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103 Cards in this Set
- Front
- Back
In marketing's four Ps, Place refers to all activities required to get |
the right products to the right customer when that customer wants it. |
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Amazon.com was an early leader in online retailing. Part of the firm's success was due to a well-designed and efficient EDI system with book publishing companies, allowing just-in-time delivery. Even with a well-designed EDI system, Amazon.com would not have been successful without |
a commitment to partnering with publishing companies |
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At the BMW plant, suppliers deliver parts every four hours when the plant is in operation and are responsible for removing any packaging or pallets used to deliver their products. BMW uses a ___ inventory control system. |
JIT |
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Colin has just received a delivery from the company's distribution center. He opens the containers and finds the popcorn and snacks are all bar-coded, priced, and the package includes an end-of-the-aisle display rack. Colin has received a ___ shipment. |
floor-ready |
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In an administered vertical marketing system, |
there is no common ownership, and the dominant member has significant power to impose its ideas and objectives. |
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A ___ is a supply chain whose members act like a unified system. |
vertical marketing system |
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Stores like Home Depot and Costco act as wholesalers when they |
sell to contractors or restaurant owners. |
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Students of marketing often overlook or underestimate the importance of Place in the marketing mix simply because |
it happens behind the scenes |
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Felicia had just taken over her family's business after spending ten years in the marketing department of a large corporation. She met with a representative from one of her firm's biggest customers, who told her, "We should think about how we can make the pie bigger rather than fighting over the size of the slices." She had expected a more cutthroat approach rather than this call for a |
partnering relationship |
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Some retailers require their suppliers to ship merchandise ____, thus eliminating the time and expense associated with ticketing and marking. |
floor-ready |
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By reducing the number of transactions needed to move a product from the manufacturer to the consumer, wholesalers and retailers make a supply chain |
more efficient |
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A distribution center is typically operated by |
retailers, manufacturers, or distribution specialists |
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A ___ is a facility for the receipt, storage, and redistribution of goods to company stores or customers. |
distribution center |
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In a corporate vertical marketing system, |
participants -- such as warehouses, transportation companies, and retail outlets -- are typically owned by a parent company to ensure harmonious relations throughout the supply chain. |
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Each time a politician or celebrity writes a book, bookstores can expect at least some customers to want the book, but whether or not it will become a bestseller is uncertain. The bookstore's primary inventory management challenge is |
having enough books to satisfy customer demands versus the cost of having the inventory |
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In a ___ marketing channel, none of the participants has any control over the others |
conventional |
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Yesterday, Lorna overheard a surprisingly unpleasant encounter between the manager of the hardware store where she works an a sales rep who sells a well-known line of tools. The rep insisted that his tools should be more prominently displayed and that a better assortment would mean more sales. The manager had other plans and told him so, and the conversation turned into a loud argument. What Lorinda observed was an example of |
channel conflict |
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Franchising involves a ___ marketing system |
contractual |
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Compared to conventional supermarkets, warehouse clubs have |
a lower level service |
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If a manufacturer wasn't happy with either intensive or exclusive distribution, a logical choice, which incorporates some features from both, would be ___ distribution. |
selective |
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Brian, an industrial equipment sales rep, purchases a quick snack to eat on the way to work. He buys lunch on the road while visiting customers, and grabs bread and milk on the way home. Brian probably does the majority of his shopping at a |
convenience store |
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Supercenters have become the fastest growing retail category by combining broad assortments of groceries and general merchandise products. ___ dominates this category with the vast majority of supercenters in the US. |
Walmart |
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Of the following, the best example of a category killer is |
Staples |
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One of the greatest constraints faced by store-based retailers -- and one that the Internet channel can address -- is |
the amount of merchandise that can be carried in a physical store |
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It is often difficult for retailers to distinguish themselves from their competitors through the merchandise they carry because |
competitors can purchase and sell many of the same popular brands |
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___ is the term used to describe the situation when retailers use some combination of store, catalogs, and the Internet to sell merchandise. |
Multichannel retailing |
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Personal selling is particularly important for retailers selling |
products that are complicated or expensive |
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Mira purchased some eyeliner from an Internet-based beauty supply house, and now she often receives online recommendations for other products from the same cosmetics line. These recommendations were probably the result of |
the purchases she had made |
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When Sheila decided to sell her shoe racks on eBay, she stated the price and a shipping rate according to the delivery area. Which method of pricing was Sheila using? |
zone pricing |
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Ben owns a lawn care business. From experience, Ben has found that John Deere equipment lasts almost twice as long as competitors' machines. For John Deere, Ben's perception about its products makes ___ pricing possible. |
cost of ownership |
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Retailers use ___ to get rid of slow moving or obsolete merchandise. |
markdowns |
