Customer Value Based Pricing Flashcards, test questions and answers
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BA 303 Practice Questions – Flashcards 130 terms
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BA 303 Practice Questions – Flashcards
question
Costs that do not vary with production or sales level are referred to as ________ costs. A) fixed B) target C) unit D) total E) variable
answer
A
question
________ pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the company's efforts and risks. A) Skimming B) Fixed cost C) Cost-based D) Variable E) Value-based
answer
C
question
Break-even pricing, or a variation called ________, is when the firm tries to determine the price at which it will break even or make the profit it is seeking. A) value-based pricing B) target return pricing C) fixed cost D) competition-based pricing E) customer-based pricing
answer
B
question
Which of the following presents the strongest reason that markup pricing generally does NOT make sense? A) When all firms in the industry use this pricing method, prices tend to be similar. B) This method ignores demand. C) By tying the price to cost, sellers simplify pricing. D) With a standard markup, consumers know when they are being overcharged. E) Sellers earn a fair return on their investment.
answer
B
question
________ involves charging a constant low price with few or no temporary price discounts. A) Everyday low pricing (EDLP) B) Target return pricing C) Penetration pricing D) High-low pricing E) Cost-plus pricing
answer
A
question
Consumer perceptions of the product's value set the ________ for prices. A) demand curve B) image C) ceiling D) variable cost E) floor
answer
C
question
Which of the following is an external factor that affects pricing decisions? A) overall pricing objectives B) the salaries of production management C) competition D) the salaries of finance management E) the company's overall marketing strategy
answer
C
question
Of the following, a company would be LEAST likely to set prices low to ________. A) create excitement for a product B) stabilize the market C) prevent competition from entering the market D) match a competitor E) prepare for an easy exit from a market
answer
E
question
Value-based pricing is the reverse process of ________ pricing. A) good-value B) variable cost C) cost-based D) value-added E) cost-plus
answer
C
question
The company designs what it considers to be a good product, totals the expenses of making the product, and sets a price that adds a standard mark-up to the cost of the product. This approach to pricing is called ________ pricing. A) skimming B) variable C) fixed cost D) cost-plus E) value-based
answer
D
question
________ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing. A) Value-based pricing B) Target return pricing C) Price elasticity D) Variable costs E) Product image
answer
A
question
Measuring ________ can be difficult. A company might conduct surveys or experiments to test this in the different products they offer. A) target returns B) fixed costs C) break-even pricing D) perceived value E) variable costs
answer
D
question
________ is the amount of money charged for a product or service. A) Experience curve B) Salary C) Demand curve D) Price E) Wage
answer
D
question
Rent, electricity, and executive salaries are examples of ________ costs. A) variable B) marketing C) total D) accumulated E) fixed
answer
E
question
Price setting is usually determined by ________ in small companies. A) cross-functional teams B) sales departments C) divisional managers D) marketing departments E) top management
answer
E
question
Distribution channel decisions are integrated into decisions about other variables within the marketing mix. In what way, however, are distribution decisions different from other mix decisions? A) Distribution channel decisions tend to be long term when compared to decisions about other mix variables. B) Decisions can be changed more easily than the advertising strategy. C) The firm can find alternative channels of distribution easily. D) New products development operates independent of channel decisions. E) Firms pay too much attention to channel decisions.
answer
A
question
Coach products are sold in a carefully controlled number of locations across the world. Some locations are owned and managed by the firm and some are managed through other retailers. Which type of distribution strategy is Coach using? A) Selective distribution B) Intensive distribution C) Exclusive distribution D) Franchise E) A contractual VMS
answer
C
question
There are many ways in which intermediaries in the marketing channel add value to the flow from raw materials to the final consumer. Why would the marketing manager avoid additional intermediaries in the channel structure? A) Intermediaries transform the goods into assortments that customers want. B) Intermediaries make the transaction less expensive. C) Intermediaries broaden the assortment offered to customers. D) Intermediaries reduce the amount of work that must be done. E) Intermediaries buy in bulk and break into smaller, more manageable amounts for consumers.
answer
B
question
One of the largest firms in the world is Coca-Cola, which sells its products all over the world in a variety of locations by controlling the manufacture of the syrup, and then selling it only to licensed bottlers. Which type of vertical marketing system is this? A) Administered VMS B) Horizontal marketing system C) Contractual VMS the manufacturer-sponsored retailer franchise system D) Contractual VMS service-firm-sponsored retailer franchise system E) Contractual VMS manufacturer-sponsored wholesaler franchise system
answer
E
question
In setting the channel objectives, they should be stated in terms of targeted levels of customer service. There are many elements that influence how those objectives are set. Which of the following factors does the marketing manager typically avoid when determining the firm's channel objectives? A) The nature of the company B) The nature of the products and their perishability C) Economic conditions D) The nature of the marketing intermediaries E) Maximization of total channel cost
answer
E
question
All members of the channel help to create and perpetuate flow in many ways through to the final customer. Which of the following is an element of flow the marketing manager would avoid when using a longer channel? A) Physical flow B) Promotional flow C) Ownership flow D) Manufacturing flow E) Payment flow
answer
D
question
Choosing to use multiple forms of resellers can add value to the consumer's purchase. However, increasingly more firms are looking to disintermediate the channel because longer channels can cause problems. Which of the following issues is an advantage of using the longer channel structure? A) It is more difficult to control the channel flow. B) It is more difficult for the producer to control marketing of the product. C) It creates potential conflict between channel members. D) It tends to focus the targeting. E) It will cost more.
answer
D
question
Originally consumers went to bookstores like Borders and B. Dalton to buy books. Amazon started shipping books to buyers who bought online, and then invented the Kindle to electronically "ship" books to the reader's device. This technology is defined as A) indirect marketing B) disintermediation C) flow D) intensive distribution E) a franchise
answer
B
question
In a channel, one or more independent producers, wholesalers, and retailers is a separate business seeking to maximize its own profits, perhaps even at the expense of the system as a whole. This type of channel is described as what kind of distribution system? A) Horizontal B) Contractual VMS C) Conventional D) Administered VMS E) Corporate VMS
answer
C
question
Once a firm has defined its channel objectives, it should next identify its major channel alternatives in three dimensions. Those dimensions include the types of intermediaries, the channel member. A) image B) economic condition C) cost D) number E) longevity
answer
D
question
Apple Computer sells its products such as iTunes and iMovies online, and sells its hardware through its own stores and through other retailers, such as Best Buy and Costco, and through vending machines. How is the Apple distribution system described? A) A contractual VMS B) Multichannel marketing C) Horizontal marketing system D) Franchise E) Contractual VMS manufacturer-sponsored wholesaler franchise
answer
B
question
A company designs a logistics system that will minimize the cost of attaining the firm's distribution objectives. There are traditionally four major functions of the logistics systems. From the following, identify the function that plays a role in decision making other than logistics design. A) Warehousing B) Transportation C) Pricing the products D) Logistics management information E) Inventory management
answer
C
question
Apple uses selective distribution for several reasons such as the ability to develop good working relationships with selected channel members and for what other reason? A) It can expect a better-than-average selling effort from the channel member. B) It provides maximum brand exposure. C) It provides consumer convenience. D) It yields better dealer support and customer service. E) It enhances a distinctive positioning.
answer
A
question
Most companies see their intermediaries as first-line customers and then subsequently partners in the creation of a value delivery system that meets the needs of both the company and its marketing partners. What is the system advised for long-term arrangements with channel members? A) Partner relationship management B) Exclusive territorial agreement C) Full-line forcing D) Tying agreement E) Exclusive dealing
answer
A
question
Because logistics is complicated and viewed as a hassle by many firms, increasingly a growing number of firms now outsource some or all of their logistics to firms such as Ryder, Penske Logistics, BAX Global, DHL Logistics, FedEx Logistics, and UPS Business Solutions. What are firms like Ryder and FedEx called? A) Shared projects B) Vendor-managed inventory (VMI) C) Integrated logistics management D) Third-party logistics (3PL) providers E) Cross-functional, cross-company teams
answer
D
question
In which of the following situations is the channel a direct marketing channel? A) A consumer stops at Dunkin Donuts on the way to work to buy a dozen donuts for the office. B) Pandora charm bracelets sell the basic bracelet and individual charms at department stores, jewelry stores, and at kiosks in the mall. C) A consumer buys a new Toyota at the dealership in her town. D) Walmart sells a variety of products from fresh produce to electronic merchandise. E) Mattresses Plus sells Serta, Sealy, and private label brand mattresses to customers.
answer
A
question
Producing a product or service and making it available to buyers requires building relationships with upstream and downstream partners, which are known together as the A) distribution channel B) demand chain C) supply chain D) value delivery network E) market channel
answer
C
question
American Standard Plumbing Supplies makes bathtubs, washbowls, toilets, and other items for the bathroom. To expand the firm's reach and offer greater service, it relies on wholesalers, retailers, and other resellers to help move the product toward the consumer. What are these intermediaries called? A) Marketing channels B) Indirect marketing channels C) Suppliers D) Direct marketing channels E) Value delivery network
answer
A
question
Companies can design their distribution channels as long or as short as they choose to make products and services available to customers in different ways. There are two players that are always part of the channel that delivers value. What are those two player roles? A) The producer and the financier B) The consumer and the financier C) The producer and the final consumer D) The negotiator and the financier E) The consumer and the reseller
answer
C
question
Intermediaries provide customers with greater utility in what manner when they shape offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging? A) Contacting B) Matching C) Financing D) Negotiation E) Promoting
answer
B
question
Which of the following is a function of an integrated marketing communications system? A) designing products using environmentally-friendly techniques B) delivering a consistent message on the product to each brand contact C) controlling production levels by feedback received from customers D) allowing suppliers or vendors to manage the inventory of products E) sharing company forecasting details with shareholders
answer
B
question
Pearl Sands Resort and Spa is a popular summer attraction located in hilly town of Rockten. They usually attract customers in the summer. During the pre-summer period, Pearl Sands Resort began sponsoring shows on TV, and putting up billboards around Rockten and the surrounding towns advertising the resort. The ads hinted at the coming summer, and how the resort has always been the place to go for a welcome break from everyday life. Which of the following approaches has Pearl Sands Resort used? A) push strategy B) vertical integration C) publish-subscribe method D) direct marketing E) pull strategy
answer
E
question
A company advertising discounts on a product is using ________ advertising. A) informative B) persuasive C) classified D) reminder E) personal
answer
B
question
A company using a press release to explain the resignation of its former CEO who was involved in a scandal is an example of a company using ________ to maintain its company image. A) public relations B) personal selling C) direct marketing D) sales promotion E) advertising
answer
A
question
Which of the following promotion mix approaches involves the producer promoting the product to different channel members who in turn promote the product to customers? A) vertical integration B) pull strategy C) push strategy D) direct marketing E) publish-subscribe method
answer
C
question
In a promotion mix, ________ refers to any short-term incentives to encourage the purchase or sale of a product or service. A) public relations B) Crowdsourcing C) personal selling D) sales promotion E) advertising
answer
D
question
A company that allows consumers to use monthly installment plans for buyers to pay for products is using the promotional tool of ________. A) direct marketing B) sales promotion C) public relations D) advertising E) personal selling
answer
B
question
Advertainment is an example of a ________ advertising technique. A) covert B) Madison & Vine C) public service D) surrogate E) social
answer
B
question
Which of the following promotion tools would best suit to reach a mass audience that is geographically dispersed in a short period of time? A) door-to-door selling B) direct mailing C) television advertisements D) telephone marketing E) discount promotions
answer
C
question
Which of the following is true of direct marketing? A) It does not involve any direct interaction between the company and its customers. B) It meets the needs of mass buyers who are geographically spread out simultaneously. C) It is brought out it in the form of company news rather than as a sales-directed communication. D) Its marketing message is fixed and does not change according to the customer's requirements. E) It is suited for highly targeted marketing efforts and for building one-to-one customer relationships.
