idea screening
b. idea generation
c. business analysis
d. test marketing
e. commercialization
commercialization
Refer to Fitbit. The process by which the adoption of this innovative product spreads is called the:
a. diffusion process
b. product life cycle
c. consumption process
d. viral process
e. two-stage process
diffusion process
Refer to Fitbit. The fact that Fitbit can monitor motion while awake and asleep makes it different from competing products that might increase its rate of adoption. Which product characteristic affecting the rate of adoption does this illustrate?
a. Complexity
b. Compatibility
c. Relative advantage
d. Observability
e. Trialability
Relative advantage
Refer to Rapala. The “dream lure for the 21st century” will more than likely be an example of a(n):
a. new product line
b. addition to existing product line
c. discontinuous innovation
d. improvement of existing product
e. repositioned product
addition to existing product line
Refer to Rapala. The testing of new lures by tournament professionals and fishing guides would take place in which stage of new-product development?
a. Commercialization
b. Idea generation
c. Idea screening
d. Concept testing
e. Product development
Product development
Refer to Rapala. After the trade show, the newest lure made by Rapala will enter which stage of the new-product development process?
a. Commercialization
b. Idea generation
c. Idea screening
d. Concept testing
e. Product development
Commercialization
Refer to Rapala. Because buyers of fishing lures want to have the newest, most technologically improved lure, most of Rapala’s customers would more than likely fall into the _____ category of adopters.
a. laggards
b. prompt diffusers
c. early adopters
d. innovators
e. early majority
innovators
Refer to Rapala. The degree to which the newest lures are perceived as superior to earlier models refers to their _____, a characteristic used to predict the rate of adoption.
a. trialability
b. observability
c. relative advantage
d. differentiation capability
e. complexity
relative advantage
Refer to Rapala. Fishing lures are most likely in the _____ stage of their product life cycle.
a. saturation
b. maturity
c. growth
d. innovation
e. decline
maturity
Refer to Going to the Dogs. The doggy day care center is more like a dog resort than a dog kennel. A dog day care represents what type of new product?
a. Competitive innovation
b. Discontinuous innovation
c. New product line
d. Revision of existing product
e. Higher-priced product
Revision of existing product
Refer to Going to the Dogs. Suppose that before opening the It’s a Dog’s Life doggy resort the owners gathered together a group of ten dog owners to discuss what they would want to see in the ideal dog day care center. This would be an example of:
a. idea screening
b. diffusion
c. a focus group interview
d. basic research
e. observation
a focus group interview
Refer to Going to the Dogs. Before opening the It’s a Dog’s Life doggy resort, the potential company owners projected the costs involved in providing the services the target market (dog owners) appears to desire. Unfortunately, a decision was made to not proceed with the doggy resort, as the owners felt the cost to provide the services was too high considering the rates the target market would be willing to pay. The would be an example of:
a. idea screening
b. concept testing
c. business analysis
d. commercialization
e. test marketing
business analysis
Refer to Going to the Dogs. When the dog day care first launched, it most likely appealed to which product adopter category?
a. Early adopters
b. Early majority
c. Late majority
d. Innovators
e. Laggards
Innovators
Refer to Going to the Dogs. For many dog owners, it may be hard to understand the difference between a traditional kennel and a dog day care, especially given the price differential. As a result, dog day cares may offer special low rates for first-time users in an effort to reduce which of the following issues concerning the rate of diffusion?
a. Compatibility
b. Complexity
c. Observability
d. Innovativeness
e. Relative advantage
Observability
Refer to Going to the Dogs. One challenge to adoption of the dog day care is the fact that dog owners are used to paying a somewhat minimal fee for boarding their dogs in a kennel, while a day care center may demand many times as much for the same time span. This suggests that the _____ of the new product may affect the rate of diffusion.
a. compatibility
b. complexity
c. relative advantage
d. observability
e. trialability
compatibility
Refer to Going to the Dogs. Central Bark Doggie Day Care currently has 31 locations, with a new Gainesville, Florida, location coming soon. With the opening of competition in the form of Camp Bow Wow and others, it appears that the dog day care product is moving into the _____ stage of the product life cycle.
a. commercialization
b. introductory
c. growth
d. maturity
e. decline
growth
Refer to Voodoo Envy. Even though HP offers other laptop computers, the Voodoo Envy is HP’s first entry into the ultra-thin computer market. It is not really an update of an existing laptop. Instead, it was originally designed as an ultra-thin laptop. As such, it is an example of a(n):
a. new-to-the-world product
b. new product line
c. addition to existing product lines
d. repositioned product
e. improvement or revision of existing products
addition to existing product lines
Refer to Voodoo Envy. Apple seems to have a success with its MacBook Air. However, not all of Apple’s new product efforts have been successful. For example, the Newton MessagePad failed in the marketplace. While a revolutionary product that created the PDA industry, many consumers perceived the product as too big. For success, it is essential to have a good match between product _____ and market:
a. attributes; demographics
b. trialability; comprehension
c. value; income
d. observability; freedom
e. features; needs
features; needs
Refer to Voodoo Envy. With very few competitors and high product prices, those purchasing ultra-thin computers now are probably the most venturesome consumers, also known as the:
a. innovators
b. late majority
c. late adopters
d. early adopters
e. early majority
innovators
Refer to Voodoo Envy. Two advantages the Voodoo Envy has over the MacBook Air are removable batteries and an Ethernet port. In other words, since the Voodoo Envy has these features that are consistent with full-size laptops, in terms of the adoption process, it has the advantage of:
a. compatibility
b. complexity
c. maturity
d. observability
e. trialability
compatibility
Refer to Voodoo Envy. The price of the Voodoo Envy is expected to be approximately $2,000. According to Forrester Research, anything above $1,500 in this market would be considered “ultra expensive.” In order to motivate consumers to spend $2,000 for the Voodoo Envy, HP will probably need to spend considerable money on advertising to educate consumers to the advantages of ultra-thin laptops. This is a characteristic of which stage of the product life cycle?
a. Equity
b. Growth
c. Maturity
d. Introductory
e. Decline
Introductory
A marketing channel is a business structure composed of interdependent organizations that reach from the point of product origin to the final consumer.
T
As products move through the marketing channel, channel members provide specialization and division of labor, overcome discrepancies, and provide contact efficiency.
T
A consumer stopped by the convenience store to buy a bag of charcoal briquettes. She only needs one bag, but the manufacturer produces millions of bags. For consumers, the convenience store overcomes a discrepancy of dimensions.
F
Residents of Sobarro, New Mexico, live in an isolated area of the state. Residents must travel two hours to receive medical treatment. Luckily, a physician has just opened a new practice in Sobarro. In this case, the physician has overcome service discrepancies by opening an office close to consumers.
F
Consider a scenario in which there are four manufacturers, no intermediaries, and three consumers. Twelve transactions would be required for each consumer to receive products from each manufacturer. The introduction of one intermediary reduces the required number of transactions to four and demonstrates the idea of contact efficiency.
F
A merchant wholesaler is an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers.
T
Carl represents a manufacturer of floor coverings and gets paid a commission for finding buyers and linking them up with the manufacturer. Carl is an example of a merchant wholesaler
F
The three basic functions a channel intermediary provides are transactional, logistical, and facilitating functions.
T
The logistical functions performed by intermediaries include physically distributing, storing, sorting, and financing.
F
Harriet Lowe makes children’s clothing, which she sells at craft festivals to end users. Lowe does not use channel intermediaries, which means she uses a direct channel.
T
The direct channel is used more often in consumer markets than in business-to-business markets.
F
LoneStar Bar & Grill is a small chain of restaurants that feature marinated steaks. The marinade is so popular that LoneStar sells it at its restaurants and Kroger supermarkets. This is an example of intensive distribution
F
Metallurgical Designs makes gold and silver charms for necklaces and bracelets. It markets its charms to a few retailers in any one region and promotes them intensively to those retailers. This is an example of intensive distribution.
F
Shopping goods are usually distributed selectively. Consumers are willing to look around for them but may not be willing to search or travel extensively to acquire the product
T
Exclusive distribution is the most extensive form of market coverage.
F
At one end of the channel relationship continuum is the “arm’s-length” relationship.
T
Highly integrated channel relationships are the preferred relationship because there is no large outlay of assets required to keep the channel members all working toward the same results.
F
Integrated channel relationships tend to be more flexible than cooperative relationships.
F
An international consumer products manufacturer requires all of its suppliers to provide the lowest possible cost and to adhere to a just-in-time inventory system. Wholesalers and manufacturers generally yield to the authority of this large manufacturer. This consumer products manufacturer exercises channel power.
T
Reciprocal conflict occurs among channel members on the same level, such as two or more different wholesalers or two or more different retailers that handle the same manufacturer’s brands.
F
Many regard vertical conflict as healthy competition
F
Because distribution creates the same problems whether it is in Ethiopia, Indonesia, or Venezuela, you will find that channel structures and types around the world are very similar to those in the United States.
F
Gray marketing channels assist brand name manufacturers in marketing their products more efficiently.
F
Unlike marketers of physical products, marketers of services do not have to address the question of logistics since services do not require a distribution strategy.
F
When discussing the distribution of services, you will often hear channel members discussing the need to minimize wait times.
T
A _____ is a business structure of interdependent organizations that reaches from the point of product origin to the consumer.
a. facilitating agency or place member
b. marketing mix intermediary
c. selective distribution channel
d. marketing channel or channel of distribution
e. transportation channel or channel of movement
marketing channel or channel of distribution
Jones Soda is positioned as the anti-Coke. In the early years, few mainstream retailers sold Jones Soda. Fans had to get their Jones fix in surf shops, tattoo parlors, and bookstores, adding to the brand’s mystique. Jones Soda used its _____ to create a competitive advantage.
a. channel ascendancy
b. distribution channel
c. channel conflict
d. channel focus
e. vertical integration
distribution channel
Kayak.com is a company that allows customers to efficiently search databases to find the best airline and hotel deals all over the Web. Kayak does not make bookings but rather provides recommendations for the best travel plans. Travel providers pay Kayak a commission when customers click through to their sites. Kayak.com, travelers, the airlines, and the hotels are all part of a:
a. facilitating agency
b. marketing mix intermediary
c. selective promotion channel
d. marketing channel or channel of distribution
e. transportation channel or channel of movement
marketing channel or channel of distribution
Marketing channels can achieve economies of scale through:
a. overcoming spatial discrepancies
b. contact expertise
c. specialization and division of labor
d. overcoming temporal discrepancies
e. overcoming discrepancies of quantity
specialization and division of labor
Distribution channels aid in overcoming barriers to exchange that are created in the production process by overcoming all of the following types of discrepancies EXCEPT:
a. possession
b. assortment
c. quantity
d. spatial
e. temporal
possession
A discrepancy of _____ is the difference between the amount of product produced and the amount an end user wants to buy.
a. space
b. quantity
c. assortment
d. accumulation
e. possession
quantity
Kraft Foods produces millions of packages of Chips Ahoy cookies each year, but consumers only want to purchase one package at a time. This difference between the amount Kraft produces and the amount a consumer wants to buy is referred to as a:
a. discrepancy of quantity
b. discrepancy of assortment
c. spatial discrepancy
d. temporal discrepancy
e. discrepancy of possession
discrepancy of quantity
Which of the following is the lack of all the items a customer needs to receive full satisfaction from a product or products?
a. Discrepancy of assortment
b. Discrepancy of quantity
c. Spatial discrepancy
d. Temporal discrepancy
e. Discrepancy of possession
Discrepancy of assortment
McKesson Wholesalers provides healthcare products to pharmacies. It purchases bandages, gauze, antibacterial cream, and ointments from a variety of different manufacturers and resells them to pharmacies so that many of the items a customer might need for a cut will be available in the store. McKesson is aiding consumers by overcoming a:
a. spatial discrepancy
b. discrepancy of quantity
c. discrepancy of assortment
d. demand discrepancy
e. discrepancy of possession
discrepancy of assortment
Certified Grocers Midwest, Inc., the Chicago-based grocery wholesale cooperative, provides all kinds of meats, cereals, canned and fresh fruits and vegetables, beauty aids, healthcare items, and pet products to the supermarkets in its channel. Certified Grocers is aiding consumers by overcoming:
a. spatial discrepancy
b. discrepancy of quantity
c. discrepancy of assortment
d. demand discrepancy
e. discrepancy of possession
discrepancy of assortment
A(n) _____ discrepancy is created when a product is produced but a consumer is not ready to purchase it.
a. quantity
b. supply
c. possession
d. temporal
e. assortment
temporal
Cutter & Buck is a high-end fashion sportswear company. Even though swimwear is a product category that does not sell year-round, its sales remain steady all year because Cutter & Buck sells to wholesale distributors that stock the product. Its wholesale distributors are helping to overcome a(n) _____ discrepancy.
a. assortment
b. spatial
c. possession
d. quantity
e. temporal
temporal
The difference between the location of a producer and the location of widely scattered markets represents a(n) _____ discrepancy.
a. spatial
b. temporal
c. assortment
d. quantity
e. ownership
spatial
Vicobello is a major manufacturer of outdoor fountains that are popular in gardens. Even though fountains represent a product category that does not sell year-round due to inclement weather, Vicobello’s sales remain steady all year because it sells to wholesale distributors that stock the product. Its wholesale distributors are primarily helping to overcome a(n) _____ discrepancy.
a. assortment
b. spatial
c. possession
d. quantity
e. temporal
temporal
YKK slide fasteners (zippers) are made in Macon, Georgia, yet manufactures all over the world use zippers to manufacture, clothes, luggage, shoes, and other items. Wholesalers around the world primarily help to overcome a(n) _____ discrepancy.
a. creation
b. temporal
c. assortment
d. spatial
e. ownership
spatial
Marketing channels make distribution simpler by reducing the number of transactions required to get products from manufacturers to consumers. This is called:
a. forward integration
b. contact efficiency
c. elimination of temporal discrepancies
d. sorting
e. reciprocity
contact efficiency
When an intermediary in the channel of distribution owns the merchandise and controls the terms of the sale, this is referred to as:
a. complete control
b. exclusive distribution
c. taking title
d. contact efficiency
e. economies of scale
taking title
The major characteristic that is used to differentiate among types of intermediaries is whether they:
a. install exchange barriers such as location, time, and quantity
b. create specialization of labor
c. create economies of scale
d. take title to the products they sell
e. raise profit margins for independent middlemen
take title to the products they sell
Retailers and merchant wholesalers are examples of intermediaries that:
a. take title to a product
b. create temporal and spatial discrepancies
c. use consumer promotions
d. do not benefit from any economies of scale
e. are accurately described by all of these statements
take title to a product
Which of the following intermediaries sell mainly to consumers?