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Pricing ___ products is especially challenging because little or nothing is known about consumers' perceptions of value. |
new-to-the-world |
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Supermarkets often offer great deals on milk, beef, or eggs to get customers into their stores, knowing that many customers will also purchase items that have higher markups for the store. These supermarkets are using a ___ pricing tactic. |
leader |
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Value based pricing methods include approaches to setting prices that focus on the overall value of the product offering |
as perceived by the consumer |
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An everyday low pricing strategy stresses the continuity of retail prices |
at a level somewhere between the regular price and the deep-discount sales price competitors may offer. |
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Compared to other pricing methods, ___ pricing is relatively simple. |
cost-based |
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Everyday low pricing (EDLP) provides value to consumers by |
reducing their search costs |
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One of the difficulties associated with value-based pricing is that |
it necessitates a great deal of consumer research to be implemented successfully |
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Dan is especially price sensitive. He has been known to line up on "Black Friday" at 4am in order to be among the first to buy sale items. Dan would likely respond to a ___ pricing strategy. |
high/low |
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The saying "leave the money on the table" is associated with |
using a market penetration strategy when there is an opportunity for price skimming |
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Price skimming focuses on selling products to ___ and ___ in the consumer adoption process model. |
innovators and early adopters |
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Firms using a ___ pricing method set their prices relative to what other firms are charging. |
competitor based |
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In determining the price for his company's new pocket digital camera, Matt determines what consumers consider the regular or original price for similar cameras available in the market. Matt is assessing the influence of ___ on price strategy. |
reference prices |
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Marketers use a price skimming strategy for any or all of the following EXCEPT |
to gain market share quickly |
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A weakness associated with cost-based pricing methods is that they |
do not recognize the role that consumers or competitors' prices play in the marketplace |
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In a ___ pricing strategy, marketers rely on the promotion of sales, during which prices are temporarily reduced to encourage purchases. |
high/low |
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In determining the price for his company's new personal computer photography printer, Raymond is assessing the total cost of owning his printer as compared to alternative products available in the market. Raymond is using ___ pricing. |
cost of ownership |
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A reference price is |
the price against which buyers compare the actual selling price. |
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___ lowers the price below the store's cost. |
loss leader pricing |
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Developing price strategies for ___ is one of the most challenging tasks a manager can undertake. |
new products |
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With a ___ pricing strategy, marketers set a low initial price for the introduction of a new product or service. |
market penetration |
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Retailers often require manufacturers to pay ___ in order to obtain shelf space for new products |
slotting allowances |
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The ___ occurs when unit cost drops as the quantity sold increases. |
experience curve effect |
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Yurgen is opening a financial consulting service for high-income retirees in his area. This target market is used for paying for quality and associates high quality with high prices. Surgeon should probably NOT use a market penetration pricing strategy because |
a low price might signal low quality |
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When Burroughs-Wellcome introduced the first anti-AIDS drugs, they initially set the price at $10,000 for a year's supply. Burroughs-Wellcome was probably pursuing a ___ pricing strategy. |
skimming |
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Mario is the first retailer in town to sell games for Sony's new PS3. Mario wants to quickly capture as much of the market for the new games as possible. Mario will likely use a ___ pricing strategy. |
market penetration |
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When Apple introduced the iPhone, it was priced at $499 - considerably higher than either the iPod or competing cell phones. Apple was probably pursuing a ___ pricing strategy. |
skimming |
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For marketers using a price skimming strategy, once the initial demand is met for new and innovative products, they will likely |
lower the price to capture the next most price sensitive market segment. |
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When Toyota introduced its Scion line of cars, the lowest priced model was listed for $15k while the highest priced model was for $21k with 2 or 3 other prices in between. Toyota used a ___ pricing approach. |
price lining |
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For a price skimming strategy to be successful, |
it must be difficult for competitors to enter the market. |
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In determining the price for his company's new small business accounting software, Raymond is assessing how much better the software is as compared to alternative products available in the market. Raymond is using ___ pricing. |
improvement value |
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When the first hybrid automobiles became available on the market, manufacturers had only minimal production capacity. They used a price skimming strategy primarily to |
limit demand |
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The major objectives associated with a market penetration pricing strategy are to |
quickly build sales and market share |
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Charging a relatively high price for a new and innovative product to those consumers most willing and able to pay the high price is called price |
skimming |
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What do the BRIC countries have in common? |
They are experiencing significant levels of economic growth |
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Which of the following trade agreements is designed to manage and promote trade activities for the US, Canada, and Mexico? |
NAFTA |
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Tariffs, quotas, and currency exchange policies affect global |
pricing strategies |
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The most important consideration when a firm chooses global product strategy should be |
