Bus Of Nonfinancial Compensation Free Media Attention - Flashcards

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_____ is a form of deceptive price advertising where sellers advertise items for a very low price without intending to sell any of them because they plan to pressure sales of higher-priced items.

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bait and switch

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Jana's firm is entering a new market and she plans to set prices to take sales away from the established market leader even though it will mean profits might suffer. This corresponds to which of the following company objectives?

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sales-orientation

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In the classic downward-sloping demand curve, as price increases, the demand for the product or service

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decreases

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The most common form of competition is _____ where many firms compete for customers in a given market but with differentiated products.

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monopolistic competition

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Which of the following explains why the demand for Blu-ray discs increases when the demand for Blu-ray players increases?

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being complementary products

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_____ means the firm deliberately prices a product above the prices set for competing products to capture those customers who always shop for the best, or for whom price does not matter.

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Premium pricing

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____ indicates that the demand for related products can either be positively or negatively related.

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Cross-price elasticity

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A _____ pricing strategy is attractive because it attracts two distinct market segments: those who are not price sensitive along with more price-sensitive customers.

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high/low

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In addition to offering the potential to build sales, market share, and profits, _____ discourages competitors from entering the market because the profit margin is relatively low.

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penetration pricing

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Best Buy will match competitor prices for customers who bring in proof that a particular product is being sold at a lower price by a competitor, thus using

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status quo pricing.

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In terms of a pricing strategy, _____ pricing adds value by reducing consumers' search costs; consumers can spend less of their valuable time comparing prices, including sale prices, at different stores.

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everyday low

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____ involves determining the point at which the number of units sold generates just enough revenue to equal the total costs.

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Break-even analysis

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Standardized products such as grains and chemical products, where consumers perceive them as substitutable, are characteristic of

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pure competition

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In the soft drink industry only a few firms dominate, which is characterized as

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an oligopoly

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In the trucking industry, demand for fuel remains relatively stable even in times when the price of fuel increases, indicating that demand for fuel in this segment is

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inelastic

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In _____, one firm provides the product or service in a particular industry, which results in less price competition.

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a monopoly

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Retailers using a high/low pricing strategy often communicate this through the creative use of _____, which is the price against which buyers compare the actual selling price of the product and that facilitates their evaluation process.

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a reference price

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____ is used to market products to innovators who are willing to pay the very highest prices to obtain brand-new examples of technology advances, with exciting product enhancements.

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price skimming

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With _____ products and services, a higher price might lead to a greater quantity sold, but only up to a certain point.

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prestige

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When a firm sets a very low price for one or more of its products with the intent to drive its competition out of business, it is using the illegal practice of

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predatory pricing.

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__ employs irregular but not necessarily illegal methods; generally, it legally circumvents authorized channels of distribution to sell goods at prices lower than those intended by the manufacturer.

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a gray market

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A _____ orientation explicitly invokes the concept of value such as when a firm uses a no-haggle pricing structure to make the purchase process simpler and easier.

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customer

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A _____ pricing strategy relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases.

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high/low

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The objective of _____ is to build sales, market share, and profits quickly by providing an incentive to purchase the product immediately.

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market penetration pricing

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_____measures how changes in price affect the quantity of the product demanded.

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Price elasticity of demand

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As the marketing vice president of her firm, Jana is considering implementing a company-wide pricing policy that all products must achieve a target profit margin of 15% so the firm can achieve its overall growth objectives.

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profit-orientation

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When a firm sets a very low price for one or more of its products with the intent to drive its competition out of business, it is engaged in

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predatory pricing

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Jack works for a firm in the Northwestern region that is clearly the market leader, and has determined he must implement a region-wide price reduction of all product lines to discourage new firms from entering the lucrative market. Which of the following company objectives is involved?

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competitor-orientation

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When Clarissa sells the jewelry she makes at craft fairs or on her personal website, she is utilizing a _____ marketing channel.

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direct

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As the dominant member of the channel of distribution, Coca Cola holds a lot of power in the relationship with independent grocery stores, and as such, it performs the functions of restocking merchandise, setting up special displays, and rotating merchandise. This is an example of

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an administered vertical marketing system

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Supply chain management refers to a set of approaches and techniques firms employ to efficiently and effectively integrate their manufacturers, warehouses, transportation intermediaries, stores, and

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suppliers

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When the members of a marketing channel operate to satisfy their own objectives and maximize their own profits, often at the expense of the other members, the channel operates as

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an independent marketing channel

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In _____ marketing channels, one or more intermediaries work with manufacturers to provide goods and services to customers.

