Marketing Final

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UF MAR3023 Spring 2013 term with Lutz. I'm gonna get an A.

To handle products in the decline stage of the product life cycle.. companies often use either a __________ or a __________ strategy.

divesting; harvesting

Which term describes factors that affect price.. including newness of the product.. whether it is part of a product line.. and cost of changing a price?

pricing constraints

Abby is the manager of a pet supply store and is ordering Crazy Cat kitten litter from her usual wholesaler.. who uses a 40% markup. After Abby adds her 50% markup.. the retail price of a 1-lbag of Crazy Cat kitten litter is $18. What price does the manufacturer charge the wholesaler for a 1-lbag of litter?

$5.40

At tendollars.com they offers thousands of gifts.. all priced at ten dollars. This is an example of two pricing methods working in tandem. Most likely.. the firm uses a __________ and a _________ strategy.

one-price policy; below market pricing

setting prices a few dollars or cents under an even number.

odd-even pricing

Which process determines whether total revenue from the sale of an additional unit of product exceeds the cost of producing and marketing that unit?

marginal analysis

the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service

price

Yield management pricing is most consistent with services trying to deal with

capacity management.

the practice of replacing promotional allowances with lower manufacturer list prices.

everyday low pricing

Barney's Bean Bags manufactures bean bag chairs that are used in local libraries and children's centers. Barney's just built a new manufacturing facility at a cost of $500..000. Barney's Bean Bags has annual fixed costs of $27..000. Unit variable cost for a bean bag chair is $20.00. If Barney's wishes to achieve a target ROI of 10% on its first year production of 1..000 chairs.. what should the price of a bean bag chair be?

$97.00

AT&T is introducing one of its newest cellular phones.. the Black-Jack II.. to the Florida market. The phone costs AT&T only $45 to manufacture.. but AT&T wishes to have a mark-up of 70% on this product. Using Mark-Up Pricing.. how much money should AT&T charge consumers for its new Black-Jack II?

$150.00

The two general methods for quoting prices related to transportation costs are FOB origin pricing and _________.

uniform delivered pricing

Sam Manilla owns a plant that produces canned chicken. Sam is unsure of how much to charge the distributor of his canned chicken product. The retail markup is 40% and the distributor markup is 20%. Using chain markup pricing.. if the retail price is $6 for each can of chicken.. how much should Sam Manilla charge the distributor per can?

$2.88

Figure 14-2A above shows a demand curve that slopes downward and to the right.. then turns back to the left. Which pricing approach does Figure 14-2A depict?

prestige pricing

If a firm wished to set its price at a level that would maximize its profit.. what condition must hold?

target ROI > 20%

Rod N' Reel Fishing Pole Company has an idea for a new line of fishing poles that are sleeker and more durable. Before they start production.. they plan to use target return on investment pricing to see whether they should invest in the new product. They are willing to invest $120..000 and desire a return on investment of 20%. Their total fixed costs are $200..000 and unit variable cost is $17.50. They expect to make 20..000 units. What is their Target ROI price?

$28.70

the successive price cutting by competitors to increase or maintain their unit sales or market share.

price war

The ratio of perceived benefits to price is referred to as

value.

Rachel is the owner and operator of a luxurious spa resort in Cozumel.. Mexico. One of her duties is to set prices based on weekly demand for rooms at the resort. Rachel expects high demand for her rooms during the last few weeks of summer vacation. Due to this demand.. she thinks the resort will be at 90% occupancy. If her total fixed costs are $100..000; unit variable costs are $100; and the hotel has 200 rooms.. what price should Rachel charge per room just to break even?

$655.56

At the moment.. there is a new brand of toothbrush.. Toothberry.. competing for market share. The market leader.. iBrush.. is priced at $2.50 and Toothberry is using the critical strategic pricing ratio to try to calculate what its "parity" price should be. The data below show the results of a survey of the toothbrush target market. What should Toothberry charge?
Brand Ratings
iBrush Toothberry Importance
Bristle Softness 7 8 7
Reach 8 7 8
Comfort 6 8 6
Attractiveness 7 9 5

$2.79

According to the text.. services can be classified in three ways -- according to whether they are profit or nonprofit.. whether they are government sponsored.. and whether they are

delivered by people or equipment.