the needs of the target market |
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Which of the following best describes the direct investment global entry strategy? |
With direct investment, a firm maintains total ownership of its plants, operation facilities, and offices in a foreign country |
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The term "trade deficit" refers to |
higher levels of imports than exports |
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Developed countries are experiencing ___ population growth. |
Zero or negative |
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Gerald is assessing global entry strategies for his gourmet sandwich business. He does not want to take a lot of risk and he is wiling to limit his control of international stores. Gerald will likely use ____ strategy. |
franchising |
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Cultural nuances, subcultures, and consumers' different views of their roles in different countries can make ____ complicated. |
segmentation, targeting, and positioning |
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Of the 5 strategies for entering new markets, direct investment creates the |
greatest potential risk |
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When a company decides to minimize risk and enter a global market by shipping its products to buyers in other countries, this is known as |
exporting |
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Which of the following is currently a negative factor for foreign investment in India |
India's infrastructure for supply chain management is not up-to-date. |
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The Big Mac Index is a novel measure of |
purchasing power parity |
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The major advantage of primary data collection is that |
it can be tailored to meet the specific research needs |
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Marketing research includes all of the following except |
creating data ANSWER: collecting, recording, interpreting, and analyzing |
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Quitman had no idea how consumers would respond to a survey about attitudes toward a program opening up space travel to private citizens. He could use _____ to allow respondents to answer in the own words. |
a survey with open-ended questions |
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In a focus group, researchers usually videotape the session in order to |
assess both verbal and nonverbal responses |
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When the market research problem is not clearly defined, a researcher will likely engage in _____ research |
experimental |
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Which of the following is NOT one of the guidelines for developing a market research questionnaire? |
Sensitive questions should be asked first (THEY SHOULD NOT) |
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A _____ is a small group of people brought together for an intensive discussion of a topic |
focus group |
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Zan wants to collect considerable information about the current opinions of his ten most important customers. Zan will probably use the _____ research method |
in-depth interview |
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From charitable giving to medical records to Internet tracking, consumers are more anxious than ever about |
preserving their rights to privacy |
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When conducting a research study attempting to understand what features were most important to automobile consumers, Gary used a questionnaire containing ____ questions, with a predetermined set of response options. |
structured |
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Pick out the single FALSE statement about channel functions from the following |
These functions cannot be shifted. RIGHT ANSWERS: functions are universal; performing the functions makes products available when, where, and how customers want them; the functions were "paired up" in class discussion |
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Economies of scale and specialization are _____ |
potential advantages for middlemen |
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Scrambled merchandising occurs when retailers expand _____ of the merchandise they carry |
the breadth |
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Which one of the following American retailing institutions is still gaining market share |
chain store organizations |
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Which one of the following American retailing institutions provided a model that other types of stores literally moved into |
food supermarkets |
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Retailers frequently offer products within a category at a range of several prices, a practice called _____. |
price lining |
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Private label products are usually sold with ____ pricing |
below the market |
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Pick out the single false statement: |
The current CPI shows that consumer prices have about tripled since the base period 1982-1984 RIGHT ANSWER: The US has experienced some inflation every year since the start of WWII; price competition in the US is now very high even though the rate of inflation is low; price consciousness in the US is now very high, even though the the rate of inflation is low. |
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Off-pricing and follow the leader pricing are both examples of pricing that appears to be based almost entirely on |
competition |
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____ pricing is best done by airlines, although hotels and colleges have gotten very good at it too. |
Revenue yield maximization |
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Commitment, risk, and control are greatest with _____. |
direct investment |
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Accidents of geography, a large internal market, and relative isolation from the rest of the world all combine to ____ |
make the US less dependent on global trade than most countries |
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Pick out the single FALSE statement about global marketing |
In general, global brads make branding harder to manage and a consistent image harder to maintain. RIGHT ANSWER: teenagers and the "really rich" re examples of global segments, global brands enjoy economies of scale, "thinking globally" is a better of degree (not an either-or proposition) |
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The Nielson TV ratings are an example of ____ for companies that use them. |
external secondary data |
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Techniques borrowed from anthropology have recently changed the way _____ marketing research is carried out. |
observational |
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Pick out the single FALSE statement about marketing research |
The mall intercept method has just about disappeared due to lack of consumer co-operation. RIGHT ANSWER: Almost anything done in marketing research is now being attempted online; doing marketing research definitely does not guarantee that good decisions will be made; marketing research has been extensively outsourced in recent years |