MAR3023 Practice Final Exam 4 – Flashcards
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1. Daniela works in Procter & Gamble's Supply Network Operations department. Here, she manages all of the transportation of the Tide Pods product, including its movement from supplier to manufacturing facility to distribution center to retailer. Daniela is performing the _____ in the distribution channel. A. Logistical Function B. Transactional Function C. Pipeline Function D. Facilitating Function E. Supply Chain Function
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A
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2. One recent and important trend is the practice of offering small low-interest loans to individuals in developing countries. For example, women in Guatemalan villages who independently make and sell jewelry receive small loans that allow them to buy the glass beads they use in the jewelry. The women pay off these loans once they have sold the jewelry, and they use the rest of their income to support their families. This practice is known as: A. Predatory lending B. Countertrade C. Contract manufacturing D. Microfinance E. Multidomestic marketing
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D
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3. In marketing strategy formulation and implementation, the difference between the projected path to reach a new goal and the projected path of the results of a plan already in place is referred to as the __________. A. breakeven point B. planning gap C. contribution margin D. sales response function E. points of difference
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B
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4. The Reese's division of the Hershey Candy Company incurs fixed costs of $250,000. Each candy bar produced has a variable cost of $.30, and the division produces 500,000 candy bars annually. What is Reese's breakeven price? A. $0.30 B. $1.00 C. $0.80 D. $0.50 E. $0.20
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C
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5. CoverGirl cosmetics are typically sold in stores like Target and Walmart. However, imagine that CoverGirl's parent company, Procter & Gamble, decides to stop selling CoverGirl through retail outlets. Procter & Gamble will instead only sell CoverGirl direct to consumers via Procter & Gamble's own website. This change would be an example of: A. Disintermediation B. Multichannel marketing C. A contractual vertical marketing system D. Intensive distribution E. Horizontal channel conflict
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A
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6. Publix is opening a new "mini" Publix on 13th Street, right across from the UF campus. This store will offer the essential products that students need, but in smaller sizes so that students can easily stop in after class for groceries or personal products. This store's goal is to facilitate grocery shopping for those students who may not have a car or alternative transportation. Which of the following utilities created by the distribution channel will this new Publix exhibit the MOST? A. Possession Utility only B. Place Utility only C. Convenience Utility only D. Form Utility and Place Utility only E. Time Utility and Form Utility only
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B
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7. Eastman Kodak accused Japanese rival Fuji Photo Film of selling photographic paper in the United States for 25 percent below what it charges in Japan. In other words, Eastman Kodak accused Fuji of __________. A. tariff avoidance B. dumping C. underbidding D. surplus marketing E. countertrade
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B
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8. Compared to marketing strategies, marketing tactics generally involve actions that A. have been successfully implemented in the past. B. involve upper levels of management rather than front-line managers. C. are detailed day-to-day operational decisions. D. are general rather than specific in nature. E. are long-term rather than short-term.
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C
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9. An Internet-enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings is referred to as a(n) __________. A. intranet B. marketspace C. web portal D. extranet E. marketplace
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B
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10. Cameron is looking to expand his homemade pizza parlor, Cameron's pizza - home of the "American Pizza" - to countries outside the United States. His "American Pizza" is pizza topped with hamburger, pepperoni, bacon, and even has bacon stuffed crust. When looking at what countries to expand to, he takes into account the diet of inhabitants (since some countries tend to eat more meat than others), the income of the countries (to ensure people could afford his pizza), and what countries have explicit environmental policies for businesses (because Cameron is trying to be as "green" as possible in his business practices). Which of the following aspects of cross-country analysis did Cameron NOT consider? I. Economic II. Demographic III. Social/Cultural IV. Natural V. Technological A. II, III, and IV B. II and V C. II, III, and V D. I, II, and IV E. I,III, and IV
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B
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11. Chris has worked at Publix for five years and is responsible for the frozen foods section. He has the responsibility for selecting all the products, which brands Publix will carry, how much they will order, and their prices. His goal is to maximize the sales and profits coming from frozen foods. This approach to merchandise assortments is called: A. Distribution management B. The retail life cycle approach C. Category management D. Vendor-managed inventory E. Shopper marketing
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C
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12. Channel conflict refers to A. when one distributor carries two competing brands. B. when the producer doesn't allow other channel members to have input regarding product specifications or benefits. C. disagreements over the trade discounts allotted to each level of the distribution chain by the Federal Trade Commission. D. regulatory restrictions limiting the number of distributors that can sell a producer's products. E. when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals.