a. Retailers
b. Merchant wholesalers
c. Agents
d. Brokers
e. Specialists
Retailers
A(n) _____ is an institution that buys goods from manufacturers, takes title to these goods, and resells them to businesses, government agencies, and/or other wholesalers or retailers.
a. merchant wholesaler
b. agent
c. drop shipper
d. channel cooperative
e. marketing cooperative
merchant wholesaler
W.W. Grainger, Inc., is one of the world’s largest business-to-business distributors of equipment, component parts, and supplies in the United States and Canada. It has ownership title to over 220,000 products, which are stocked in one national and nine regional warehouses to guarantee product availability and quick service to the many manufacturers who are its customers. W.W. Grainger is an example of a(n):
a. agent or broker
b. merchant wholesaler
c. retailer
d. consumer market
e. hypermarket intermediary
merchant wholesaler
Long Island Lefty provides retailers and other businesses with the latest and the best products for left-handed consumers. It buys all types of products from a variety of manufacturers and stores the merchandise in its New York warehouse until purchased by buyers. Long Island Lefty does not sell to end users and is an example of a(n):
a. agent or broker
b. merchant wholesaler
c. retailer
d. consumer market
e. hypermarket intermediary
merchant wholesaler
Agents and brokers:
a. have a great deal of control and risk invested in the goods
b. only represent manufacturers in sales situations
c. have a great deal of input on the terms of the sale
d. generally are on salary with the manufacturer
e. do not take title to merchandise
do not take title to merchandise
_____ are intermediaries who facilitate the sales of a product from producer to end user by representing retailers, wholesalers, or manufacturers and providing little input as to the terms of the sale.
a. Marketing facilitators
b. Channel cooperatives
c. Agents and brokers
d. Merchant wholesalers
e. Channel functionaries
Agents and brokers
Generally, _____ determine what type of intermediary a manufacturer should use:
a. product characteristics, buyer consideration, and market characteristics
b. only internal environmental characteristics
c. competitive conditions and government regulations
d. all controllable marketing factors
e. only noncontrollable environmental factors
product characteristics, buyer consideration, and market characteristics
The three basic functions channel intermediaries perform are:
a. transactional, logistical, and facilitating
b. contacting, negotiating, and ownership
c. promoting, distributing, and bulk-breaking
d. assorting, accumulating, and allocating
e. financing, mediating, and storing
transactional, logistical, and facilitating
Which of the following is a transactional function performed by intermediaries?
a. Sorting
b. Researching
c. Risk taking
d. Physically distributing
e. Storing
Risk taking
Transactional channel functions include all of the following activities EXCEPT:
a. contacting buyers
b. promoting the products to be sold
c. taking the risks associated with product inventories
d. negotiating the sale
e. physical distribution and sorting
physical distribution and sorting
Which of the following is a logistical function performed by intermediaries?
a. Sorting
b. Negotiating
c. Financing
d. Risk taking
e. All of these choices
Sorting
Marketing channels perform all of the following logistical activities EXCEPT:
a. sorting
b. storing
c. physically distributing
d. risk taking
e. breaking bulk
risk taking
All of the following are sorting activities EXCEPT:
a. assorting
b. accumulation
c. sorting out
d. allocation
e. possession
possession
Breaking bulk at the wholesale level is called:
a. allocating
b. accumulation
c. storing
d. downsizing
e. grading
allocating
With respect to the sorting logistical function, _____ is the combining of similar stocks into a larger homogeneous supply.
a. sorting out
b. accumulating
c. allocating
d. breaking bulk
e. assorting
accumulating
Which of the following are examples of facilitating functions performed by wholesaling intermediaries?
a. Sorting and storing
b. Risk taking and promotion
c. Assorting, accumulating, grading, and allocating
d. Researching and financing
e. Financial management and storing
Researching and financing
_____ is the efficient and cost-effective forward and reverse flow and storage of goods, services, and related information into, through, and out of channel member companies.
a. Disintermediation
b. Logistics
c. Materials handling
d. Intermodal transportation
e. Contract logistics
Logistics
_____ describes the process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption.
a. Contract logistics
b. Logistics
c. Cross-docking
d. Disintermediation
e. Channel facilitation
Logistics
Serenity is a manufacturer of outdoor fountains that are popular in gardens. Even though fountains represent a product category that does not sell year-round due to inclement weather, Serenity’s sales remain steady all year because it sells to wholesale distributors that stock the product. Serenity sells to wholesale distributors that perform _____ functions for the manufacturer.
a. financial
b. transactional
c. facilitating
d. logistical
e. promotional
logistical
One configuration of a marketing channel entails producers selling to consumers with no intermediaries involved. This is called a:
a. limited distribution system
b. conventional channel
c. vertical marketing system
d. reciprocal channel
e. direct channel
direct channel
The only way that Jim Keeler in New Mexico can get a box of Carolyn Popwell’s Festive Holiday Truffles from Washington is to order it through the mail. Popwell, who makes the candy by hand, uses a(n) _____ exclusively.
a. exclusive distribution system
b. conventional channel
c. vertical marketing system
d. reciprocal channel
e. direct channel
direct channel
All of the following are typical channel members in marketing channels for consumer products EXCEPT:
a. retailers
b. agent/brokers
c. industrial distributors
d. producers
e. wholesalers
industrial distributors
Vutek manufactures printing machines used to print high-resolution graphics for billboards, bus cards, banners, and posters. For distribution, you would expect Vutek to use a:
a. network of facilitating agents
b. horizontally integrated channel
c. reciprocal channel
d. direct channel
e. vertical marketing system
direct channel
Centigon is a manufacturer of customized armored vehicles for military, private, presidential, and commercial uses. Each armored vehicle is designed to deliver security on the road while also achieving optimum levels of performance and comfort. For distribution, you would expect Centigon to use a:
a. network of facilitating agents
b. horizontally integrated channel
c. reciprocal channel
d. direct channel
e. vertical marketing system
direct channel
Companies selling standardized items of moderate or low value to other businesses (not to consumers) often use:
a. retailers
b. industrial distributors
c. wholesalers
d. bulk breakers
e. industrial resellers
industrial distributors
_____ distribution occurs when a producer selects two or more different channels to distribute the same products to target markets.
a. Selective
b. Intensive
c. Dual
d. Contractual
e. Cumulative
Dual
Customers can purchase Hewlett-Packard computers from retail stores like Best Buy and Office Depot, online directly from HP, and through various catalogs. HP is using a(n) _____ distribution arrangement.
a. intensive
b. multiple
c. exclusive
d. cumulative
e. aggregated
multiple
Which of the following enables a company to use another manufacturer’s already established channel?
a. Strategic channel alliances
b. Relationship channels
c. Reverse channels
d. Multiple distribution systems
e. Nontraditional channelization
Strategic channel alliances
Selfridges is the second-largest department store in Great Britain. It works with House of Frasier, one of its competitors, to reduce operating costs by sharing channels of distribution to ship goods from 1,500-plus suppliers. Selfridges and House of Frasier are engaged in:
a. vertical conflict
b. an integrated supply chain
c. a strategic channel alliance
d. an information-based distribution channel
e. a distribution cooperative
a strategic channel alliance
When Delphi-Grundig, a manufacturer of state-of-the-art car radios, decided to expand its marketing efforts into countries in which its products are not currently available, it did not have the time or resources to spend on developing new channels of distribution. Delphi-Grundig should consider a(n):
a. industrial distributor
b. franchising system
c. reverse channel
d. strategic channel alliance
e. channel cooperative
strategic channel alliance
Which of the following statements concerning how market factors affect channel decisions is true?
a. Industrial customers tend to buy in larger quantities and require more customer service.
b. Geographically concentrated target markets should be served with an indirect sales force.
c. Widely dispersed markets require fewer intermediaries.
d. New firms in extremely competitive markets will be more successful if they use indirect channels.
e. A very large market requires fewer intermediaries.
Industrial customers tend to buy in larger quantities and require more customer service.
Canesta Company has developed a virtual keyboard out of light to be used with cell phones and PDAs. The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user’s digital device. When introduced to the market, the device will sell for less than $50. If, in choosing its channel, Canesta is most concerned about the life cycle of the device, then its choice of channels will largely be influenced by:
a. factors of production
b. customer characteristics
c. ownership factors
d. product factors
e. market factors
producer factors
_____ is distribution aimed at maximum market coverage. It is used for many convenience goods and supplies that need to be available in every outlet where the potential customer might want to buy them.
a. Selective distribution
b. Channel franchising
c. Intensive distribution
d. Horizontal channeling
e. Exclusive distribution
Intensive distribution
Chewing gum and soft drinks are sold in grocery stores, service stations, convenience stores, drugstores, discount stores, and motel vending machines. This is a an example of a(n) _____ distribution strategy.
a. exclusive
b. reciprocal
c. selective
d. horizontal
e. intensive
intensive
Which of the following manufacturers most likely uses intensive distribution?
a. M&M’s candies
b. Jen-Weld windows
c. Calloway golf clubs
d. Rollerblade in-line skates
e. Smith & Wesson firearms
M&M’s candies
_____ distribution is achieved by screening dealers to eliminate all but a few in any single geographic area. Shopping goods and some specialty products that consumers are willing to search for are sold this way.
a. Intensive
b. Selective
c. Exclusive
d. Dual
e. Controlled
Selective
Husqvarna Viking manufactures sewing machines. The company carefully screens its dealers to ensure a quality dealer image and service ability. Only a few dealers are chosen in any single geographic area. This is an example of _____ distribution.
a. dual
b. intensive
c. exclusive
d. selective
e. controlled
selective
Canesta Company has developed a virtual keyboard out of light to be used with cell phones and PDAs. The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user’s digital device. When introduced to the market, the device will sell for less than $50. What level of distribution intensity should the company use?
a. Exclusive
b. Controlled
c. Extensive
d. Reciprocal
e. Selective
Selective
Polo brand apparel is only available in fine department stores or from Polo retail stores. Which distribution strategy has Polo adopted?
a. Extensive
b. Intensive
c. Premium
d. Selective
e. Pioneering
Selective
Which level of distribution intensity is the most restrictive and entails establishing only one or a few dealers within a given geographic area?
a. Selective
b. Intensive
c. Exclusive
d. Dual
e. Premium
Exclusive
Rolex is an expensive brand of watches. The company has a policy of only having one or two dealers within a given large geographic area. Buyers of Rolex watches will travel extensively to acquire just the right watch. This is an illustration of which level of distribution intensity?
a. Exclusive
b. Intensive
c. Selective
d. Reciprocal
e. Premium
Exclusive
Caterpillar, the manufacturer of tractors and other earthmoving equipment, has an extremely high market share, which means customers seek the dealers out regardless of where they are. There are approximately 50 Caterpillar dealers in the United States–one in each state. From this information, you can surmise that Caterpillar uses _____ distribution.
a. selective
b. premium
c. intensive
d. exclusive
e. inclusive
exclusive
Which of the following types of distribution channel relationships is considered to be temporary?
a. Arm’s length
b. Functional
c. Cooperative
d. Hierarchical
e. Integrated
Arm’s length
This summer, college student Pat is planning on selling kites at Panama City Beach. He has found some suppliers and has preordered all of the kites he thinks he can sell this summer. What type of a distribution channel relationship does Pat have with his suppliers?
a. Arm’s length
b. Functional
c. Cooperative
d. Hierarchical
e. Integrated
Arm’s length
With the _____ channel relationship, both parties retain their independence and pursue their own interests while attempting to benefit from the goods or services provided by the other.
a. arm’s-length
b. functional
c. cooperative
d. hierarchical
e. integrated
arm’s-length
_____ distribution channel relationships are situations where one company, or several companies acting as one, performs all channel functions.
a. Arm’s-length
b. Functional
c. Cooperative
d. Hierarchical
e. Integrated
Integrated
One of the earliest, largest, and most famous examples of vertical integration was the Carnegie Steel Company. The company controlled not only the mills where the steel was manufactured but also the mines where the iron ore was extracted, the coal mines that supplied the coal, the ships that transported the iron ore, and the railroads that transported the coal to the factory. Carnegie Steel had a(n) _____ channel relationship.
a. arm’s-length
b. functional
c. cooperative
d. hierarchical
e. integrated
integrated
_____ channel relationships include nonequity agreements such as franchising and licensing as well as equity-based joint ventures and strategic alliances.
a. Arm’s-length
b. Functional
c. Cooperative
d. Hierarchical
e. Integrated
Cooperative
Which channel relationship is less ambiguous than an arm’s-length relationship but without the longer-term and/or capital investment required to achieve full integration?
a. Negotiated
b. Functional
c. Cooperative
d. Hierarchical
e. Intermediate
Cooperative
In 1935, Howard Johnson teamed up with Reginald Sprague to establish the first modern restaurant franchise. Their idea was to let independent operators use the same name, food, supplies, logo and even building design in exchange for a fee. In terms of the type of channel relationships established, this nonequity agreement would require a _____ relationship.
a. negotiated
b. functional
c. cooperative
d. hierarchical
e. segregated
cooperative
Some countries, such as the Peoples Republic of China and to some extent India, require foreign companies to form joint ventures with domestic firms in order to enter a market. This requirement often forces technology transfers and managerial control to the domestic partner. These types of equity agreements also require the establishment of a(n) _____ channel relationship.
a. arm’s-length
b. functional
c. cooperative
d. hierarchical
e. integrated
cooperative
The capacity of a particular marketing channel member to control or influence the behavior of other channel members is known as:
a. channel power
b. channel conflict
c. channel control
d. channel dominance
e. channel inversion
channel power
Wal-Mart is the largest retailer in the world, and many consumer packaged-goods manufacturers like Kraft have offices in Bentonville, Arkansas, where Wal-Mart is headquartered. Wal-Mart has the ability to influence manufacturers to lower their prices so that it can deliver on its low-price guarantee to consumers. Wal-Mart possesses:
a. channel influence
b. channel supremacy
c. channel power
d. channel exclusivity
e. channel clout
channel power
A situation that occurs when one marketing channel member intentionally affects another member’s behavior is called:
a. channel power
b. channel control
c. channel conflict
d. channel dominance
e. channel inversion
channel control
A channel leader is also called a(n):
a. intermediary leader
b. channel captain
c. channel facilitator
d. distribution supervisor
e. channel gatekeeper
channel captain
DeBeers sells most of the diamonds it produces to industry. The company controls over 90 percent of the market and has great power over its distributors. In its marketing channel, DeBeers would be considered a:
a. channel authority
b. channel member
c. channel leader
d. channel gatekeeper
e. power broker
channel leader
Johns Manville is the only manufacturer to offer a complete line of formaldehyde-free fiberglass building insulation, which offers superior energy efficiency in hard-to-reach cathedral ceilings and flat roof cavities; plus it is an excellent sound control for interior floors. As the only manufacturer and patent holder of this revolutionary insulation, Johns Manville has great power over its dealers. It is an example of a:
a. channel authority
b. channel regulator
c. channel captain
d. channel gatekeeper
e. power broker
channel captain
Channel conflict:
a. always has an adverse effect on the members of the channel
b. is not caused by ideological differences, because such differences would prevent the members from ever operating as a channel
c. is often caused by an inability of some channel members to keep up with the changing times
d. can appear as either internal or external
e. does not occur when multiple distribution channels are used
is often caused by an inability of some channel members to keep up with the changing times
Almost a million fans are willing to buy subscriptions to watch Major League Baseball (MLB) games online at MLB.com. That business is worth more than $100 million to MLB. But this online broadcast takes those fans away from the broadcasters that pay MLB hundreds of millions of dollars for the right to carry the games. Which of the following is likely to occur between MLB and broadcast television?