answer
E
question
Which of the following is a similarity between personal selling and direct marketing? A) Both are used to meet a mass audience simultaneously. B) Both are not sales-directed forms of communication. C) Both are involved in personal interactions with customers. D) Both are only used in cases of product promotions. E) Both are impersonal and lack direct persuasiveness of company salespeople.
answer
C
question
Which of the following would be an example of narrowcasting using advertisements? A) showing video game ads at a video game Expo B) showing ads for diapers to would-be mothers in hospitals C) handing out promotional leaflets for a new restaurant to passers-by D) putting up a movie ads on online streaming sites like YouTube E) running an ad for a new line of cars on cable TV
answer
B
question
In a promotion mix, ________ occurs when firm's sales force make individual presentations to consumers for the purpose of making sales and building customer relationships. A) advertising B) crowdsourcing C) branding D) public relations E) personal selling
answer
E
question
In the promotion mix, ________ performs the functions of building a good report with entities outside the company, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. A) public relations B) personal selling C) Crowdsourcing D) sales promotion E) advertising
answer
A
question
Which of the following types of promotion tools requires the most interaction with a customer? A) sales promotion B) direct marketing C) public relations D) advertising E) personal selling
answer
E
question
Which of the following types of advertising budgets is directly set based on company profits? A) the adaptive control method B) the objective-and-task method C) the percentage-of-sales method D) the affordable method E) the competitive-parity method
answer
C
question
How is spending on advertising calculated in the affordable method of setting an advertising budget? A) based on an amount remaining after operating expenses and capital outlays are deducted from total revenues B) based on the company's objectives set for accomplishment C) based on a certain percentage of current or forecasted sales D) based on a percentage of the unit sales price E) based on matching a competitors advertising outlays
answer
A
question
Which of the following is true as a difference between digital media advertising and TV advertising in the United States? A) Less advertising money is spent on digital media than on TV advertising. B) Digital media force-feeds mass messages to customers, while TV advertising targets more defined micromarkets. C) More of the promotion budget is spent on digital advertising than on TV advertising. D) TV advertising is more interactive than digital media techniques. E) Digital media advertising reaches mass audiences whereas TV advertising reaches only limited audiences.
answer
A
question
Which of the following has been a major change in market structures in recent times? A) the rise of print media as a major marketing channel B) the formation of a global mass market C) the fragmentation of mass markets D) the shift towards using less technology in micromarketing E) the increased use of mass-media communications techniques in marketing
answer
C
question
Which of the following techniques do companies use to deliver a unified and consistent image about their organizations and brands to consumers? A) logistics information management B) market segmentation C) warehouse management system D) inventory control system E) integrated marketing communications
answer
E
question
In Da Houz is a bar which mostly plays trance music, and has a dedicated day every week for local bands to perform. In Da Houz tries to build strong customer relations and patronage by gathering feedback from customers and asking the customers to provide their mobile numbers. Knowing the target customers, In Da Houz sends text messages to potential customers, telling them about happy hours, introducing a new drink, bands that are playing that week, dedicated genre nights, and other activities at the bar. Which of the following promotion mix tools does In Da Houz employ to reach target customers? A) direct marketing B) Crowdcasting C) public relations D) retailing E) personal selling
answer
A
question
Pearl Sands Resort and Spa is a popular summer attraction located in hilly town of Rockten. The spa usually attracts customers in the summer. During the pre-summer period, Pearl Sands Resort began sponsoring shows on TV, and putting up billboards around Rockten and surrounding towns advertising the resort. The ads hinted at the coming summer, and how the resort has always been the place to go for a welcome break from everyday life. Which of the following types of advertising did Pearl Sands Resort use? A) classified advertising B) comparative advertising C) personalized advertising D) persuasive advertising E) reminder advertising
answer
E
question
Which of the following is true of mass-media communications techniques in the new marketing communications model? A) Digital media are undercutting spending on mass-media. B) Television advertising has lost its dominance as an advertising medium. C) Audience levels exposed to mass-media are increasing. D) The costs of advertising on traditional media are decreasing as marketers shift online. E) Ad spends on major TV channels are steadily rising.
answer
A
question
Which of the following is true of consumers in the new marketing communications model? A) They are less powerful than before in having direct effects on the way a company markets its products. B) They are more reliant on traditional methods of marketing for product information. C) They are better equipped to find product and brand information on their own. D) They are less informed than before about company and product marketing techniques. E) They are more reliant on mass media marketing methods for product information.
answer
C
question
________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. A) Public relations B) Sales promotion C) Advertising D) Direct marketing E) Personal selling
answer
C
question
A firm whose aim is to highlight its organization as supporting cause-related marketing efforts would use _____ as the primary element of the public relations toolkit. A) annual reports B) websites C) brochures D) press kits E) public service announcements
answer
E
question
HGTV and Home and Gardens magazine fall into which of the following categories of media? A) Specialty media B) DIY media C) Niche media D) Utilitarian media E) Mass media
answer
C
question
When a company wants to create and build brand awareness, it would use _____ advertising. A) push B) pull C) persuasive D) informative E) reminder
answer
D
question
Bowflex and Jenny Craig develop advertisements featuring celebrities to address its target market's need for self-esteem. This is an example of which of the following? A) emotional appeal B) informational appeal C) relational appeal D) social appeal E) utilitarian appeal
answer
A
question
Exxon Mobil uses a(n) _____ when it explains technical aspects of its products, such as lithium ion batteries, hydrogen technology, biofuels, and CO2 capture technologies. A) candid appeal B) emotional appeal C) informational appeal D) contemporary appeal E) engineering appeal
answer
C
question
Although they stimulate demand, allowing the direct tracing of sales, _____ have a fairly high cost relative to their redemption rate. A) premiums B) sweepstakes C) coupons D) deals E) rebates
answer
C
question
As a product in the maturity stage of its life cycle, chewing gum brands would most likely require the use of _____ to prompt purchases. A) reminder B) informative C) push D) pull E) persuasive
answer
A
question
IKEA advertises throughout the year, but significantly increases its advertising during the back-to-school time frame, thus implementing a(n) _____ advertising schedule. A) steady B) flighting C) pulsing D) status quo E) continuous
answer
C
question
Most advertising would qualify as _____. A) institutional advertising B) attribute-based advertising C) product-focused advertising D) social marketing E) public service advertising
answer
C
question
Which of the following is the first step in planning and executing an advertising campaign? A) Identify the target market B) Convey the message C) Create the advertisements D) Set the advertising objectives E) Determine the advertising budget
answer
A
question
After gaining the desired level of awareness, firms would typically move to producing _____ advertising to motivate consumers to action. A) informative B) persuasive C) pull D) push E) reminder
answer
B
question
Direct-to-consumer advertising by pharmaceutical manufacturers is an example of a highly controversial use of _____ strategies by marketers, which is criticized for diminishing the trained expertise of the doctor in the decision making process. A) push B) reminder C) pull D) persuasive E) informative
answer
C
question
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. A) Determine the advertising budget B) Convey the message C) Set the advertising objectives D) Identify the target market E) Create the advertisements
answer
C
question
To achieve its goal of raising awareness about the need to plan and save for long-term personal financial security, Choose to Save® produced and ran a series of television and radio advertisements for broadcast on commercial stations, which is a form of _____. A) attribute-based advertising B) institutional advertising C) relational advertising D) product-focused advertising E) public service advertising
answer
E
question
As a type of sales promotion, _____ encourage trial and reduce consumer risk, although they may negatively impact perceptions of brand value. A) samples B) premiums C) coupons D) deals E) rebates
answer
D
question
The "Got Milk" campaign to encourage milk consumption is an example of _____. A) attribute-based advertising B) relational advertising C) institutional advertising (does not sell a particular product) D) public service advertising E) product-focused advertising
answer
C
question
Coppertone uses a(n) _____ advertising schedule, where it advertises heavily in the months leading up to and during the summer, with no advertising after the season ends. A) status quo B) seasonal C) pulsing D) flighting E) continuous
answer
D
question
When introducing new products, Quaker Oats uses a _____ by offering retailers discounts on the products along with point-of-purchase displays to motivate them to highlight the product. A) push strategy B) pull strategy C) reminder strategy D) persuasive strategy E) informative strategy
answer
A
question
Which of the following is the primary enforcement agency for most mass media advertising? A) The Federal Communications Commission B) The Federal Communications Committee C) The Federal Trade Commission D) The Bureau of Alcohol, Tobacco and Firearms E) The U.S. Postal Service
answer
C
question
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? A) mass media B) transatlantic media C) utilitarian media D) niche media E) emotional media
answer
A
question
Which of the following is the first step in the selling process? A) handling objections B) determining call objectives C) presentation and demonstration D) prospecting and qualifying E) pre-approach
answer
D
question
________ is the sales step in which the salesperson seeks out, clarifies, and overcomes any customer disapproval to buying. A) Prospecting and qualifying B) Preapproach C) Handling objections D) Closing E) Follow-up
answer
C
question
Vintage is one of the largest companies in the country. Vintage produces a vast range of goods which includes cars, cameras, home appliances, personal-care products, and food items. The company also competes vigorously in the services market as it runs hotels, hospitals, and schools. Vintage entered the real-estate industry in the last decade and proved to be successful in this field too. Which of the following would classify as a business promotion tool used by Vintage? A) a display allowance for those retailers who feature the manufacturer's product B) a free "well-woman" check up at Vintage clinics for any recent customer who purchased merchandise above $200 at Vintage retail stores C) a trade show depicting the new villas and condominiums that are being developed under the Well Homes project D) a sweepstakes program inviting customers to submit their names and gain a chance to win the new Vintage car, VTG 412 E) a toaster being sold at half its list price for any consumer who buys a Vintage oven or food processor
answer
C
question
La Viva, a chain of clubs and resorts, is known to be one of most preferred options for consumers seeking hospitality of a good standard. La Viva follows a mission which stresses long-term relationship building. It does not offer customers frequent price discounts which do increase footfalls, but fail to add value to the company. Which of the following statements, if true, strengthens the argument that La Viva uses the relationship-building approach over the transaction-oriented approach? A) The sales force at La Viva is trained rigorously in the selling process that begins with the step of prospecting and terminates with the step of follow-through. B) The managers at La Viva are suffering from a situation that reflects promotion clutter. C) The largest proportion of customers coming to La Viva are holders of a "Lifetime with La Viva" card or have been referred by satisfied customers. D) The consumer promotion activities at La Viva are centered around providing customers with a free package during the off-season. E) The facilities for recreation at La Viva are not significantly greater than its key competitor, Aurora clubs and resorts.