Amanda recently bought a five-bedroom beach house in Santa Cruz.. CA.. and is hoping to rent it out. After analyzing all of her expenses.. Amanda concludes that her total fixed costs equal $2..500 per month and she has a monthly variable cost of $75 per room. What should Amanda charge per room per month in order to break even (assuming 100% occupancy)?

$575

A method of pricing where the price the seller quotes includes only the cost of loading the product onto the vehicle for transporting to the buyer and specifies the name of the location where the loading is to occur is referred to as

FOB origin pricing.

Nina's Necessities buys packs of toilet paper from its wholesaler for $0.89 each. The store uses a markup of 58%. According to the Markup Pricing Model.. for what retail price should packs of toilet paper be sold in the store?

$2.12

The point at which total revenue and total cost are equal is referred to as

break-even point.

While pricing objectives reflect corporate goals.. pricing constraints often relate to

conditions existing in the marketplace.

deliberately selling a product below its customary price.. not to increase sales.. but to attract customers' attention in hopes that they will buy other products as well.

loss-leader pricing

Mary owns a small kiosk where she sells hip bandanas. She sells the bandanas for $12 each. Mary uses a markup of 30%.. and she buys the bandanas from a distributor. The distributor uses a 65% markup and buys the bandanas directly from the bandana company. What price does the bandana company charge the distributor for each bandana?

$2.94

Kristin's Cookie Cakes wants to make a 20% return on its $75..000 investment in new cooking technology. It has fixed costs of $30..000 and unit variable costs of $2. Kristin plans on selling 5..000 cakes. How much should she charge per cookie cake?

$11.00

The practice of exchanging products and services for other products and services rather than for money is referred to as __________.

barter

The practice of charging a very low price for a product with the intent of driving competitors out of business is referred to as

predatory pricing.

The prices for all furniture sold at Urban's Furniture Warehouse end in $9.. such as $599.. $899.. etc. Urban's Furniture Warehouse uses

odd-even pricing.

The retail price of DVD players has decreased from $900 to less than $100 over the past few years. This is due in large part to

Experience curve pricing

Which of the following is NOT one of the six major pricing objectives discussed in the text?
Break-even
Survival
Unit volume
Profit
Market share

break even

Different brands within a company's product line generally have different profit margins; higher price lines have higher profit margins. For example.. Nike Variety tennis shoes have variable costs of $6 and sell for $24.. whereas Nike Wimbledon tennis shoes have variable costs of $10 and sell for $48. It is most likely true that Nike is using a _________ pricing strategy

product-line

Rather than billing clients by the hour.. some lawyers and their clients agree on a fixed fee based on expected costs plus a profit for the law firm. Which pricing method are they using?

Cost-plus pricing

As stated in class.. "The purpose of price is not to recover _____ but to capture _____ in the consumer's mind."

cost; the value of the product

Attorneys' fees.. park entrance fees.. train fares and organization dues are all

Synonyms for price

Maddy Baker is the owner of Maude's Cookie Shop.. a new bakery that makes giant.. pizza-sized gingerbread cookies. The variable cost per gingerbread cookie is $13.20. In addition.. Maddy has monthly fixed costs of $4500 and hopes to make a profit of $2750 per month. Using target profit pricing.. what price should Maddy charge per cookie assuming she sells 750 cookies a month (please round to the nearest dollar)?

$23.00

A box of dishwasher detergent shrink-wrapped with a bottle of Jet Dry for 10 cents more than the regular price of the dishwasher detergent is an example of __________ pricing.

