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90 terms

Principles of Marketing

Quiz #2
1) Which of the following is NOT a typical supply chain member?
A) resellers
B) customers
C) intermediaries
D) government agencies
E) raw materials supplier
________ the manufacturer or service provider is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service.
A) Downstream from
B) Upstream from
C) Disintermediated from
D) Horizontal to
E) Parallel with
3) Another term for the supply chain that suggests a sense and respond view of the market is ________.
A) supply and demand chain
B) demand chain
C) channel of distribution
D) distribution channel
E) physical distribution
4) Most producers today sell their goods directly to ________.
A) final users
B) final users and marketing members
C) intermediaries
D) warehouses
E) third-party logistics providers
6) From the economic system's point of view, the role of marketing intermediaries is to transform the assortment of products made by producers into the assortment of products wanted by ________.
A) channel members
B) distributors
C) consumers
D) manufacturers
E) marketers
7) Producers benefit from using intermediaries because they ________.
A) offer greater efficiency in making goods available to target markets
B) bring a fresh point of view to strategy development
C) eliminate risk
D) are generally backlogged with orders
E) refuse to store products for longer than a few days
8) Intermediaries play an important role in matching ________.
A) dealer with customer
B) supply and demand
C) product to region
D) manufacturer to product
E) information and promotion
9) Channel members add value by bridging the major gaps of ________ that separate goods and services from those who would use them.
A) time, need, and form
B) place, possession, and form
C) time, place, and possession
D) place, time, and need
E) place, need, and distribution
13) In marketing terms, we say that the number of intermediary levels indicates the ________ of a channel.
A) depth
B) complexity
C) involvement
D) length
E) width
14) At minimum, a marketing channel consists of a producer and a(n) ________.
A) wholesaler
B) agent
C) broker
D) intermediary
E) customer
15) To a producer of goods, a greater number of channel levels means ________ and greater channel complexity.
A) less distance between producer and end consumer
B) less control
C) fewer potential ideas
D) higher taxes
E) fewer channel partners
16) Which of the following is an example of a complete business-to-business channel?
A) producer to retailer to consumer
B) producer to wholesaler to retailer to consumer
C) producer to sales branch
D) business distributor to business customer
E) producer to distributor to business customer
20) Joanie Calvert is experiencing a disagreement with intermediaries in the channel over who should do what and for what rewards. Joanie is experiencing ________.
A) a tying disagreement
B) channel conflict
C) channel disintermediation
D) third-party logistics
E) channel intermediation
21) ________ conflict, which occurs between different levels of the same channel, is more common than ________ conflict, which occurs among firms at the same level of the channel.
A) Horizontal; vertical
B) Vertical; horizontal
C) Contractual; corporate
D) Corporate; franchise
E) Wholesaler; retailer
29) The most common type of contractual relationship in business is the ________.
A) franchise organization
B) administered marketing system
C) conventional marketing channel
D) corporate VMS
E) horizontal marketing system
36) Due in a large part to advances in technology, ________ is a major trend whereby product and service producers are bypassing intermediaries and going directly to final buyers, or radically new types of channel intermediaries are emerging to displace traditional ones.
A) the vertical marketing system
B) the corporate marketing system
C) disintermediation
D) the corporate merger
E) the hostile takeover
37) The four major steps of designing a channel system are analyzing consumer needs, setting channel objectives, ________, and evaluating the alternatives.
A) establishing a budget
B) identifying major channel alternatives
C) seeking regulatory approval
D) seeking legal advice
E) measuring objectives
39) To increase a channel's service level, the channel must provide a greater assortment of products, more add-on services, or ________.
A) lower prices
B) fewer middlemen
C) faster delivery
D) more competition
E) less follow-up
46) Sometimes a producer chooses only a few dealers in a territory to distribute its products or services. Generally these dealers are given a right to ________ distribution.
A) exclusive
B) selective
C) intensive
D) administered
E) corporate
48) When establishing the responsibilities of channel members, the producer establishes a list price, sets discounts for intermediaries, and defines each channel member's ________.
