question

The regrouping activity which involves putting together a variety of products to give a target market what it wants is called:

answer

Assorting

question

In _____ channel systems, the channel members agree by contract to cooperate with each other.

answer

contractual

question

A channel of distribution:

answer

is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user.

question

A "channel captain"

answer

might be any member of the channel (that is, at any level in the channel). views the members of the channel as a unit. should help to make the channel more efficient by reducing conflict. Correct: All of these alternatives are correct.

question

Which of the following is true of selective distribution?

answer

It is selling through only those intermediaries who will give the product special attention.

question

Intensive distribution is often very appropriate for:

answer

convenience products and business supplies.

question

The regrouping activity which involves grading or sorting products into the grades and qualities desired by different target markets is called:

answer

sorting.

question

In a _____ the whole channel focuses on the same target market at the end of the channel.

answer

vertical marketing system

question

The "regrouping activity" which involves breaking carload or truckload shipments into smaller quantities as products get closer to final customers is called:

answer

bulk-breaking.

question

"Discrepancies of quantity" occur because

answer

producers seek economies of scale.

question

A major benefit of _____ is that it protects the products and simplifies handling during shipping.

answer

containerization

question

Logistics, or physical distribution, is the ________________ part of the marketing mix.

answer

Placement

question

The best way to ship computer parts from St. Louis, Missouri, to Columbus, Ohio, when the parts need to be at a factory in Columbus within three days is to use:

answer

Truck

question

Products that require a high frequency of scheduled shipments would be least suited to travel by

answer

water

question

A _____ is the complete set of firms, facilities, and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers.

answer

supply chain

question

Physical distribution differs from logistics in that

answer

physical distribution is another common name for logistics

question

As a mode of transportation, railroad freight would be least suited for ____

answer

fresh fruit.

question

A cheese processor having regular need for regional storage of a large quantity of cheese probably should use ______________ warehouses.

answer

private

question

_____ as a mode of transport serves a very limited number of locations but has a high dependability in meeting schedules

answer

Pipelines

question

It is usually most economical to ship bulky nonperishable items, such as coal and iron ore, by

answer

water

question

A cash-and-carry wholesaler does NOT:

answer

grant credit.

question

Mass-merchandisers:

answer

are large, self-service stores which stress low price to get faster turnover.

question

A rack jobber is an example of

answer

limited-function merchant wholesaler.

question

Which of the following statements about convenience stores is False?

answer

Prices on individual items are usually lower than in a supermarket.

question

A(n) _____ is a blend of manufacturers' agent and selling agent—handling the entire export function for several producers of similar but noncompeting lines.

answer

combination export manager

question

Expanded assortment, reduced margins, and more information are characteristics of

answer

the Internet.

question

____________ take over the whole marketing job of producers, not just the selling function.

answer

Selling agents

question

Which of the following are NOT "conventional retailers"?

answer

Supermarkets

question

The trend toward scrambled merchandising can be explained by:

answer

the fact that some retailers have traditionally used markups which seem "too high" to other retailers.

question

A grocery store or mass-merchandiser might rely on a _____ to decide which paperback books or magazines it sells.

answer

rack jobber

question

Which of the following is NOT an example of sales promotion?

answer

Secure favorable media coverage

question

"Promotion" includes:

answer

personal selling, mass selling, and sales promotion

question

The _____ can help the promotion effort by spreading word-of-mouth information and advice among other consumers

answer

early adopters

question

American Tourister, Inc.—a producer of luggage—is planning to introduce a new product line. The marketing manager is having her sales force call on retailers to explain American Tourister's consumer advertising plans, the unique features of the new luggage, how the distributors can best promote it, and what sales volume and profit margins they can reasonably expect. This is an example of:

answer

a "pushing" policy.

question

The MOST COMMON method of setting the marketing budget is to

answer

use some predetermined percentage of past or forecast sales.

question

Which of the following groups is likely to be the first to adopt a new product?

answer

innovators

question

A retailer's promotion objective might be to ______________ its target market about its marketing mix.

answer

inform persuade remind Correct Any of these might be a promotion objective.

question

In the traditional communication model, the source can receive immediate feedback as the result of _______________.

answer

Personal Selling

question

The best way to reach INNOVATORS is through:

answer

impersonal and scientific information sources.