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indirect

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Purchase data collected at the point of sale is stored in

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data warehouses

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A(n) _____ involves the computer-to-computer transmission of sales data, purchase orders, invoices, and data about returned merchandise between a retailer and its vendors.

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electronic data interchange

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The international fashion retailer Zara's parent company, Inditex, owns the manufacturing plants, warehouse facilities, retail outlets, and design studios, which is an example of

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a corporate vertical marketing system.

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A _____, which may be operated by retailers, manufacturers, or distribution specialists, is a facility for the receipt, storage, and redistribution of goods to company stores or customers.

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distribution center

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When companies enter into agreements that allow them to obtain economies of scale and coordination to reduce conflict, it is an example of

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a contractual vertical marketing system.

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Firms that use a(n) _____ supply chain allocate merchandise to stores based on previous sales forecasts.

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push

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As noted in your text, each participant in a successful marketing channel adds

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value

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_____ is a practice in which merchandise cartons are prepackaged by the vendor for a specific store.

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cross-docking

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When there is disagreement among members at the same level of marketing channels such as when Best Buy and Sears engage in a price war on Maytag appliances, _____ channel conflict can occur.

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horizontal

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To create strong partnering relationships, supply chain members must develop mutual trust, openly communicate, have common goals, recognize the benefits of interdependence, and

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be willing to invest in each other's success.

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_____ is an electronic document sent by a supplier to a retailer prior to the shipment of a merchandise order.

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An advanced shipping notice

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The most common type of contractual vertical marketing system is

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franchising

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The _____ is the person who coordinates deliveries to the distribution center.

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dispatcher

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Frito Lay is an example of a company that partners with retailers by implementing _____ system, involving taking on the responsibility of managing inventory levels at the retailers where its products are sold.

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a vendor-managed inventory

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Which type of strategy is most efficient for merchandise that has steady, predictable demand, such as milk and eggs?

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push

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_____ power is when one channel member threatens to punish or punishes another channel member for not undertaking certain tasks, such as delaying payment for a late delivery.

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Coercive

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With a _____ marketing strategy, there is less likelihood of merchandise being overstocked or out of stock because the store orders merchandise as needed on the basis of consumer demand.

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pull

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_____ power is exhibited when one channel member wants to be associated with another channel member; the channel member with whom the others want to be associated has the power to get them to do what it wants.

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referent

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All of the following are examples of the value provided by a supply chain in the production of kitchen stoves EXCEPT

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the product design team develops initial drawings for a new product offering.

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JIT inventory systems are associated with all of the following EXCEPT

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more inventory to warehouse.

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In a distribution center which person would be responsible for the financial planning and analysis of merchandise and its allocation to stores?

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planner

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Radio frequency identification tags are

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tiny computer chips that transmit information about the contents of containers.

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Both Walmart and JCPenney initially had separate organizations for their Internet channel but subsequently integrated them with stores and catalogs to address the _____ challenge of multichannel retailing.

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supply chain

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_____ are large retailers (100,000-150,000 square feet) that offer a limited and irregular assortment of food and general merchandise, little service, and low prices to the general public and small businesses.

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warehouse clubs

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The old cliché claiming the three most important things in retailing are "location, location, location" corresponds to which of the following components of the retail strategy?

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place

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Offering a one-stop shopping convenience to customers, _______ combine a supermarket with a full-line discount store.

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supercenters

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When developing strategies for working with retailers, manufacturers must consider whether they should sell in more than one outlet (e.g., store, catalog, and Internet). Which of the following factors for establishing a relationship with retailers deals with this?

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Determining whether to use a multichannel strategy

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Salespeople can be particularly helpful when purchasing a(n) _____ product.

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complicated

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A brand that is developed by a national brand vendor, often in conjunction with a retailer, and is sold exclusively by the retailer is referred to as

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an exclusive co-brand.

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Offering live, online chat options to shoppers is a way of increasing the value of online shopping because it provides

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personalized customer service

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Distribution intensity is commonly divided into three levels. What are they?

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Intensive, exclusive, and selective

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If Kleenex produced a new, eco-friendly personal-sized package of tissues, which it intended to get into as many retail outlets as possible, it should choose _____ distribution intensity.

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an intensive

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Walmart, Target, and Kmart offer a broad variety of merchandise, limited service, and low prices, which would classify them as

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full-line discount stores

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Which of the following firms operates more than 3,000 supercenters in the United States, accounting for the vast majority of total supercenter sales—far outpacing its competitors?