a. Horizontal market share
b. Lateral channel takeover
c. Niche market conflict
d. Channel conflict
e. Market share conflict
Channel conflict
Honda uses just-in-time manufacturing to build its Odyssey minivans. Five companies that make component parts for the Honda Odyssey relocated to Alabama and states bordering Alabama when Honda announced plans to build a new Odyssey manufacturing plant in Alabama. This relocation in order to provide efficient delivery of goods indicates that Honda is a:
a. channel captain
b. horizontal integrator
c. distribution champion
d. distribution ombudsman
e. demand maverick
channel captain
Channel conflict that occurs among channel members on the same level is known as:
a. primary conflict
b. organic conflict
c. internal conflict
d. horizontal conflict
e. vertical conflict
horizontal conflict
Horizontal channel conflict occurs most often when manufacturers practice:
a. dual or multiple distribution
b. trade loading
c. promotional pricing
d. direct distribution
e. channel distribution
dual or multiple distribution
Goodyear tire dealers were hurt financially when Goodyear made the decision to distribute its tires through retailers such as Sears and Walmart in addition to the exclusive dealerships it had established. The conflict that occurred at the retail level is an example of:
a. horizontal conflict
b. trade loading
c. value-added pricing
d. exclusive distribution
e. channel partnering
horizontal conflict
Channel conflict that occurs between different levels in a marketing channel is referred to as:
a. horizontal conflict
b. primary conflict
c. vertical conflict
d. secondary conflict
e. parallel conflict
vertical conflict
Polo brand apparel can be purchased through fine department stores nationwide. However, Polo apparel can also be purchased through Polo stores, which creates the potential for _____ conflict in the channel of distribution.
a. primary
b. secondary
c. horizontal
d. vertical
e. parallel
vertical
_____ is the joint effort of all channel members to create a channel that serves customers and creates a competitive advantage.
a. Selective partnering
b. Direct distribution
c. Channel partnering
d. Intensive integration
e. Closed channel distribution
Channel partnering
_____ occurs when products are distributed through unauthorized marketing channels.
a. Black marketing
b. Countertrading
c. Channel malfeasance
d. Gray marketing
e. Reverse channeling
Gray marketing
Many large champagne sellers do their own importing and desire to maintain independent price points in different markets. Thus, a bottle of champagne might cost $45 in the United States, while the same bottle might be only 20 euros (about $30) in France. It is often profitable to buy the wine in Europe, typically from an unauthorized distributor, and resell it in the United States. U.S. wine merchants who do so would be engaging in:
a. black marketing
b. channel malfeasance
c. countertrading
d. reverse channeling
e. gray marketing
gray marketing
It seems counterintuitive, but Jon Jordan, CEO of Southern Audio Services (SAS) in Baton Rouge, wants to curb the number of dealers who are selling his car speakers. Jordan understands that he can’t handpick all his vendors, but he never expected the rise in unauthorized dealers that came with the e-commerce boom. When Jordan decided to look for the SAS name on eBay, he came up thousands of sellers. These eBay sellers are engaging in:
a. black marketing
b. channel malfeasance
c. countertrading
d. reverse channeling
e. gray marketing
gray marketing
One thing that sets service distribution apart from traditional manufacturing distribution is that in a service environment:
a. production and consumption are simultaneous
b. production setbacks can be remedied by using safety stock
c. faster modes of transportation can offset service production problems
d. service distribution benefits are more tangible
e. service distribution has a narrower focus
production and consumption are simultaneous
Which of the following businesses is most likely to have a problem with distribution because production and consumption of the product occurs simultaneously?
a. A company that manufacturers bicycles
b. A hair salon
c. A retailer that sells mattresses
d. A soft drink bottler
e. A wholesaler that specializes in athletic equipment
A hair salon
You are responsible for physical distribution of your company’s service and should focus on:
a. ensuring the intangibility of the service so that physical distribution becomes a less important factor
b. minimizing wait times, managing service capacity, and providing delivery through distribution channels
c. making sure production and consumption are simultaneous
d. setting quality standards, choosing faster transportation modes, and using safety stock
e. customer-oriented order processing and inventory control
minimizing wait times, managing service capacity, and providing delivery through distribution channels
Which of the following is a main area of concern for service distribution?
a. Minimizing wait times
b. Maximizing sales
c. Creating a one-to-one relationship with customers
d. Providing easy to use Internet help
e. Reducing risk
Minimizing wait times
Paul operates Kayak.com, a company that allows customers to efficiently search company databases and find the best airline and hotel deals all over the Web. Kayak does not make bookings but rather provides recommendations for the best travel plans. Travel providers pay Kayak a commission for most customers who click through to their sites. Paul wants his users to have as short and sweet an experience on Kayak as possible. Time is of the essence in responding to any customer question, especially in this day where airfare can increase dramatically in just a couple of hours. Paul is devoted to:
a. improving service delivery
b. maximizing queues
c. reducing discrepancies of assortment
d. reducing wait time
e. managing service capacity
improving service delivery
Refer to R. H. Kurt & Son. Its marketing channel is composed of:
a. the distribution, objectives, strategies, and tactics used to move products from the manufacturer to the retailer
b. any organization that had a part in moving the product from the distributor to the retailer
c. the functions of transportation, storage, inventory control, materials handling, and order processing
d. the 41 different manufacturers, R. H. Kurt, the retailers it serves, and their customers
e. all organizations in the industry that make it possible for a consumer to buy his or her desired product
the 41 different manufacturers, R. H. Kurt, the retailers it serves, and their customers
Refer to R. H. Kurt & Son. Customers at retail stores only want one rifle or one scope. They do not want to buy in the quantities the manufacturers need to sell. This _____ is overcome by the marketing channels.
a. discrepancy of quantity
b. spatial discrepancy
c. discrepancy of assortment
d. discrepancy of facilitation
e. discrepancy of possession
discrepancy of quantity
Refer to R. H. Kurt & Son. When Kurt combines products from 41 different manufacturers into a collection retail buyers want available at one place, it is engaging in:
a. a transactional function
b. creating an assortment
c. a facilitating function
d. integrating its promotional functions
e. compressed distribution
creating an assortment
Refer to R. H. Kurt & Son. When Kurt solicits an order from a sporting goods store, it engages in a _____ function.
a. logistical
b. functional
c. facilitating
d. customerized
e. transactional
transactional
Refer to R. H. Kurt & Son. Given the nature of the products carried by Kurt, what level of distribution intensity would be most appropriate?
a. Extensive
b. Intensive
c. Reflexive
d. Unitary
e. Selective
Selective
Refer to R. H. Kurt & Son. If Kurt wishes to make sure its gunsmith service is profitable, it must consider:
a. how it can minimize the time a customer must wait for his or her rifle to be repaired
b. how the opening of hunting season will affect demand for its services
c. how to maintain an adequate staff
d. whether to ship the repaired rifle to the customer or the retailer
e. all of these options
all of these options
Refer to Redbox. Warner Bros., Blockbuster, Redbox, Walmart, and third-party DVD distributors are part of a:
a. distribution cooperative
b. marketing mix
c. transportation channel
d. marketing channel
e. logistics system
marketing channel
Refer to Redbox. Redbox offers DVDs from several production studios, such as Disney, Sony, and Paramount. Consumers can rent from Redbox instead of obtaining the DVD from the various production studios if they want a children’s movie from Disney and an action movie from Paramount. Thus, one kiosk provides _____ for both consumers and the production studios.
a. contact efficiency
b. integration
c. synergy
d. distribution efficiency
e. distribution intensity
contact efficiency
Refer to Redbox. Video stores that distribute DVDs usually also sell popcorn, candy, soft drinks, and entertainment publications. Basically, they overcome discrepancies of quantity and assortment by combining products into collections or assortment that consumers want available in one place. Which channel function does this describe?
a. Logistical functions
b. Transactional functions
c. Facilitating functions
d. Purchasing functions
e. Secondary functions
Logistical functions
Refer to Redbox. Production studios distribute DVDs in grocery stores, drugstores, discount stores, entertainment stores, and vending machines like Redbox. Which level of distribution intensity does this represent?
a. Intensive
b. Extensive
c. Product focused
d. Market focused
e. Exclusive
Intensive
Refer to Redbox. Production studios are potentially producing _____ among its existing distributors by allowing Redbox to rent their DVDs for $1.00.
a. vertical conflict
b. cognitive dissonance
c. supply management divergence
d. horizontal conflict
e. disintermediation
horizontal conflict
Retailing can be defined as all the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use.
T
A retail establishment can be classified according to its ownership, level of service, product assortment, and price.
T
Emily has just opened a health food store that sells organic foods, herbal supplements, and environmentally friendly products. Because it will be a specialty store, she should have a broad product assortment with moderately low prices.
F
A retailing establishment that sells a wide variety of shopping and specialty goods, including apparel, cosmetics, housewares, and electronics, would be classified as a department store.
T
Supermarkets are self-service retailers that specialize in food and food products, although many now carry nonfood items as well.
T
Jennifer owns a greeting card store where she also sells women’s purses, Crocs shoes for the whole family, Jibbitz charms, cell phone skins, Sandy Lion stickers, Yankee candles, Godiva chocolates, Precious Memories figurines, beaded jewelry, and stuffed animals. Jennifer uses multibrand merchandising
F
A typical discount store competes by carrying a limited line of high-turnover goods.
F
Flash Foods is the name of a chain of small stores that carry high-turnover products such as lip balm, milk, soda, beer, bread, and aspirin. Flash Foods stores are open all day every day and would best be classified as convenience stores.
T
Supercenters are more than just larger versions of traditional “markets.” In addition to foodstuffs, supercenters have pharmacies, dry cleaners, portrait studies, photo finishing, hair salons, and restaurants.
T
Specialty discount stores are often called category killers because they dominate the competition in their narrow merchandise segment.
T
Off-price retailers differ from other discount stores in the merchandise they carry. While most other discounters offer a predictable assortment of merchandise, the styles and brands offered at off-price retailers change frequently because they buy only what is currently available at a good deal.
T
Factory outlet stores are generally the same as warehouse clubs, except that a factory outlet store carries only the merchandise of the manufacturer that owns it.
F
Marketers who use nonstore retailing no longer have to worry about the “place” element of the four Ps.
F
Direct retailers’ sales have suffered as women have entered the workforce.
T
The person who called Alisa last night and tried to sell her double-paned windows for her home was using inbound telemarketing
F
Electronic retailing includes the 24-hour, shop-at-home television networks and online retailing.
T
The two types of franchising are target market franchising and geographic franchising.
F
The six Ps of the retailing mix are product, place, price, promotion, personnel, and planning.
F
Pick of the Litter has just purchased a sizable plot of land on which it will build a store building with a large parking lot. Across the street is a collection of specialty shops and a furniture store. Pick of the Litter will be part of a strip shopping center.
F
Every October through December, Hickory Farms opens a temporary store in many malls to sell products during the Christmas season without the long-term commitment of a more expensive retail lease. This is an example of a pop-up shop.
T
A store’s atmosphere is the overall impression conveyed by a store’s physical layout, decor, and surroundings.
T
Color can be used by retailers to create a mood or focus customer attention on a particular product.
T
Providing great customer service is one of the most challenging elements in the retail mix because customer expectations for service are so varied.
T
Interactivity in the retail environment is not feasible in terms of its costs.
F
M-commerce is a type of managed commerce in which both buyer and seller end the transaction with a win-win feeling.
F
1. _____ is defined as all activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use or consumption.
a. Wholesaling
b. Retailing
c. Business
d. Franchising
e. Distribution
Retailing
Which U.S. retailer is the number one sales volume retailer in the world?
a. Sears
b. JCPenney
c. Target
d. Kroger
e. Walmart
Walmart
Retail establishments are generally classified according to all of the following EXCEPT:
a. ownership
b. level of sales
c. level of service
d. price
e. product assortment
level of sales
A retail store can be classified according to its:
a. distribution method
b. inventory control
c. product assortment
d. management style
e. decor and atmosphere
product assortment
Around the world, most retailers are _____, operating one or a few stores in their community, owned by a single person or partnership and not operated as part of a larger retail institution.
a. independent
b. chain stores
c. franchise outlets
d. specialty clubs
e. product assortment stores
independent
Small neighborhood florists, shoe stores, and ethnic food markets are most likely to be:
a. supercenters
b. franchise outlets
c. membership clubs
d. chain stores
e. independent retailers
independent retailers
Tiffany owns a gift shop that carries clothing and memorabilia of local high school teams as well as home decor objects. She is the sole owner of the store, so in terms of ownership, her store would be classified as a(n):
a. independent retailer
b. freestanding store
c. franchise
d. chain store
e. common retailer
independent retailer
Stores that are owned and operated as a group by a single organization are called _____. Under this form of ownership, many administrative tasks are handled by the home office.
a. home base stores
b. independent retailers
c. franchisees
d. chain stores
e. strip centers
chain stores
Which type of retail ownership is owned and operated by an individual but is licensed by a larger supporting organization?
a. Independent retailer
b. Chain store
c. Franchise
d. Cooperative
e. Secondary retailer
Franchise
Rick owns and operates his own UPS shipping store. He has licensed the right to use UPS business systems. Rick’s shipping store is a:
a. doubly managed outlet
b. chain store
c. franchise
d. independent retailer
e. licensor
franchise
The number of different varieties of fishing lures carried by the Angler’s Store refers to the store’s:
a. store’s supply standard
b. complete retail offering
c. retail mix
d. volume
e. assortment depth
assortment depth
Which of the following types of stores has a high gross margin, a narrow product assortment, and a high level of service?
a. A supermarket
b. A warehouse club
c. A convenience store
d. A full-line discount store
e. A specialty store
A specialty store
_____ shows how much the retailer makes as a percentage of sales after the cost of goods sold is subtracted.
a. Net income
b. Retained earnings
c. Profitability
d. Net equity
e. Gross margin
Gross margin
As a general rule of thumb, a retailer that has a high gross margin will have:
a. m-commerce capabilities
b. an inventory management system
c. low prices
d. salespeople trained in cross-selling techniques
e. high prices
high prices
Housing several departments under one roof, a _____ carries a wide variety of shopping and specialty goods, including apparel, cosmetics, housewares, electronics, and sometimes furniture.