question

Communication with noncustomers, including labor, public interest groups, stockholders, and the government is generally referred to as

answer

public relations.

question

Very large retail stores that carry not only foods—but all goods and services which consumers purchase ROUTINELY—are called:

answer

supercenters.

question

Regarding discount houses, which of the following statements is TRUE?

answer

The early discount houses emphasized hard goods. While some conventional retailers cut price on competitive items, discount houses regularly sell all of their products at smaller markups. As early discounters were able to offer full assortments, they also sought "respectability" and moved to better locations. Discount houses are fast-turnover, price-cutting operations. Correct All of these statements about discount houses are TRUE.

question

The _____ says that new types of retailers enter the market as low-status, low-margin, low-price operators and then, if successful, evolve into more conventional retailers offering more services with higher operating costs and higher prices.

answer

wheel of retailing theory

question

A retailer's "Product" may include:

answer

a particular assortment of goods and services. special orders. advice from salesclerks. quality. Correct All of these are included in a retailer's "Product."

question

Supermarkets are

answer

large stores specializing in groceries with self-service and wide assortments.

question

The "wheel of retailing" theory says that:

answer

new types of retailers enter as low-status, low-margin, low-price operators and eventually offer more services and charge higher prices.

question

The wheel of retailing concept

answer

is consistent with the emergence of supermarkets in the 1930s.

question

__________ are a type of limited-function wholesaler that owns products they sell, but do not actually handle, stock, or deliver them.

answer

Drop-shippers

question

"Retailing" refers to:

answer

the sale of products to final consumers.

question

Which of the following is NOT retailing?

answer

A vacuum cleaner manufacturer hires its own sales force to sell door to door. A private ambulance service takes an accident victim to a hospital and charges him $100. A group of students sell donuts to people passing by their dorm. A book wholesaler has a mail-order catalog which offers discounts to final consumers who buy by mail. Correct All of these are examples of retailing.

question

A national grocery store chain has decided to sell an assortment of hobby, gardening, and cook books. Buyers in the chain's main office are not certain what to stock because they think that consumers in different areas of the country will probably be interested in different books. The store managers have said they don't know what to order either. The chain should probably get help from a

answer

rack jobber

question

Regarding supermarkets, which of the following is NOT true?

answer

After-tax profits are very good—averaging 10 to 15 percent of sales.

question

Convenience (food) stores offer:

answer

a limited assortment of "fill-in" items.

question

Compared to conventional retailers, which of the following types of retailers added more convenient service while reducing product assortment?

answer

vending machines

question

Franchise operations:

answer

currently account for about a third of all retail sales.

question

Wholesalers:

answer

Have had to deal with a competitive threat posed by large retailers that have taken over wholesale functions. Are using e-commerce to serve customers more effectively. Face competitive pressure from shipping companies such as FedEx and UPS that make it easier for producers to ship directly to customers. Are beginning to increase profitability by carefully selecting their retailer-customers. Correct All of these alternatives are true.

question

A retailer's "Place" may include:

answer

a physical store and/or an online store. store size and layout. number of stores. store hours. Correct All of these are included in a retailer's "Place."

question

A large food retailer acquiring a cheese factory is an example of:

answer

vertical integration

question

If Wilkinson were to sell Norelco the exclusive rights to produce and sell its brand of shavers in Japan for a 5 percent royalty on all sales, it would be using:

answer

licensing.

question

______________ means selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.

answer

Intensive distribution

question

____ conflict occurs between firms at different levels in the channel of distribution.

answer

Vertical

question

Consumers usually want to shop for milk, meat, vegetables, and fruits at one convenient location. Grocery stores that offer all of these products help to alleviate this ___________.

answer

discrepancy of assortment

question

A producer using several competing channels to distribute its products to its target market is using ______________ distribution.

answer

multichannel

question

In ______ channel systems, ordering is routinized, inventory and sales information is shared over computer networks, accounting is standardized, and promotion efforts are coordinated.

answer

administered

question

A convenience product would probably be sold using:

answer

Intensive distribution.

question

Exporting

answer

is selling some of what the firm produces to foreign markets. can be a way to get rid of surplus output. can come from a real effort to look for new opportunities. Correct All of these alternatives are correct.

question

Channel systems in which the various channel members make little or no effort to cooperate with each other are called ______________ systems.

