Busi 330 quiz 5 liberty university answers solutions 100

BUSI 330 quiz 5 Liberty University answers solutions 100

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Question 1 The four major types of limitedservice merchant wholesalers are cash and carry

wholesalers, drop shippers, truck jobbers, and __________.

Question 2 The Sports Authority is a sporting goods superstore that provides year round inventory

of equipment for just about any sport you can name. Even during the "off season," equipment for

seasonal sports is available at the Sports Authority. Which utility does the Sports Authority best

provide?









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Question 3 As a business format franchisor, McDonald's provides stepbystep procedures for most

aspects of the business and

Question 4 Jane Westerlund owns a small retail picture frame store in a local strip mall. She just

bought 10 picture frames from a promising woodworker for $36 each. Based on market conditions,

she will sell these for $100 each. What is the percentage markup based on the selling price?

Question 5 Subway is a popular __________.

Question 6 McDonald's, Radio Shack, and Subway are examples of __________.

Question 7 There are two general types of franchises: business format franchises and __________

franchises.

Question 8 Stores that carry tremendous depth in one primary line of merchandise are referred to

as

Question 9 Vending machines are an example of __________.

Question 10 Which type of outlet is most likely in its decline stage of the retail life cycle?

Question 11 The twoway flow of communication between a buyer and a seller, often in a facetoface

encounter, designed to influence a person's or group's purchase decision is referred to as

Question 12 Figure 145 The promotion decision process is divided into three phases. In Figure 145

above, B refers to the __________ phase.

Question 13 For a promotional campaign, the hierarchy of effects refers to the stages a prospective

buyer goes through, which include:

Question 14 In the feedback loop, the impact the message has on the receiver's knowledge, attitude,

or behaviors during the communications process is referred to as __________.

Question 15 Which of the following weaknesses is associated with sales promotions?

Question 16 The local radio station broadcast a story about a drycleaner that requested coat

donations. The company offered to clean the coats and deliver them to people in need. The various

addresses of the drycleaner chain were also broadcast so that donations could be dropped off.

Since this featured business did not pay for this exposure, it benefited from __________.

Question 17 According to the textbook, __________ recently won Advertising Age magazine's coveted

Media Agency of the Year award.

Question 18 Which of the following statements describes a disadvantage associated with personal

selling?

Question 19 Lenox China Co. would like to get its annual Christmas ornament series into Macy's

department stores. Macy's has a buyer in New York City who makes decisions on its giftware. Which

promotional element would be most appropriate for Lenox to use to reach the Macy's buyer?

Question 20 During the planning phase of an IMC program, a firm will identify the target audience,

specify the promotion objectives, set the budget, select the right promotional tools, __________, and

schedule the promotion.

Question 21 When Bebe, a contemporary women's clothing store, uses seductive imagery in its

advertising, it is using which type of advertising appeal?

Question 22 When developing the advertising program, specifying __________ helps advertisers with

other choices in the process such as selecting media and evaluating a campaign.

Question 23 One of the disadvantages associated with television as an advertising medium is that

it

Question 24 One of the advantages associated with television as an advertising medium is that it

Question 25 Click fraud can occur when legitimate website visitors click on ads without any intention

of looking at the site to keep them free. This practice is called _________ .

Question 26 The Wall Street Journal and USA Today each have a national distribution of more than

Question 27 Suppose the following information: The cost of a full page color ad in the U.S. national

edition of The Wall Street Journal (newspaper) is $312,283 and its U.S. audience size is 1,566,027.

The cost of a full page color ad in the U.S. national edition Sports Illustrated (magazine) is $392,800

and has an audience size of 3,150,000. The cost of a 30second ad on the most recent Super Bowl

(television) is $3,500,000 and has an audience size of 111,300,000. Using this information, which of

the following is the most appropriate metric to use to determine which medium would provide the

most efficient use of your limited resources?

Question 28 According to Figure 151A above, which of the following media alternatives has the

LARGEST amount of advertising expenditures?

Question 29 Consumeroriented sales promotions refer to

Question 30 The type of appeal used to imply either directly or subtly that the product is more fun

or exciting than competitors' offerings is referred to as a(n) _________.

Location-based social networking apps such as Foursquare reward customers for

a. using minutes on their mobile phones.

b. shopping online.

c. responding to TV ads.

d. reporting their locations and visiting stores.

e. answering customer service surveys on their mobile phones.

Foursquare, Gowalla, Booyah, Brightkite, and Loopt are

a. multiplayer video games.

b. advertising agencies.

c. location-based social networking apps for smartphones.

d. names of new phones targeted at college students.

e. restaurants with new food concepts.

Why do retailers like location-based apps such as Foursquare?

a. they use audio and video to communicate a message

b. all consumers demand technology-based offerings today

c. they are free

d. they attract consumers who are not price sensitive

e. they provide an opportunity to personalize offerings to potential customers

All activities involved in selling, renting, and providing products and services to ultimate

consumers for personal, family, or household use are referred to as __________.

a. manufacturing

b. retailing

c. wholesaling

d. facilitating

e. logistics

Retailing refers to all activities involved in the

a. selling, renting, and providing of products and services to ultimate consumers for

personal, family, or household use.

b. selling of tangible products to ultimate consumers for personal, family, or household

use.

c. selling of tangible products to ultimate consumers for personal, household, or industrial

use.

d. selling, renting, leasing, or reselling of products and services to ultimate consumers or

small industrial users.

e. selling, renting, and providing of products and services without retaining the title to

these offerings.