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E
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13. An interactive, Internet-enabled system that allows individual customers to design their own products by answering a few questions and choosing from a menu of product or service attributes, prices, and delivery options, is referred to as a __________. A. wiki B. choiceboard C. cookie D. bot E. collaborative filter
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B
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14. Dough Delivery is a frozen pizza wholesaler who sells to numerous pizza parlors in Gainesville. Dough Delivery sells their frozen pizzas for $5 each. If Rafael's Pizza (a local pizza retailer) sells its pizza at a markup of 32%, what price does Rafael's charge per pizza (rounded to the nearest cent)? A. $15.63 B. $7.35 C. $6.60 D. $8.40 E. $5.32
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B
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15. Marginal cost is the change in total cost that results from A. increasing the number of units produced by 1 percent. B. the percentage change that results from changing a product feature or service benefit to reduce costs. C. producing and marketing one additional unit of a product. D. increasing the number of products in a product line. E. subtracting cost of goods sold (COGS) from sales revenue.
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C
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16. One of Allegiant Airlines' biggest competitors is Spirit. The two airlines are constantly in a price war. When one of them announces a low fare sale, the other counters with an even lower fare. What is necessary for Allegiant to be successful in price competition with Spirit? A. Increase the number of routes offered B. Offer more legroom and better snacks and drinks C. Heavily advertise their low fares on TV D. Target Spirit's customers efficiently E. Make sure they are the low cost provider
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E
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17. Imagine that Susie, an American consumer, dislikes all imported goods simply because they are foreign. She thinks that it is always inappropriate to buy foreign-made goods, and believes that American products are always superior. Susie seems to be displaying: A. Economic lateralism B. A transnational viewpoint C. A semiotic strategy D. Consumer ethnocentrism E. Protectionism
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D
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19. Max, a manufacturer of purebred pet rocks, is trying to determine how much to charge his distributor. Max knows his distributor has a markup of 10% and the retail stores that sell the pet rocks use a markup of 40%. The retail price for his purebred pet rocks is $1,000. What price should Max charge the distributor? A. $500 B. $540 C. $545 D. $650 E. $649
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B
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20. Which of the following would NOT be an output metric, as defined in the textbook? A. A measure of revenue growth B. A measure of research and development spending C. A measure of return on investment D. A measure of customer satisfaction E. A measure of the number of products launched
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B
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21. Large strip malls that often have two to five anchor stores, a supermarket, and are designed to bring in shoppers on a weekly basis, are referred to as A. retail malls. B. power centers. C. suburban malls. D. warehouse malls. E. strip centers.