answer

traditional channel

question

______________ (as a way to enter foreign markets) means selling the right to use some process, trademark, patent, or other right for a fee.

answer

Licensing

question

______________ means selling a product only through those intermediaries who will give the product special attention.

answer

Selective distribution

question

A vertical marketing system owned and operated by a single firm is called a _____ channel system.

answer

corporate

question

"Selective distribution" means selling through:

answer

only those wholesalers and retailers who give the product special attention.

question

Using the ______ approach to entering international markets gives a firm complete control of marketing strategy planning in the foreign market.

answer

direct investment

question

_____ distribution is commonly used for convenience products and business supplies.

answer

Intensive

question

If Walmart purchases a manufacturing plant to produce nothing but Walmart's dealer brand of laundry detergent, Walmart is engaging in:

answer

Vertical integration.

question

Which of the following is NOT an advantage of vertical integration?

answer

Easier adjustment of discrepancies of quantity and assortment.

question

Intermediaries are needed MOST when the desired degree of market exposure is:

answer

intensive.

question

A selective distribution policy might be used to avoid selling to wholesalers or retailers that:

answer

Place orders that are too small. Make too many returns. Request too much service. Have poor credit. Correct All of these alternatives are correct.

question

A type of vertical integration system that develops by acquiring firms at different levels of channel activity is called:

answer

Coporate

question

Direct _____ involves personal sales contact between a representative of the company and an individual consumer.

answer

selling

question

"Discrepancies of quantity" means:

answer

the difference between the quantity of products it is economical for an individual producer to make and the quantity normally wanted by individual consumers or users.

question

Intensive distribution is

answer

selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.

question

The regrouping activity which involves collecting products from many small producers so that the products can be handled more economically further along in the channel is called:

answer

accumulating

question

Traditional channel systems:

answer

Exhibit little cooperation between channel members.

question

Coca-Cola's carbonated soft drinks are available in millions of locations worldwide. This is an example of ____________ distribution.

answer

intensive

question

A channel system in which the various members informally agree to cooperate with each other is called a(an) ______________ system.

answer

administered channel

question

In _____ channel systems the amount of cooperation among members of the channel is very high.

answer

corporate

question

Producers often have to use "multichannel distribution":

answer

because they want to sell both direct with a website and indirectly through intermediaries. because big retail chains want to deal directly with producers. because competitors use a variety of channels. because present channel members are doing a poor job. Correct All of these are valid reasons for producers to use multichannel distribution.

question

Reverse channels may be used to retrieve products from:

answer

business customers. intermediaries. business customers and intermediaries. final consumers. Correct All of these.

question

"Exclusive distribution" means selling through:

answer

only one wholesaler or retailer in a particular geographic area.

question

Sunkist sells foreign companies the right to use the Sunkist brand on soft drinks and citrus juices sold outside the United States. Sunkist gets both an initial fee and a royalty on the sale of goods bearing its brand name. Sunkist is engaged in:

answer

Licensing

question

_____ is a manager who helps directs the activities of a whole channel and tries to avoid or solve channel conflicts.

answer

A channel captain

question

Which of the following is typically the lowest risk approach for moving into international markets?

answer

exporting

question

If a producer has a technically superior and expensive product—which has achieved brand preference—and wants retailers to provide aggressive promotion and maximum customer service, this producer should seek:

answer

Exclusive distribution

question

In a licensing agreement, the licensee

answer

does most of the marketing strategy planning for the markets it is licensed to serve.

question

The 80/20 rule—that 80 percent of a company's sales often come from just 20 percent of its customers—is a good reason for marketers to use:

answer

selective distribution.

question

Which degree of market exposure would probably be most suitable for a heterogeneous shopping product which has achieved brand preference and sells for about $300?

answer

Selective distribution

question

"Discrepancies of assortment" means:

answer

the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users.

question

Selective distribution:

answer

is likely to reduce high administrative expenses caused by a large proportion of small orders. may be suitable for all categories of products. is becoming more popular. is a good idea if some of the available intermediaries are not financially solid. Correct All of these alternatives are correct.

question

"Intensive distribution" means selling through:

answer

all responsible and suitable retailers or wholesalers.