A) sales limits
B) territory
C) legal rights
D) customers
E) mission
51) China and India each contain more than one billion people. However, companies can access only a small percentage of these potential markets due to ________.
A) inadequate distribution systems
B) indifference toward Western products
C) high regional taxes
D) the religious caste system
E) insurmountable language barriers
58) Marketing logistics involves getting the right product to the right customer in the right place at the right time. Which one of the following is NOT included in this process?
A) planning the physical flow of goods and services
B) implementing the plan for the flow of goods and services
C) controlling the physical flow of goods, services, and information
D) gathering customer's ideas for new products
E) planning the flow of logistics information to meet customer requirements at a profit
59) Marketing logistics involves which of the following distribution flows?
A) outbound and inbound only
B) outbound, inbound, and reverse
C) inbound and reverse only
D) outbound and reverse only
E) outbound only
60) ________ logistics controls the movement of products from points of production to consumers.
A) Inbound
B) Reverse
C) Outbound
D) Vertical
E) Horizontal
62) Which of the following is NOT an area of responsibility for a logistics manager?
A) information systems
B) warehousing
C) promotions
D) inventory
E) purchasing
66) To reduce inventory management costs, many companies use a system called ________, which involves carrying only small inventories of parts or merchandise, often only enough for a few days of operation.
A) reduction-inventory management
B) just-in-time logistics
C) limited inventory logistics
D) supply chain management
E) economic order quantity
67) Through the use of ________, or "smart tag" technology, a company is able to locate a product's exact position within the supply chain.
E) 3PL
69) In the proper order, identify the correct terms for these intermodal transportation combinations: rail and truck, water and truck, water and rail.
A) fishyback; airtruck; trainship
B) piggyback; airtruck; fishyback
C) trainship; fishyback; piggyback
D) piggyback; fishyback; trainship
E) piggyback, fishyback; birdyback
74) Today, a growing number of firms now outsource some or all of their logistics to ________.
A) cross-functional teams
B) disintermediaries
C) horizontal channel members
D) third-party logistics providers
E) competitors
75) UPS Supply Chain Solutions, which handles all of its clients' "grunt work" associated with logistics, is an example of ________.
A) integrated logistics management
B) a distribution center
C) selective distribution
D) a third-party logistics provider
E) a cross-functional, cross-company team
87) Which product will most likely be exclusively distributed?
A) BMW cars
B) Levi's blue jeans
C) Bazooka bubble gum
D) Prairie Farms yogurt
E) Coca-Cola
92) Grayville Rock and Gravel, located in a seaport town, sells rock, gravel, and sand to local markets. It has just been awarded a contract with a company 500 miles down the coast. Management should consider switching from truck to ________ transport.
A) water
B) rail
C) pipeline
D) air
E) none of the above
100) In using air transportation and then expedited truck carriers to deliver specialty items to customers outside of a designated delivery range, Miller Meats is using ________.
A) all of its supply chain
B) all of its value delivery network
C) direct marketing channels
D) intermodal transportation
E) a horizontal marketing system
109) When Sherwin Williams Paint Company has single ownership of integrated, successive stages of production and distribution, it has created a corporate VMS.
110) Disintermediation as a trend is on the rise in U.S. business.
112) The faster the delivery, the greater the assortment provided, and the more add-on services supplied, the more the channel's service level is restricted.
114) Intensive distribution seeks many outlets in a market, while selective distribution seeks only one outlet in a given market area.
115) The producer and intermediaries need to agree on the terms and responsibilities of each member, including price policies, conditions of sale, territorial rights, and specific services to be performed by each party.
120) Integrated logistics management aims to provide better customer service and trim distribution costs through teamwork, both inside the company and among all the marketing channel organizations.
121) Judy Smith is the manager of the local McDonald's franchise in Cartersville. Recently the home office did not let her participate in co-op advertising like the other McDonald's in her district. Now she is irritated and demands fairness. This is an example of horizontal conflict.
1) ________ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.
A) Franchising
B) Retailing
C) Brokering
D) Wholesaling
E) Disintermediation
2) In recent years, ________ has been growing fast. This includes selling to final consumers through direct mail, catalogs, telephone, and the Internet.