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B
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23. The online consumer who researches products online and then purchases them at a retail store is referred to as a __________ shopper. A. marketspace B. casual C. cross-channel D. showrooming E. traditionalist
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C
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24. Refinery 29 is one of Annie's favorite websites, where she gets ideas on makeup, cosmetics, and skincare. She has recently taken an interest in contouring, which enhances the facial structure through makeup. Refinery 29 has a whole section on contouring. Annie is utilizing Refinery 29 as what? A. Place to buy merchandise B. Virtual community C. Brand augmentation D. Place to sell merchandise E. Information source
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E
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25. Recently, it has come to Victoria's Secret's attention that an imposter website exists that looks identical to their website, purporting to sell the same merchandise. This website is fraudulent and was created to steal customers' credit card information. What does this imposter website represent? A. Evil Twin B. A Shop-Bot C. Click Fraud D. Phishing E. Pharming
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E
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26. Athletica, Lululemon's biggest competitor, sells mostly workout and yoga gear. The prices are generally high in their small stores, but they pride themselves on quality service. Employees always suggest to customers which style of tights or workout tops would work best. Athletica is an example of which type of retailer? A. Mini-mall B. Specialty Store C. Power Retailer D. Discount Store E. Department Store
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B
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27. In June 2016 Stuart launched his new gardening service firm, which specializes in the maintenance of delicate flowers. Stuart's marketing plan projected sales of $40,000 by the end of August. Unfortunately, Stuart lives in Colorado where it quite unexpectedly snowed heavily in June and July. Flowers are not yet blooming. Stuart is losing a lot of money due to high fixed costs, but he is confused about what to do to address the situation. We can conclude from this sad scenario that Stuart's marketing plan did not include: A. a SWOT analysis B. a contingency plan C. measurable objectives D. specific tactics E. a budget
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B
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28. The organization that was formed by the major industrialized nations to address issues in international trade has the acronym _____. This organization sets rules governing trade between its members and resolves disputes between members. A. WTO B. NAFTA C. APAC D. GATT E. ITO
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A
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29. ThriveMarket.com wants to grow its market share in the online marketplace industry. Calculate how much additional marketing expense it would cost Thrive-Market to expand its market share by 4 share points. You are given the information below: Industry Sales: $64,000,000 ThriveMarket's Sales: $7,000,000 ThriveMarket's Gross Margin: $2,200,000 Total Industry Marketing Effort: $9,000,000 A. $360,000 B. $450,000 C. $540,000 D. $720,000 E. $240,000
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C
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30. Netflix is a company that rents DVD movies by mail and by streaming movies over the Internet. It jumped into an industry where there were many competitors, both local and national. Initially, it established a loyal clientele by providing a service that no one else offered—reliable and fast shipment. Its delivery system created Netflix's A. tactical innovation. B. point of parity. C. viable mission. D. competitive advantage. E. sales orientation
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D
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31. Today, there are over 15,000 McDonald's restaurants in the U.S., conveniently located for consumers to get a quick meal. In contrast, Del Frisco's Steakhouse is a high-end restaurant with only one location in each of the 30 largest cities in the U.S. What kind of channel coverages are McDonald's and Del Frisco's using, respectively? A. Selective; Exclusive B. Intensive; Exclusive C. Intensive; Selective D. Exclusive; Intensive E. Exclusive; Selective
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B
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32. Formerly referred to as the Vice President of Marketing, this senior executive is now most often known as the: A. Chief Marketing Officer (CMO) B. Category Manager C. Brand Champion D. Chief Executive Officer (CEO) E. Brand Manager
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A
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33. Otter Box, an American smartphone case company, decides to enter the Asian smartphone market. They are partnering with Samsung, a South Korean company, to create a limited edition phone case especially for Samsung's new Galaxy smartphone. What type of global entry strategy is Otter Box using? A. Licensing B. Franchising C. Direct Investment D. Exporting E. Joint Venture
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A
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35. Eliza loves being a Sephora cardholder because she gets advance notice of upcoming sales, free samples, and exclusive makeup tutorials from the Sephora sales associates. This is an example of a retailer adding value through: A. Location B. Providing assortments C. Holding inventory D. Providing services E. Breaking bulk
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D