question

To reduce conflicts in channels, a firm should:

answer

Offer different products through each channel. Provide some compensation to members of the older channel. Treat channel partners fairly even when one partner is more powerful. Focus on segments not currently served by existing channels. Correct All of these alternatives are correct.

question

Intermediaries are needed LEAST when the desired degree of market exposure is:

answer

exclusive.

question

InterContinental Hardware Co. buys carload quantities of bolts, screws, nuts, washers, and other hardware from a large producer in the Netherlands, breaks these shipments into smaller quantities, and sells them to other wholesalers and retail chains. This "regrouping activity" is called:

answer

bulk-breaking.

question

A wholesaler selling golf carts and mowers to golf courses might also carry grass seed and grass fertilizer. This would be an example of

answer

assorting.

question

The role of "channel captain":

answer

is to help a channel system compete more effectively with other channel systems.

question

Which of the following is the easiest way for a firm to enter foreign markets?

answer

licensing

question

Licensing, in international marketing,

answer

means a company selling the right to use a process, trademark, patent, or other right for a fee or royalty.

question

A good "channel captain" knows that:

answer

marketing functions can be shifted and shared within a channel—but they cannot be completely eliminated.

question

Which of the following is NOT a Place decision?

answer

Recruiting, selecting and managing the sales force.

question

Inventory refers to

answer

the amount of goods being stored.

question

_____ means getting customers to ask intermediaries for the product.

answer

Pulling

question

More freight is carried more miles _____ than any other mode of transportation.

answer

by railroads

question

In the communication process, the individual who decodes a message is also most likely to be which of the following?

answer

The receiver of the message

question

During the sales decline stage

answer

the total amount spent on promotion usually decreases as firms try to cut costs to remain profitable.

question

Because she frequently buys books at Amazon.com, Sophie Soleil set up an account and password at the website. Now, when she logs on and searches for a specific book, a note pops up at the center of her laptop screen saying: "Hello, Sophie, we have recommendations for you," and proceeds to list other titles that Sophie might enjoy based on her previous purchases. Amazon can remember Sophie (and her previous purchases) because the online retailer uses:

answer

cookies.

question

___________ are basically manufacturers' agents who specialize in international trade.

answer

Export or import agents

question

____ conflict occurs between firms at the same level in the channel of distribution.

answer

Horizontal

question

Intensive distribution at the retail level would probably be most appropriate for:

answer

Batteries.

question

The traditional communication process does NOT include:

answer

response

question

Which of the following could be considered part of a retailer's "Product"?

answer

Selection of brands. Width and depth of product assortment. Reputation for fairness. Helpfulness of salespeople. Correct All of these are parts of a retailer's "Product."

question

All of the following are advantages of using trucks EXCEPT:

answer

serving a limited number of locations.

question

A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location, but the supermarket manager refuses to give that valuable real estate to this producer. This is an example of __________ conflict.

answer

vertical

question

A firm acquiring another firm at a different level of activity within a channel of distribution is called:

answer

vertical integration.

question

Considering weight, which one of the following transporting modes usually has the LOWEST cost?

answer

Waterways

question

The ______________ concept says that all transporting, storing, and product-handling activities of a business and a channel system should be thought of as part of one system which should seek to minimize the cost of distribution for a given customer service level.

answer

physical distribution

question

The AIDA model's four basic promotion jobs are concerned with:

answer

attention, interest, desire, action.

question

The innovators are the group of customers who

answer

are likely to be mobile and have many contacts outside their local social group and community.

question

Which of the following is an example of inbound communication with a customer seeking new hiking boots? (Timberland is a brand of hiking boots)

answer

A searches for and then visits the website of a Timberland to read about boots.

question

The major function of auction companies is to:

answer

provide a place where buyers and sellers can complete a transaction.

question

"Publicity":

answer

is mass selling that avoids paying media costs.

question

Radio frequency identification tags can

answer

make it easy for computers to monitor inventory. help computers to order needed stock. track storing costs. transmit details about carton contents. Correct All of these alternatives are correct for RFID tags.

question

A marketing manager might greatly improve his marketing mix by:

answer

shifting the storing job to a specialized storage facility. adjusting the time products will be held by channel members. encouraging final consumers to store some products for future consumption. sharing the storage function (and costs) with intermediaries. Correct All of these would improve the marketing mix.