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Walmart

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_____ distribution helps a seller maintain a particular image and control the flow of merchandise into an area, which makes this approach attractive to many shopping goods manufacturers, such as most apparel items, home items like branded pots and pans or sheets and towels, branded hardware and tools, and consumer electronics.

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selective

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Luxury goods firms such as Coach use _____ distribution strategy to limit sales to a few select, higher-end retailers in each region, because selling its product in full-line discount stores or off-price retailers would weaken its image.

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an exclusive

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Generally, the _____ and _____ sophisticated the channel member, the less likely that it will use supply chain intermediaries.

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larger; more

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Retailers may modify product, price, and/or promotion to attempt to increase their _____, which is the percentage of the customer's purchases made from that particular retailer.

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share of wallet

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_____ tailor their retail strategy toward very specific market segments by offering deep but narrow assortments and sales associate expertise.

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specialty stores

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The set of business activities that add value to products and services sold to consumers for their personal or family use is referred to as

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retailing

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Which of the following food retailers is a self-service retail food store offering groceries, meat, and produce with limited sales of nonfood items?

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Conventional supermarket

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When choosing retail partners, a high-end cosmetics manufacturer like Estée Lauder would most likely NOT choose to sell to CVS or Dollar General due to

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customer expectations.

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When customers purchase merchandise in stores, the physical presence of the store _____ their perceived risk of buying and _____ their confidence that any problems with the merchandise will be corrected.

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reduces; increases

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Which of the following falls into the category of being a general merchandise retailer?

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category specialist

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In thinking about the channel structure, the level of difficulty a manufacturer experiences in getting retailers to purchase its products is determined by all of the following EXCEPT

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the degree to which the channel is horizontally integrated.

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Which of the following is considered the greatest advantage offered to consumers by brick-and-mortar stores compared to online shopping?

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Being able to use all five of their senses

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Which of the following would qualify as being a service retailer?

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a health spa

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Stores are limited by their _____, which is generally not an issue when shopping on the Internet.

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size

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_______ offer an inconsistent assortment of brand name merchandise at a significant discount from the manufacturer's suggested retail price.

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off-price retailers

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Dollar General and Family Dollar Stores are small, full-line discount stores that offer a limited merchandise assortment at very low prices, so they would be classified as

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extreme value retailers

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Although the number of their physical stores is limited, L.L. Bean is widely known for offering unique, high-quality merchandise. Adding an Internet channel was particularly attractive because it allowed the company to _____ without having to build new stores.

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expand its market presence

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When designing in-store signage, retailers often develop yellow signs and shelf tags with bold lettering to catch consumers' attention. The use of visuals in this manner represents the _____ component of the communication process.

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encoding

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Nathan gauged the level of exposure to his marketing campaign, using the percentage of the target population exposed at least once to his advertisement, representing its

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reach

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The fact that a particular advertisement might not cause a consumer to make an immediate purchase is referred to as

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a lagged effect.

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Home Depot hired an advertising agency to develop television ads for its grand opening in Southern Maine. The advertising agency represents which of the following components of the communication process?

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Transmitter

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Customers can use the Internet to share their opinions about products and services via YouTube, Facebook, and Twitter. In doing so, they can help facilitate the consumer decision process through use of

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social media

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Limitations of the _____ budgeting method include not allowing firms to exploit the unique opportunities or problems they confront in a market. If all competitors use this method to set communication budgets, their market shares will stay approximately the same over time.

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competitive parity

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Omaha Steaks sending e-mail coupons for items that customers have purchased previously and mailing slick pictures of gourmet steaks and meal packages to addresses that have received orders in the past is an example of

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direct marketing

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In the communication process, _____ refers to the process by which the receiver interprets the sender's message.

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decoding

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The U.S. government promoted public participation in the 2010 census during the televised Super Bowl game in its efforts to raise awareness of when and how the census works. This is an example of which of the following promotional elements?

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Advertising

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There are three elements in any integrated marketing communication strategy: the _______, the channels through which the message is communicated, and evaluation of the results of the communication.

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consumer being targeted

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If a sponsored link was delivered 100 times and 10 people clicked it, then the number of impressions is 100, the number of clicks is 10, and the click-through-rate (CTR) would be

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10%

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Macy's is conducting marketing research to determine whether its advertising message could be clearly understood by its customers. This relates to which component of the communication process?

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feedback loop

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To support the other promotional efforts, firms use _____ to generate free media attention.