Bundle

Other things equal.. if a firm finds the demand for its product is inelastic.. it can increase its total revenues by

Raising its price

Tara's university charges $6000 a year in tuition; it was recently ranked #20 in quality of education by U.S. News and World Report. Emily goes to a different school that charges $30..000 a year in tuition and was ranked #15 by the same magazine. Based on these results.. we can infer that Tara:

Is getting more value than Emily

Ani.. Anna.. and Aimee went to Mexico for Spring Break. The best friends loved shopping in the markets because.. unlike shopping at malls in America.. they could bargain with the merchants in Mexico. The girls came home with dresses that had 25-peso price tags.. but they actually haggled down the prices to 17 pesos. This type of pricing is called:

Participative Pricing

Old Navy has new tank tops for summer and is trying to decide how to price them. They notice that American Eagle has similar tops for $10.00. Based on some consumer research.. Old Navy knows how its tops compare to American Eagle's tops (see table below) and decides to establish a parity price. What should the price be? (All measures are on 10-point scales.)

Old Navy AE Importance
Fit 6 6 9
Colors 6 8 7
Style 9 5 7
Quality 7 8 4

$10.56

Lili just opened a brand new clothing store in Gainesville called The Shop. She bought a new line of dresses from a wholesaler that charges 30% markup. If Lili sets the retail price on the dresses at $400.. and she charges a 50% markup.. what price does the manufacturer charge the wholesaler?

$140

Katie had been eyeing a dress for graduation in her favorite boutique's window for the past month. She couldn't wait to go buy it after she received her paycheck this week. On Friday afternoon she went into the store to purchase the dress. When she looked at the price tag she nearly fainted. She had imagined the price of the dress to be about half of what it actually was. Katie was experiencing a classic case of sticker shock.. due to the difference between the actual price of the dress and her:

Internal Reference Price

The Wm. Wrigley Jr. Co. recently introduced a new flavor of Orbit brand sugar free chewing gum—mint mojito. The introductory price was low so that it would create loyal customers for the flavor quickly. In this example Wrigley is using

Penetration pricing

Four types of price discounts are

Seasonal.. trade (functional).. cash and quantity

Mike's Bikes is the newest bike shop in town. It costs $75 for him to buy a Speedster 500 bicycle from the manufacturer. As a pricing strategy.. he uses a 40% markup for everything in his store. What is Mike's selling price for the Speedster500?

$125

Link.. is a small company that makes materials for safely controlling hazardous spills of all kinds. It sells these items as a neutralizing kit that priced at $120 each. (There is no quantity discount.) The costs of the materials that go into each kit are $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1..000 for rent and insurance.. $200 for heat and electricity.. $500 for advertising in trade journals and $3..500 for the monthly salary of its owner. Link.. Inc.'s marginal revenue per unit is

$120

A form of retail ownership that involves multiple outlets under common ownership is referred to as a(n).

corporate chain

Hostess is planning on extending their marketing of Twinkies and other treats to other parts of the world. They decide to use the same marketing plan that is being used in the United States. Everyone loves a delicious Twinkie, so consumers should respond the same to a Twinkies ad no matter where they live in the world. Hostess is using which standardization model described in class?

Pure Standardization

Olivia likes the convenience of ordering food to be delivered using the Seamless App on her smartphone. With her address and payment information saved on the app, Olivia can have her Bento order placed within seconds. Olivia's use of the Seamless app is an example of which concept?

M-Commerce

ASOS.com is an online-only fashion retailer that started in the UK. They plan to build physical stores in the future. They enjoy huge profits compared to other retailers because they have a reputation for strong social media presence and for product variety. In a S.W.O.T. analysis, ASOS' strong social media presence and product variety are _____.

Strengths

The local Abercrombie and Fitch was trying to figure out their stockturn rate for 2011. A&F's beginning inventory was $1,800 and ending inventory was $2,100. The cost of goods sold was $120,000. What was A&F's stockturn rate?