answer
C
question
Which of the following examples represents a product sales force structure? A) Cartlon Computers sells its highly specialized computers through special teams which have received training in the configuration, uses, and USPs of a single model of its computers. B) AmWeb produces an expensive brand of herbal cosmetics called "Green You" that are sold in select boutiques and parlors by selling teams assigned to serve small groups of these key customers. C) Venson's produces frozen dinners at its factory in Ohio and sells them across the country through a network of sales representatives organized into regional and territorial tiers. D) Verra Designers operates from its landmark store in uptown New York and customers from world over come to this store to buy original merchandise at steep prices. E) Nutters, producers of cookies and other bakery products, markets its products throughout the country through a network of area and regional sales officers.
answer
A
question
Which of the following statements is true of salespersons? A) They represent a company to customers by communicating and selling. B) Click-only companies have maximum number of salespersons. C) They do not work with wholesalers and retailers. D) They represent a new class of professionals who have emerged as part of the steep rise in retailing. E) They do not represent the customers to the company.
answer
A
question
Easy Life manufactures a wide range of home appliances, healthcare products, and cosmetics. It sells its products to many types of customers but in a single geographic location. Its complex sales force structure combines which of the following two sales force structures? A) geographic and market B) product and market C) geographic and product D) territorial and market E) product and territorial
answer
B
question
If a company assigns individual teams of salespeople to big retail customers, it is most likely to have a ________ sales force structure. A) territorial B) product C) geographical D) market E) demographic
answer
D
question
Which of the following is true of the stage of presentation in the selling process? A) It involves the final meeting with the customer to close the deal. B) It involves learning as much as possible about the organization and its buyers prior to the approach stage. C) It involves the act of cold calling in the absence of potential leads. D) It involves clarifying customer objections to buying with a positive approach. E) It shows how the company's offer solves the customer's problem.
answer
E
question
Which of the following is an advantage of an outside sales force? A) It provides face-to-face collaboration and relationship building. B) It essentially provides daily access and support. C) It can make more decision-maker contacts a day as compared to the inside sales force. D) It is the most effective way to provide technical sales support to buyers. E) It is less expensive than the inside sales force.
answer
A
question
Which of the following is the last step in the selling process? A) prospecting B) follow-up C) closing D) handling objections E) presentation
answer
B
question
Which of the following is a supervision tool used by managers for their salespeople? A) sales quota B) straight commission plan C) bonus plan D) call plan E) sales contest
answer
D
question
Carmalax is the country's largest vendor of printers and digital imaging services. Carmalax is known for its highly-trained and experienced sales force which has provided the company with exemplary service for decades. Much of the success Carmalax enjoys has been attributed to the fact that the management of Carmalax treats its sales division with respect and recognition. Which of the following statements, if true, would reflect this positive approach to managing the sales force that is practised by Carmalax? A) The salespeople at Carmalax are encouraged to use trade and business promotions, rather than customer promotions. B) The salespeople at Carmalax are invited to frequent sales meetings to voice their concerns and rewarded well for individual and group performance. C) The salespeople at Carmalax are encouraged to focus on the transaction-oriented selling process, rather than the value selling approach. D) The salespeople at Carmalax typically face the threat of many punitive measures, including unemployment, for poor performance. E) The salespeople at Carmalax work under extreme supervision and managers are aware of the activities of their salespeople on field at all times.
answer
B
question
Sales people from the inside sales force typically ________. A) work only on the relationship-building process B) provide daily access and support C) work independently of the outside sales force D) cannot conduct business on their own E) travel to call on customers in the field
answer
B
question
Which of the following is a disadvantage of the territorial sales force structure? A) Salesperson's job and accountability are not clearly defined. B) It does not lead to building local customer relationships. C) Travel expenses are relatively larger than any other sales force structure. D) It is not useful in a company with a number of product lines in different industries. E) It does not involve geographic specialization.
answer
D
question
Oolay Inc., a U.S. based cosmetics manufacturer, sells its products in France, China, Russia, and India. To manage its sales, it has appointed a number of sales representatives for each location who report to area managers. These area managers coordinate sales for their respective areas and report to regional managers. From the information provided in the scenario, we can infer that Oolay Inc. has adopted a ________. A) client sales force structure B) territorial sales force structure C) customer sales force structure D) market sales force structure E) product sales force structure
answer
B
question
________ are offers of a trial amount of a product. A) Samples B) Coupons C) Cash refunds D) Rebates E) Price packs
answer
A
question
________ are certificates that save buyers money while they purchase specified products. A) Samples B) Coupons. C) Price packs D) Rebates E) Premiums
answer
B
question
Sales reports primarily contain ________. A) weekly or monthly work plans B) details of the expenses and overheads incurred C) schedules for sales meetings D) call plans developed by supervisors for salespeople E) details of sales contests and the incentives they carry
answer
A
question
ABM Connect is one of the largest providers of Internet services in the country. The company operates through a network of thousands of employees who manage its functions in their respective capacities. With the entry of new service providers in the industry, ABM Connect has also enhanced its sales and marketing efforts to retain its position as the market leader. Which of the following statements, if true, would indicate that ABM Connect adopts the transaction-oriented approach? A) The salespeople at ABM Connect have been cutting prices drastically to meet targets after the entry of many competing firms in the market. B) The salespeople at ABM Connect typically use business promotions, rather than trade or consumer promotion measures. C) The salespeople at ABM Connect have recently been promoting the "Connect for Life" program which gives its long-time consumers added benefits at no extra costs. D) The salespeople at ABM Connect have been demonstrating the value that their speedy Internet services can bring to business customers even when their competitors are slashing prices. E) The salespeople at ABM Connect receive special training in the area of customer relationship-building strategies.
answer
A
question
Which of the following statements is true of team selling? A) Each salesperson is an expert in every area and can handle all of a large customer's needs autonomously. B) It is adopted when the group of target customers is small and homogeneous. C) It is usually adopted when the company has only one product line. D) It includes experts from many areas like marketing, operations, finance, and others. E) It is easier to evaluate individual contribution and compensation in case of team selling when compared to other sales forces.
answer
D
question
Which of the following is an advantage of market sales force structure? A) lowest travel expenses B) minimal need for supervision of salespeople C) highest degree of product specialization D) close relationships with important customers E) lowest compensation rates for salespeople
answer
D
question
________ is the sales step in which a salesperson learns as much as possible about a prospective customer before making a sales call. A) Follow-up B) Price quotation C) Demonstration D) Approach E) Pre-approach
answer
E
question
In which of the following steps in the sales process does the salesperson meet the customer for the first time? A) prospecting B) approach C) presentation D) qualifying E) pre-approach
answer
B
question
Which of the following examples represents a territorial sales force structure? A) Ajax Medicals has special teams of medical representatives who are well-versed in the specific classes of medicines they sell to the customer markets assigned to them. B) Oriental Meals, producers of pre-cooked Chinese meals, markets its products throughout the country through a network of area and regional sales officers. C) Verra Designers operates from its landmark store in uptown New York and customers from world over come to this store to buy original merchandise at steep prices. D) Apollo Pharmaceuticals sells its products through a network of teams, each of which handles a specific product, but sells them in one location only. E) Milton's is a specialty liquor brewery that markets its products to the most exquisite hotels and has individual sales teams assigned to provide priority service to each of its clients.
answer
B
question
Which of the following is an advantage of printed catalogs over digital catalogs? A) efficiencies in production, printing, and mailing costs B) ease in matching prices instantly in response to changes in demand C) an ability to offer an unlimited amount of merchandise D) real-time merchandising E) a stronger emotional connection with customers
answer
E
question
Gutter Guys is a gutter installation company in Southern California that used to generate most of its sales through telemarketing but now uses direct mail to reach prospective customers. Which of the following most likely explains the reason that Gutter Guys switched from telemarketing to direct mail? A) Clayton Act B) Children's Online Privacy Protection Act C) National Do-Not-Call Registry D) Federal Trade Commission's Anti-Spam Act E) Robinson-Patman Act
answer
C
question
________ allows consumers to gain additional information about a product through the use of a remote control. A) Data mining B) Podcasting C) Telemarketing D) Interactive television E) Direct-mail marketing
answer
D
question
Green Gardens is a click-and-mortar seller of gardening and landscaping goods and equipment. The marketing department wants to encourage shoppers at the physical stores to use the company's online catalog to order items that are not available at a given retail location. Which of the following marketing devices is the best match for this goal? A) podcasts B) infomercials C) kiosks D) retail stores E) mail-order forms
answer
C
question
Jean-Paul's Cutlery has always relied upon advertising to market its products to final customers. However, the marketing team at Jean-Paul's Cutlery is now considering starting a direct marketing campaign consisting of a company Web site, e-mail to current customers, and an online catalog. Which of the following would the marketing team expect to gain as a result of implementing this direct marketing plan? A) greater control over employee-management interactions within the company B) the ability to learn more about their customers and tailor offerings to fit their needs C) a wealth of information about competitors and their products. D) the ability to increase the range of products the company offers E) a lower cost-per-contact than its advertising campaign using mass marketing strategies
answer
B
question
You are looking up airline schedules on HolApp, a mobile Web app. A bar at the bottom of the screen reads, Stay at Holiday Inn and get a 25 percent discount! This is a(n) ________. A) viral advertisement B) advertorial C) microblog D) informercial E) banner
answer
E
question
Which of the following is a primary disadvantage of viral marketing? A) The costs of viral marketing are too high for most companies. B) Marketers have little control over who receives the viral message. C) Viral messages are less likely to be viewed than other types of online promotions. D) The brand associated with the viral message is usually forgotten. E) Viral messages are blocked by most search engines.