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public relations

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The AIDA model represents a series of mental stages a consumer goes through and includes awareness, action, interest, and

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desire

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After the firm has piqued the interest of its target market, the goal of subsequent IMC messages should move the consumer from "I like it" to

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"I want it."

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The _____ method determines the budget required to undertake specific tasks to accomplish communication objectives.

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objective-and-task

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Personalized e-mail marketing is an online, passive form of persuasive communication and would be classified as an example of

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direct marketing

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Jacob determined one of the metrics he would use to gauge the level of exposure his marketing message had with his target market was the number of times the target was exposed to his message throughout the 6 weeks of the campaign, representing its

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frequency.

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Harley Davidson has _____ if a consumer responds "Harley" when asked about American-made motorcycles.

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top-of-mind awareness.

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The AIDA model is also known as the _____ model.

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think, feel, do

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Google's AdWords system provides a Quality Score as a measure of _____, which indicates the usefulness of an ad message to consumers doing a Google search.

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relevance

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the highest level of awareness is

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top-of-mind awareness.

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What factors are used in the rule-of-thumb methods to determine the communication budget?

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Prior sales and communication activities

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Which of the following formulas is accurate for calculating gross rating points (GRP)?

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reach multiplied by frequency

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Traditionally, advertising has been _____ and _____.

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passive; online

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____ is/are the number of times an ad appears in front of the user.

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impressions

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Since her firm's share of the market has increased from 2.5% to 3%, Allyson had determined she would set her share of communication expenses at 3% of sales, which is an example of the use of the _____ method.

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competitive parity

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A _____ offers an item for free or at a bargain price to reward some type of behavior, such as buying, sampling, or testing.

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premium

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The Indoor Tanning Is Out campaign is designed to raise awareness of the increased risk of melanoma, the deadliest form of skin cancer, and decrease usage of tanning salons. This is an example of a(n) _____ advertisement.

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public service

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Which of the following is NOT an aspect of Advertising?

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It is used to only sell products.

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When a company wants to create and build brand awareness, it would use _____ advertising.

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informative

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The _____ enforces truth in advertising laws and defines deceptive and unfair advertising practices.

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the federal trade commission

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Bowflex and Jenny Craig develop advertisements featuring celebrities to address their target markets' need for feeling good about themselves. This is an example of which of the following?

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emotional appeal

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A(n) _____ is a subsection of the firm's overall marketing plan that explicitly analyzes the marketing and advertising situation, identifies the objectives of the advertising campaign, clarifies a specific strategy for accomplishing those objectives, and indicates how the firm can determine whether the campaign was successful.

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advertising plan

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______ advertising generally occurs in the growth and early maturity stages of the product life cycle, when competition is most intense, and attempts to accelerate the market's acceptance of the product.

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persuasive

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Exxon Mobil uses a(n) _____ appeal when it explains technical aspects of its products, such as lithium ion batteries, hydrogen technology, biofuels, and CO2 capture technologies.

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informational

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Tostito's relationship with the Fiesta Bowl college football game is an example of which PR tool?

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event sponsorship

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The slogans "Coolest Video Game" and "World's Best Hamburgers" are examples of _____, which is the legal exaggeration of praise, stopping just short of deception, lavished on a product.

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puffery

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When introducing new products, Quaker Oats uses a _____ strategy by offering retailers discounts on the products along with point-of-purchase displays to motivate them to highlight the product.

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push

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As a means to reach large numbers of anonymous audience members, USA Today newspapers are considered to be which of the following types of media?

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mass media

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It is in the _____ step of the process of developing an advertising campaign that the metrics are articulated against which advertising success or failure of the campaign is measured.

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set the advertising objectives

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A form of sales promotion that offers prizes based on a chance drawing of entrants' names is referred to as a

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sweepstake

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As a product in the maturity stage of its life cycle, chewing gum brands would most likely require the use of _____ advertising to prompt purchases.

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reminder

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HGTV and Home and Gardens magazine fall into which of the following categories of media?

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niche media

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In a print advertisement, items used to identify the sponsor of the ad, such as the company logo or USP, are referred to as

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brand elements

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An example of _____ is when Tom Hanks is shown stranded on an island with a FedEx box in the movie Cast Away.

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product placement

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In many cases, _____ activities support other promotional efforts by generating free media attention and general goodwill.

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public relations

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IKEA advertises throughout the year, but significantly increases its advertising during the back-to-school time frame, thus implementing a(n) _____ advertising schedule.

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pulsing

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Firms often use _____ advertising to convince consumers to take action such as switching brands, trying a new product, or even continuing to buy the advertised product.