A) social marketing
B) shopper marketing
C) franchising
D) nonstore retailing
E) e-commerce
5) Which type of stores usually carry more specialty goods for which customers like to be "waited on" and have much higher operating costs, which are passed along to the customer?
A) self-service stores
B) category killer stores
C) full-service stores
D) independent stores
E) specialty-service retailers
8) ________ are flourishing due to increased use of market segmentation and market targeting.
A) Chain stores
B) Specialty stores
C) Superstores
D) Discount stores
E) Off-price stores
11) ________ are facing slow sales growth because of slower population growth, increased competition, and the rapid growth of out-of-home eating.
A) Convenience stores
B) Department stores
C) Chain stores
D) Supermarkets
E) Hypermarkets
13) Which type of small store carries a limited line of high-turnover convenience goods and makes most of its revenues from cigarette, beverage, and gasoline sales?
A) convenience
B) chain
C) department
D) supermarket
E) hypermarket
17) ________ retailers in the United States are growing faster than product retailers.
A) Discount
B) Merchant
C) Service
D) Specialty
E) Off-price
18) ________ sell standard merchandise at lower prices by accepting lower margins and selling higher volume.
A) Merchant wholesalers
B) Discount stores
C) Full-service retailers
D) Limited-service retailers
E) Factory outlets
19) Early ________ cut expenses by offering few services and operating in warehouse-like facilities in low-rent, heavily traveled districts.
A) chain stores
B) factory outlet malls
C) discount stores
D) off-price retailers
E) full-service retailers
30) Until retailers ________ and ________ their markets, they cannot make consistent decisions about product assortment, services, pricing, advertising, store décor, or any of the other decisions that must support their positions.
A) compete with; position
B) target; compete with
C) define; profile
D) limit; serve
E) divest; eliminate
31) Service differentiation among retailers has ________.
A) increased
B) decreased
C) stayed the same
D) franchised
E) tripled
33) A retailer's ________ should differentiate the retailer while matching target shoppers' expectations. One strategy is to offer merchandise that no other competitor carries.
A) agent
B) broker
C) product assortment
D) environment
E) distribution strategy
36) While all retailers would like to achieve ________ while charging ________, the two seldom happen together.
A) low volume; high markups
B) low volume; low markups
C) high volume; high markups
D) high volume; low markups
E) high volume; cut-rate markups
37) In-store demonstrations, displays, contests, and visiting celebrities are examples of ________.
A) franchises
B) sales promotions
C) agent promotions
D) broker promotions
E) product life-cycling
45) Today's trend in retail clusters is toward ________, huge unenclosed shopping centers consisting of a long strip of retail stores, including at least one large, freestanding anchor store like Walmart. Each store has its own entrance with parking directly in front for shoppers who wish to visit only one store.
A) shopping malls
B) power centers
C) superstores
D) chain stores
E) regional shopping centers
47) In response to a(n) ________, many retailers have cut costs, used price promotions, and added new value pitches to their positioning.
A) down economy
B) up economy
C) dot-com meltdown
D) dot-com boom
E) shift in retail technology
60) Which wholesaler's channel function is demonstrated when a wholesaler's sales force helps a manufacturer to reach many small customers at a low cost?
A) bulk-breaking
B) selling and promoting
C) buying and assortment building
D) warehousing
E) rackjobbing
102) Marketers who use shopper marketing use the retail store itself as an important marketing medium.
103) Department stores carry narrow product lines with deep assortments within those lines.
104) In recent years, convenience stores have redesigned their stores to closely focus on serving their primary target market made up of young, blue-collar men.
110) Chain stores are located near residential areas and are open long hours, seven days a week; they carry a limited line of high-turnover goods.
111) In a retailer cooperative, independent retailers contract with each other to set up a central buying operation and conduct joint promotional efforts.
113) To create the right atmosphere, some retailers control every aspect of the consumer's store experience, including what customers hear and smell.
114) Power centers are decreasing in number.