answer
B
question
Which kind of marketing involves sending an offer, announcement, reminder, or other item to a person at a particular postal address? A) kiosk marketing B) mass marketing C) telephone marketing D) digital direct marketing E) direct-mail marketing
answer
E
question
________ consists of connecting directly with carefully targeted consumers, often on a one-to-one, interactive basis. A) Standardized marketing B) Direct marketing C) Internal marketing D) Mass marketing E) Marketing without segmentation
answer
B
question
New York Times on the Web, ESPN.com, and Encyclopedia Britannica Online provide financial, research, and other information. They are called ________. A) content sites B) e-tailers C) iTV sites D) transaction sites E) ISPs
answer
A
question
What characteristic of niche sites makes the medium most appealing to marketers? A) commercial transaction capabilities B) podcasting and vodcasting capabilities C) wide variety of demographics and purchasing patterns D) audience sizes larger than those of general social networking sites E) audiences of people with similar interests
answer
E
question
A 30-minute or longer television advertising program marketing a single product is called a(n) ________. A) inbound advertisement B) iTV advertisement C) advertorial D) infomercial E) testimonial
answer
D
question
Marketers use ________ telephone marketing to receive orders from television ads and catalogs. A) inbound B) infomercial C) direct-response D) advertorial E) viral
answer
A
question
CashSecure is a financial services provider. Whenever a customer has a child who is about to become eligible for a driver's license, CashSecure sends the customer materials related to teaching teenagers how to drive safely. This is an example of using ________ information from a customer database. A) metadata B) psychographic C) political D) demographic E) geographic
answer
D
question
Eric Dylan is the marketing director of a charity that raises funds to help provide educational services to children and families in developing countries. Eric targets a selective market of individuals who have recently donated to international charities by sending them a letter with the proposed plan for charity and instructions for those who are interested to participate. Eric uses ________ in this scenario. A) direct-mail marketing B) kiosk marketing C) direct-response television marketing D) mass marketing E) telephone marketing
answer
A
question
A company would be most likely to benefit in which of the following ways by using blogs as marketing tools? A) Blogs are an inexpensive yet personal way to connect with consumers. B) Demographic information about customers can be easily tracked. C) Long-term customer relationships can be developed through blogs. D) Blogs provide companies with additional revenue. E) Blog content is easy to filter, monitor, and control.
answer
A
question
As the marketing manager at Secure Services, a home security systems company, you have been asked to devise a new sales and marketing strategy for a new line of sophisticated alerting systems called "Imperio." The two previous promotional ventures failed to elicit much consumer response because most people were unaware of the benefits of such devices except for those consumers who were specifically looking for them. Which of the following would be categorized as a viral marketing approach to sell its products by Secure Services? A) a promotional e-mail sent to all customers on the customer database of Secure Services B) a promotional video depicting the pros and cons of the products of Secure Services as opposed to those of the other competing products in the field C) a promotional campaign with pop-ups and banners of the products of Secure Services on online social networks like Twitter and Facebook D) a promotional video juxtaposing elements of extreme horror and humor to convey that the Imperio line of home security systems make homes impervious to strangers E) a promotional infomercial of thirty minutes duration that is aired with a toll-free number for interested customers to place orders
answer
D
question
________ might appear anywhere on an Internet user's screen and are often related to the information being viewed. A) iTV advertisements B) Marketing Web sites C) Online display ads D) Corporate Web sites E) Viral videos
answer
C
question
________ marketers use online marketing to reach new business customers, serve current customers more effectively, and obtain buying efficiencies and better prices. A) B2C B) global commerce C) C2C D) C2B E) B2B
answer
E
question
The popular press has paid the most attention to ________ online marketing-the online selling of goods and services to final consumers. A) B2B B) C2C C) B2C D) global E) C2B
answer
C
question
The site www.bestbargains.com has become a rage among Internet-users and businesses. Though the site is only eight-months old, it has elicited large amounts of Internet traffic and transactions. The site promises to provide the best deals for an almost unlimited range of goods and services it lists. Consumers are required to log-in and bid for goods and services of their choice and can obtain heavy discounts, free shipping, and bonus points for being frequent users. This scenario reflects ________. A) B2B online marketing B) C2C online marketing C) C2B online marketing D) multi-channel marketing E) B2C online marketing
answer
C
question
Which of the following is a transaction site? A) Facebook B) Wikipedia C) Yahoo D) IMDB E) eBay
answer
E
question
What is the main purpose of a corporate Web site? A) to create a consumer query into a sale B) to give out coupons and tell about sales events or contests C) to build customer goodwill D) to point out and explain competitors' weaknesses E) to sell the company's products directly
answer
C
question
Jenny McCarthy, a stay-at-home mother, regularly posts new entries on a widely read blog. In these entries, she often reviews consumer products that she uses during the course of her day. This is an example of ________. A) C2C online marketing B) C2B online marketing C) viral marketing D) click and mortar blogging E) data mining
answer
A
question
Fox Scully received an e-mail promoting a new financial services institution that offers surprisingly low mortgage rates. The e-mail simply asked customers to provide their address, date of birth, social security number, and current mortgage information in order to receive a free loan quote. Suspicious of the offer, Fox researched the company and discovered that the e-mail was a fraud. This is an example of ________. A) data mining B) iTV advertising C) phishing D) viral marketing E) cold calling
answer
C
Customer Value Based Pricing
Decision Analysis
Decision Making Model
Marketing
Marketing Research
Principles Of Marketing
Rational Decision Making
Rational Decision Making Model
mkt 9 – Flashcard 185 terms
185 terms
Preview
mkt 9 – Flashcard
question
_____ and ____ info are the lifeblood of marketing decision making
answer
accurate timely
question
the most common system for gathering marketing information is called a
answer
marketing decision support system
question
everyday info about developments in the marketing environment that managers use to prepare and adjust marketing plans
answer
marketing information
question
the interactive, flexible, computerized system managers use to obtain and manipulate information
answer
decision support system
question
DSS stands for
answer
decision support system
question
4 characteristics of a true DSS are:
answer
interactive, flexible, discovery oriented, accessible
question
______ is the fastest growing use of DSS
answer
data base marketing
question
the creation of computerized file of customer's profiles/purchase patterns
answer
data base marketing
question
data base marketing is usually the key tool for successful _________ marketing, which relies on very specific information about a market
answer
one to one
question
the process of planning, collecting, and analyzing data relevant to a marketing decision
answer
marketing research
question
- improve quality of decision making - understand why - trace problems - understand changes in market place ..are all important aspects of
answer
marketing research
question
marketing research links the customer, the consumer, and public to marketer through ____
answer
information
question
marketing research provides decision makers with data on the effectiveness of current _____ and insights for _____
answer
marketing mix change
question
what is the main data source for management info systems and DSS
answer
market research
question
findings from market research become
answer
data in DSS
question
marketing research has 3 roles:
answer
descriptive diagnostic predictive
question
the gathering and presenting of factual statements explains what role of marketing research (descriptive, diagnostic, predictive)
answer
descriptive
question
what is the historic sales trend in the industry? what are consumers attitudes toward a product and its ads? - these explain descriptive, diagnostic, or predictive market research
answer
descriptive
question
explaining data is what role of marketing research (descriptive, diagnostic, predictive)
answer
diagnostic
question
determining the impact on sales of a change in the design of the package - this explains descriptive, diagnostic, or predictive market research
answer
diagnostic
question
to address the "what if" questions is what role of marketing research (descriptive, diagnostic, predictive)
answer
predictive
question
how can the researcher use the other 2 roles to predict the results of a planned marketing decision - this explains descriptive, diagnostic, or predictive market research
answer
predictive
question
t/f: marketing research offers decision makers with many benefits
answer
true
question
a scientific approach to decision making that maximizes the chance of getting accurate and meaningful results
answer
market research approach
question
how many steps are there in the research process
answer
7
question
the marketing research process begins with recognition of a ____/_____
answer
marketing problem/opportunity
question
what stage of research process: identify and formulate problem/opportunity
answer
1
question
what stage of research process:plan research design and gather secondary data
answer
2
question
what stage of research process:specify the sampling procedures
answer
3
question
what stage of research process: collect primary data
answer
4
question
what stage of research process: analyze the data
answer
5
question
what stage of research process: prepare and present the report
answer
6
question
what stage of research process: follow up
answer
7
question
a management decision problem is translated into a
answer
marketing research problem
question
a problem where determining what info is needed and how it can be obtained efficiently/effectively
answer
marketing research problem
question
t/f: marketing research problem must be broad
answer
false
question
a broad based problem that requires research to take proper actions
answer
management decision problems
question
management decision problems are ____ _____
answer
action oriented
question
this provides insightful decision making information and requires specific pieces of info to solve the marketing research problem
answer
marketing research objective
question
specifies which research question will be answered, how and when the data will be gathered, and how the data will be analyzed
answer
research design
question
research questions are answered by what two types of data
answer
secondary and primary
question
data previously collected for any purpose other than the one at hand
answer
secondary data
question
secondary data is a valuable tool during what stage
answer
problem/opportunity identification stage
question
internal corp info government agencies trade and industry assoc business periodicals news media internet sources - are primary/secondary data
answer
secondary data
question
these are advantages of primary/secondary data? - save time/money - aid in determining direction - serve as a basis of comparison
answer
secondary
question
these are cons of primary/secondary data? - mismatch between unique problem and purpose info was gathered for - quantity of info (not detailed)
answer
secondary
question
internet helps/hurts secondary research?