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persuasive

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Assessing the effectiveness of an advertising campaign while it is running by monitoring key indicators is referred to as

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tracking

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Which of the following is the first step in planning and executing an advertising campaign?

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Identify the target market.

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The "Beef, It's What's for Dinner" campaign to encourage beef consumption is an example of _____ advertising.

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institutional

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J. Crew teaming up with several famous brands, including Belstaff and Timex, to offer exclusive products in the J. Crew stores and on its website is an example of

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cross-promoting

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The Holiday Inn Priority Club is an example of _____, which is specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time.

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a loyalty program

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As a type of sales promotion, _____ encourage trial and reduce consumer risk, although they may negatively affect perceptions of brand value.

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deals

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Coppertone uses a _____ advertising schedule, where it advertises heavily in the months leading up to and during the summer, with no advertising after the season ends.

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fighting

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If an insurance company encourages its salespeople to intentionally mislead potential customers about damage from flooding due to hurricane damage, who could be susceptible to legal action for the deceptive practice?

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The insurance company and the salesperson

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The sales philosophy and process that emphasizes a commitment to maintaining customer relationships over the long term and investing in opportunities that are mutually beneficial to all parties is known as _______ selling.

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relationship

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Evaluating a list of prospective customers and assessing their potential to purchase a product is called

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qualifying leads

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A desirable personal trait of good salespeople is _____, where they care about their customers, their issues, and their problems.

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empathy

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Which of the following is an effective form of nonfinancial compensation provided to salespeople?

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awards

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To maintain trustworthy customer relationships, companies must take care that they respect the _____ comfort zone, that is, the amount of information a customer feels comfortable providing.

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information

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When Best Buy customers experience computer problems, the company offers its Geek Squad for door-to-door service as well as in-store assistance. The Geek Squad fulfills the role of

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sales support personnel

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Equal employment opportunity laws make it unlawful to discriminate against a person in hiring, promotion, or firing because of race, religion, nationality, sex, or

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age

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A(n) _____ is a salesperson whose primary responsibility is to process routine orders, reorders, or rebuys for products.

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order taker

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Managers and sales experts have identified each of the following personal traits as most important when recruiting salespeople. Which of the following is NOT one of those traits?

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speaking skills

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_____ is the two-way flow of communication between a buyer or buyers and a seller that is designed to influence the buyer's purchase decision.

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personal selling

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Salespeople who sell a manufacturer's products on an extended contract basis but are not employees of the manufacturer are known as

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manufacturer's reps.

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Although reservations on the part of the buyer can arise during each stage of the selling process, they are very likely to occur during the

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sales presentation.

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The planning, direction, and control of personal selling activities, including recruiting, selecting, training, motivating, compensating, and evaluating, as they apply to the sales force is part and parcel of

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sales management

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Most important in dealing with ethical and legal issues between the customer and the salesperson is for sales managers to

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lead by example

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When the National Association of Realtors' national awareness campaign emphasizes that realtors know how to more efficiently market a client's property than an owner can by himself, it is highlighting which value of personal selling?

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Saving time and simplify buying

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A salesperson whose primary responsibilities are identifying potential customers and engaging those customers in discussions to attempt to make a sale are called

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order getters.

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Which of the following is a form of salesperson compensation whereby payment is based on sales volume or profitability?

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commission

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Jack attempted to close a sale with a new customer. Unfortunately, the customer did not purchase anything from Jack, however, he learned some valuable information about this customer and is determined to continue calling on him until he finally does get a sale. Which personality trait is Jack most likely exhibiting?

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resilience

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The _____ step in the selling process is often stressful for salespeople, since one of the possible outcomes is that the salesperson goes away empty-handed.

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closing the sale

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_____ is a method of prospecting where sales people telephone or go to see potential customers without appointments.

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cold calling

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During the follow-up stage, what service quality dimension is being addressed when customers are given adequate guarantees that their purchases will perform as expected?

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assurance

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Salespeople who already have an established relationship with a customer will skip this step; it is not used extensively in retail settings, but it is in B2B situations.

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generate and qualify leads

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According to your text, which of the following may be the most important part of the entire selling process because it allows the salesperson to establish exactly where the customer is in his or her buying process?

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at the beginning of the sales presentation

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The annual International Consumer Electronics Show (CES) in Las Vegas is an example of a(n) _____ show, which is an event attended by buyers who choose to be exposed to products and services offered by potential suppliers in an industry.

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trade

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The _____ offers a prime opportunity for a salesperson to solidify the customer relationship through great service quality.

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follow-up

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