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36. Jace sees a Best Buy advertisement featuring a Canon camera for a low price of $39.99. Jace goes to the nearest Best Buy, but the item is not in stock. Instead, a salesperson tries to convince Jace to buy the $300 Professional Canon camera instead. Which type of deceptive pricing practice was Jace the victim of? A. Former price comparisons B. Bargains conditional on other purchases C. Comparisons with suggested prices D. Comparable value comparison E. Bait and switch
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E
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37. Goodyear, a tire manufacturer, reaches buyers in several ways. They sell their tires to automakers, so that their tires are on the new cars that consumers purchase. They also sell their tires to retailers, so that consumers who need tires can buy Goodyear tires from a retailer. This strategy (using two or more channels for the same basic product) is known as: A. An administered system B. Having a channel captain C. A vertical marketing system D. Exclusive distribution E. Dual distribution
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E
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38. In which of the following areas does e-commerce have a distinct advantage over "brick-and-mortar" retailing? A. Number of alternatives available B. Social shopping experience C. Ability to "touch and feel" merchandise D. Bandwidth E. Security of transactions
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A
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39. A Gantt chart is generally used for: A. Making contingency plans B. Scheduling a project C. Evaluating a promotional campaign D. Showing how a business unit is organized E. Budgeting marketing activities
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B
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42. Tidy Clean makes washers and dryers. They manufacture them in Dayton, Ohio, and then ship them to retailers all across the country. The price that Tidy Clean quotes to the retailers includes all transportation costs, and Tidy Clean handles all of the shipping. All of the retailers pay the same price to Tidy Clean, regardless of whether the retailers are near (Toledo, Ohio) or far (San Jose, California). What is this type of pricing called? A. FOB Origin pricing B. Uniform delivered multiple-zone pricing C. Customary pricing D. Uniform delivered single-zone pricing E. Basing-point pricing
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D
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43. The marketing strategy of developing new products (i.e., in categories not previously offered by the firm) and selling them in new markets is referred to as A. market penetration B. diversification C. product penetration D. market development E. product development
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B
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44. The Krusty Krab has an annual fixed cost of $150,000. Each Krabby Patty sold at the Krusty Krab has a variable cost of $3. During the year SpongeBob and Squidward, the managers of the Krusty Krab, sell 36,000 Krabby Patties. The Krusty Krab is trying to earn a return on investment of 15% on its $50,000 investment into the establishment. What should be the target ROI price for the Krabby Patty? A. $7.38 B. $8.56 C. $4.38 D. $5.56 E. $3.83
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A
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45. Tire Kingdom sells three types of tires. They have a basic tire that sells for $100, a mid-priced tire that sells for $150, and a luxury tire that sells for $200. By offering tires at these three different price points, what pricing approach is Tire Kingdom using? A. Odd-even pricing B. Yield management pricing C. Price lining D. Skimming pricing E. Bundle pricing
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C
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46. TJX Companies owns and operates all of the TJ Maxx, Marshall's, and HomeGoods stores. This form of ownership allows for centralization in decision making and purchasing. This fits the description of what form of retail ownership? A. Independent retailer B. Corporate chain C. Product-distribution franchise D. Business-format franchise E. A non-franchise-based contractual system
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B
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47. Chobani, the popular Greek yogurt company, completed an evaluation of their marketing plan and learned that their Chobani "Simply 100" yogurt product yielded 35% more profit than the Chobani "Fruit on the Bottom" product and 25% more profit than the Chobani "Blended" product. These findings resulted from a: A. Sales Component Analysis B. Contingency analysis C. Marketing audit D. Sales analysis E. Profitability analysis
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E
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48. The retail positioning matrix classifies retailers according to which two dimensions? A. Management structure; Value added B. Breadth of product line; Value added C. Depth of product line; Ownership structure D. Store location; Store type E. Breadth of product line; Depth of product line
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B
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49. Kodak fell victim to _____ when they defined themselves as being in the film photography business. Although it was successful for many years, Kodak ultimately declined because of its resistance to digital photography. A. Marketing Myopia B. Lack of Market Share C. Entry Barriers D. Mass Customization E. Failure to understand Corporate Mission
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A
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50. Costco is interested in finding their stockturn rate for S'mores granola bars last year. Their COGS was $545,000, their beginning inventory was $23,000 and ending inventory was $17,000. What was Costco's stockturn rate for S'mores granola bars (round to the nearest whole number)? A. 91 B. 32 C. 27 D. 14 E. 24