answer
helps
question
a company that acquires, catalogs, reformats, segments, and resells reports already published by marketing firms are a
answer
marketing research aggregator
question
marketing research aggregator is a _____ million $ industry and growin __% a year
answer
120 6
question
the role of aggregator firms is growing because databases of research reports are getting: - bigger/less complex - smaller/less complex - bigger/more complex - smaller/more complex
answer
getting bigger/more complex
question
what makes it easier to find/search databases
answer
web technology
question
mindbranch.com or usadata.com are examples of
answer
market research aggregators
question
aggregators slice and repackage reports for more specialized sections to clients who cannot afford to commission their own study which is in turn
answer
nurturing a new target market
question
data that is collected for first time
answer
primary data
question
this type of data is unique to particular problem at hand and often only way to solve it
answer
primary data
question
describe primary/secondary data - current and relevant - know the source - specify the methodology
answer
primary
question
describe con's of primary/secondary data - time consuming - expensive - bias due to reluctance
answer
primary
question
disadvantages of primary data are (usually offset/never offset) by advantages
answer
usually offset
question
a study used to save money by gathering data on 2 difference projects by using only 1 questionnaire
answer
piggyback study
question
there are how many ways to gather primary data
answer
6
question
what are the 6 types of ways to gather primary data
answer
survey questionnaire observation ethnographic virtual shopping experiments
question
what method of collecting primary data -researcher interacts with people to obtain facts, opinions, and attitudes (survey, questionnaire, observation, ethnographic, virtual shopping, experiments )
answer
survey
question
what is the most popular technique for gathering primary data
answer
survey
question
there are how many forms of survey research
answer
7
question
- in home interviews - focus groups - mall intercept interviews - telephone interviews - executive interviews - mail surveys - internet surveys are all examples of what type of research
answer
survey research
question
this type of survey research provides high quality info but is expensive is rapidly disappearing (in home interview, focus groups, mall intercept, telephone, executive interviews, mail surveys)
answer
in home interview
question
this type of survey research uses willing participants found in an open area but is hard to get representative sample of population wanted (in home interview, focus groups, mall intercept, telephone, executive interviews, mail surveys)
answer
mall intercept interviews
question
mall intercept interviews allow marketers to _____, a technique used to clarify response
answer
probe
question
computer assisted personal interview, computer assisted self interview, and fully automated self interview are 3 types of (in home interview, focus groups, mall intercept, telephone, executive interviews, mail surveys)
answer
mall intercept interviews
question
in this type of mall intercept interview, the researcher reads questions from computer and keys in respondents answers (computer assisted personal interview, computer assisted self interview, and fully automated self interview)
answer
computer assisted personal interview
question
in this type of mall intercept interview, the researcher directs person to computer who reads questions and keys in own responses (computer assisted personal interview, computer assisted self interview, and fully automated self interview)
answer
computer assisted self interview
question
in this type of mall intercept interview, the respondents independently go to the computer and key in responses (computer assisted personal interview, computer assisted self interview, and fully automated self interview)
answer
fully automated self interview
question
this type of survey research is conducted form a central/designated location, cost less than personal interviews but there is a high refusal rate (in home interview, focus groups, mall intercept, telephone, executive interviews, mail surveys)
answer
telephone
question
CLT stands for
answer
central location tele facility
question
t/f: federal "do not call" law does not apply to survey research
answer
true
question
this type of survey research uses mail panels, sample of households recruited for given period, to participate(in home interview, focus groups, mall intercept, telephone, executive interviews, mail surveys)
answer
mail surveys
question
this type of survey research is low cost and actual anonymity but there is a very low response rate (in home interview, focus groups, mall intercept, telephone, executive interviews, mail surveys)
answer
mail surveys
question
a sample used several times in a mail survey will increase/decrease response rate
answer
increase
question
this type of survey research that involves interviewing business people at their offices about industrial products/services (in home interview, focus groups, mall intercept, telephone, executive interviews, mail surveys)
answer
executive interviews
question
this type of survey research is a type of personal interview with 7-10 people (in home interview, focus groups, mall intercept, telephone, executive interviews, mail surveys)
answer
focus groups
question
focus groups represent an effective way of learning how products are actually used in the home, highlighting the ______ _____
answer
need gaps
question
all forms of survey research require this
answer
questionnaire design
question
what are the 3 types of questions used in a questionnaire
answer
open ended close ended scaled response
question
question that encourages answer phrased in respondents own words (open, closed, scaled)
answer
open
question
frame of reference (what do you think about...?) describes - (open, closed, scaled)
answer
open
question
questions where respondents make a selection from a limited list of responses (open, closed, scaled)
answer
closed
question
questions are dichotomous meaning what
answer
closed, yes/no or multiple choice
question
questions that are close ended and designed to measure intensity (agree----disagree) (open, closed, scaled)
answer
scaled
question
what two types of questions are easier to tabulate than the 3rd
answer
close ended and scaled response
question
on a scale of 1 to 10, rate the tastiness of wendys food. (rating/ranking, likert scale, semantic differential, projective technique)
answer
rating/ranking
question
wendy's food was excellent SA A Uncertain D SD (rating/ranking, likert scale, semantic differential, projective technique)
answer
likert scale
question
the food at wendys was: excellent........awful old...................fresh (rating/ranking, likert scale, semantic differential, projective technique)
answer
semantic differential
question
if a wendys hamburger could talk to a mcdonalds or a burger king hamburger, what would it say (rating/ranking, likert scale, semantic differential, projective technique)
answer
projective technique
question
4 types of questions to avoid in questionnaires
answer
leading loaded double barreled jargon
question
what method of collecting primary data uses the systematic process of recording the behavioral patterns of people, objects, and occurrences (survey, questionnaire, observation, ethnographic, virtual shopping, experiments )
answer
observation research
question
what are the 4 types of observation situations: ___ watching ____ ___ watching an ____
answer
people watching people people watching an activity machine watching people machine watching an activity
question
researchers who pose as customers to gather observational data and collect data about customer/employee interactions are called
answer
mystery shoppers
question
combining consumer online activity with psychographics and demographics is known as
answer
behavioral targeting (BT)
question
behavioral targeting is very popular or losing popularity
answer
very popular
question
the fastest growing area of behavioral targeting is
answer
social marketing
question
critics of behavioral targeting say it is
answer
infringing on privacy
question
advocates of behavioral targeting say it is
answer
user declared info
question
direct observation of human behavior in its natural context (survey, questionnaire, observation, ethnographic, virtual shopping, experiments )
answer
ethnographic research
question
anthropology is the study of
answer
human behavior
question
"what makes people do what they do" is a part of (survey, questionnaire, observation, ethnographic, virtual shopping, experiments )
answer
ethnographic
question
companys hope to get a look into peoples home through the use of what to allow media to tailor better to consumers needs
answer
iphone
question
this way of collecting primary data enables researchers to stimulate retail store environments on the computer (survey, questionnaire, observation, ethnographic, virtual shopping, experiments )
answer
virtual shopping
question
production costs are low and simulation has high degree of flexibility all while data collection is fast/error free describe (survey, questionnaire, observation, ethnographic, virtual shopping, experiments )
answer
virtual shopping
question
virtual shopping is growing/declining rapidly
answer
growing rapidly
question
pepsico and nestle are two companies who are growing rapidly through the use of (survey, questionnaire, observation, ethnographic, virtual shopping, experiments )
answer
virtual shopping
question
in this way of collecting primary data, the researcher alters one or more variables while observing effects on another variable (survey, questionnaire, observation, ethnographic, virtual shopping, experiments )
answer
experiments
question
when conducting experiments, usually change _______ to look at the effects on _____
answer
one of the 4 ps sales (or awareness)
question
there are two types of experiments
answer
field or lab
question
after it has been decided how to collect primary data, the next step must be to select the ____ ____
answer
sampling procedure
question
in the sampling procedure, the population of interest that must be defined is called the
answer
universe
question
a subset of the population (or universe) in the sampling procedure is called a
answer
sample
question
in the sampling procedure, does the sample need to be representative of the a population? - if yes, it is a ___ sample - if no, it is a _____ sample
answer
yes = probability sample no = nonprobability sample
question
what will be used for the sampling frame? what type of sample will be used? are types of
answer
sampling questions
question
a sample in which every element in the population has a known statistical chance of being selected
answer
probability samples
question
t/f: probably samples can be shown to be representative of the universe
answer
true
question
in probably samples, what can be used to ensure the sample represents the population
answer
scientific rules
question
random sample is a probability/nonprobability sample
answer
probability
question
stratified random sample is a probability/nonprobability sample
answer
probability
question
systematic random sample is a probability/nonprobability sample
answer
probability
question
the sampling frame in sampling questions is probability/nonprobability or random sample/convenience sample/etc
answer
probability/nonprobability
question
cluster random sample is a probability/nonprobability sample
answer
probability
question
a sample in which probability of selection is unknown is known as
answer
nonprobability sample
question
convenience sample is a probability/nonprobability sample
answer
nonprobability
question
judgement sample is a probability/nonprobability sample
answer
nonprobability
question
quota sample is a probability/nonprobability sample
answer
nonprobability
question
snowball sample is a probability/nonprobability sample
answer
nonprobability
question
the probability sample where every member has equal chance of being selected
answer
random sample
question
the probability sample where population is first divided into exclusive groups, then each group is randomly sampled
answer
stratified random
question
the probability sample where selection is based upon random starting point (every nth person selected)
answer
systematic random
question
the nonprobability sample where respondents are based upon ease
answer
convenience sample
question
probability can/cannot generalize rules
answer
can
question
because of the ______, nonprobability samples are the basis of much marketing reserach
answer
low cost
question
what internet sample uses a survey in which anyone with a computer and modem can fill out the questionnaire (unrestricted internet sample, screened internet sample, recruited internet sample)
answer
unrestricted internet sample
question
an internet sample with quotas based on desired sample characteristics (unrestricted internet sample, screened internet sample, recruited internet sample)
answer
screened internet sample
question
an internet sample in which respondents are pre recruited and must qualify to participate (unrestricted internet sample, screened internet sample, recruited internet sample)
answer
recruited internet sample
question
whenever a sample is used, 2 types of errors can occur
answer
- measurement errors - sampling errors
question
this error occurs when there is a difference between the information desired by researcher and info provided by the measurement process
answer
measurement error
question
measurement error is smaller than/equal to/larger than a sampling error
answer
larger than
question
this error occurs when a sample somehow doesn't represent the target population
answer
sampling error
question
there are 3 types of sampling errors:
answer
nonresponse error frame error random error
question
the error that occurs when the sample actually interviewed differs from drawn sample (nonresponse, frame, random)
answer
nonresponse
question
the error that arises if the sample drawn from population differs from target population (nonresponse, frame, random)
answer
frame
question
the error that occurs when a sample is an imperfect representation of overall population (nonresponse, frame, random)
answer
random
question
a firm that specializes in interviewing respondents on a subcontracted basis a provides focus group facilitators, mall intercept locations, test product storage, kitchen facilities
answer
field service firm
question
there are two statistical methods used to analyze data appropriately
answer
frequency counts cross tabulations
question
the simplest method of analyzing is frequency counts or cross tabulation
answer
frequency counts
question
the method of analyzing use tables to record responses to questions and is always done in data analysis. answers to question "what brand do you buy most"
answer
one way frequency counts
question
this method of analyzing lets analysts look at responses to one question in relation to responses to 1 or more other questions
answer
cross tabulations
question
looking at the association between gender and brand of product bought uses what method of analysis
answer
cross tabulations
question
hypothesis testing, measures of association, and regression analysis are other sophisticated methods of what
answer
data analysis
question
the key step in preparing and presenting data findings reports is that you must convince that results are _____ and justified by ______
answer
credible data collection
question
there are how many parts to a report
answer
4
question
what are the four parts of a report
answer
- research objective - explanation of research design - summary of findings - conclusion
question
the basis of measuring the quality of market research reports =
answer
research proposal
question
were recommendations implemented? did they work? are questions asked during what phase of research process
answer
follow up
question
what fraction of world population is online
answer
1/5
question
what % of US population is online
answer
71%
question
nonadapters of internet are typically ____, with ____
answer
old, low income
question
what % of american marketing research companies conduct some form of online marketing
answer
90%
question
what form of marketing is most popular for data collection and has greatest potential for further growth
answer
online marketing
question
software systems designed for web questionnaires construction and delivery...files response in database
answer
web survey systems
question
what is used to design survey online without design software
answer
survey design/web hosting sites
question
online panel providers are used for a
answer
ready sample population
question
online focus groups are relatively recent/old for qual/quan research
answer
recent, qual.