a. supermarket
b. specialty store
c. convenience store
d. super club
e. department store
department store
Which type of retail store would typically have the highest labor costs?
a. A warehouse club
b. A department store
c. An off-price store
d. An off-price retailer
e. A discount store
A department store
Each department in a department store is usually headed by a _____ who selects the merchandise mix for the department and may also choose the promotional devices and personnel for that department.
a. franchisee
b. financial broker
c. comptroller
d. human resources manager
e. buyer
buyer
The buyer who heads a department in a department store is responsible for the:
a. store’s exchange and return policies
b. store’s credit policies
c. chain’s expansion efforts
d. merchandise mix in that department
e. store’s advertising program
merchandise mix in that department
The _____ at John Lewis, Britain’s largest department store chain, selects the merchandise for his or her department and is often responsible for its promotion and for managing the personnel in that department.
a. buyer
b. purchasing agent
c. retail broker
d. merchandiser
e. franchisee
buyer
Which type of retail store specializes in a given type of merchandise?
a. An independent store
b. A department store
c. A discount store
d. A specialty store
e. A first-level store
A specialty store
James wants to open a small store that offers only products, knowledge, and advice for those who like to build Hot Rods, Street Rods, and refurbish classic cars. Which of the following types of stores would most likely support an effective launch of his business idea?
a. An off-price retailer
b. A specialty store
c. A full-discount store
d. A general store
e. A warehouse club
A specialty store
Texas-based Grape Vine Market is an 18,000-square-foot store offering highly collectible food and wine—along with some other culinary perks, including a cooking school—all in a setting crafted to make shoppers feel comfortable. It stocks more than 5,500 different kinds of wine. Grape Vine Market is best described as a:
a. hypermarket
b. convenience store
c. specialty store
d. department store
e. general store
specialty store
Which of the following statements about specialty stores is true?
a. Customers usually consider price to be the most important factor in their selection of a specialty store.
b. Customers at specialty stores are not concerned with the distinctiveness of the merchandise or the store’s physical appearance.
c. Specialty stores typically avoid price wars.
d. Specialty stores are ineffective test markets.
e. A typical specialty store carries a wider assortment of specialty merchandise than department stores.
Specialty stores typically avoid price wars.
_____ are large, departmentalized, self-service retailers that specialize in food and some nonfood items.
a. Supermarkets
b. Convenience stores
c. Membership wholesale clubs
d. Discount stores
e. Assortment merchandisers
Supermarkets
Giant Eagle is a chain of retail outlets in Ohio, West Virginia, Maryland, and Pennsylvania that are described as large, departmentalized, self-service stores that specialize in food and limited nonfood items. Giant Eagle stores are:
a. off-price retailers
b. discount stores
c. wholesale clubs
d. convenience stores
e. supermarkets
supermarkets
When supermarkets offer a wide variety of nontraditional goods and services under one roof, they are engaged in:
a. cross-selling
b. trading up
c. scrambled merchandising
d. disintermediation
e. cross-docking
scrambled merchandising
Kroger is the second-largest supermarket chain in the United States. Which of the following is the most likely reason why Kroger supermarkets sell all types of foodstuffs as well as nonfood products including a wide range of eyewear and accessories?
a. Consumer demand for one-stop shopping often leads to scrambled merchandising.
b. The fulfillment of the wheel of retailing hypothesis
c. Inflationary economic climate
d. Repositioning as a discounter
e. Growth of convenience merchandising
Consumer demand for one-stop shopping often leads to scrambled merchandising.
Safeway, Avanza (for the Hispanic market), Publix, and other supermarket chains offer a variety of nontraditional goods and services such as video rental, flower shops, dry cleaning, and banking. This practice is called:
a. convenience merchandising
b. retail wheeling
c. specialty service
d. trade-up positioning
e. scrambled merchandising
scrambled merchandising
_____ carry a limited line of high-turnover, high-priced goods and resemble miniature supermarkets. These self-service stores are typically located near residential areas and are open long hours, seven days a week.
a. Specialty stores
b. Wholesale stores
c. Convenience stores
d. Factory outlets
e. General stores
Convenience stores
Prices are usually higher in convenience stores than in supermarkets because convenience stores offer:
a. more specialty goods
b. a wider variety of products
c. a higher level of customer services
d. better location, longer hours, and faster service
e. higher-quality goods
better location, longer hours, and faster service
Flash Foods is the name of a chain of convenience stores with self-service gas pumps. What do you know about the convenience stores?
a. They carry a wide assortment of products.
b. They carry a limited line of high-turnover goods.
c. They compete on the basis of low price.
d. They carry a limited but deep assortment of products.
e. They carry the freshest of produce.
They carry a limited line of high-turnover goods.
_____ are retailers that compete on the basis of low prices, high turnover, and high volume.
a. Convenience outlets
b. Discount stores
c. General stores
d. Department stores
e. Specialty stores
Discount stores
Discount stores:
a. compete on the basis of low prices, high turnover, and high volume
b. offer more SKUs than department stores
c. sell high-priced, low-turnover products
d. provide their customers with full service
e. compete on the basis of assortment and depth
compete on the basis of low prices, high turnover, and high volume
Which type of discount store offers consumers very limited service and carries a broad assortment of nationally branded “hard goods,” such as housewares, toys, automotive parts, clothing, bedding, and maybe a limited line of nonperishable food items?
a. Full-line discount stores
b. Discount specialty stores
c. Factory outlets
d. Fashion stores
e. Specialty supercenters
Full-line discount stores
_____ is the retailing strategy of using moderate to low prices on large quantities of products and lower service to stimulate a high turnover of inventory.
a. Specialty store positioning
b. Merchandise positioning
c. M-store retailing
d. The wheel of retailing
e. Mass merchandising
Mass merchandising
Kmart utilizes a strategy of moderate to low prices on large quantities of products and lower levels of service to stimulate a high turnover of inventory. Kmart offers a wide variety of different product lines. Kmart is an example of a:
a. factory outlet
b. mass merchandiser
c. convenience store
d. franchising operation
e. specialty store
mass merchandiser
A retail operation that has a 90,000-square-foot facility and houses a florist, baker, bank, craft shop, photo finisher, dry cleaner, and pharmacy under the same roof as grocery and household items would be called a:
a. membership warehouse club
b. wholesale outlet
c. factory outlet
d. supercenter
e. mass merchandiser
supercenter
_____ are single-line stores that offer a nearly complete selection of one line of merchandise and use self-service, discount prices, high volume, and high turnover of merchandise to their advantage.
a. Specialty discount stores
b. Factory outlets
c. Mass merchandisers
d. Membership clubs
e. General stores
Specialty discount stores
Glen’s Safety First! sells a huge assortment of firefighting equipment at greatly reduced prices. It offers customers few services and competes on the basis of moderate to low prices on the large quantities of merchandise it stocks. Glen’s Safety First! is an example of a:
a. full-line discount store
b. specialty discount store
c. general store
d. department store
e. wholesale store
specialty discount store
Specialty stores such as Best Buy, Babies “R” Us, and Bed, Bath, and Beyond are often called category killers because:
a. they can destroy the profit potential for a category of merchandise for other retailers
b. they are located at stand-alone sites
c. of their broad merchandise mix and shallow assortment
d. they offer an exclusive category of merchandise
e. they carry only fast-selling items
they can destroy the profit potential for a category of merchandise for other retailers
_____ sell a limited selection of brand name appliances, household items, and groceries, usually in bulk on a cash-and-carry basis to members only.
a. Super outlets
b. Factory outlets
c. Wholesale discounters
d. Off-price discount retailers
e. Warehouse membership clubs
Super outlets
Laura buys supplies for her catering business at a retailer that stocks a limited selection of items, which are sold in bulk on a cash-and-carry basis to members only. As she browses through the huge store, she buys flour, a set of muffin pans, and a package of paper towels as well as an assortment of fresh produce. Laura is most likely shopping at a(n):
a. off-price discount retailer
b. factory outlet
c. industrial supply warehouse
d. warehouse membership club
e. wholesale outlet
warehouse membership club
Off-price retailers:
a. are often able to take advantage of manufacturers’ faulty sales forecasting
b. very often offer a consistent assortment of merchandise
c. seldom stock brand name merchandise
d. are owned by the manufacturer of the products they sell
e. offer very deep assortments
are often able to take advantage of manufacturers’ faulty sales forecasting
A publisher of books on holiday decorating, cooking, and crafts has to find a way to dispose of its overruns and unsold end-of-season output. As a marketing consultant, you suggest the firm sell the merchandise to:
a. mass merchandisers
b. convenience stores
c. department stores
d. supermarkets
e. off-price discount retailers
off-price discount retailers
A _____ is an off-price retailer that is owned and operated by a manufacturer and carries one line of merchandise–its own.
a. mass merchandiser
b. factory outlet
c. wholesale club
d. discount store
e. bargain basement store
factory outlet
Well-known manufacturers such as Bose, Ralph Lauren, and Reebok have decided that the most profitable way to dispose of out-of-season and irregular stock is to open stores and sell their own merchandise. These stores are types of:
a. seasonal outlets
b. mass merchandisers
c. factory outlets
d. discount stores
e. bargain basements
factory outlets
Which of the following statements about restaurants is true?
a. Restaurants are clearly a retailing establishment.
b. There is a strong demand for many more restaurants.
c. The demographic issue of time-poor consumers has led to a growing demand for restaurants.
d. Because barriers to entry are low, the restaurant business appeals to many people.
e. Restaurants are clearly a service industry.
Because barriers to entry are low, the restaurant business appeals to many people.
_____ refers to shopping without visiting a store and is currently growing faster than in-store shopping because of the consumer demand for convenience.
a. Nonstore retailing
b. Customerization
c. Hypershopping
d. Niche marketing
e. Specialty merchandising
Nonstore retailing
Which of the following statements about nonstore retailing is true?
a. The nature of the communications between the retailer and the customer is the same in all forms of nonstore retailing.
b. Nonstore retailing is currently growing faster than in-store retailing.
c. More than 80 percent of all sales are made through nonstore retailing.
d. The high growth rate for nonstore retailing is due to the growth of shop-at-home television networks.
e. Nonstore retailing is increasing at a rate lower than in-store retailing.
Nonstore retailing is currently growing faster than in-store retailing.
_____ is a low-profile yet important form of retailing in which consumers get products out of automated machines, and it accounts for billions of dollars worth of goods each year in the United States.
a. Automatic vending
b. Party-plan selling
c. Direct marketing
d. A pyramid scheme
e. Professional selling
Automatic vending
Which type of retailing is the selling of products by representatives who work door-to-door, office-to-office, or at home sales parties?
a. Personal marketing
b. Remote retailing
c. Direct retailing
d. Off-site retailing
e. Primary retailing
Direct retailing
The manufacturer of Cutco knives uses students as salespeople. The salespeople go into customers’ homes and demonstrate the product, and the sales transactions usually occur in a home setting. This form of nonstore retailing is called:
a. direct retailing
b. personal marketing
c. direct marketing
d. automatic vending
e. electronic retailing
direct retailing
Susan Adams makes children’s clothing. She is also the sales representatives and sets up parties and fashion shows at homes of mothers to demonstrate the quality and value of her clothing. Susan is using:
a. primary marketing
b. automatic vending
c. personal marketing
d. electronic retailing
e. direct retailing
direct retailing
_____ refers to the techniques used to get consumers to buy from their home. Those techniques include direct mail, catalogs and mail-order, telemarketing, and electronic retailing.
a. Nonstore vending
b. In-home retailing
c. Franchising
d. Direct marketing
e. Direct retailing
Direct marketing
Marketers can precisely target their customers according to demographics, geographics, and psychographics with:
a. direct mail
b. vending machines
c. franchise stores
d. specialty retail outlets
e. electronic selling
direct mail
_____ is the use of the telephone to sell directly to consumers.
a. Telemarketing
b. Two-way vending
c. Teleprompting
d. Indirect marketing
e. Phone vending
Telemarketing
Telemarketing can consist of either unsolicited _____ sales calls, or _____ sales calls, which allow companies to receive orders through toll-free telephone numbers.
a. order placement; lead generation
b. push strategy; pull strategy
c. systematic; synergistic
d. qualifying; finalizing
e. outbound; inbound
outbound; inbound
Amy received a phone call last night during supper. The caller wanted her to attend a meeting to learn about timeshares. Since Amy had never thought of purchasing this type of product before she received the call, this is obviously an example of _____ telemarketing.
a. outbound
b. lead generation
c. customer service
d. inbound
e. relationship
outbound
The Mad Stencilist has decided to demonstrate how to use its products to create custom gift tags on a local cable television channel and is encouraging shoppers to call a toll-free number to purchase the merchandise with a credit card. This form of retailing is called a(n):
a. in-store electronic shopping
b. videotex
c. shop-at-home network
d. electronic point of sale
e. catalog viewing
shop-at-home network
_____ is a type of shopping available to consumers with access to the Internet.
a. Shop-at-home networks
b. Online retailing
c. Franchising
d. Electronic wholesaling
e. Mobile vending
Online retailing
The Cedar Store carries a full line of cedar swings, gliders, garden benches, and tables. All of its products can be purchased through its Web site. The site has done well since the Cedar Store’s products do not need to be touched or smelled before purchase. The Cedar Store is engaging in:
a. online retailing
b. shop-at-home networking
c. mobile vending
d. franchising
e. electronic wholesaling
online retailing
A(n) _____ is a continuing relationship in which an individual or business grants business rights to operate or sell a product to another individual or business.
a. leasing contract
b. alliance for profit
c. brokered partnership
d. franchise
e. countertrade
franchise
Who is the originator of a trade name, product, methods of operation, and so on that grants operating rights to another party to sell its product?
a. The renter
b. The lessor
c. The franchisor
d. The franchisee
e. The owner/operator
The franchisor
The party in a franchise relationship that is an individual or business granted the right to sell another party’s product is called the:
a. franchisor
b. franchisee
c. receiver
d. renter
e. owner/operator
b. franchisee
Which form of franchising involves a dealer agreeing to sell certain products provided by a manufacturer or a wholesaler?
a. Primary franchising
b. Product and trade name franchising
c. Business format franchising
d. Limited franchising
e. Focused franchising
Product and trade name franchising
Chattanooga Bottling Company is licensed to bottle Coke products. The Chattanooga Bottling Company is an example of a:
a. product and trade name franchisee
b. redistributor franchisor
c. business format franchisee
d. licensed franchisor
e. relationship franchisee
product and trade name franchisee
A retailer in Winnsboro, Louisiana, is licensed to sell John Deere tractors. This retailer is a:
a. product and trade name franchisee
b. restricted franchisor
c. business format franchisee
d. licensed franchisor
e. relationship franchisee
product and trade name franchisee
Which form of franchising is an ongoing business relationship between a franchisor and a franchisee where the franchisor “sells” a franchisee the rights to use the franchisor’s approach to doing business?