question

A broker's "Product" is:

answer

information about what buyers need and what supplies are available.

question

In this method of budgeting, the spending level might be based on the number of new customers desired and the percentage of current customers that the firm must retain to leverage investments in already established relationships.

answer

Basing the budget on the job to be done

question

Which of the following are sales promotion activities aimed at the company's own sales force?

answer

Bonuses

question

_________ covers all of the activities involved in the sale of products to final consumers.

answer

Retailing

question

The two basic types of merchant wholesalers are:

answer

service and limited function.

question

The main difference between retailing and wholesaling is that:

answer

Wholesaling involves selling mainly to other merchants and business customers, but retailing involves selling mainly to final consumers.

question

Any distraction that reduces the effectiveness of the communication process is called

answer

noise.

question

________ offer "hard goods" at substantial price cuts to customers.

answer

Discount houses

question

Mass-merchandisers:

answer

usually operate with low margins on individual items.

question

As a percentage of GDP, which of the following most likely characterizes logistic costs incurred in developing economies in Africa?

answer

25 to 30 percent

question

Which of the following transportation modes is "best" at handling a variety of goods?

answer

Water

question

Which of the following statements about single- and limited-line stores is TRUE?

answer

Many are small, with high expenses relative to sales. They usually believe in a "buy low and sell high" philosophy. Such stores face the costly problem of having to stock some slow-moving items in order to satisfy their target markets. Most conventional retailers are single- or limited-line stores. Correct All of these statements about single- and limited-line stores are TRUE

question

Manufacturers' agents:

answer

don't cost the producer anything until something sells.

question

A typical problem for limited-line retailers is that:

answer

many of the items they carry are slow moving.

question

Typically the _____ is responsible for building good distribution channels and implementing "place" policies.

answer

sales manager

question

Franchisors:

answer

account for about a third of all retail sales. often provide franchise holders with training. usually receive fees and commissions from the franchise holder. are especially popular with services retailers. Correct All of these alternatives are correct for franchisors.

question

Scrambled merchandising is carrying

answer

any product lines that a store thinks that it can sell profitably.

question

Logistics decisions include all of the following except:

answer

prices to charge for delivery.

question

Regarding supermarkets, which of the following statements is TRUE?

answer

None of these statements is TRUE.

question

____________ wholesalers are service wholesalers that carry a wide variety of nonperishable items.

answer

General merchandise

question

Mass-merchandisers:

answer

usually operate with low margins on individual items. are now the primary place to shop for many frequently purchased consumer products. generally run a self-service operation. are concerned with maintaining high inventory turnover. Correct All of these alternatives are correct for mass-merchandisers.

question

Piggyback service means

answer

loading truck trailers on railcars to increase flexibility.

question

When a purchasing agent from Ford Motor Co. is trying to find information about a new type of component that might be used in the production of a new Ford SUV, the most common message channel for him to search is:

answer

the Internet.

question

Convenience (food) stores:

answer

try to earn better profits by high margins on a narrow assortment which turns over quickly.

question

A retailer's target customers are young, well educated, and mobile—with many contacts outside their local social group and community. They are eager to try new ideas and are willing to take risks. These target customers are:

answer

innovators.

question

In the customer-initiated communication process:

answer

a customer initiates the communication process with a decision to search for information in a particular message channel.

question

Compared to a warehouse, a DISTRIBUTION CENTER is:

answer

set up to speed the flow of products toward the consumer.

question

Multichannel distribution:

answer

May involve using both direct and indirect channels simultaneously. May offer producers a way to reach customers they would not be able to reach with a single channel. Is becoming more common. May create channel conflict. Correct All of these alternatives are correct.

question

_____ is the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message.

answer

Integrated marketing communications

question

The physical distribution ________________________ is how rapidly and dependably a firm can deliver merchandise in demand through the appropriate channels

answer

customer service level

question

"Scrambled merchandising" refers to:

answer

retailers carrying any product lines they can sell profitably.

question

A number of independent drugstores are working with a wholesaler to obtain economies of scale in buying. They were organized by this wholesaler after a recent meeting to discuss ways of competing with corporate chains. These drugstores are now part of a:

answer

voluntary chain.

question

Which of the following chains is the largest food retailer in the U.S.?