question
- better participation rate - cost effectiveness - broad geographic scope - accessibility - honesty are all benefits of what type of internet resources
answer
online focus groups
question
a selected group of people who agree to participate in ongoing dialogue and answering questions with a corporation via website is a
answer
web community
question
web communities help companies create a ____-____ organization by putting employees into direct contact with consumers
answer
customer-focused
question
text message based research can reach most demographics _____, with _____ feedback results
answer
quickly, high
question
media that consumers generate themselves and share among themselves (cgm)
answer
consumer generated media
question
blogs, message boards, review sites, podcasts are examples of
answer
consumer generated media
question
consumer generated media is trusted more/less than traditional forms of ads/promo
answer
more
question
consumer generated media is ______ but not _____ by marketers
answer
influenced controlled
question
what tells how much "buzz"exists among other things
answer
brand pulse
question
a system for gathering info from a single group of respondents by continuously monitoring the ads, promo, and pricing they are exposed to is known as
answer
scanner based research
question
the 4 variables measure through scanner based research are
answer
ad campaign coupons displays product price
question
a huge data base of marketing efforts/consumer behavior is the result of
answer
scanner based research
question
scanner based research is often linked to other research or promotions seen like (2)
answer
behavior scan info scan
question
information resources, inc. (IRI) and AC Nielson Company are 2 major suppliers for
answer
scanner based research
question
who is the founder of research for scanner based research
answer
IRI
question
the concept of legally finding out what your competitor is doing is known as
answer
competitive intelligence
Customer Value Based Pricing
Fixed And Variable Costs
Managerial Economics
Marketing
Principles Of Marketing
Marketing Chapter Quizzes 9-16 – Flashcards 128 terms
128 terms
Preview
Marketing Chapter Quizzes 9-16 – Flashcards
question
________ is the sum of all the values that customers give up to gain the benefits of having
answer
price
question
The first Target store opened in 1962. Its initial strategy was to set prices low to attract more customers and gain a large market share. This is referred to as
answer
market-penetration strategy
question
break-even analysis
answer
it fails to consider customer value and the relationship between price and demand
question
when establishing prices, its important to understand that "good value" is not the same as
answer
low price
question
the first generation apple iPod was introduced in 2001 and sold for $500. Apple used a _______ strategy to price their digital music innovation
answer
market-skimming
question
Lovely Skin
answer
cost-plus
question
which of the following sets the upper limit for a product's pricing
answer
consumer perceptions of value
question
unlike the other marketing mix elements, price plays a minor role in creating customer value t/f
answer
false
question
a _____ pricing strategy for an offering begins with an assessment of customers needs and perceptions and creates a set based on customer perceptions of worth
answer
value-based
question
establishing prices for razor blades that must be used with a razor blade system is known as ______
answer
captive product
question
Dynamic pricing is particularly suitable for internet-based companies like Amazon t/f
answer
true
question
when demand hardly changes with a small change in the price of a product
answer
inelastic
question
some companies deemphasize the price and use other marketing mix tools to create non-price positions t/f
answer
true
question
Salon Du Joir
answer
product bundle
question
product bundle
answer
offering several products together
question
_______ pricing involves setting prices based on the expenses involved in producing, distributing, and earning a fair rate of return for the company's efforts and risk
answer
cost-based
question
most producers sell their goods directly to consumers t/f
answer
false
question
intensive distribution strategy
answer
it strives to make products available where and when consumers want them
question
vertical marketing system
answer
it has one channel member owning all the other channel members
question
more than 80 percent of McDonalds restaurants worldwide are owned and operated by a ______ marketing system
answer
contractual vertical
question
multichannel distribution system
answer
uses several channels to move the product
question
Victoria's Closet
answer
multichannel distribution system
question
the goal of any logistics system should be to maximize sales, not profit t/f
answer
false
question
Kevin Pinker
answer
Abundon
question
Introducing intermediaries into a distribution chain increases the number of direct channel transactions
answer
false
question
Changes in technology and the explosive growth of direct and online marketing are having a profound impact on the design of marketing channels. One major trend is toward _______ which is to bypass intermediaries and sell directly to final buyers
answer
disintermediation
question
what is true of a conventional distribution channel
answer
it has each channel member acting as a separate business unit trying to maximize
question
a channel arrangement in which two or more companies at one level come together
answer
horizontal marketing system
question
a ______ is made up of a company, its suppliers distributors, and, ultimately, customers
answer
value-delivery network
question
what is an upstream partner
answer
a firm that provides technical expertise in the production of a product
question
Managing upstream and downstream value-added flows of materials, final goods, and much more is known as
answer
supply chain management
question
high end luxury brands usually have this kind of distribution network
answer
exclusive
question
_______ creates a seamless cross-channel buying experience
answer
omni-channel marketing
question
grace and her fiance
answer
showrooming
question
showrooming
answer
visiting a store to see the product but buying it online anyways
question
charging higher prices on an everyday basis, coupled with frequent sales....
answer
high-low
question
high-low
answer
question
service retailers in the united states are growing faster than product retailers t/f
answer
true
question
Food Galore is a regional chain of supermarkets in the Midwest
answer
self-service retailer
question
self-service retailer
answer
allows the customers to go and pick what they want
question
Casey's is a large supermarket that practices everyday low pricing t/f
answer
true
question
as with other types of marketing, a primary goal in wholesaling is to
answer
build value-adding customer relationships
question
retailers must decide on three major product variables: product assortment, service, and _______
answer
store atmosphere
question
Jones & Company
answer
department store
question
department store
answer
a large store offering a variety of goods in a variety of departments
question
_____ refers to the activities involved in selling products or services directly to customers for non-business use
answer
retailing
question
trends in wholesaling
answer
the demand for lower prices and higher quality has increased
question
______ includes all of the activities involved in selling goods and services to those who need products for business use
answer
wholesaling
question
impact of the Great Recession on marketing trends
answer
tighter consumer spending patterns
question
The American Tie Company, a necktie retailer, offers a deep assortment of ties
answer
specialty store
question
true of retailing
answer
services like hotels, banks, airlines, restaurants, colleges, and hospitals can........
question
ColaBlue public relations
answer
holding a press conference
question
in a marketing communication mix, ______ refers to any short-term incentive that encourages the purchase or sale of a product or service
answer
sales promotion
question
example of combination of sales promotion and direct marketing
answer
a company gives discounts on their product prices in order to gain a brand image
question
what is true of direct and digital marketing
answer
it is suited for highly targeted marketing efforts
question
push strategy
answer
pushing your product to sellers who then sell to customers
question
_______ is any paid form of non personal presentation and promotion of ideas, goods, or services
answer
advertising
question
what is true of advertising in the new marketing communications model
answer
advertisers are increasingly shifting toward digital needs
question
difference between advertising and sales promotion
answer
advertising = long term image sales promotion = short term
question
according to the text, the most logical budget-setting method in advertising is the _______ method
answer
objective and task
question
what is true of consumers in the new marketing communications model
answer
they are better equipped to find product and brand information on their own
question
what is true of marketing strategies that are being developed in the new marketing communications model
answer
they are more targeted, social, and engaging
question
the term "Madison and Vine"
answer
merging advertising with entertainment
question
Window Concepts
answer
public relations
question
what is a function of an integrated marketing communications system
answer
delivering a clear, consistent, and compelling message on the product to each brand contact
question
Rather than just creating and placing "TV adds" or "print ads", many marketers are now go to
answer
content marketing
question
what is the last step in the selling process
answer
follow-up
question
how have social media tools most likely affected personal selling
answer
reducing the number of person-to-person efforts
question
characteristic of an inside sales force
answer
it conducts business from an office
question
which is true about a sales force in the field
answer
they build relationships with customers through face-to-face interaction
question
Harry Potts
answer
approach
question
Millie Foods
answer
allowance
question
allowance
answer
reduction in the selling price of a good (same as discount)
question
which is true of salespeople
answer
they represent a company to its customers by communicating and selling
question
in consumer product companies such as P&G or Nike, the sales force works directly with customers t/f
answer
false
question
Cracker Jack
answer
premium
question
premium
answer
a promotional item given such as toy or collectible
question
sales promotions constitute the interpersonal arm of the promotion mix t/f
answer
false
question
sales promotion tools sed to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers are collectively called _____ promotions
answer
trade
question
which is true about consumer promotions
answer
they include a wide range of tools like samples, coupons, and refunds
question
Wisconsin Cheddar
answer
point-of-purchase promotions
question
point-of-purchase promotions
answer
found near the checkout counter
question
in today's digital, mobile, and social media environments, many buyers are more receptive to-or even prefer- phone or online contact versus high level of face-to-face contact t./f
answer
true
question
Karen Rodgers is a salesperson for Solar Panels Inc
answer
prospecting
question
Eric Dylan
answer
direct-mail marketing
question
which aspect of niche online social networking makes the medium most appealing to marketers
answer
they cater to the needs of small communities of like-minded individuals
question
which of the following account for the largest portion of firms online advertising spending?