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C
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51. Trader Joe's, a grocery chain that sells many natural foods, decides that it want to enter markets outside the United States. The marketing department for Trader Joe's views the entire world as a single market and has research that shows that the "natural food fan" segment is worldwide and cuts cross country borders. What type of global marketing approach is Trader Joe's taking? A. Transnational Marketing B. Multidomestic Marketing C. Natural Marketing D. International Marketing E. Multinational Marketing
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A
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52. Decades ago, Carlos' dad Nick was the owner of Perfect Thread, a clothing manufacturer that ships to various stores around the world. Nick often had a hard time communicating with stores in foreign countries and, due to slow order and delivery times, the stores were often out of stock. Now Carlos owns Perfect Thread and his experience is much different. He communicates rapidly using email to all the stores he partners with and he receives "real-time" inventory depletion data from each store via Electronic Data Interchange. Which of the following has contributed to the change in how Perfect Thread operates from Nick's time to Carlos' time? A. Shrinking Globe B. Foreign Competition decreasing C. Joint Ventures becoming more popular D. Glocalization increasing E. Balance of Trade deficit decreasing
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A
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53. Marketing ROI (return on investment) refers to A. the allocation of funds based upon the minimum expenditure possible to create the maximum results in terms of total sales. B. the allocation of funds based on a percentage of the total marketing budget determined by assessing the anticipated revenue return for a given marketing action. C. the application of modern measurement technologies to understand, quantify, and optimize R&D costs. D. the application of modern measurement technologies to understand, quantify, and optimize production expenses. E. the application of modern measurement technologies to understand, quantify, and optimize marketing spending.
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E
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54. Samantha loves craft beer. Every time she travels somewhere new she tries a different craft beer. Samantha loves beer so much that she has decided to open up a beer and wine store in Gainesville called Hops & Grapes. Since Samantha does not know much about wine, she is relying on her wine supplier to stock that portion of her store and turn a good profit for her. What type of inventory management is Samantha using for the wine section of Hops & Grapes? A. Electronic Data Interchange (EDI) B. Materials Handling C. Vendor-Managed Inventory (VMI) D. LIFO E. Just-in-time (JIT) Inventory
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C
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55. The practice of exchanging products and services for other products and services rather than for money is known as: A. barter B. exchange C. administered pricing D. value swapping E. quid pro quo
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A
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56. The Brazilian government wants to build a global positioning satellite (GPS) system. The satellite manufacturer will receive a mutually agreed upon pre-set dollar amount of profit over and above all costs associated with the project. The pricing approach the satellite manufacturer uses is called A. bundle pricing. B. standard markup pricing. C. cost-plus fixed-fee pricing. D. cost-plus percentage-of-cost pricing. E. experience curve pricing.
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C
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57. A new computer and smart phone technology company, called Orange, has released a product called the oPhone. Sales of the oPhone are taking sales away from Apple's iPhone. At the same time, Apple is in the middle of trying to cope with a shortage of new products; their R&D department is struggling to come up with new and exciting products. In Apple's SWOT Analysis, Orange is a(n) _____, and Apple's new product shortage is a(n): A. Weakness, Opportunity B. Weakness, Threat C. Opportunity, Weakness D. Threat, Threat E. Threat, Weakness
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E
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58. Apple fans have created an independent website called TheCore.com where users of iMacs, iPhones, iPads, Apple Watch, etc. can interact with each other about the products they own, their favorite features, and anticipated new releases. This website illustrates which use of the Internet? A. Virtual community B. Brand building C. C2C e-commerce D. Selling merchandise E. Facilitating sales
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A
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59. The ratio of __________ to price is referred to as value. A. perceived quality B. perceived benefits C. costs D. profits E. prestige
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B
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60. Claudia is trying to open a musical instrument store with her two friends Alex and Anna. Claudia wants to be the main salesperson; Alex will be in charge of ordering the instruments and stocking the store; and Anna will work on developing a rewards system to help retain customers. Who is performing which function in the distribution channel? A. Claudia - logistical, Alex - transactional, Anna - facilitating B. Claudia - transactional, Alex - facilitating, Anna - logistical C. Claudia - transactional, Alex - logistical, Anna - facilitating D. Claudia - facilitating, Alex - logistical, Anna - transactional E. Claudia - logistical, Alex - facilitating, Anna - transactional
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C