61.54 turns per year

The online consumer who researches products online and then purchases them at a retail store is referred to as a __________ shopper.

cross-channel

Tim's Teak Tables makes tables for furniture stores across the U.S. Tim is trying to decide how much he needs to charge his distributors who sell his tables to retailers. Tim estimates that the retail price for one of his teak tables should be $300, assuming a retail markup of 50%. The distributor markup is 15%. What should Tim charge his distributors?

$127.50

Stephanie is opening a deli and is trying to figure out what price she should charge for giant dill pickles. She buys dill pickles from her supplier at $12.00 per dozen. Stephanie uses a markup of 60% on everything she sells. What is her price per pickle?

$2.50

Pear AppleCore Importance
Design 8 8 8
Weight 9 7 9
Storage Space 7 7 5
Processor Speed 7 8 7

Pear, Inc. is a new technology company that is about to release its first product -- the thinnest, lightest tablet device yet. AppleCore, the market leader, has set its price at $400. If Pear, Inc. decides to price its tablet using Value-based pricing, what is its parity price (rounded)?

$420

The North American Free Trade Agreement was designed to encourage free trade between

the United States, Canada, and Mexico.

a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.

diversification analysis

Cookie Monster currently has cookie sales of $10,000,000 each year. Assuming that their gross margin is $2,000,000, and that total industry sales are $40,000,000, how much would Cookie Monster be able to spend in additional marketing effort in order to expand its market share by three points and still break even?

$240,000

Go to any Publix supermarket and walk down the cereal aisle. You will notice that four major brands—Kellogg's, Quaker, General Mills, and Post—occupy virtually all the shelf space. These cereals are all priced about the same. There is a good deal of product differentiation as the result of licensing agreements with movie studios (Disney, DreamWorks, etc.) and through the use of different health claims. The cereal industry is an example of what type of competitive market?

an oligopoly

Kacy, a Gator fanatic, has always had a dream to open a store that sells Gator jewelry. She has calculated that the rent will cost her about $1,500 per month and staff salaries will be about $2,000 per month. The variable cost per piece will come out to $10.00. She estimates that she will sell 350 pieces a month. If she sells all of her pieces each month and she wishes to earn a profit of $3,000 per month, what price should she charge for each piece of jewelry?

$28.57

Chuck's Chinese Cuisine has opened up 5 new restaurants since 2011. According to the chart below, what is the difference between Chuck's overall sales growth and Chuck's same-store sales growth?
June 2011 June 2012
Total # of restaurants 20 25
Total net sales $10mil $15mil
# of new restaurants 4 5
Net sales new rest. $2mil $3mil

30%

L'Oreal wants to release a new shampoo scent to increase its market share in the hair care industry. Below are sales revenue data for each brand. Total industry sales for the past three years have been $131 million in 2010, $137 million in 2011, and $143 million this year.
Brand 2012 Sales
L'Oreal $38,000,000
Pantene $21,000,000
TRESemme $18,000,000
Herbal Essences $13,000,000
Nivea $8,000,000
All Others $45,000,000
In the BCG Matrix, L'Oreal is a _____, with a relative market share of _____.

Cash cow; 1.81

The application of modern measurement technologies to understand, quantify, and optimize marketing spending is referred to as __________.

marketing ROI (return on investment)

Sam's Club is a large warehouse store that carries a variety of products. Many of their products are sold in larger quantities than would be found in supermarkets and at a lower unit cost. What value adding retail function does Sam's Club not incorporate into its retail strategy to the same degree supermarkets do?

Breaking Bulk

Forever 21 is trying to increase its customer base by changing its retail store strategy. The stores will have a big fashion show once every quarter, showing off all the new styles, offering complimentary food and drinks, and basically hosting a big party, all while customers can still shop for clothes. What retail concept is Forever 21 using?

Retailtainment

When Kroger, a national supermarket chain, uses a one-time, special weekend promotion to price a six-pack of soda at $2.09 (which is below its customary price level), it is attempting to

attract customers in hopes they will buy other products as well.