answer
display and search-related advertisements
question
Online visitors can't buy anything at ESPN.com
answer
branded community website
question
how has the internet most likely affected direct and digital marketing
answer
the expenditures on direct and digital marketing have increased
question
which of the following is a traditional direct marketing tool
answer
catalog
question
which of the following is generally regarded as the toughest issue of public policy
answer
invasion of consumer privacy
question
_______ refers to marketing via the Internet
answer
online marketing
question
the growth of the internet caused many traditional companies to _________ in response to customer demands and a changing marketplace
answer
use omni-channel retailing
question
_______ can provide on-the-go product information
answer
mobile marketing
question
which is true of direct and digital marketing
answer
they build customer engagement and constitute a complete model for doing business
question
for most companies, the first step in conducting online marketing is to ______
answer
create a web-site
question
______ marketing involves engaging directly with carefully targeted individual consumers
answer
direct and digital
question
which is true of direct and digital marketing
answer
they provide buyers with anytime, anywhere access to products
question
which is most likely true about the digital age with regards to marketing
answer
digital networks allow marketers many ways to build customer relationships
question
in managing their international marketing activities, most companies first _____
answer
organize and export department
question
a country's _____ shapes its product and service needs, income levels, and employment levels
answer
industrial structure
question
which of the following is most likely true about a global organization
answer
worldwide policies are planned by top corporate management
question
compared to standardized global marketing, adapted global marketing
answer
modifies marketing strategies to meet local needs
question
when adapting advertising messages, media may also need to be adapted internationally because media availability and regulations vary from country to country. This illustrates
answer
communication adaptation
question
Many organizations no longer have a clearly defined home market, nor do they have home-office staffs. They are truly
answer
global organizations
question
companies often form ______ ventures to merge their complementary strengths in developing a global marketing opportunity
answer
joint ownership
question
which is most likely true of a global firm
answer
a global firm sees the world as many different markets
question
providing a host-country partner the right to use a company's manufacturing process, trademark, patent, or other thing is referred to as ______
answer
licensing
question
the simplest way to enter a foreign market is through
answer
exporting
question
Veggie Delight
answer
product adaptation
question
most international companies strive to adapt global brands to local needs t/f
answer
true
question
_____ is a method of entering a market by associating with foreign companies to produce or market products or services
answer
joint venturing
question
Chips of Joy
answer
standardized global
question
the two major citizen action movements
answer
consumerism and environmentalism
question
some companies intentionally manufacture their products with materials that will easily wear or break, this is practice is called
answer
planned obsolescence
question
the nation's poor areas have 30 percent fewer supermarkets than do affluent areas. As a result, many low-income consumers find themselves
answer
in food desserts
question
what do most companies today focus on when it comes to protecting the environment
answer
investing heavily in pollution prevention
question
Lakeland Inc employees
answer
sense-of-mission
question
innovative marketing most likely involves
answer
seeking real product and marketing improvements
question
when a company makes marketing decisions by considering consumers' wants and needs, this is
answer
consumer-oriented marketing
question
critics who assert that the marketing system promotes too much interest in material possessions are most likely concerned that the result of successful marketing will be
answer
unsustainable overconsumption
question
critics charge that high advertising and promotion costs unnecessarily increase retail prices. Marketers most likely respond to this criticism by arguing that advertising
answer
adds value by giving consumers product information
question
People who buy magazines that they like don't mind ads because they involve products or services of interest. This is counter to the claim of
answer
cultural pollution
question
a class-action lawsuit was brought against a national burger chain, charging that its food contributed to the nationwide obesity epidemic. These critics claim that the fast food industry is ____
answer
selling harmful products
question
a common criticism of the marketing system is that intermediaries
answer
mark up prices beyond the value of their services
question
______ marketing calls for socially and environmentally responsible actions
answer
sustainable
question
which sustainable marketing principal emphasizes building long-run consumer engagement, loyalty, and relationships
answer
customer-value marketing
question
while the societal marketing concept considers the future welfare of consumers and the sustainable marketing concept considers future company needs, the strategic planning concept considers both t/f
answer
true
Customer Value Based Pricing
Exclusive Distribution Strategy
Managerial Economics
Marketing
Principles Of Marketing
MKT 210 – Flashcard 96 terms
96 terms
Preview
MKT 210 – Flashcard
question
Which of the following is true with regard to price? A. Historically, price has had the least perceptible impact on buyer choice. B. Price is the least flexible element in the marketing mix. C. Unlike product features and channel commitments, prices cannot be changed quickly. D. Price is the sum of all the values that customers give up to gain the benefits of having a product. E. Prices only have an indirect impact on a firm's bottom line.
answer
D. Price is the sum of all the values that customers give up to gain the benefits of having a product.
question
What sets the floor for product prices? A. consumer perceptions of the product's value B. product costs C. competitors' strategies D. advertising budgets E. market competition
answer
B. product costs
question
Cost-plus pricing ________. A. is a complex pricing method B. involves pricing that accurately reflects production costs C. involves adding a standard markup for profit D. aims at breaking even on the costs of making and marketing a product E. is a value-based pricing method
answer
C. involves adding a standard markup for profit
question
Herbie Inc., a firm manufacturing sandwich makers, has fixed costs of $250,000, variable costs of $20 per unit of output, and expected unit sales of 50,000 units. What is the unit cost of a sandwich maker manufactured by Herbie? A. $15 B. $25 C. $30 D. $50 E. $75
answer
B. $25
question
Target return pricing is a variation of which of the following cost-oriented pricing approaches? A. cost-plus pricing B. break-even pricing C. markup pricing D. value-based pricing E. fixed cost pricing
answer
B. break-even pricing
question
The break-even volume is the point at which ________. A. the total revenue and total cost curves intersect B. demand equals supply C. the production of one more unit will not lead to increase in demand D. the company can pay off all its long-term debt E. a firm exceeds the sales forecast
answer
A. the total revenue and total cost curves intersect
question
Mansfield Pharmaceuticals markets Zipro, an antibiotic. The firm has fixed costs of $1,000,000 and variable costs of $2 per bottle of 50 tablets priced at $10 per bottle. What is the break-even volume? A. 25,000 B. 55,000 C. 100,000 D. 115,000 E. 125,000
answer
E. 125,000
question
A manufacturer has fixed costs of $100,000, a variable cost of $10 per unit of output, and break-even volume of 50,000 units. What should the manufacturer's unit cost be in order to break even? A. $10 B. $12 C. $14 D. $16 E. $20
answer
B. $12
question
Which of the following is an internal factor that affects pricing decisions in a company? A. the nature of the market B. the degree of inflation in the economy C. the overall marketing strategy of the company D. the forces of demand and supply in the market E .consumers' perception of value
answer
C. the overall marketing strategy of the company
question
If demand hardly changes with a small change in price, the demand is ________. A. variable B. inelastic C. highly elastic D. derived E. negative
answer
B. inelastic
question
Buyers are less price sensitive when ________. A. the product they are buying is of inferior quality B. the product they are buying is low in prestige C. substitute products are easy to find D. the product they are buying is unique E. the product they are buying is non-exclusive
answer
D. the product they are buying is unique
question
There was a 35 percent increase in demand for a product after the seller decreased its price by 14 percent. Therefore, the price elasticity of demand is ________. A. 0.25 B. 0.4 C. -2.5 D. 2.5 E. -25
answer
C. -2.5
question
Price elasticity of demand is represented by ________ divided by ________. A. percentage change in quantity demanded; percent change in price B. percentage change in units supplied; percentage change in price C. percentage change in price; percentage change in quantity demanded D. fixed costs; variable costs E. cost-plus price; actual cost of production
answer
A. percentage change in quantity demanded; percent change in price
question
Which of the following is true with regard to pure competition? A. Under pure competition, no single buyer or seller has much effect on the going market price. B. In a purely competitive market, marketing research is of utmost importance. C. In a purely competitive market, product development is the focus of most firms. D. Under pure competition, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. E. Under pure competition, the market consists of only a few large sellers.
answer
A. Under pure competition, no single buyer or seller has much effect on the going market price.
question
Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. A. pure competition B. monopolistic competition C. oligopolistic competition D. a pure monopoly E. the dominant firm model
answer
B. monopolistic competition
question
Companies which set a low price for a new product in order to attract a large number of buyers and a large market share are using the ________ strategy. A. market-skimming pricing B. market-penetration pricing C. cost-plus pricing D. inclusive pricing E. exclusive pricing
answer
B. market-penetration pricing
question
Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed countries with the goal of gaining mass-market share quickly. Which of the following pricing strategies would help the firm meet its goal? A. market-skimming pricing B. market-penetration pricing C. market-segmentation pricing D. cost-plus pricing E. captive-product pricing
answer
B. market-penetration pricing
question
Which of the following is true of product line pricing? A. The price steps take cost differences between products in the line into account. B. The pricing strategy cannot be availed of by companies in developed countries. C. The price steps do not account for the prices of similar products from competitors. D. The pricing strategy involves overpricing products so that they appeal to the elite. E. The customer's perception of the value of different features is considered irrelevant.
answer
A. The price steps take cost differences between products in the line into account.
question
Which of the following companies uses product line pricing? A. Photo Genie, which sells inexpensive cameras that run only on their own expensive batteries B. Mobile Point, which launched a range of cell phone models, each priced according to its features C. Penguin's Parlor, which offers customers a 20% discount on their birthdays and certain holidays D. Green Thumb, which gives away free watering cans with the purchase of certain potted plants E. Panizza, whose combo meals are priced lower than the individual components sold together
answer
B. Mobile Point, which launched a range of cell phone models, each priced according to its features
question
Which of the following is true of optional product pricing? A. It involves capitalizing on low value by-products. B. It involves pricing accessory products sold with the main product C. It is used to price a company's main product. D. It involves setting geographically-specific prices. E. It is used to price products that must be used with the company's main product.
answer
B. It involves pricing accessory products sold with the main product
question
Multiprint, a printer manufacturing firm, sells ink cartridges for each of its specific models. Only Multiprint cartridges are compatible with Multiprint printers, and no two of the firm's models share the same specifications. What type of pricing does Multiprint use? A. product line pricing B. optional product pricing C. captive product pricing D. by-product pricing E. product bundle pricing
answer
C. captive product pricing
question
Using ________ pricing, companies are able to turn their trash into cash, allowing them to make the price of their main product more competitive. A. product bundle B. optional product C. captive product D. by-product E. product line
answer
D. by-product
question
Which of the following product mix pricing strategies involves pricing multiple products to be sold together? A. product line pricing B. product bundle pricing C. optional product pricing D. by-product pricing E. captive product pricing
answer
B. product bundle pricing
question
Which of the following is a price adjustment strategy? A. product bundle pricing B. by-product pricing C. product line pricing D. optional product pricing E. discount and allowance pricing
answer
E. discount and allowance pricing
question
Which of the following price adjustment strategies offers a price reduction to buyers who pay their bills promptly? A. cash discount B. season discount C. quantity discount D. trade discount E. functional discount
answer
A. cash discount
question
A(n) ________ refers to promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way. A. allowance B. sample C. discount D. tax credit E. tax exemption
answer
A. allowance
question
________ allowances are payments or price reductions that reward dealers for participating in advertising and sales support programs. A. Promotional B. Trade-in C. Segmented D. Functional E. Dynamic
answer
A. Promotional
question
Which term refers to prices that buyers carry in their minds and check with when they look at a given product? A. product line prices B. reference prices C. location-based prices D. product-form prices E. time-based prices
answer
B. reference prices
question
What type of pricing is being used when a company temporarily prices its product below the list price to create buying excitement and urgency? A. segmented pricing B. international pricing C. reference pricing D. promotional pricing E. basing-point pricing
answer
D. promotional pricing
question
The Internet offers ________, where the price can easily be adjusted to meet changes in demand. A. captive pricing B. dynamic pricing C. basing-point pricing D. price bundling E. cost-plus pricing
answer
B. dynamic pricing
question
Which of the following is true of FOB-origin pricing? A. It is a strategy in which the company charges the same price plus freight to all customers. B. It is a costly option for customers who are located near the company. C. It charges all customers the freight cost from a base city to the customer location. D. It is an expensive alternative for customers in distant locations. E. It is a strategy in which the seller absorbs all or part of the freight charges