a. Primary franchising
b. Product and trade name franchising
c. Business format franchising
d. Process franchising
e. Service franchising
Business format franchising
Domino’s pizza, Hyatt Corporation, and Wendy’s are all examples of _____ because the franchisee buys the right to use the franchisor’s approach to doing business.
a. product and trade name franchisors
b. redistributor franchisors
c. business format franchisors
d. licensed franchisors
e. relationship franchisors
business format franchisors
Arby’s, Jiffy-Lube, Baskin-Robbins, and Sylvan Learning Centers are examples of _____ because the franchisee buys the right to use the franchisor’s approach to doing business.
a. trade name franchising
b. product franchising
c. business format franchising
d. franchise wholesaling
e. logistic franchising
business format franchising
The first task of developing a retail strategy is to:
a. create a buying organization
b. decide what to buy
c. define the target market
d. create a promotional strategy
e. define the pricing policies
define the target market
Retailers control the six Ps of the retailing mix. The six Ps include the marketing mix plus:
a. presentation and personnel
b. production and people
c. potential and perception
d. personality and persuasion
e. positioning and purchasing
presentation and personnel
Retailers such as Target and JCPenney are responding to consumer needs by changing product mixes, hours of operation, locations, and prices. These stores are changing aspects of their:
a. merchandising groupings
b. retailing mixes
c. product offerings
d. retail trade areas
e. store positioning strategies
retailing mixes
The merchandise mix:
a. is the term used for price-bundled merchandise
b. is the term for the marketing communications used by retailers
c. refers to the six levels in a buying organization
d. describes the composition of a traditional shopping center
e. is the retailer’s product offering
is the retailer’s product offering
Which of the following statements about a retailer’s promotion strategy is true?
a. The design of the promotion strategy would be done separately from the creation of the retailing mix.
b. The goal of a retail store’s promotion mix is to position the store in consumers’ minds.
c. Most advertising for retailers is carried out at the national level.
d. Retailers find direct mail marketing inefficient.
e. Retail promotion strategy does not include public relations activities.
The goal of a retail store’s promotion mix is to position the store in consumers’ minds.
Why is the selection of a retail location so critical to a store’s success?
a. Location affects pricing decisions but does not affect store image.
b. Customers will not drive out of their way to find a store.
c. A location decision ties up funds that will not appreciate or gain in value.
d. A location decision typically requires long-term commitment of resources.
e. Employee density is affected by the area in which the store is located.
A location decision typically requires long-term commitment of resources.
When opening a new retail operation, the retailer needs to consider all of the following factors EXCEPT:
a. traffic flow
b. employee density
c. nature of the competition
d. land costs
e. economic growth potential
employee density
Banana Republic stores are usually built in shopping centers, but in a few cities the company has chosen to build a stand-alone store. Its freestanding store entices customers to shop because it:
a. contains merchandise different from that offered in other Banana Republic stores
b. is near a shopping center
c. has greater visibility to customers than it would in a shopping center
d. is an off-price retailing operation for the store chain
e. is most likely a franchise that offers lower prices than the shopping center locations
has greater visibility to customers than it would in a shopping center
Large retailers such as Target and Walmart and sellers of shopping goods such as automobiles and furniture often use _____ for their locations.
a. remote, rural locations
b. office complexes
c. factory outlets
d. freestanding stores
e. regional malls
freestanding stores
_____ are stores that consumers purposely plan to visit. They are often built as freestanding stores.
a. Destination stores
b. Benefit retailers
c. Relationship builders
d. Lifestyle stores
e. M-stores
Destination stores
Maggie Moo’s has decided that consumers will drive out of their way for the store’s yummy ice cream offerings. The owner needs to keep his overhead costs (such as rent) low and wants to avoid locating near competitors. For a location, Maggie Moo’s should open in a:
a. factory outlet
b. strip center
c. freestanding store
d. shopping center
e. regional mall
freestanding store
Another name for an anchor store is a:
a. mass merchandiser
b. generator store
c. host store
d. shopping center pillar
e. destination store
generator store
Anchor stores:
a. are the stores within the mall that sell services rather than products
b. are often large department stores that are located at opposite ends of a mall to create a heavy pedestrian traffic flow
c. usually specialize in high-priced items like furniture
d. is the generic name given to supermarkets that are located within shopping malls
e. is a term for retail stores that “drop off” to freestanding locations
are often large department stores that are located at opposite ends of a mall to create a heavy pedestrian traffic flow
When JCPenney announced it would open a 97,000-plus square foot anchor store in the new West Grand Promenade, it meant that JCPenney would be:
a. the only large store in the shopping center
b. a destination store
c. expected to create heavy foot traffic for the center
d. in an isolated location outside the shopping center structure
e. unable to control the local store’s pricing policies
expected to create heavy foot traffic for the center
The newest generation of shopping centers is:
a. regional malls
b. shopping business districts
c. lifestyle centers
d. franchised centers
e. strip malls
lifestyle centers
Pop-up shops are:
a. Web sites that pop up while you are visiting a site
b. m-commerce
c. convenience retailing
d. e-business
e. temporary retail establishments
temporary retail establishments
The Halloween Super Store is only open from September until November, usually in an otherwise vacant store. This is an example of a:
a. temp store
b. m-commerce
c. convenience retailing
d. pop-up shop
e. flash store
pop-up shop
The overall impression conveyed by a store’s physical layout, decor, and surroundings is referred to as the store’s:
a. atmosphere
b. merchandising mix
c. aura
d. position
e. positioning
atmosphere
Many technologically advanced retailers are using a technique called _____ to analyze the huge amounts of data collected through their point-of-purchase scanning equipment that will enable them to better meet the needs of customers.
a. market-basket analysis
b. simulated test marketing
c. product/customer correlation analysis
d. market cross-tabulations
e. customer lifestyle analysis
market-basket analysis
All of the following are factors in creating a store’s atmosphere EXCEPT:
a. employee type and density
b. fixture type and density
c. sound
d. price
e. odors
price
When you walk into an Apple store, you are immediately greeted by a clerk. The store is simply designed with layouts where you can experience products such as iMacs, iPhones, a variety of iPods, cameras, printers, and other accessories. If you have questions about the products, you can visit the Genius Bar. There is a place where kids can play and experience Mac to by sitting on big round cushy chairs. This description is of the store’s:
a. customer service strategy
b. atmosphere
c. target strategy
d. merchandise mix
e. promotional strategy
atmosphere
Home Depot has selected orange as its corporate color. It’s a good choice. At the gut level, orange connotes happiness and warmth. A recent article in one of the company’s advertising brochures spoke about choosing colors for home decorating. It referred to this color as “joyful orange.” The color orange is part of the _____ at Home Depot stores.
a. cultural impact
b. atmosphere
c. target strategy
d. merchandise mix
e. promotional strategy
atmosphere
Persuading customers to buy a higher-priced item than they originally intended to buy is referred to as:
a. suggestion selling
b. trading up
c. conversion selling
d. relationship marketing
e. interactive selling
trading up
When Irvin went into Lowe’s to buy his wife a small tool set she said she wanted, the sales clerk suggested a larger set with a tool kit on wheels that included a router and circular saw. In this example, the sales clerk engaged in:
a. suggestion selling
b. trading up
c. bait and switch
d. customer relationship retailing
e. service-disguised selling
trading up
A common practice among most retailers that seeks to broaden customers’ original purchases with related items is called:
a. suggestion selling
b. trading up
c. bait and switch
d. comprehensive selling
e. interactive selling
suggestion selling
Whenever a customer opens an account at First Southern National Bank, a teller or account representative asks the customer whether he or she needs a CD, online banking, or other services. In other words, the account representative engages in:
a. suggestion selling
b. trading up
c. bait and switch
d. customer relationship retailing
e. service-disguised selling
suggestion selling
Interactivity is one of the new developments in retailing. In retailing, interactivity refers to:
a. the use of improved communications with customers
b. a new form of customer relationship marketing
c. entertainment for customers to get them involved
d. the use of information kiosks
e. the creation of a static atmosphere
entertainment for customers to get them involved
Build-a-Bear is a retailer where children can design and assemble a stuffed animal from shelves full of parts. Each child starts by choosing an animal. Then, the child moves to a place where the stuffing is added. Finally, the child moves to the area where the last accessories are added. Build-a-Bear is part of a recent trend in retailing referred to as:
a. nonstore retailing
b. m-commerce
c. convenience retailing
d. e-business
e. interactivity
interactivity
One of the new developments in retailing is m-commerce. The “m” in m-commerce stands for:
a. motivated
b. multimedia
c. marketing
d. managed
e. mobile
mobile
One of the new developments in retailing is m-commerce. M-commerce refers to the ability to:
a. use unique communication techniques to send advertising messages
b. create situations in which the AIDA technique is effective
c. more efficiently manage customer demand with inventory
d. shop using wireless mobile devices
e. motivate consumers to buy more by creating more feedback channels
shop using wireless mobile devices
At the American Girl store in Chicago, dolls can be purchased and girls can then go to the American Girl Cafe or American Girl Theatre and even have birthday parties. This is an example of using:
a. nonstore retailing
b. m-commerce
c. convenience retailing
d. e-business
e. interactivity
interactivity
Refer to Diaz. In terms of ownership, Diaz’s coffee shop would be classified as a(n):
a. franchise
b. wholesaler
c. independent retail operation
d. agency
e. chain store
independent retail operation
Refer to Diaz. The type of merchandise carried by Diaz is deep but with a narrow assortment. The store would most likely be classified as a:
a. convenience store
b. mass merchandiser
c. specialty store
d. category killer
e. membership club
specialty store
Refer to Diaz. Customers of Diaz’s coffee shop can purchase coffee, coffee makers, mugs, chocolate, music CDs, and all sorts of unique gift items. Diaz is practicing:
a. m-commerce
b. interactive merchandising
c. lifestyle merchandising
d. scrambled merchandising
e. pop-up shopping
scrambled merchandising
Refer to Diaz. If Diaz wanted to grow his business and granted another owner the rights to use his format and approach to doing business, he would be involved in:
a. trading up
b. m-commerce
c. direct marketing
d. product and trade name franchising
e. business format franchising
business format franchising
Refer to Diaz. The smell of fresh coffee, the fact it is made where drinkers can watch the process, and the comfortable chairs all are used to create the store’s:
a. atmosphere
b. cultural impact
c. target strategy
d. merchandise mix
e. promotional strategy
atmosphere
Refer to Walmart. In terms of ownership, Walmart would be classified as a(n):
a. independent retailer
b. chain store
c. franchise
d. discount store
e. department store
chain store
Refer to Walmart. Walmart’s gross margin is the:
a. total sales from all of its stores worldwide
b. amount of money it makes as a percentage of sales after the cost of goods sold is subtracted
c. amount of money it makes as a percentage of sales before taxes
d. amount of money it makes as a percentage of sales after all costs are subtracted
e. net profit it earns after all expenses and taxes are subtracted
amount of money it makes as a percentage of sales after the cost of goods sold is subtracted
Refer to Walmart. Many Walmart stores have a full line of groceries and general merchandise with a wide range of services, such as a pharmacy, portrait studio, optical shop, and bank. Walmart is an example of which type of discount store?
a. Hypermarket
b. Specialty discount store
c. Extreme-value retailer
d. Supercenter
e. Category killer
Supercenter
Refer to Walmart. Most Walmart stores are not located in shopping centers but rather are buildings all by themselves. This type of location is referred to as a:
a. primary outlet
b. freestanding store
c. pop-up store
d. single-unit retailer
e. strip store
freestanding store
Refer to Walmart. Which type of pricing strategy describes Walmart’s commitment to offer consistently lower prices?
a. High-low pricing
b. Everyday low pricing
c. Promotional pricing
d. Prestige pricing
e. Marginal pricing
Everyday low pricing
Refer to Apple Stores. In terms of ownership, which of the following best describes Apple stores?
a. Independent retailer
b. Chain stores
c. Franchises
d. Pop-up shops
e. Department stores
Chain stores
Refer to Apple Stores. Of the major types of retail operations, Apple stores are:
a. department stores
b. specialty stores
c. superstores
d. convenience stores
e. discount stores
specialty stores
Refer to Apple Stores. What method of nonstore retailing does Apple take advantage of through the use of its Web site?
a. Telemarketing
b. Automatic vending
c. Direct mail
d. Catalogs and mail orders
e. Electronic retailing
Electronic retailing
Refer to Apple Stores. Some shoppers purposely plan to visit the Apple store on Fifth Avenue in New York City, which is characteristic of:
a. generator stores
b. lifestyle stores
c. interactive stores
d. m-stores
e. destination stores
destination stores
Refer to Apple Stores. Apple has the Genius Bar, the backlit signs, the Apple products themselves, the modern metallic walls and spiral staircases in its stores. These are all work together to convey the store’s:
a. impression
b. environment
c. atmosphere
d. surroundings
e. elements
atmosphere
Refer to Apple Stores. The Genius Bar where customers can ask questions of knowledgeable personnel is an example of getting consumers involved in the retail experience, also known as:
a. product
b. presentation
c. m-commerce
d. interactivity
e. elements
interactivity
Promotion is communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence their opinion or elicit a response.
T
Black & Mild FT are the only cigars on the market made with “a skillful blend of premium pipe tobaccos and a filter tip for extra smoothness.” This feature creates a competitive advantage for the product.
T
The promotional mix is the combination of promotional tools used to reach the target market and fulfill the organization’s overall goals
T
Advertising is any form of impersonal, one-way mass communication in which the sponsor or company is identified.
T
Benedick and Taapo are arguing about newspaper publicity. Benedick says favorable publicity is free–hence the phrase “free publicity.” Taapo says that publicity is not free because costs were incurred in developing the public relations materials used by the newspapers. Benedick has a more accurate grasp of the definition of publicity.
F
Publicity is free.
F
Sales promotion consists of all marketing activities that stimulate consumer buying and dealer effectiveness.
T
Communication via telephone is not considered personal selling because it is not face-to-face.
F
The U.S. manager is working with some Indonesians who do not speak English. In attempting to exchange information, they are using symbols to assign meanings to the facts the manager hopes to convey. This is an example of communication.
T
Nature Valley uses popular magazines, radio, and cable television to promote its brand of trail mix. Nature Valley uses mass communication.
T
When a marketer sends a message to the target market, the marketer must first decode the symbols used.
F
NutriFoods is concerned that its advertising messages are not getting through to the target market as intended. Its radio ads contain music that its target market does not like, and its spokesperson has a very nasal voice that sounds as though he has a perpetual cold. These are examples of noise in the communications process.