Firehouse Subs currently holds 40% of the market share of sandwich shops in Gainesville. (Assume they also have 40% share of voice.) If they want to expand to 55% market share, they must increase their share of voice by:

22.5%

Suppose you are designing a transactional website and you would like it to be as user-friendly as possible. In particular, you do not want repeat customers to have to enter their address, e-mail, telephone number, and credit card data every time they make an online purchase. Rather, you would like your website to recognize each customer by name every time he or she visits the website and to retrieve all the information about that customer automatically whenever he or she wishes to make a purchase. To achieve this goal, you would most likely use __________.

cookies

Starbucks is looking to expand into India, but first must conduct market research to make sure they will be successful there. The marketing director is currently working on the pricing strategy, and must take several factors into consideration. He has heard that India has a higher import duty on coffee beans, so he is looking into that issue further, as it would affect his cost of goods. What international environmental sector is he examining?

Legal/Regulatory Sector

A retail management approach in which a manager is assigned the responsibility for selecting all products that consumers might view as substitutes for each other, with the objective of maximizing sales and profits for that group of products is referred to as __________.

category management

The actions taken during the evaluation phase of the strategic marketing process include: (1) __________ and (2) correct negative deviations and exploit positive ones.

compare results with plans to identify deviations

When you view a selection at Amazon.com and see "Customers who bought this (item) also bought ", you are seeing the application of __________.

collaborative filtering

Taylor's technology company is aimed at producing the maximum amount of computers per day and maintaining a high quality reputation. During the holiday season, many employees work overtime in order to meet the high demand for computers. As a result of these long, strenuous hours, many of the computers are not meeting Taylor's high quality standards. This problem is mainly due to which of the 7 Habits?

Failure to Sharpen the Saw

a conspiracy among firms to set prices for a product.

price fixing

Jordyn sells a variety of household products for a small group of producers. She sells to discount stores and convenience stores in the Central Florida region. One of the products she sells is 3M Command Adhesives. When a store agrees to order a shipment of Command Adhesives, Jordyn places the order with 3M on behalf of the customer. The nearest 3M warehouse will then package the order and ship it to the customer. Jordyn's position can most accurately be described as a:

Manufacturers Representative

The oldest retail setting, usually located in the community's downtown area, is referred to as

central business district.

The law that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country is referred to as the

Foreign Corrupt Practices Act.

HDK Electronics has developed a new music listening device called the MP5. Instead of manufacturing and shipping the new device to China, they enter into a contract with a Chinese electronics company wherein HDK agrees to allow the Chinese firm to use its technology and brand name in exchange for royalty payments. The Chinese firm will finance all the production, distribution, and marketing in China. What global marketing strategy is HDK Electronics using?

Licensing

Ronny's Cupcakes is a well-known bakery on the Jersey Shore that serves hundreds of customers a day. "Baking the tastiest and most scrumptious cupcakes in all of Jersey" is Ronny's Cupcakes':

corporate mission

Casey loves cats. For this reason Casey decides to open a cat emporium called MEOW! This store will sell everything from balls of yarn to scratching posts to little computers to watch MAR 3023 lectures on. Casey realizes that such a niche market is limited, so she decides to add a small section for dogs as well. Since she doesn't know anything about dog preferences, Casey decides to let her dog-goods supplier stock that area of the store. Casey is using which type of inventory management for her dog section?

Vendor-managed inventory (VMI)

managers who have the authority and responsibility to issue orders to people who report to them.

line positions

the successive price cutting by competitors to increase or maintain their unit sales or market share.

price war

Setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it is referred to as

prestige pricing.

Go Gators! is a small company that makes Seminole Stomping kits priced at $120. The costs of the materials that go into each kit are $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising, and $4,500 for the monthly salary of its owner. Go Gators! unit variable cost for its kits is

$50.