answer
D. It is an expensive alternative for customers in distant locations.
question
When a competitor cuts its price, a company should ________ if it believes it will not lose much market share or would lose too much profit by cutting its own prices. A. reduce its production costs B. reduce its marketing costs C. maintain its current prices and profit margin D. increase its marketing budget to raise the perceived value of the product E. increase its production costs to improve the quality of the product
answer
C. maintain its current prices and profit margin
question
When sellers set prices after talking to competitors and engaging in collusion, they are involved in ________. A. interstate commerce B. comparative pricing C. price fixing D. skimming pricing E. price bundling
answer
C. price fixing
question
If a large retailer sold numerous items below cost with the intention of punishing small competitors and gaining higher long-run profits by putting those competitors out of business, the retailer would be guilty of ________. A. price collusion B. price fixing C. predatory pricing D. competitive pricing E. penetration pricing
answer
C. predatory pricing
question
________ occurs when a seller states price savings that are not actually available to consumers. A. Comparative pricing B. Scanner fraud C. Deceptive pricing D. Market skimming E. Price collusion
answer
C. Deceptive pricing
question
Thinking Cap Corp. prices its various cap designs at different price levels, ranging from $2.05 to $5.95. This is an example of optional product pricing. A. True B. False
answer
B. False
question
Consumers who have no past experience with a product are especially likely to judge it by its price. A. True B. False
answer
A. True
question
In segmented pricing, the difference in prices is based on differences in costs. A. True B. False
answer
B. False
question
A ________ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. A. product line B. product delivery network C. marketing channel D. consumer base E. resource bank
answer
C. marketing channel
question
________ play an important role in matching supply and demand by providing consumers with a broad assortment of products in small quantities. A. Virtual banks B. Intermediaries C. Price consultants D. Uniform-delivery networks E. Upstream partners
answer
B. Intermediaries
question
Lifebelt Insurance sells insurance only through its door-to-door salespeople. What type of marketing channel does Lifebelt use? A. inclusive B. multitiered C. indirect D. direct E. selective
answer
D. direct
question
Plasticine Palace supplies its products exclusively to Arts & Crafts, a chain of stationery stores across the country. The chain then makes the plasticine available to end-consumers. This is an example of ________. A. a direct marketing channel B. intensive distribution C. an indirect marketing channel D. disintermediation E. extensive distribution
answer
C. an indirect marketing channel
question
The greater the number of channel levels in a marketing channel, the ________. A. less distance between producer and end-consumer B. greater the channel complexity C. less time it takes for products to reach end-consumers D. greater the control producers have over the distribution of their products E. greater the control producers have over the demand of their products
answer
B. greater the channel complexity
question
Conflict which occurs among firms at the same level of the marketing channel is known as ________ conflict. A. multitiered B. horizontal C. vertical D. equilateral E. exterior
answer
B. horizontal
question
Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt because Imperial Hotel-Dallas was overcharging guests and providing poor service. The Imperial Hotel was experiencing ________ conflict. A. equilateral B. vertical C. multitiered D. communal E. horizontal
answer
E. horizontal
question
When KFC came into conflict with its franchisees over the brand's "Unthink KFC" repositioning, which emphasized grilled chicken over its traditional Kentucky fried chicken, KFC experienced ________ conflict. A. equilateral B. vertical C. multitiered D. communal E. horizontal
answer
B. vertical
question
Which of the following is true of conventional distribution channels? A. Channel members have complete control over each other. B. Channel members seek to maximize their own profits. C. Channel conflict is governed by formal mechanisms. D. Channel members are assigned roles according to a clearly defined framework. E. Channel members work exclusively for the good of the organization
answer
B. Channel members seek to maximize their own profits.
question
A(n) ________ marketing system consists of producers, wholesalers, and retailers acting as a unified system. A. horizontal B. vertical C. multitiered D. communal E. equilateral
answer
B. vertical
question
Movie Giants offers DVD rentals through its Web site. It also offers DVD rentals via Star City stores. This is an example of a(n)________ distribution system. A. conventional B. inclusive C. intensive D. extensive E. multichannel
answer
E. multichannel
question
Which of the following is a disadvantage of adding new channels in a multichannel distribution system? A. decreasing complexity of markets B. decreasing control over the system C. reducing opportunities for franchising D. lowering sales and market coverage E. minimizing publicity needs
answer
B. decreasing control over the system
question
________ occurs when product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones. A. Extensive distribution B. Multichannelization C. Disintermediation D. Inclusive distribution E. Cross merchandising
answer
C. Disintermediation
question
The Bookworm began delivering books directly to customers through mail instead of selling through "brick-and-mortar" companies. This is an example of ________. A. indirect marketing B. disintermediation C. franchising D. exclusive distribution E. intensive distribution
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B. disintermediation
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________ distribution is a strategy in which producers of convenience products and raw materials stock their products in as many outlets as possible. A. Direct B. Intensive C. Inclusive D. Exclusive E. Selective
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B. Intensive
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Whitelight stocks its toothpastes in all convenience stores across the country. This is an example of ________ distribution. A. exclusive B. selective C. hybrid D. intensive E. normal
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D. intensive
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With which of the following strategies would a company give only a limited number of dealers the right to distribute its products in their territories? A. exclusive distribution B. extensive distribution C. moderate distribution D. primary distribution E. intensive distribution
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A. exclusive distribution
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For which of the following would a company use an exclusive distribution strategy? A. luxury cars B. newspapers C. chewing gum D. dairy products E. soft drinks
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A. luxury cars
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When a seller requires its dealers to abstain from handling competitors' products, it is called ________. A. subjective distribution B. exclusive dealing C. selective distribution D. exclusive pricing E. disintermediation
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B. exclusive dealing
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________ management refers to the management of upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers. A. Cross B. Supply chain C. Price D. Product cycle E. Customer
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B. Supply chain
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Which of the following is NOT a major logistics function? A. inventory management B. product designing C. warehousing D. transportation E. packaging
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B. product designing
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Producers use intermediaries because they create greater efficiency in making goods available to target markets. A. True B. False
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A. True
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pricing continuum
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the cost-based pricing strategy
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fixed costs
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variable costs
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competition-based pricing strategy
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going rate pricing
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value based pricing strategy
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price elasticity of demand
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monopoly
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monopolistic competition
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oligopolistic competition
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pure competition
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market skimming
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market penetration
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product line
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optional product
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captive product
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by-product
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product bundle pricing
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discounts
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cash terms
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promotional allowances
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price fixing
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predatory pricing
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price discrimination
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retail price maintenance
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deceptive pricing
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direct channels
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indirect channels
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marketing intermedaries
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conventional distribution channels
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vertical marketing systems
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horizontal marketing systems
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franchise
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upstream channel partners
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downstream channel partners
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Customer Value Based Pricing
Marketing
Optional Product Pricing
Principles Of Marketing
MKTG 2500 WMU Final Exam review – Flashcards 51 terms
51 terms
Preview
MKTG 2500 WMU Final Exam review – Flashcards
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Price
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amount of money charged for a product or service and sum of all values that you give up to gain a benefit
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Customer value
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uses buyers perception of value as the key to pricing, price is considered before marketing program ex: steinway
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competition-based pricing
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setting prices based on competitors strategies, prices, costs and market offerings
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good-value pricing
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offering the right combination of quality and good service at a fair price ex: snap fitness
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value-added pricing
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attaching value added features and services to differntiate a companies offer while charging higher prices
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cost-based pricing
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setting prices based on the costs for producing distributing, and selling the product plus a fair rate of return for effort and risk
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fixed costs overhead
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costs that do not vary with production or sales level
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variable
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costs that vary directly with the level of production
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cost-plus pricing
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adding a standard markup to the cost of the product
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break-even pricing
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setting price to break even on the costs of making and marketing a product or setting price to make a target return
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price elasticity
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a measure of the sensitivity of demand to changes in price.
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inelastic demand
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demand hardly changes with a small change in price
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elastic demand
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demand changes greatly with a small change in price
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Mark-up calculations
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cost inflation, when product is over demanded
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market segmentation
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dividing market into smaller segments of buyers with distinct needs, characteristics that may separate
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Brand equity
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The differential effect that knowing the brand name has on customer response to the product or its marketing- customer response such as a slogan playing in your head after hearing the name of the brand
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Value Propositions
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The full positioning of a brand-- the full mix of benefits on which it is positioned
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Marketing channel
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A set of interdependent organizations that help make product or service available for use or consumption by the consumer or business user.
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Disintermediation
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The cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries
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Marketing logistics
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Planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.
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Direct marketing
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no intermediary levels- the company sells directly to the consumers.
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Indirect marketing
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channels containing one or more intermediaries.
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Intensive distribution
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A strategy in which they stock their products in as many outlets as possible. There products must be available where and when consumers want them.
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Exclusive distribution
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The producer gives only a limited number of dealers that exclusive right to distribute its products in their territories. Often found in the distribution of luxury brands
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Selective Distribution
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The use of more than one but fewer than all of the intermediaries who are willing to carry a company's products. Most television, furniture, and home appliance brands are distributed in this manner.
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Specialty Store
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A store that carries a narrow product line with deep assortment.
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Department Store
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A store that carries several product lines such as home furnishing, clothing. Each line is separated by departments.
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Supermarket
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Large, low cost, low margin, high volume self service operation designed to serve the consumers total needs for grocery and household products.
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Convenience store
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Small store located near residential areas, open long hours 7 days a week, carries a limited line of high turnover products at a higher price.
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discount store
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A store that carries standard merchandise sold at lower prices with lower margins and high volumes.
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off-price retailer
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A store that sells merchandise bought at less than regular wholesale prices and sold at less than retail.
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superstore
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A very large store that meets consumers needs for routinely purchased food and nonfood items.
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Corporate Chain
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Two or more outlets that are commonly owned and controlled
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Voluntary Chain
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Sponsored by Wholesaler-independent retailers engaged in group buying and merchandising
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Retailer Cooperative
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Group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts.
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Franchise Organization
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Contractual association between a franchisor (manufacturer, wholesaler) and franchisees (independent business people who buy the right to own and operate one or more units in the franchise system.)
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Promotion Mix
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Specific blend of promotion tools. Used by companies to engage customers, build customer relationships, and to communicate customer value persuasively.
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Integrated Marketing Communications
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Carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.
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Personal selling
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Personal customer interactions by the firm's sales force for the purpose of making sales and building customer relationships
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Sales Promotion
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Short-term incentives to encourage the purchase or sale of a product or a service
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Consumer promotions
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Sales promotion tools used to boost short term customer buying and engagement or enhance long term customer relationships
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trade promotions
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Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, and promote it in advertising
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Business promotion
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Used to generate business leads, stimulate purchases, reward customers, and motivate sales people. Include many of the same tools used for consumer or trade promotions
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Direct Marketing
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Engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships
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global firm
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A firm that, by operating in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors.
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product adaptation
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adapting a product to meet local conditions or wants in foreign markets
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product invention
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creating new products or services in foreign markets
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consumerism
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is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers.
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environmentalism
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an organized movement of concerned citizens, businesses, and government agencies designed to protect and improve people's current and future living environment.
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market-skimming pricing
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setting a high price to skim maximum revenues layer by layer from the segments willing to pay the high price, fewer but more profitable sales
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market-penetration pricing
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setting low price to attract a large number of buyers and large market share
