question

_____ is the exchange value of a product or service in the marketplace.

answer

Price

question

Fixed costs _____ as the number of units produced increases.

answer

Remain the same

question

_____ are the sum of the _____ and ______ for any given level of production.

answer

Total costs; fixed; variable costs

question

_____ establishes a price based on the cost to manufacture a product or deliver a service.

answer

Cost-based pricing

question

The break-even volume is the point at which _____.

answer

The total revenue and total costs lines intersect

question

Which of the following is a drawback of cost-based pricing?

answer

**A. This method ignores demand.** B. Without a standard markup, consumers don't know when they are being overcharged. C. By tying the price to cost, sellers simplify pricing. D. Sellers earn a fair return on their investment. E. When all firms in the industry use this pricing method, prices tend to be similar.

question

Ascot Tires has decided to decrease its prices. The company can expect that _____ for their product will increase.

answer

Demand

question

Price elasticity of demand is _____ divided by _______.

answer

Percent change in quantity demanded; percent change in price

question

The Pure Drug Company produces insulin, a product with a very stable demand, even though the price has changed several times in the past two years. Insulin is a product with _____ demand.

answer

Inelastic

question

______ refers to the sale of two or more goods or services as a single package for one price.

answer

Price bundling

question

The practice of ______ involves a firm injuring competition by charging different prices to different members of its distribution channel.

answer

Price discrimination

question

A company that sets prices of its exports low with the intention of harming local manufacturers or producers would most likely be found in violation of ______.

answer

Antidumping laws

question

A firm is using a(n) ______ strategy when it introduces a product at a very low price to quickly generate sales volume or market segment penetration.

answer

Penetration pricing

question

In Vin del Mar, Chile, there are a dozen stores specializing in selling the same quality of seafood products on one street. An individual store dare not charge more than the going price without the risk of losing business to the other stores that are selling the fish at a common price. This is an example of what type of market?

answer

Pure competition

question

Which of the following is an example of a variable cost for an amusement park?

answer

A. Salary of the park manager B. Liability insurance C. Interest on the property's mortgage **D. Food cart supplies** E. Property taxes

question

Which of the following is defined as the process of delivering products and services to customers?

answer

A. Logistics B. Supply chain management **C. Distribution** D. Channel management E. Transportation management

question

Which of the following is in place when a manufacturer makes use of more than one type of channel?

answer

A. Vertical marketing system **B. Multichannel distribution system** C. Third-party logistics D. Intermediation E. Supply chain management

question

When marketers determine the distribution intensity for a product, they are determining the _____ of a channel level.

answer

Width

question

An intensive distribution strategy is most suitable for which consumer product category?

answer

Convenience products

question

_____ conflict occurs between different levels of the same channel, while _____ conflict occurs among firms at the same level of the channel.

answer

Vertical; horizontal

question

______ is the coordination of all activities related to the transportation or delivery of products and services that occur within the boundaries of a single business or organization.

answer

Logistics

question

Which of the following is the term for resellers, brokers, and facilitators that improve the effectiveness of a marketing channel?

answer

A. Logistics managers **B. Channel intermediaries** C. Channel leaders D. Consignees E. Third-party logistics providers

question

Which of the following is NOT an area of responsibility for a logistics manager?

answer

A. Storage location B. Inventory C. Information **D. Marketing** E. Production

question

To reduce inventory management costs, many companies use a system called ______, which involves having goods delivered exactly when they are needed.

answer

Just-in-time inventory management

question

SKU numbers and bar codes are both used to _______.

answer

Monitor inventory

question

Through the use of ______ tags, a company can use a computer that receives information from an electronic chip to locate exactly where a product is from production to shipment.

answer

RFID

question

When two Taco Bell restaurants have a disagreement over who should be able to sell in quantity at a discount to the local high school band, they are in a _____ conflict.

answer

Horizontal

question

Which of the following is NOT a typical marketing channel intermediary?

answer

A. Wholesaler B. Agent C. Retailer D. Facilitator **E. Government agency**

question

Which of the following statements about retailers and retailing activities is true?

answer

A. About half of all U.S. workers are employed by retailers. B. Retailers generate most of their revenue through selling to institutions. C. Retailers sell only to businesses. D. Wholesalers cannot generate revenue through retailing. **E. Retailers sell products to consumers for nonbusiness use.**

question

_____ combine an economy supermarket and a discount store.

answer

Superstores

question

Which of the following is any method a firm uses to complete an exchange that does not require a customer to visit a store?

answer

**A. Non-store retailing** B. E-commerce C. Direct selling D. Kiosk merchandising E. Exchange retailing

question

______, such as Best Buy and Sears, allow customers to serve themselves, but also have knowledgeable sales associates available to provide guidance.

answer

Limited-service retailers

question

A wholesaler who ______ legally owns the goods being handled.

answer

Takes title

question

Limited service merchant wholesalers are less likely than full-service merchant wholesalers to do which of the following?

answer

A. Suffer financial losses if the merchandise they sell is damaged or stolen. B. Take title to the merchandise they sell. C. Set the prices of there merchandise they sell. **D. Offer marketing assistance or delivery for the products they sell.** E. Use their own sales force.

question

The owner of a grocery store wants to have non-food items delivered, priced, displayed and inventoried by a wholesaler. Which type of wholesaler best fits the owner's needs?

answer

A. Mail-order wholesaler B. Drop shipper C. Cash-and-carry wholesaler **D. Rack jobber** E. Truck jobber

question

Mail-order wholesalers are associated with all of the following EXCEPT which one?

answer

**A. Automatically replenishing merchandise for retailers** B. Selling office supplies and computer hardware C. Selling products to small retailers and other industrial customers D. Selling products to retailers in remote locations E. Selling through catalogs

question

A ______ brings buyers and sellers together and assist in negotiations.