Stefano loves his Harley-Davidson motorcycle. Unfortunately for Stefano, none of his friends share the same love for Harley-Davidson or motorcycles in general. One day Stefano finds the "Harley Owners Group" website. Stefano eagerly joins and meets many new online friends with whom he can talk about Harley-Davidson motorcycles. The Harley Owners Group website most accurately fits the description of which use of the Internet?

Virtual Communities

According to the text, all of the following are examples of pricing constraints EXCEPT:
demand for the product class, product, or brand.
newness of the product (stage in its life cycle).
competitors' prices.
social responsibility
cost of producing the product.

social responsibility

General Electric is looking to extend their business and sell refrigerators in India. After conducting some research on habits and behaviors in India, they discover that consumers place their refrigerators in different parts of the home (unlike the U.S. where consumers place their refrigerators in their kitchens). With this in mind, GE decides to market a variety of colors of refrigerators to satisfy the needs and wants of the consumers in India. Which type of global marketing approach is this?

Multinational Marketing

the largest, but poorest, socioeconomic group of people in the world.

bottom of the pyramid

Kim, Khloe and Kourtney need to improve implementation at their small boutique called DASH. They want to switch to a commission based pay plan for their employees to help increase sales. On top of commission, the top seller for the month will receive a free trip to a place of their choice! What are the three sisters doing to improve implementation at DASH?

Reward Performance

Shoes R Us, a retail outlet, offers shoes for men, women, and children in many sizes and foot widths. It offers running, cross training, walking, golf, and other types of shoes. This an example of the __________ that Shoes R Us offers to its customers.

depth of product line

A __________ is essentially a sequence of linked suppliers and customers in which every customer is, in turn, a supplier to another customer until a finished product reaches the final consumer.

supply chain

Shelby is currently having problems with her bakery. She has recently mapped out an entire new strategy for both her baking process and her marketing to try to make her company more profitable. However, her employees are not abiding by her new guidelines and therefore her company is still failing. This situation is a result of:

Implementation Failure

Billy is an economist studying the effect of E-Commerce on the retailing industry. His major concern is that retailers will be hurt because consumers can now easily buy directly from manufacturers. He also believes price competition will _____ because of a(n) _____ in search cost with the availability of search engines like Google.

Increase, decrease

Fossil, an American manufacturer of clothing and accessories, has been particularly successful in developing a licensed watch line with popular designer Michael Kors. This licensing agreement added a new segment of contemporary fashion watches with retail prices ranging $65-$595. In line with the reputation of Michael Kors, these watches are sold only at a few department stores in each city that cater to the contemporary fashion market, including stores like Bloomingdales, Nordstorm, and Macy's. The degree of channel coverage for Michael Kors watches can most accurately be described as:

Selective

Christie loves her new iPhone but is very frustrated that she is hardly ever able to use FaceTime because she rarely has access to Wi-Fi in her home in rural New Mexico. Christie's frustration is due to:

Lack of Bandwidth

Jenna wants to start a liquor store with her two friends Mia and Rachel. They are opening in Gainesville, so they have no doubt they'll be successful. Mia will be the main salesperson, Rachel will be in charge of ordering and stocking the shelves, and Jenna will develop a special rewards card to help college students save money. Who is performing which function in the distribution channel?

Jenna - facilitating, Mia - transactional, Rachel - logistical

Bill McDermott is President and CEO of SAP Americas and Asia Pacific Japan. SAP is a company that sells extremely expensive enterprise resource planning software to large and mid-sized companies. McDermott operates at the __________ level of his organization.

corporate

Text, pictures, sound, and video refer to which website design element?

content

Pharmaceutical companies sell some of their products to hospitals and clinics directly. They also market other products to large retail chains like Walgreens that distribute them to their stores across the nation. In addition, they sell products to drug wholesalers that sell to the remaining independent drugstores in the U.S. What best describes the distribution method used by pharmaceutical companies in this example?

dual distribution

The detailed day-to-day operational decisions essential to the overall success of a firm's marketing effort are referred to as __________.

marketing tactics

The two types of channel conflict are

horizontal and vertical.