T
Even though a message is received, it will not necessarily be properly decoded; receivers interpret messages based on their own frames of reference.
T
If Charles Schwab Mutual Funds Investment Broker were to study its promotional strategies by looking at sales trends and market research, it would be using direct feedback to evaluate its promotional strategies.
F
All promotions are designed to either inform, persuade, or remind the target audience.
T
Maddie’s Beverage Company has recently introduced Wateroos, eight-ounce servings of water in juice-style containers with straws, to encourage children to drink more water. Since this product is in the introductory stage of the product life cycle and as yet has no direct competition, Maddie’s promotional objective should be persuasion.
F
It’s been a few years since odor-free paint hit the market, and a paint manufacturer estimates the paint to be in the growth stage of its product life cycle. With all the competition in the industry today, the manufacturer should use promotions that persuade buyers of odor-free paint to purchase its brand over all others.
T
AIDA is an acronym for attention, interest, desire, and action.
T
A person buying a Valentine’s Day gift for a significant other is more likely to go through all of the steps in the AIDA process than a person buying a gift certificate for his or her mail carrier.
T
The AIDA concept can be used to explain how all promotions influence purchase decisions.
F
In terms of the AIDA process, public relations has its greatest impact in gaining attention and interest for a company, good, or service
T
Allyson Brown is trying to develop a promotional mix for her firm’s new product, a sophisticated modular sunporch designed for use all year. She reasons that because her product is complex and carries high financial risks for consumers, the mix should concentrate on personal selling.
T
A blend of more advertising and sales promotion and less personal selling is useful when the target market is informed, loyal to the product in question, and geographically widely scattered.
T
Lansky sells 60 different knife and garden tool sharpeners. It uses aggressive personal selling and sales promotions to encourage intermediaries to carry and sell its sharpener. Lansky is using a push strategy.
T
Marketers typically use either a push or a pull strategy exclusively
F
From the consumer’s point of view, a company’s communications are already integrated, no matter how the company itself defines them.
T
One of the reasons for the growing popularity of integrated marketing communications is the proliferation of thousands of new media choices
T
_____ is communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.
a. Distributive communication
b. Perceptual communication
c. Statistically provable advertising
d. Promotion
e. Publicity
Promotion
Rosarita is responsible for developing a plan for the optimal use of advertising, personal selling, sales promotion, and public relations. Rosarita is developing
a. promotional strategy
b. set of promotion goals
c. marketing mix
d. communication mix
e. selling plan
promotional
In 2008, the NBC television network used advertising, personal selling, public relations, and sales promotion to communicate with its target audience about its new show My Own Worst Enemy. The television network’s _____ described its plan on how to use these tools most effectively.
a. mass communication mix
b. promotional strategy
c. selling plan
d. marketing mix
e. strategic goals
promotional strategy
The main function of a promotional strategy is to:
a. convince the target customers that a firm’s products offer competitive advantages over those of its competition
b. find a niche in the marketplace for the firm and its products
c. provide the firm with research information about the success of its marketing effort
d. create efficient distribution channels
e. guarantee control over the length of the stages of the product life cycle
convince the target customers that a firm’s products offer competitive advantages over those of its competition
The American Plastics Council wants to create more consumer demand for products that are packaged in plastic. The council has developed a(n) _____ that sets out how it will use all of the elements of the promotional mix to create a coordinated plan that will become an integral part of the organization’s marketing strategy.
a. promotional strategy
b. tactic for communication
c. mass aggregation strategy
d. communication objective
e. informative strategy
promotional strategy
A _____ is defined as the unique set of features of a company and its products that are perceived by the target market as significant and superior to the competition.
a. comparative differentiation
b. competitive advantage
c. marketing mix
d. special benefit
e. promotional plan
competitive advantage
People who love to fish prefer American Magic Lures that are cut from ash or cedar and then hand painted and hand tied with a feather skirt. Advertising for American Magic Lures emphasizes how its lures, unlike others, are all handcrafted. This is its:
a. publicity objective
b. marketing differentiator
c. competitive advantage
d. one-to-one marketing advantage
e. sales promotional theme
competitive advantage
The ads for Don Francisco’s ground coffee simply state, “The highest quality coffee doesn’t have to be expensive.” This is an example of how a product communicates its _____ with promotion.
a. marketing mix
b. comparative differentiation
c. competitive advantage
d. researchable objective
e. promotional theme
competitive advantage
Vegetarians sometimes have trouble making sure they get enough protein in their diets. Protons are a new, poppable snack made with super-crunchy tofu. They are bite-sized nuggets that come in both sweet and savory flavors: Original Crunchy, Backyard Bar-B-Q, Tomato Herb Garden, Cinnamon Toast, and Lemon Meringue Pie. Protons’ features, including that they are organic, vegan, and cholesterol free, give the new product its:
a. differential parity
b. synergistic goal
c. competitive advantage
d. comparative benefit
e. tactical objective for implementing strategy
competitive advantage
The promotional mix consists of:
a. advertising, publicity, direct marketing, and personal selling
b. public relations, direct marketing, personal selling, and publicity
c. product, promotion, price, and place
d. advertising, personal selling, sales promotion, and public relations
e. advertising, telemarketing, public relations, and sales promotions
advertising, personal selling, sales promotion, and public relations
The four major promotional tools (advertising, personal selling, sales promotion, and public relations) are known collectively as the:
a. communication model
b. advertising campaign
c. marketing mix
d. publicity four
e. promotional mix
promotional mix
_____ is any form of sponsor-identified, impersonal paid mass communication.
a. Advertising
b. Publicity
c. Promotion
d. Public relations
e. Nonpaid communication
Advertising
To increase its revenues, US Airways has decided to sell space on air-sickness bags to companies that would like to use this unique channel for their promotional messages. In terms of the promotional strategy, the air-sickness bags will be used for:
a. implicit communications
b. publicity
c. sales promotion
d. public relations
e. advertising
advertising
Which of the following statements about advertising is true?
a. The total costs of advertising are typically low.
b. The signs on the outsides of buses and taxis are not a form of advertising.
c. The cost per contact in advertising is low.
d. Innovative media are not used in advertising.
e. Advertising is any form of communication in which the sponsor is identified.
The cost per contact in advertising is low.
The marketing function that evaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to gain public understanding is called:
a. public relations
b. advertising
c. implicit communications
d. personal selling
e. sales promotion
public relations
Marketers use public relations to:
a. earn public understanding and acceptance
b. communicate with the community in which they operate
c. educate the public about company goals
d. introduce new products
e. do all of these things
do all of these things
In 2006, Atlanta once again hosted the Peachtree Road Race, a running event that attracts many world-caliber racers. This year, race officials also sanctioned a race conducted in Iraq so that soldiers from Georgia would not have to miss the annual event. The winners of the Mideast race as well as scenes of the actual race were televised. In terms of a promotional mix, this Iraqi Peachtree Race was as example of:
a. advertising and personal selling efforts
b. strategic product promotions and resulting sales
c. a target marketing strategy
d. sales promotion efforts
e. a public relations strategy and resulting publicity
a public relations strategy and resulting publicity
Every year, the Discovery Channel has what it calls Shark Week, a weeklong marathon of programs on sharks. In New York, Discovery Channel street teams disguised as Surfers, Bight University faculty, and Bight University “chewleaders” will attack city streets in July visiting morning television shows, landmarks, and high-traffic areas to promote the series. An article in the New York Times on Shark Week and the Discovery Channel’s street teams would be an example of:
a. a sales promotion
b. publicity
c. advertising
d. implicit communications
e. a personal sales presentations
publicity
Public information about a company, good, or service appearing in the mass media as a news item is called:
a. personal selling
b. advertising
c. mass communications
d. publicity
e. sales promotion
publicity
Publicity:
a. will never damage a company because it performs the information task of promotion
b. is free communication
c. is not persuasive with customers
d. has to be purchased from the mass media
e. has many internal costs to the company associated with it
has many internal costs to the company associated with it
The Steel Recycling Institute is an industry association that promotes and sustains the recycling of all steel products. An article in BusinessWeek magazine about how the institute plans to stimulate consumer demand would be an example of:
a. direct selling
b. news marketing
c. publicity
d. event marketing
e. direct marketing
publicity
Which of the following statements about sales promotions is true?
a. Public relations cannot effectively be used with sales promotions.
b. Sales promotion is a type of direct marketing.
c. Marketers view sales promotions as more effective when they are created as long-run stimulation tools.
d. Trade shows, coupons, premiums, and vacation giveaways are types of sales promotions.
e. All sales promotions must be aimed outside the organization.
Trade shows, coupons, premiums, and vacation giveaways are types of sales promotions.
_____ consists of all marketing activities that stimulate consumer purchasing such as coupons, contests, free samples, and trade shows.
a. Sales promotion
b. Publicity
c. Personal selling
d. Advertising
e. Sponsorship
Sales promotion
A $1-off coupon for Carnation Instant Breakfast powder is a form of:
a. public relations
b. sales promotion
c. personal selling
d. advertising
e. publicity
sales promotion
During a recent summer, Volvo Cars of North America drove traffic to its dealerships via a sweepstakes tied to Walt Disney’s summer blockbuster Pirates of the Caribbean: Dead Man’s Chest. This was an example of:
a. a sales promotion
b. publicity
c. advertising
d. implicit communications
e. a personal sales presentation
a sales promotion
_____ is a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other.
a. Implicit communication
b. Personal selling
c. Mass communication
d. Public relations
e. Synergistic communication
Personal selling
Java Jacket is a company that designs and prints ads on the paper jackets that go around hot coffee cups sold in coffee shops. To find clients to advertise on the coffee cup jackets, the company sent a representative to companies like Warner Brothers, eBay.com, and the Wall Street Journal to tell them how their ads on coffee cup jackets would give them inexpensive exposure to a large number of potential customers. Java Jacket’s activities can best be described as:
a. mass communication
b. implicit communication
c. personal selling
d. public relations
e. telemarketing
personal selling
To increase its revenues, US Airways has decided to sell space on air-sickness bags to sponsoring companies as a different medium for their promotional messages. The most effective promotional method for US Airways to use to find companies that would like to pay to have their promotional messages delivered to the 100 or so travelers on each of its flights would be:
a. push advertising
b. personal selling
c. direct advertising
d. sales promotions
e. publicity
personal selling
_____ is the process by which we exchange or share meanings through a common set of symbols. People also assign meanings to feelings, ideas, facts, and attitudes.
a. Feedback
b. Promotion
c. Advertising
d. Publicity
e. Communication
Communication
While talking to Mr. and Mrs. Knighton, the appliance salesperson described one of the refrigerators as “a real money saver” and “a true bargain,” but he also kept looking down at his feet and shuffling around. His nonverbal cues:
a. create subservient selling
b. create differential disadvantages
c. are part of how he communicated to the Knightons
d. are a type of marketing mix feedback
e. will not effect interpersonal communications
are part of how he communicated to the Knightons
Interpersonal communication is:
a. nonpaid information such as publicity
b. paid communication placed in personal media
c. long-distance communication between a business and its target market
d. direct face-to-face communication between two or more people
e. noise-free communication
direct face-to-face communication between two or more people
The two major categories of communications are:
a. verbal and nonverbal
b. direct and indirect
c. long term and short term
d. mass and interpersonal
e. informative and persuasive
mass and interpersonal
Bag Media is a British company that sells space on paper bags to advertisers who want to drive consumers to their Web sites. A Bag Media representative is making a presentation to several Internet entrepreneurs who are interested in getting traffic to their sites. The company rep is engaged in:
a. telemarketing
b. interpersonal communication
c. publicity
d. mass communication
e. crowd selling
interpersonal communication
Communication to large audiences, usually through a medium such as television or a newspaper, is called _____ communication.
a. mass
b. feedback-proof
c. referential
d. interpersonal
e. public
mass
USA cable television uses billboard, television, magazine, and newspaper advertising to inform television viewers about new episodes of Monk, a popular television series. USA uses _____ communication.
a. referential
b. mass
c. factual
d. interpersonal
e. public
mass
Which of the following is NOT a disadvantage a firm using mass communication might experience?
a. Inability to assess customer reactions to the promotion immediately
b. Clutter from competitors’ messages
c. Distractions around the consumer at the time of receipt of the message
d. Inability to know exactly who is receiving the message
e. Great expense on a per person exposed basis
Great expense on a per person exposed basis
The communication process itself consists of:
a. message, media, and transmittal
b. source, receiver, and channel
c. sender, receiver, and message
d. encoding, decoding, channel, sender, and receiver
e. comprehension, noise, and feedback
encoding, decoding, channel, sender, and receiver
The _____ is the originator of the message in the communication process.
a. communicator
b. encoder
c. channeler
d. sender
e. receiver
sender
For its new Jeep Compass, DaimlerChrysler launched a campaign targeting young, hip consumers. To reach its target, Jeep’s advertising agency used music, talking bobbleheads, and other nontraditional marketing tactics to capture consumers’ interest. The agency devised a host of bobblehead characters that represented the wide variety of potential Compass buyers. DaimlerChrysler was the _____ of the message in this communication process.
a. sender
b. decoder
c. channeler
d. receiver
e. communicator
sender
The manufacturer of Meridian yam products spent $25,000 to create an ad that ran in the Thanksgiving issue of a popular cooking magazine. Because it was the originator of the communication process, Meridian acted as a:
a. channel
b. noise filter
c. receiver
d. decoder
e. sender
sender
The maker of Frank’s RedHot pepper sauce spend $25,000 to create an ad that was targeted to consumers in the southwestern U.S. market. Because it created the ad itself and did not use an ad agency, Frank’s RedHot sauce engaged in:
a. channeling
b. creating noise
c. receiving
d. decoding
e. encoding
encoding
_____ is the conversion of the sender’s ideas and thoughts into a message.
a. Development
b. Envelopment
c. Processing
d. Decoding
e. Encoding
Encoding
Encoding is the:
a. creation of the original ideas and thoughts of a message
b. conversion of the sender’s ideas and thoughts into a message
c. transmission of a message
d. receipt and comprehension of a message
e. deciphering and understanding of a message
conversion of the sender’s ideas and thoughts into a message
For its new Jeep Compass, DaimlerChrysler has launched a new campaign targeting young, hip consumers. To reach its target, DaimlerChrysler’s advertising agency is using music, talking bobbleheads, and other nontraditional marketing tactics to capture consumers’ interest. The agency has devised a host of bobblehead characters that represent the wide variety of potential Compass buyers. The ad agency is acting as the _____ of the message.
a. decoder
b. sender
c. encoder
d. receiver
e. channeler
encoder
A channel in communication is:
a. the only source of noise
b. the same as in distribution
c. usually an ad agency or public relations firm
d. someone who places advertising into media
e. any communication medium
any communication medium
Campbell’s soup has been promoted with television commercials, radio spots, newspaper coupons, and magazine advertisements. In the communication process, these media served as _____ for transmitting the message.