answer

Merchandise broker

question

GameStop sells video games and systems, offering a narrow product line with a broad range of choices within that line. GameStop is a(n) _______.

answer

Specialty store

question

Avon is successful at giving customers alternatives to traditional store outlets. Avon uses _______, which does not require a customer to visit a store.

answer

Non-store retailing

question

Costco's surprise offerings of seconds, overstocks, and closeouts - occasionally including diamonds - is an example of how a retailer can differentiate itself through its ________.

answer

Merchandise assortment

question

Apparel manufacturers send overruns and factory seconds to ______, while they send new merchandise to department stores.

answer

Off-price retailers

question

The goal of _______ is to influence how consumers think, feel, and act toward a brand or market offering.

answer

Marketing communications

question

A marketing communications objective to ______ has the goal of influencing the consumer to take the next step toward buying.

answer

Stimulate action

question

Which of the following is aimed at encouraging consumers to share a company's marketing message with friends?

answer

**A. Viral marketing** B. Sponsorships C. Sales promotions D. Advertising E. Personal selling

question

Any paid form of non-personal communication of a marketing message by an identified sponsor through mass media is called ______.

answer

Advertising

question

In 2008, ______ were the top advertising spending category in the United States.

answer

Automobile manufacturers

question

Marketing communication is also known as _______.

answer

Promotion

question

To be successful, an advertisement must ______.

answer

Gain the attention of consumers

question

Which of the following is a direct communication that marketers can use to communicate with a target market?

answer

A. Sales promotions **B. Personal selling** C. Sponsorships D. Public relations E. Advertising

question

Which of the following reward consumers for repeat purchase of a product or brand?

answer

**A. Loyalty programs** B. Trial offers C. Exhibits D. Advertising allowances E. Rebates

question

Which of the following is a promotional technique that returns some or all of the purchase price to the buyer to encourage product trial or repurchase?

answer

A. Allowance B. Premium C. Contest D. Loyalty program **E. Refund or rebate**

question

Branded Coca-Cola cups have been prominently featured on episodes of American Idol. This is an example of ______.

answer

Product placement

question

The purpose of a sponsorship is to _______.

answer

Influence brand awareness and attitudes

question

An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress Melina Kanakaredes and offered readers a $1-off coupon when they try the new makeup. In terms of the communication model, which of the following would be the best way for the source to measure feedback?

answer

A. The number of people to whole Melina Kanakaredes is an appealing spokesperson. B. The nuber of subscribers to Laides' Home Journal. C. The number of people make up the target market. **D. The number of people who redeem the coupon.** E. The number of people who were exposed to the ad.

question

Mercy University's initial ads for the school's new MBA program are most likely intended to create _____.

answer

Awareness and interest

question

The AFLAC duck and Kellogg's Tony the Tiger are examples of _______ used in successful advertising campaigns.

answer

Personality symbols

question

In the marketing communications process, a consumer request for additional information on a product is an example of ______.

answer

Feedback

question

In the traditional model of the marketing communication process, the marketer is the ______ and the consumer is the _______.

answer

Sender; receiver

question

Which of the following marketing communication tools invokes a representative of a company interacting directly with a consumer to provide information that helps the consumer make a buying decision?

answer

**A. Personal selling** B. Public relations C. Publicity D. Advertising E. Sponsorship

question

Examples of ______ that can be used in the prospecting stage of personal selling include LinkedIn.com, Biznik.com, and WomanOwned.com.

answer

Professional online social networks

question

The salesperson makes contact with the customer for the first time in the ______ step of the selling process.

answer

Approach

question

What should a sales person do during the fifth step of the personal selling process?

answer

Anticipate and address objections

question

Using a(n) ______ close, a salesperson would ask a prospect how much she would like to order.

answer

Assumptive

question

It is the responsibility of a ______ to organize, motivate, and lead the salespeople.

answer

Sales manager

question

Which of the following is NOT part of the sales management process?

answer

A. Motivating individual salespeople B. Recruiting and hiring salespeople C. Evaluating the performance of individual salespeople D. Determining the size of the sales force **E. Setting company objectives**

question

A disadvantage of personal selling is a high turnover rate. The turnover rate refers to which of the following?

answer

A. The percentage of customers who stop doing business with a company in a given year. B. The rate at which qualified prospects are turned into customers. C. The rate at which prospects are turned into qualified prospects. **D. The percentage of a sales force that leaves a company in a given year.** E. The percentage of a sales force that moves into management positions in a given year.

question

The sales management process begins with ______.

answer

Setting sales force objectives

question

Which of the following is most important for direct marketing to be effective?

answer

A. Catalogs B. An online presence **C. A good customer database** D. Telephone marketing E. A well-trained sales force

question

Psychographics data in a customer database used by direct marketers include information regarding a customer's _______ and _______.

answer

Activities; opinions

question

The ______ was established by the Direct Marketing Association.

answer

Do Not Mail List

question

The sales force of Conway Pools has identified a number of prospects. Which of the following will most likely occur next?

answer

A. The outside sales force will call on all prospects. B. The outside sales force will close the deal with one of the prospects. C. The inside sales force will attend meetings with qualified prospects. **D. The outside sales force will learn as much as possible about the prospects.** E. The inside sales force will put together a presentation for the prospects.

question

Marlene Arau is a member of the sales force at Urban Fashions, a clothing manufacturer. Marlene is preparing for a first meeting with a wholesaler who is a potential customer. Marlene is learning as much has she can about the wholesaler's organization. Marlene is in the ______ step of the personal selling process.

answer

Preapproach

question

Prospecting is the step in the selling process in which the salesperson _____.

answer

Identifies potential customers

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