Hostess, makers of the iconic snack Twinkies, has noticed that it has lost much of its market share to competitors. Its top executives have decided that the brand is no longer worth their efforts and are preparing for the sale of their iconic brand. What strategy based on market share are Hostess' executives implementing?

Divesting

the use of the Internet to make products and services available for purchase or use by consumers or industrial buyers.

electronic marketing channels

setting the highest initial price that customers who really desire the product are willing to pay (demand oriented)

skimming pricing

setting a low initial price on a new product to appeal immediately to the mass market (demand oriented)

penetration pricing

setting a high price so that quality (or status-concious) consumers will be attracted to the product (demand oriented)

prestige pricing

setting the price of a line of products at a number of different specific pricing points (demand oriented)

price lining

setting prices a few dollars or cents under a whole number (example: $11.99) (demand oriented)

odd-even pricing

estimating the price that the ultimate consumer would be willing to pay for a product (demand oriented)

target pricing

the marketing of two or more products in a single package price (demand oriented)

bundle pricing

charging of different prices to maximize revenue for a set amount of capacity at any given time (demand oriented)

yield management pricing

adding a fixed percentage to the cost of all items in a specific product class (cost oriented)

standard markup pricing

summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price (cost oriented)

cost plus pricing

a method of pricing based on the learning effect, which holds that the unit cost of many products and services declines by 10 to 30 percent each time a firm's experience at producing and selling them doubles (cost oriented)

experience curve pricing

setting an annual target of a specific dollar volume on profit (profit oriented)

target profit pricing

Setting a price to achieve a profit that is a specified percentage of sales volume

target return on sales pricing

setting a price to achieve an annual target return-on-investment (profit oriented)

target return on investment pricing

setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors (competition oriented)

customary pricing

setting a market price for a product or product class based on a subjective feel for the competitor's price or market price as the benchmark (competition oriented)

above, at, or below market pricing

deliberately selling a product below its customary price to attract customers' attention in hopes that they will buy other products as well (competition oriented)

loss-leader pricing

(called fixed pricing) involves setting one price for all buyers of a product or service

one-price policy

(also called dynamic pricing) involves setting different prices for products and services depending on individual buyers and purchase situations

flexible-price policy

setting prices for all items in a product line

product-line pricing

involves successive price cutting by competitors to increase or maintain their unit sales or market share

price war

Zephyrhills has the objective of expanding its share of the Florida bottled water market from 40% to 50%. In order to achieve this growth, what is the total share of voice that Zephyrhills must have? (Assume Zephyrhills' current SOV is 40%.)

55%

the description of how new retail outlets enter the market.

wheel of retailing

Which of the following characteristic(s) of a website is(are) aimed at enabling user-to-user communication?

I. Content
II. Communication
III. Connection
IV. Community

IV only

Brittany logged onto what she thought was Amazon.com to browse for a new pair of running shoes. Sure enough, she found a pair in her favorite color and they had them in her size. She ordered the shoes and typed in all her appropriate information. The next day she logged in to check her bank account and realized someone had stolen her credit card number and purchased $500 worth of ring tones. What type of transaction fraud has Brittany fallen victim to?

Pharming

Oliver loves his Beta fish named Alpha. He notices that a new store called Fish R Us has opened in his town. Even though the Fish R Us store is small and has high prices, Oliver shops there because the employees are very knowledgeable about fish and are always willing to help him find the best products for Alpha. Fish R Us focuses only on fish-related merchandise, but it has a great selection within those categories. Fish R Us can best be described as a:

Specialty Store

Managers at Winn-Dixie are trying to determine if they need to expand the number of shelf facings they give JIF peanut butter. They are interested in determining how fast the JIF peanut butter product is being sold, and therefore, how often it will need to be restocked. They determine the Beginning Inventory to be $30,000 and the Ending Inventory to be $36,000. The Cost of Goods Sold is $245,000. What is JIF's Stockturn Rate?