a. senders
b. decoders
c. encoders
d. channels
e. receivers
decoders
When Castrol Syntec, a premium motor oil, sought a new way to reach its young, car-passionate audience, the brand found its mark with video games. In its first-ever attempt at in-game advertising, Castrol Syntec found a way to show consumers (in a virtual world) the brand’s power and performance. In the communication process, the game served as a(n) _____ for transmitting the message.
a. sender
b. decoder
c. encoder
d. channel
e. receiver
channel
The marketing campaign for Alpo dog food uses posters in veterinarians’ offices, radio and television ads, and a Web site to promote benefits of the dog food. In terms of the communication process, Alpo uses several different:
a. source of feedback
b. channels
c. encoders
d. decoders
e. noise interrupters
channels
_____ is anything that interferes with, distorts, or slows down the transmission of information.
a. Media communication
b. Feedback
c. Static
d. Nonpaid communication
e. Noise
Noise
Just as Grace was in sight of a billboard for the Riverbend Antique Mall, a police car drove by with its lights flashing. Grace was so concerned with watching where the police car went that she totally missed seeing the mall’s billboard. In terms of the communication process, the police car acted as:
a. media interruptus
b. negative feedback
c. static
d. explicit communication
e. noise
noise
Within the communication process for a car dealer’s ad, which of the following would be an example of noise?
a. Competing ads
b. News stories in the newspaper
c. The physical surroundings in which the individual reading the ad is located
d. The presence of other people while the ad is being read
e. All of these
All of these
For its new Jeep Compass, DaimlerChrysler came out with a new campaign targeting young, hip consumers. To reach its target, DaimlerChrysler used music, talking bobbleheads, and other nontraditional marketing tactics to capture consumers’ interest. These communications were directed at the _____, the persons who would decode the message.
a. senders
b. receivers
c. encoders
d. channels
e. communicators
receivers
_____ is the interpretation of the language and symbols sent by the source through a channel.
a. Encoding
b. Perceiving communication
c. Decoding
d. Channeling
e. Semiotics
Decoding
For communication to be effective:
a. marketing managers should use both interpersonal and mass communications
b. all steps of the communications process model must take place
c. marketing managers must ensure a proper match between the message to be conveyed and the target market’s attitudes and ideas
d. advertising messages must be general enough to cover all ages, social classes, and education levels
e. marketers should use televised instead of print communication
. marketing managers must ensure a proper match between the message to be conveyed and the target market’s attitudes and ideas
Ernest has three engineering degrees. He has hired an interior decorator to update his home. He is tremendously frustrated when he asks what he thinks are simple questions about weight-bearing walls and insulation requirements that the designer is unable to understand. Yet Ernest has the same problems when the designer starts talking about mauve, cerise, and magenta. Why is the communication process not working in this instance?
a. The designer is not intelligent enough to understand engineering.
b. Noise is interfering with both encoding and decoding.
c. The wrong medium has been used.
d. The sender and receiver do not share overlapping frames of reference.
e. Personal selling should not be used to market this type of product.
The sender and receiver do not share overlapping frames of reference.
The receiver’s response to a message is _____ to the source.
a. decoded
b. noise
c. feedback
d. channeled
e. static filled
feedback
Vera ordered the Chihuahua Christmas ornament she saw advertised in the Sunday coupon supplement by phoning The Danbury Mint and placing her order. In terms of the communication process, Vera’s purchase was an example of:
a. feedback
b. noise
c. implicit communication
d. channeled communication
e. message encoding
feedback
When Becca saw the ad suggesting Subway sandwiches as a dinner meal, she was offended by the spokesperson and wondered why anyone would want to do business with a company that thought being obnoxious was a good business practice. In terms of the communication process, Becca:
a. correctly encoded the message
b. created a longer than normal communication channel
c. improperly decoded the message
d. had no feedback
e. improperly encoded the message
improperly decoded the message
Bag Media is a British company that sells space on paper bags to advertisers who want to drive consumers to their Web sites. A Bag Media representative made a presentation to several Internet entrepreneurs who are interested in getting traffic to their sites. When one of the entrepreneurs ordered its Web address printed on 25,000 bags, it was an example of:
a. feedback
b. decoding
c. noise
d. indirect transmission
e. nonverbal communication
feedback
Which of the following statements about the characteristics of the elements in the promotional mix is true?
a. The speed of feedback is delayed in sales promotion, advertising, and personal selling.
b. Message flexibility is greatest with advertising.
c. The message flow is two-way in public relations, sales promotions, and personal selling.
d. The most feedback is available with personal selling.
e. The sponsor is identified in public relations, advertising, and personal selling.
The most feedback is available with personal selling.
Which of the following statements about the characteristics of the elements in the promotional mix is true?
a. Control over message content is greatest when public relations is used.
b. A large audience is best reached with personal selling.
c. The fastest feedback occurs with personal selling.
d. The mode of communication for sales promotion is usually direct and personal.
e. The message flow with advertising is two-way.
The fastest feedback occurs with personal selling.
Arc Promotional Agency created the first mobile blogging competition and online reality show for SingTel, a telecommunications company in Singapore. The campaign let SingTel customers pick their dream couple and follow their lives through a moblog. SingTel used _____ to communicate with its consumers.
a. a corporate blog
b. an interactive Web site
c. narrowcasting
d. a noncorporate blog
e. a market concentration strategy
a corporate blog
GM uses blogging to communicate with customers online. GM’s vice chairman Bob Lutz—an auto industry veteran and the company’s director of product development—began a blog about the company in 2005. Once readers realized it really was Lutz and not an advertising ploy, they quickly warmed to the idea and appreciated his candid comments about GM and its competition. This is an example of:
a. a corporate blog
b. an interactive Web site
c. narrowcasting
d. a noncorporate blog
e. a market concentration strategy
a corporate blog
What are the three basic tasks of promotion?
a. Informing, persuading, and convincing
b. Persuading, convincing, and reminding
c. Informing, convincing, and reminding
d. Informing, persuading, and reminding
e. Persuading, comparing, and reminding
Informing, persuading, and reminding
Which of the following is one of the basic tasks typically performed by promotion?
a. Managing
b. Organizing
c. Rewarding
d. Persuading
e. Perceiving
Persuading
Informative promotion is generally used:
a. when memory stimulus is needed
b. when the brand name is well-known to consumers
c. during the early stages of the product life cycle
d. during an attempt to gain the immediate action of a consumer
e. when advertising a simple, nontechnical, mature product
during the early stages of the product life cycle
The Hollymatic Patty Machine grinds and shapes meat into perfectly sized patties using a revolutionary new process that decreases shrinkage. The advertising agency is writing copy for the Hollymatic Patty Machine and has decided on a(n) _____ format because the product is so technical.
a. influencer
b. persuasive
c. reminder
d. reseller
e. informative
informative
When Heinz introduced its ketchup globally, it first had to deal with the fact that ketchup is not a household staple outside the United States. Heinz had to show foreign users how ketchup can be used. Globally, Heinz has had to rely primarily on _____ advertising.
a. reminder
b. persuasive
c. informative
d. compulsive
e. influential
informative
Maddie’s Beverage Company has recently introduced Wateroos, eight-ounce servings of water in juice-style containers with straws, to encourage children to drink more water. The goal of promotion developed for this new healthy alternative beverage for children would be to _____ consumers.
a. inform
b. remind
c. prompt
d. influence
e. encourage
inform
The American Plastics Council wants to stimulate more consumer demand for products that are packaged in plastic. The ads will explain how plastics protect families from food spoilage and contamination. The ads will also describe how tamper-evident plastic seals provide an extra measure of product safety assurance. By trying to change customers’ perception of plastic packaging, the council is using _____ promotion.
a. reminder
b. persuasive
c. declarative
d. diffusive
e. mass
persuasive
The goal of persuasive promotion is to:
a. stimulate a purchase or an action
b. increase brand awareness
c. describe available services
d. remind the consumers of where to buy the product
e. maintain top-of-mind consumer awareness
stimulate a purchase or an action
Persuasion normally becomes the primary promotion goal when:
a. a firm is trying to increase brand awareness
b. the product enters the growth stage of the product life cycle
c. selling a highly technical product
d. reminding consumers where to buy the product
e. new products are in early stages of the product life cycle
the product enters the growth stage of the product life cycle
Innovyx is an e-mail marketing service provider. It has a new ad campaign aimed at changing negative perceptions of e-mail. The ads explain how much cheaper e-mail advertising is than traditional advertising and what a high return on investment it can generate if used properly. Finally, the message ends by suggesting that companies wanting to promote their products give e-mail a chance to show what it can do. This promotion has the task of:
a. persuading
b. informing
c. reminding
d. suppressing
e. rewarding
persuading
_____ promotion is used to keep a familiar brand name in the public’s mind and is prevalent during the maturity stage of the product life cycle.
a. Influence
b. Amusement
c. Informative
d. Persuasive
e. Reminder
Reminder
Hasbro, Inc. hired actress Jamie Lee Curtis as its spokesperson to promote the company’s board games. As part of the campaign, Curtis appeared in television spots dressed as characters from various Hasbro games such as Battleship, Monopoly, and Clue to promote the games as great Christmas gifts to parents who played the games as children. This promotion was intended to:
a. amuse consumers
b. influence consumers to switch to Hasbro games
c. act as a reminder advertisement
d. persuade nonplayers of games to try them
e. act as a persuasive device for the product category
act as a reminder advertisement
For many years Jell-O gelatin has run advertisements that tell consumers there is “always room for Jell-O.” This is an example of _____ promotion.
a. influence
b. amusement
c. informative
d. prevalent
e. reminder
reminder
Which of the following outlines a sequential four-step process for achieving promotional goals?
a. The communication model
b. The hierarchy of impacts
c. The AIDA concept
d. Maslow’s hierarchy of needs
e. Schramm’s model
c. The AIDA concept
The AIDA concept:
a. proves that promotional effectiveness is an insignificant abstract term
b. demonstrates that buyers go through nine stages on the way to making a decision
c. is a model effectively showing that advertising can move people to the purchase stage
d. is a model for reaching promotional objectives that outlines a sequential process for effective promotion
e. is a budget plan based on the effectiveness of various promotional mixes in achieving certain objectives
is a model for reaching promotional objectives that outlines a sequential process for effective promotion
AIDA stands for:
a. attitude, interest, demand, activity
b. attention, interest, desire, action
c. awareness, intent, demand, action
d. avoidance, interest, desire, acceptance
e. attitudes in developing acquisitions
attention, interest, desire, action
According to the AIDA concept, the first step an advertiser must take is to gain the consumers’:
a. attention
b. attitude alignment
c. action
d. adaptation
e. adoption
attention
Lyndon went to a Web site that sells barbeque grills and read reviews of several different models. He has requested more information about a Weber grill that appeared to meet his needs, but he is not yet willing to give up his search to find the perfect grill. As far as Weber is concerned, Lyndon is in the _____ step of the AIDA concept.
a. action
b. attention
c. liking
d. interest
e. desire
interest
When Vincent saw Mike’s new Iron Horse Yakuza Aniki mountain bike, Vincent immediately knew he wanted to own one just like it some day. According to the AIDA concept, Vincent entered the _____ stage.
a. action
b. attention
c. liking
d. interest
e. desire
desire
Point-of-purchase displays in grocery stores, coupons, premiums, and trial-size packages are most useful when the consumer is near the _____ stage of the AIDA model.
a. liking
b. awareness
c. action
d. preference
e. knowledge
action
For which of the following purchases is Gordo most likely to pass through all four stages of the AIDA process?
a. A pair of white socks
b. A two-pack of light bulbs
c. A loaf of bread
d. Gear for mountain climbing
e. A six-pack of beer
Gear for mountain climbing
Which of the following statements about the AIDA model is true?
a. The AIDA model explains why public relations is the most important element in the promotional mix.
b. Advertising is most effective at the purchase stage of the AIDA model.
c. Certain promotional tools are more effective at certain stages of the AIDA model.
d. Sales promotion is not helpful during the attention stage of the AIDA model.
e. The promotional mix should not be influenced by the AIDA model.
Certain promotional tools are more effective at certain stages of the AIDA model.
The AIDA concept:
a. assumes that the second step in the purchase-decision process is inertia
b. does not explain how all promotions influence purchase decisions
c. assumes that consumers regularly go through each stage of the process during all purchases
d. indicates that the purchase decision is the same for high-involvement and low-involvement products
e. is accurately described by none of the choices
does not explain how all promotions influence purchase decisions
Protons are new, poppable snacks made with super-crunchy tofu. They are bite-sized nuggets that come in both sweet and savory flavors: Original Crunchy, Backyard Bar-B-Q, Tomato Herb Garden, Cinnamon Toast, and Lemon Meringue Pie. Which elements of the promotional mix would be most useful in attracting attention to this new snack food?
a. Public relations and sales promotion
b. Advertising and direct marketing
c. Direct marketing and personal selling
d. Public relations and direct marketing
e. Advertising and public relations
Advertising and public relations
To provide more delivery service to the consumer market, UPS created UPS stores. According to the AIDA model, to create attention for this more convenient and less expensive way to mail packages through UPS, its marketing department should have relied on which element of the promotional mix?
a. Public relations
b. Sales promotion
c. Event sponsorship
d. Personal selling
e. Direct marketing
Public relations
In terms of the AIDA concept, sales promotion is most effective at creating:
a. strong desire and purchase intent
b. positive attitudes toward a brand
c. awareness of a product
d. long-term interest
e. awareness of a product and purchase intent
strong desire and purchase intent
Entrepreneur Krissa Fernandes has developed flour made from ground almonds that she sells under the Platinum Nut brand for use in baking. Everyone who has baked with the new flour loves it, but she is having trouble getting potential consumers to the desire stage of the AIDA concept. Which of the following elements of the promotional mix would be most likely to move people to look for the product and buy it?
a. Flyers placed under windshield wipers at crafts festivals
b. An article in local newspaper about entrepreneurs
c. Increasing the number of stores carrying Platinum Nut
d. A $2-off coupon for a five-pound bag of almond flour
e. A classified ad
A $2-off coupon for a five-pound bag of almond flour
Which of the following is LEAST likely to be a factor that would determine the nature of the promotional mix?
a. Stage in the product life cycle
b. Target market characteristics
c. Funds available for promotion
d. Use of a push or pull strategy
e. Size of the company
Size of the company
Frigo Design has developed easy-to-install panel sets to update any refrigerator, dishwasher, or compactor made since 1942. As Frigo Design plans its promotion for its new chalkboard panels, which of the following factors will be likely to affect its promotional mix?
a. Its chalkboard panels are a new product.
b. Its chalkboard panels are targeted to families with school-age children.
c. Its chalkboard panels are easy to install.
d. Its panels fit any refrigerator, dishwasher, or compactor made since 1942.
e. All of these factors will affect Frigo’s promotional mix.