120) In an automated warehouse, orders are fed directly from the retailer's information system to the wholesaler's, and the items are picked up by mechanical devices and taken to a shipping platform where they are assembled.
121) Full-service retailers such as JC Penney provide more sales assistance because they carry more shopping goods about which customers need information.
1) A company's total marketing communications mix consists of a special blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. This is also called ________.
A) direct marketing
B) integrated marketing
C) the promotion mix
D) competitive marketing
E) target marketing
2) The use of short-term incentives to encourage the purchase or sale of a product or service is called ________.
A) direct marketing
B) sales promotion
C) personal selling
D) public relations
E) publicity
3) Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________.
A) sales promotion
B) advertising
C) direct marketing
D) personal selling
E) public relations
5) Which of the following is NOT a major category in a company's promotion mix?
A) sales promotion
B) strategic positioning
C) direct marketing
D) public relations
E) advertising
9) Today's consumers do not need to rely on marketer-supplied information about products and services because they can use ________ to seek out a wealth of information.
A) marketing communications
B) direct marketing
C) the Internet and other technologies
D) mass market media
E) informative advertising
11) Moving away from ________, marketers have been shifting toward highly focused marketing, spawning a new generation of more specialized and highly targeted communications efforts.
A) mass marketing
B) advertising
C) direct marketing
D) pull strategies
E) push strategies
18) Advertising, sales promotion, personal selling, public relations, and direct marketing are all ________.
A) communications channels that should be integrated under the concept of integrated marketing communications
B) communications channels focused more on narrowcasting than broadcasting
C) promotional tools used for push strategies but not pull strategies
D) promotional tools used for pull strategies but not push strategies
E) promotional tools adapted for use in mass marketing
21) Integrated marketing communications produces better communications ________ and greater ________ impact.
A) consistency; sales
B) sales; consistency
C) marketing; competitive
D) variety; production
E) branding; quality
27) In the communication process, the reaction of the receiver after being exposed to a message is called the ________.
A) response
B) answer
C) noise
D) feedback
E) decoding
38) In the model of buyer-readiness stages, the first stage is ________.
A) preference
B) knowledge
C) liking
D) awareness
E) insistence
42) Though a popular appeal, when used poorly ________ can detract from comprehension, quickly wear out its welcome, overshadow the product, or even irritate consumers.
A) humor
B) nonpersonal communication
C) direct marketing
D) integrated marketing
E) noise
51) Creating word-of-mouth campaigns by cultivating opinion leaders and getting them to spread information about a product or service to others in their communities is known as ________.
A) sales promotion
B) indirect marketing
C) buzz marketing
D) stealth marketing
E) public relations
54) To ________, a marketer can ask target audience members whether they remember the message, how many times they saw it, and what points they remember.
A) select a message source
B) collect feedback
C) select a message channel
D) plan a media purchase
E) design a marketing appeal
61) Advertising has some shortcomings. What is NOT one of them?
A) It is impersonal.
B) It can be very costly.
C) It slowly reaches many people.
D) It carries on one-way communication with the audience.
E) It does not make audience members feel the need to respond.
65) "Buy it now" is the message of ________.
A) personal selling
B) advertising
C) a nonpersonal communication channel
D) sales promotion
E) publicity
69) Which promotional mix strategy directs marketing efforts toward final consumers?
A) pull
B) blitz
C) push
D) buzz
E) pulse
70) Which promotional mix strategy directs marketing efforts toward market channel members?
A) pull
B) blitz
C) push
D) buzz
E) pulse
101) A company's marketing communications mix is also called its promotion mix.
110) The communications process should start with mass media advertising to reach many consumers.
111) The four major communication functions are encoding, decoding, response, and noise.
114) Awareness, knowledge, and preference are buyer-readiness stages.
115) There are three types of appeal from which marketers may choose as they design their message content. These types are rational, emotional, and moral appeals.
116) Buzz marketing involves cultivating opinion leaders and getting them to spread information about a product or service to others in their communities.
124) Advertisements for prescription drugs often feature potential benefits and negative side effects that consumers may experience with use of the medication. These ads present two-sided arguments.