7.4

According to guest lecturer Sara Sharpe from Chompmenus.com, which of the following statements are TRUE about Chompmenus?
1 Students, Gainesville residents and restaurants are all customers of Chompmenus
2 Chompmenus generates revenue only through selling advertising space to restaurants
3 Chompmenus offers exclusive deals and customer loyalty programs as incentives for ordering online
4 Chompmenus does not use any local guerrilla marketing tactics to advertise their services
5 Chompmenus offers easy online ordering and a free menu guide

1 3 and 5

Firms on average used eight metrics to measure their innovation. Among firms that use more than three different innovation metrics, they use output and input metrics. Which of the following is an input metric?
A. customer satisfaction with new products or services
B. return on investment (ROI) in new products or services
C. number of new products or services launched
D. revenue growth due to new products or services
E. R&D spending as a percentage of sales

R&D spending as a percentage of sales

Captain Morgan is known for making and distributing rum. The decision makers in the company have recently increased their advertising budget. They arrived at this larger budget by basing their ad spending on their new goal of increasing Captain Morgan's presence in the college market. They know they need to introduce some new flavored rums and do a lot of event marketing. By estimating the costs of these initiatives, Captain Morgan was able to arrive at their budget, which is now slightly higher than Bacardi's. What type of advertising budget strategy is this an example of?

Objective & Task

The evaluation phase of the strategic marketing process involves comparing goals and results to identify deviations using marketing metrics and dashboards, _____, and formulating new plans and actions.

identifying causes of deviations

The detailed day-to-day operational decisions essential to the overall success of marketing strategies are referred to as _________.

marketing tactics

In the early 1900s, Henry Ford revolutionized the automobile industry by developing production lines and mass-producing the Ford Model T automobile. By reducing production costs, Henry Ford made the Model T affordable for virtually all American families. What generic business strategy did Henry Ford use to gain a competitive advantage in the automobile market?

A cost leadership strategy.

Michael Phelps, having just finished a training session for the 2012 Olympics, is hungry. He goes to Publix to buy some frozen pizzas, toilet paper, and toothpaste, and while he's there, he figures he might as well get some lunch, too. He goes to the deli and orders 4 large Boar's Head traditional subs as well as 2 dozen Publix chicken tenders for lunch. Phelps' lunch (the subs and the chicken) is an example of which retailer function? (Choose the best answer.)

Providing services

GreenWay, a U.S. organic food company, has decided to expand into the international market. After doing significant market research, the company realized that they would have to create a different product specifically tailored for each country, due to varying cultural tastes. This approach is called ____.

Pure Non-Standardization

Your uncle Albert D. Gator is the proud owner of "Swamp Survival Fashions," a chain of hunting gear and clothing stores. One of the functions your uncle performs is evaluating many different products and deciding which ones to sell in his store. This is an example of which channel function?

Assorting

a marketing system that achieves coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership.

administered vertical marketing system

the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in the traditional marketplace and online.

Multichannel marketing

Costa Coffee Company processes and distributes its coffee to retailers worldwide. This year the company wants to significantly reduce the cost of operations. Costa decides to acquire three of the coffee plantations that supply its high quality beans. What type of channel process is Costa engaging in?

backward vertical integration

Alberto is an up and coming marketing student living on student loans and scholarships at the University of Florida. He is a tremendously hard worker and is motivated by achievement. He looks up to successful role models in his life and hopes one day to be like them. Alberto would be classified as which of the following?

Striver

an institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.

World Trade Organization (WTO)

Gina and Daniela, two recent UF Marketing graduates, are hired by Elderly Gators Retirement Investments Firm as part of a team commissioned to do a detailed analysis of the consumers worldwide who use their products and services. By doing so, the company hopes to better understand and reach a worldwide retirement age audience. The type of study Gina and Daniela are being tasked with focuses on which component of "cross-cultural" analysis? (Choose the best answer)

Demographic

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