answer

Walmart

question

A marketing manager who wants to ship small quantities (1,500 pounds) of relatively high-value products short distances at an economical cost should use:

answer

trucks

question

Warehouse clubs such as Sam's Club and Costco

answer

usually operate in large, no-frills facilities. have been successful targeting small-business customers. emphasize homogeneous shopping products. usually charge consumers an annual membership fee. Correct All of these alternatives are true for warehouse clubs

question

Large self-service retail stores that emphasize lower margins to get faster turnover—especially on "soft goods"—are called:

answer

mass-merchandisers

question

A "supercenter":

answer

tries to provide all of a customer's routine needs—at a low price.

question

A tire manufacturer currently produces tires in small quantities as they are ordered. The company learns that it can reduce costs significantly by producing one type of tire at a time in large quantities and storing its unsold tires for later sale. Should the company switch to large quantity production?

answer

Only if the economies of scale in production are greater than the additional inventory carrying cost.

question

Sales promotion can be aimed at:

answer

intermediaries. a company's own sales force. final consumers or users. Correct Any or all of these is correct.

question

Public warehouses:

answer

provide flexibility because the user pays only for the space used.

question

Storing:

answer

costs include the costs of damage, theft, and reduced value if products get out-of-date. costs can be reduced in the channel if suppliers are reliable about meeting delivery schedules. too few products is likely to reduce a firm's costs, sales, and profits. decisions are more difficult to make when demand is irregular. Correct All of these alternatives about storing are true.

question

The primary function of a ______________ is to speed the flow of products and avoid unnecessary storing costs.

answer

distribution center

question

Compared to private warehouses, PUBLIC warehouses:

answer

may not always be conveniently available or adequate for current product line

question

Distribution centers:

answer

Are designed to facilitate the flow of products through the channel.

question

EDI was developed in response to which of the following problems?

answer

Computer system differences among firms

question

The best way to ship a large shipment of coal (which is a heavy and bulky good) from Pennsylvania to California at a relatively low cost would be to use:

answer

Rail

question

Regarding alternative transporting modes, which of the following statements is TRUE?

answer

Waterways usually provide the lowest cost way of shipping heavy freight. Airways are quickest. Pipelines offer reliability in moving oil and natural gas. Trucks serve the most locations. Correct All of these statements are TRUE.

question

A(n) _____ is a special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs.

answer

distribution center

question

Just-in-time (JIT) delivery

answer

reduces customers' physical distribution costs.

question

Most physical distribution decisions involve trade-offs between

answer

costs, consumer service levels, and sales.

question

The slowest transportation is typically by

answer

water

question

"Logistics" is concerned with:

answer

reducing spatial separations between producers and consumers. transporting, storing, and handling of physical goods along channel systems. transporting, storing, and handling of physical goods within individual firms. physical distribution. Correct All of these are included in Logistics.

question

A _________ aims at a carefully defined target market by offering a unique product assortment, knowledgeable salesclerks, and better service.

answer

specialty shop

question

Limited-line stores

answer

specialize in certain lines of related products rather than a wide assortment.

question

____ are merchant wholesalers that provide all the wholesaling functions.

answer

Service wholesalers

question

Specialty shops generally:

answer

want to be known for the distinctiveness of their product assortment and the special services they offer.

question

A _____ is a type of conventional limited-line store that is usually small and has a distinct "personality."

answer

specialty shop

question

Which of the following is a strategy to combat consumer showrooming?

answer

Integrating online and brick-and-mortar store operations.

question

Wholesaling is concerned with the activities of:

answer

manufacturers who set up branch warehouses at separate locations. persons or establishments that sell to industrial, institutional, and commercial users. persons or establishments that sell to retailers. Correct All of these alternatives are correct.

question

The ____________ says that retailers should offer low prices to get faster turnover and greater sales volumes by appealing to larger markets.

answer

Mass-merchandising concept

question

___________ stores are usually strong in customer services, including credit, merchandise return, delivery, and sales help.

answer

Department

question

Jason Everson represents producers of several noncompeting industrial product lines. When he visits his clients, he carries a catalog from each one of the producers he represents. He goes through the catalogs with his clients and then places orders on their behalf with the producers, who pay Jason a commission based on what he sells. Jason is a(n):

answer

Manufacturer's agent.