All of these factors will affect Frigo’s promotional mix.
The promotional mix elements that should be emphasized for products moving into the growth stage of the product life cycle are:
a. public relations and reminder advertising
b. sales promotion and public relations
c. personal selling and persuasive advertising
d. sales promotion and personal selling
e. informational advertising and publicity
personal selling and persuasive advertising
Because automobile tires are in the maturity stage of their product life cycle, the promotional mix element _____ should NOT be emphasized in the marketing of this product.
a. public relations
b. persuasive advertising
c. sales promotion
d. reminder advertising
e. personal selling
public relations
For products like audio cassette tapes (which are in the decline stage of the product life cycle):
a. persuasive advertising is commonly used
b. heavy public relations is used to maintain brand loyalty
c. personal selling should be used to obtain distribution
d. sales promotion is used to build market share
e. none of these is true
none of these is true
Fans of Cheerwine cherry-flavored cola are able to explain why Cheerwine is superior to any other type of cherry cola. They are scattered throughout the southeastern United States and are extremely brand loyal. The characteristics of this target market indicate that a promotional mix with _____ should be used.
a. less publicity and sales promotion and more personal selling
b. more advertising and sales promotion and less personal selling
c. more sales promotion and personal selling and less advertising
d. less sales promotion and more advertising and personal selling
e. more advertising and less sales promotion and public relations
more advertising and sales promotion and less personal selling
When a product is in the growth stage of its product life cycle:
a. all elements of the promotional mix are equally important
b. heavy advertising is used to build brand loyalty
c. persuasive and reminder advertising is decreased
d. personal selling is ineffective
e. personal selling and sales promotions are the major elements of the promotional mix used
heavy advertising is used to build brand loyalty
What is the most effective promotional mix to use with products that are convenience goods and purchased routinely?
a. Personal selling and advertising
b. Public relations and personal selling
c. Personal selling and sales promotion
d. Advertising and public relations
e. Sales promotion and advertising
Sales promotion and advertising
Which of the following elements of the promotional mix would be most effective for helping highly involved consumers make complex buying decisions?
a. Personal selling
b. Reminder advertising
c. Sales promotion
d. Public relations
e. Informative advertising
Personal selling
_____ is probably the most important factor in determining the promotional mix.
a. The advertising agency
b. The need for feedback
c. Money
d. Media availability
e. Message flexibility
Money
The use of aggressive personal selling and trade advertising by a manufacturer to convince a wholesaler or retailer to carry and sell particular merchandise is known as a _____ strategy.
a. strong-arm
b. kinetic
c. pull
d. foot-in-the-door
e. push
push
Petra McCoy has developed a product for cleaning grout called Grout-Chee. Everyone who has tried the product really appreciates how quickly it works, but McCoy is having trouble getting retail stores to carry the product. She has decided to send retailers free samples and use other trade promotions to encourage stores to carry her product. McCoy is using a(n) _____ promotional strategy.
a. kinetic
b. inert
c. push
d. advertorial
e. pull
push
An ad in a trade magazine targeted to veterinarians urges them to prescribe Hepato for cats and dogs with damaged livers. This ad was placed by the product’s manufacturer. This ad is an example of how manufacturers use a(n) _____ strategy.
a. kinetic
b. pull
c. inertia
d. advertorial
e. push
push
Slatescape sells crushed slate to be used as a decorative, permanent mulch to keep weeds out of flower beds. Initially, Slatescape was marketed heavily to home owners, but after years of radio and television advertising, Slatescape has decided to put a majority of its promotion budget into personal selling and sales promotion to lawn and garden supply stores and large discount stores such as Walmart. This new strategy is a _____ strategy.
a. kinetic
b. push
c. pull
d. foot-in-the-door
e. reinforcement
push
Shannon Murphey wanted to increase sales at his Tyler, Texas, jewelry store, Murphey the Jeweler. After analyzing his sales figures, he decided to give away $50 gift certificates for local businesses to give to their employees. “Many people used the gift certificates as credit toward more expensive items,” explains Murphey. Murphey used a(n) _____ strategy.
a. pull
b. push
c. kinetic
d. inertia
e. cash-flow
pull
The American Plastics Council wants to stimulate more consumer demand for products that are packaged in plastic. The ads will be run in consumer magazines and will hopefully cause customers to ask retailers to carry more products packaged in plastic. The American Plastics Council is planning to use a(n) _____ strategy.
a. kinetic
b. pull
c. inertia
d. advertorial
e. push
pull
A manufacturer using the _____ promotional strategy focuses its promotional efforts on the consumer.
a. reinforcement
b. personal selling
c. push
d. pull
e. kinetic
push
An ad for a prescription-only antihistamine that does not make its users sleepy like many other allergy medications was run in several health and fitness magazines. The ad said that if you were interested in learning more about the new product or trying it out, you should ask your physician. The manufacturer of the drug was using a _____ promotional strategy.
a. reinforcement
b. personal selling
c. push
d. pull
e. kinetic
pull
Procter & Gamble uses cents-off campaigns, couponing, and free samples to increase sales of Tide detergent. In other words, it uses a _____ promotional strategy.
a. push
b. personal selling
c. pull
d. reinforcing
e. kinetic
pull
To get more retailers to stock its products, Rust-Oleum paint developed a strong advertising campaign aimed at consumers. The ads show creative ways to use paint to make homes more attractive and emphasize that the paint doesn’t chip, peel, or fade. Rust-Oleum is using a _____ promotional strategy.
a. push
b. channel
c. reinforcement
d. pull
e. kinetic
pull
The various Survivor shows have been promoted through personal appearances by show participants, Web sites, and merchandise with the Survivor logo as well as print and broadcast advertising. To make sure that all of the promotional messages are coordinated, CBS (the network on which the show is broadcast) should use the:
a. integrated marketing communications approach
b. integrated communications management approach
c. AIDA concept
d. interpersonal and mass communications approach
e. coordinated market management approach
integrated marketing communications approach
When Lee Apparel introduced Lee Dungarees, it carefully coordinated posters, radio and television commercials, and a Web-based interactive game that drove customers to off-line stores and back to the Web site. All of these elements produced a consistent, unified, customer-focused message. Lee Apparel used:
a. coordinational promotion
b. promotional mixing
c. integrated marketing communications
d. creative selling
e. processed marketing
integrated marketing communications
In January 2005, Burger King sponsored the opener of the third season of The Apprentice. The Apprentice sponsorship was an important element in Burger King’s overall marketing strategy to build social currency for the brand through contests, advertising, and other sales promotion. That is, the brand set out to reverse negative perceptions of Burger King through the use of a consistent and coordinated promotional message. Burger King used:
a. coordinational promotion
b. promotional mixing
c. integrated marketing communications
d. creative selling
e. processed marketing
integrated marketing communications
_____ is the careful coordination of all promotional activities to produce a consistent, unified message that is customer focused.
a. Interpersonal and mass communications (IMC) approach
b. Promotional mixing
c. Integrated marketing communications
d. Creative selling
e. Relationship marketing
Integrated marketing communications
Molson beer was produced in Canada. Coors was manufactured in the United States. A merger of the two breweries gave each brand access to a significantly larger market. To effectively reach both markets, the merged company needed to coordinate its promotional mix to produce a consistent, unified, and customer-focused message. In other words, the brewery needed to use:
a. coordinational promotion
b. integrated marketing communications
c. transformational marketing
d. creative selling
e. transactional communications
integrated marketing communications
Why is the concept of integrated marketing communications (IMC) growing in popularity?
a. The proliferation of thousands of media choices beyond the traditional media has made promotion a complicated task.
b. The mass market has fragmented.
c. Critics of promotion have suggested that uncoordinated promotion is wasteful and inefficient.
d. Marketers have slashed their advertising spending in favor of promotional techniques that generate immediate sales responses and have more easily measured effects.
e. All of these statements help to explain why IMC is growing in popularity.
All of these statements help to explain why IMC is growing in popularity.
Refer to Cable TV. The television advertising utilized by cable operators represents the means by which the company communicates to current users to influence an opinion or elicit a response. This is called:
a. distribution
b. price
c. research and development
d. promotion
e. publicity
promotion
Refer to Cable TV. The cable industry’s ad campaigns are designed to communicate to a large audience via television and radio. It uses _____ communication.
a. mass
b. clutter
c. interpersonal
d. intrapersonal
e. public
mass
Refer to Cable TV. The cable industry is the originator of this ad campaign against satellite dishes. The industry represents the _____ in the communication process.
a. communicator
b. encoder
c. sender
d. channeler
e. receiver
sender
Refer to Cable TV. Television represents the _____ in the communication process used by the cable industry to transmit its message.
a. feedback loop
b. channel
c. encoder
d. receiver
e. communicator
channel
Refer to Cable TV. Keisha is watching television and sees an ad for DBS. Two ads later, she sees the new television ad for her local cable system. When questioned an hour later about advertising she has seen most recently, Keisha remembers a “cable” ad but cannot recall the details. Keisha’s inability to recall the ad is most likely caused by _____ in the communication process.
a. feedback
b. the use of a channel
c. a shared frame of reference
d. cognitive dissonance
e. noise
noise
Refer to RugRatReaders. In all of Martin’s ads, he will emphasize the books’ indestructibility. This represents the product’s:
a. tactical advantage
b. competitive advantage
c. feedback
d. promotional result
e. objective strategy
competitive advantage
Refer to RugRatReaders. Martin’s choice of radio as his promotional tool is based on the fact that it is a one-way mass communication vehicle. Radio is most commonly used with which promotional mix element?
a. Public relations
b. Advertising
c. Direct marketing
d. Sales promotion
e. Sponsorship
Advertising
Refer to RugRatReaders. The promotional campaign Martin is utilizing is designed to accomplish which basic promotional task?
a. Rewarding
b. Persuading
c. Informing
d. Influencing
e. Reminding
Informing
Refer to RugRatReaders. According to the AIDA model, the first step Martin must achieve with his target market is:
a. Attention
b. Interest
c. Liking
d. Desire
e. Action
Attention
Refer to RugRatReaders. In attempting to get consumers to ask the retailer for his product, Martin is using a _____ promotional strategy:
a. push
b. pull
c. kinetic
d. publicity
e. reinforcement
pull
Refer to Amtrak. The means by which Amtrak communicates with business travelers about the merits and characteristics of the Metroliner is called:
a. distribution
b. direct marketing
c. promotion
d. publicity
e. personal selling
promotion
Refer to Amtrak. The plan to optimally utilize television, radio, print, and out-of-home vehicles to target business travelers is called a:
a. promotional strategy
b. marketing mix
c. promotion goal
d. selling plan
e. publicity plan
promotional strategy
Refer to Amtrak. Amtrak’s campaign stresses that the Metroliner is more comfortable and more likely to be on time and run in inclement weather. The promotional campaign focuses on Amtrak’s:
a. superior skill set
b. special feature
c. tactical strategy
d. differential parity
e. competitive advantage
competitive advantage
Refer to Amtrak. Amtrak’s campaign is designed to communicate to a large audience via television, radio, and print. This is an example of _____ communication.
a. mass
b. clutter
c. interpersonal
d. intrapersonal
e. public
mass
Refer to Amtrak. Amtrak originated the new campaign. Amtrak represents the _____ in the communication process.
a. promotional impetus
b. decoder
c. sender
d. channeler
e. receiver
sender
Refer to Amtrak. Television, radio, print, and out-of-home media represent the _____ in the communication process used by Amtrak.
a. feedback loop
b. channel
c. encoder
d. receiver
e. communicator
channel
Refer to Amtrak. Amtrak’s careful coordination of all of its promotional activities to present a single, focused communication to its consumers is an example of:
a. coordinational promotion
b. promotional mixing
c. integrated marketing communications
d. creative selling
e. processed marketing
integrated marketing communications
Refer to Methodist Church. A news article about the Methodist Church that appeared in the Rome News-Tribune was an example of which promotional mix element?
a. Advertising
b. Sales promotion
c. Pull strategy
d. Public relations
e. Personal selling
Public relations
Refer to Methodist Church. The ad campaign will use _____ communication.
a. mass
b. interpersonal
c. direct
d. hierarchical
e. functional
mass
Refer to Methodist Church. In terms of the communication process, the unchurched who see the ads while watching television are expected to be:
a. channels and encoders
b. senders and receivers
c. receivers and decoders
d. channels and decoders
e. receivers and channels
receivers and decoders
Refer to Methodist Church. The church is hoping to see an increase of 3 percent in visitors to Methodist churches as a result of this ad. In terms of the communication process, this is the desired:
a. noise
b. encoding
c. reception
d. channel
e. feedback
feedback
Refer to Methodist Church. According to the AIDA concept, the ads must first:
a. create interest in the Methodist Church
b. draw attention to the Methodist Church
c. act on unfulfilled needs of the unchurched
d. augment current knowledge
e. create a desire to attend the Methodist Church
draw attention to the Methodist Church
Refer to Methodist Church. How might the United Methodist Church benefit from use of integrated marketing communications (IMC)?
a. Ads built using the IMC concept are not as closely regulated by the Federal Trade Commission.
b. Noise can be eliminated from the communication channel with the use of IMC concepts.
c. Correct decoding is guaranteed with the application of IMC concepts.
d. The application of IMC concepts allows marketers to reach a more fragmented market.
e. None of these statements explains how the United Methodist Church could benefit from the use of IMC.
The application of IMC concepts allows marketers to reach a more fragmented market.
_____ is any form of impersonal, sponsor-paid, one-way mass communication.
a. Publicity
b. Advertising
c. Promotion
d. Public relations
e. Direct marketing
Advertising
Why do companies with new brands that have a small market share tend to spend proportionately more for advertising and sales promotions compared to those with a large market share for existing products?
a. As a result of experiential marketing research
b. To create the appropriate level of institutional advertising
c. To determine which executional appeal is the most effective
d. To achieve a certain minimum level of exposure to measurably affect purchase habits
e. To prevent product cannibalization
To achieve a certain minimum level of exposure to measurably affect purchase habits
Before any creative work can begin on an advertising campaign, it is important to:
a. determine what goals or objectives the advertising should achieve
b. set the marketing budget
c. decide what executional style to use in the ads
d. see if sales promotion is more important
e. hire a spokesperson
determine what goals or objectives the advertising should achieve
An advertising campaign:
a. may contain a wide variety of themes and slogans
b. extends for a defined period of time
c. continues for the life of the product
d. starts with determining which media will be used
e. rarely has a specific budget
extends for a defined period of time
Pioneering advertising, competitive advertising, and comparative advertising are all types of:
a. institutional advertising
b. product advertising
c. primary advertising
d. commercial advertising
e. commissioned advertising
product advertising