question

A drop-shipper is an example of a(n)

answer

limited-function merchant wholesaler.

question

The idea that retailers will start to sell a new product that offers a profit margin higher than what they achieve on their traditional product line is consistent with the

answer

scrambled merchandising concept.

question

____ provide a place where buyers and sellers can come together and bid to complete a transaction.

answer

Auction companies

question

A corporate chain is defined as

answer

a firm that owns and manages more than one store.

question

Regarding retailing, which of the following statements is FALSE?

answer

Single-line mass-merchandisers have not been successful—probably because their assortments are so limited.

question

The "mass-merchandising" concept:

answer

focuses on increasing sales and speeding turnover by lowering prices.

question

The main difference between agent wholesalers and merchant wholesalers is:

answer

that agent wholesalers do not own the products they sell—while merchant wholesalers do.

question

Supermarkets:

answer

Are designed to maximize efficiency.

question

Identify the characteristics of vending machines and door-to-door retailing.

answer

Added convenience and higher than conventional margins, usually reduced assortment.

question

Which of the following retailers was the first to adopt the mass-merchandising concept?

answer

Supermarkets.

question

The product line of a limited line retailer would best be described as:

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a small range of one specific type of product.

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Vending machine

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sales now include higher-margin products like bathing suits.

question

Which of the following would be considered a retailing "category killer"?

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Office Depot (office supplies) PayLess (drugstores) Lowe's (home improvements) Barnes and Noble (books) Correct All of these are "category killers."

question

Expanded assortment and/or reduced margins and service are characteristic of

answer

supermarkets.

question

Early adopters

answer

tend to be opinion leaders.

question

Relative to other promotion methods, _____ can usually be implemented quickly and get results sooner.

answer

sales promotion

question

Another term for direct marketing is:

answer

direct-response promotion.

question

Which of the following strategies is most likely to be used in a push promotion to intermediaries in a sales channel?

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A TV wholesaler includes a free flat-screen TV with every ten TVs that a retailer buys

question

Which of the following is the main type of "mass selling"?

answer

Advertising.

question

Merchandising aids and promotional allowances are sales promotion activities aimed at

answer

intermediaries.

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In the customer-initiated interactive communication process:

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the buyer starts the process.

question

The adoption curve

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emphasizes the relations among groups and shows that individuals in some groups act as leaders in accepting a new idea.

question

"Promotion" does NOT include:

answer

introductory price dealing.

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Compared with other promotion methods, PERSONAL SELLING:

answer

provides more immediate feedback.

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In customer-initiated interactive communication:

answer

interactive technology plays a big role.

question

Which of the following would NOT be an example of sales promotion?

answer

A flyer placed on a homeowner's door announcing a new lawn service.

question

The EARLY MAJORITY have a lot of contact with:

answer

the mass media, salespeople, and early adopter opinion leaders.

question

The Canyonlands Corporation is introducing a new product next month. To prepare for the introduction, the marketing manager is having his sales force call on distributors to explain the unique features of the new product, how the distributors can best promote it, and what sales volume and profit margins they can reasonably expect. In addition, Canyonlands is budgeting 2 percent of its estimated sales for magazine advertising. This is an example of:

answer

a "pushing" policy.

question

Which of the following adopter groups is most important to "sell"—given the importance of opinion leaders?

answer

Early adopters

question

The early majority group

answer

tends to avoid risk and waits to consider a new idea after many early adopters have tried it—and liked it.

question

Point-of-purchase materials, coupons, trade shows, calendars, merchandising aids, and sales training materials are all examples of:

answer

sales promotion.

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When developing a good promotion blend, a marketing manager should:

answer

determine who the firm is trying to influence

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A producer of household batteries for flashlights, radios, and other small electronic devices wants to increase its sales relative to its competitors. The company enters into an arrangement with a supplier of bicycles to develop an incentive for retail buyers to order more batteries. Salespeople for the battery company tell each buyer that for every 20 cases of batteries ordered, the buyer will get a new bicycle. The buyer can keep the bicycle, or use it as part of an in-store contest promotion. The battery company's promotion effort aimed at retail buyers is:

answer

Pushing in the channel.

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_____ is a promotion activity that tries to spark immediate interest in the consumer.

answer

Sales promotion

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Communicating with customers is known as the ________________ portion of the marketing mix.

answer

Promotion

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Identify the traditional communication process.

answer

Source-Encoding-Message channel-Decoding-Receiver-Feedback.

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"Advertising":

answer

is any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor.

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Selecting an effective promotion blend to reach a firm's promotion objectives requires careful consideration of the:

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nature of competition. promotion budget available. product life cycle stage. Correct All of these should be considered.

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"Promotion" is MAINLY concerned with:

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telling the target market that the right Product is available in the right Place at the right Price.

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The source deciding what it wants to say and translating it into words or symbols that will have the same meaning to the receiver is termed as

answer

encoding.

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"Noise" (in the traditional communication process) refers to:

answer

any distractions that reduce the effectiveness of the communication process.

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_____ is communicating information between the seller and potential buyer or others in the channel to influence attitudes and behavior.

answer

Promotion

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Which of the following shows the correct sequence of market acceptance of a new idea, as represented in the adoption curve?

answer

Innovators, early adopters, early majority, late majority, laggards.

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During the market growth stage of the product life cycle, a producer would focus promotional efforts on creating ___________ demand for its own brand.

answer

Selective

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Blending the firm's promotion efforts to convey a complete and consistent message is the goal of:

answer

Integrated marketing communications.

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_____ prefer to do things the way they have been done in the past and are very suspicious of new ideas.

answer

Laggards or nonadopters

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The best way to reach EARLY adopters is through:

answer

salespeople and mass media.

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Determining the blend of promotion methods is a strategy decision which is the responsibility of the

answer

marketing manager.

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Primary demand is

answer

the demand for the general product idea.

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The AIDA model consists of

answer

Attention, Interest, Desire, and Action.

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A "good" retail strategy planner knows that:

answer

the failure rate among beginning retailers is quite high.

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Chains formed by independent retailers to run their own buying organizations and conduct joint promotion efforts are called:

answer

cooperative chains.

question

Which of the following would be considered a retailing "category killer"?

answer

Petsmart (pet supplies) Best Buy (electronics) Home Depot (home improvements) IKEA (furniture) Correct All of these are "category killers."

question

Specialty shops:

answer

rely heavily on knowledgeable salesclerks.

question

Which of the following is LEAST likely to be sold by a supercenter?

answer

Trash compactor

question

Lacey Springs Apple Co. buys fresh apples in truckload quantities, regroups the heterogeneous commodities into homogeneous lots according to grade and quality, and then sells them to retailers. This "regrouping activity" is called:

answer

sorting.

question

______________ sell hardware, jewelry, and sporting goods out of a catalog to small industrial or retail customers that other wholesalers may not call on.

answer

Catalog Wholesalers

question

A wholesaler-sponsored retail chain is called a:

answer

voluntary chain.

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If a producer has a technically superior and expensive product—which has achieved brand preference—and wants retailers to provide aggressive promotion and maximum customer service, this producer should seek

answer

Exclusive distribution.

question

"Sales promotion":

answer

can complement a firm's personal selling and mass selling efforts.

question

Door-to-door selling at consumers' homes:

answer

meets some consumers' needs for convenience. is gaining popularity in international markets. started in the pioneer days. is losing popularity in the United States. Correct All of these alternatives are true for door-to-door selling.

question

When a supermarket manager decides to offer online ordering at the store's website, this is a decision about:

answer

Place.

question

Direct-response promotion usually relies on a(n) _____ database to target specific prospects.

answer

customer relationship management

question

Retailer-sponsored groups formed by independent retailers that run their own buying organizations and conduct joint promotion efforts are called:

answer

Cooperative chains.

question

Regarding supermarkets, which of the following statements is TRUE?

answer

Supermarket net profits after taxes usually are about 1 percent of sales—or less.

question

The percentage of new retailing ventures which fail during their first year is:

answer

three-fourths.

question

.A retailer's "Price" may include:

answer

delivery charges. discount policies. frequency of sales. store credit card. Correct All of these are included in a retailer's "Price."

question

According to the text, single-line stores are also known as

answer

limited-line stores

question

The "total cost approach" to physical distribution management:

answer

might suggest a high-cost transporting mode if storing costs could be reduced enough to lower total distribution costs.

question

Which of the following is NOT a likely advantage of vertical integration?

answer

Lower capital requirements.

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