Retailing is an important marketing activity. Not only do producers and consumers meet

through retailing actions, but retailing also creates __________.

a. the nation’s largest source of tax revenues

b. the largest source of charitable contributions

c. limited utilities for consumers

d. customer value

e. a sense of community

The __________ provided by retailers create value for consumers.

a. utilities

b. wholesaling functions

c. outsourcing

d. logistics

e. synergies

The four utilities offered to consumers through retailing are

a. convenience, performance, possession, and form.

b. time, place, possession, and form.

c. product, price, place, and promotion.

d. people, productivity, process, and physical environment.

e. convenience, consistency, competition, and choice.

Wells Fargo is one of the best-run banks in the United States. It reaches retail customers

through 9,000 stores, a worldwide network of 12,000 ATMs, and its online banking service.

Which utility does Wells Fargo best provide?

a. time

b. possession

c. place

d. form

e. performance

Enterprise car rental agency differentiates itself from other similar agencies by providing a

delivery service. This delivery service is particularly valuable to someone who has been left

stranded without transportation. By making it easy to rent temporary transportation,

Enterprise is emphasizing which utility?

a. form

b. product

c. service

d. possession

e. convenience

CarMax dealers have adopted a “no-hassle, no-haggle” sales policy that eliminates the need

for negotiating. Instead, all customers are offered the same price. Test drives, financing,

trade-ins, and leasing are all offered to encourage customers to purchase a car. Which

utility does CarMax best provide?

a. product

b. form

c. convenience

d. service

e. possession

Albertson’s Supermarket accepts debit and credit cards as well as cash and checks for

purchases. Its acceptance of various forms of payment provides its customers with

__________ utility.

a. time

b. place

c. possession

d. form

e. public

A restaurant that offers food made exactly to each customer’s preference is providing its

customers with __________ utility.

a. time

b. place

c. possession

d. form

e. process

The ability to shop over the Internet 24/7 provides consumers with __________ utility.

a. form

b. time

c. convenience

d. possession

e. performance

At the Christmas Tree Shop, customers can shop for Christmas gifts at any time of year.

What type of utility does this store primarily provide for its customers?

a. place and conformance

b. possession and form

c. form

d. performance

e. time

The Sports Authority is a sporting goods superstore that provides year-round inventory of

equipment for just about any sport you can name. Even during the “off season”, equipment

for seasonal sports is available at the Sports Authority. Which utility does the Sports

Authority best provide?

a. time

b. convenience

c. possession

d. form

e. performance

Retailing’s economic value is represented by the people employed in retailing as well as by

a. the price asked for any one item.

b. the cost of goods sold.

c. the net return on capital.

d. annual sales of retailers.

e. the elimination of global boundaries.

Retailing’s economic value is represented by the annual sales of retailers and __________.

a. the price asked for any one item

b. the cost of goods sold

c. the people employed in retailing

d. the net return on capital

e. the elimination of global boundaries

As shown in Figure 16-2 above, the greatest dollar amount of retail sales in the United

States is generated by __________.

a. food and beverage stores

b. sporting goods, books, and music stores

c. electronic stores

d. automotive dealers

e. furniture and home furnishing stores

As shown in Figure 16-2 above, the smallest dollar amount of retail sales in the United

States is generated by __________.

a. automotive dealers

b. food and beverage stores

c. sporting goods, books, and music stores

d. electronic stores

e. furniture and home furnishing stores

Four of the 30 largest businesses in the United States are retailers—Walmart, Costco, Home

Depot, and _________.

a. Sears

b. Target

c. Best Buy

d. JC Penney

e. Bloomingdale

Walmart’s $421 billion in sales in 2010 surpassed the gross domestic product of all but

__________ countries for that same year.

a. 5

b. 12

c. 18

d. 29

e. 50

Outside the United States, large retailers include __________ in Japan, Carrefour in France,

Metro Group in Germany, and Tesco in Britain.

a. Aeon

b. Toshei

c. Seebi

d. Goshen

e. Toshi

There are three key methods of classifying retail operations

a. method of operation, revenues generated, and merchandise line.

b. form of ownership, method of operation, and merchandise line.

c. form of ownership, level of service, and merchandise line.

d. level of service, merchandise line, and revenues generated.

e. merchandise line, form of ownership, and revenues generated.

Which of the following is a commonly used method of classifying retail outlets?

a. service versus product

b. form of ownership

c. proportion of national versus private label brands carried

d. revenues generated

e. profitability

The _________ distinguishes retail outlets based on whether independent retailers, corporate

chains, or contractual systems own the outlet.

a. product involvement

b. service level

c. merchandise line

d. product assortment

e. form of ownership

A method of classification that describes the degree of service provided to the customer is

referred to as _________.

a. product involvement

b. product assortment

c. merchandise line

d. level of service

e. form of ownership

Three __________ are provided by self-, limited-, and full-service retailers.

a. levels of distribution

b. levels of involvement

c. levels of service

d. service commitments

e. merchandise lines

The degree of service provided to the customer from self-, limited-, and full-service retailers

is referred to as __________.

a. involvement

b. level of service

c. service commitment

d. customer obligation

e. degree of commitment

Level of service is used to describe the degree of service provided to the customer. Three

levels of service are provided by self-, _________-, and full-service retailers.

a. limited

b. commitment

c. involvement

d. obligation

e. pledge

A method of classification that describes how many different types of products a store

carries and in what assortment is referred to as a __________.

a. product mix

b. service level

c. product assortment

d. store composition

e. merchandise line

Retailers have come to realize that consumers want products that are consistent with their

personal values and

a. foreign regulations.

b. meet third party certifications.

c. they want to purchase them from retailers with similar values.

d. cost less.

e. social image.

When Home Depot switched its in-store light fixture displays to compact fluorescent light

bulbs it saved __________ per year.

a. $16 million

b. $24 million

c. $29 million

d. $31 million

e. $42 million

By requiring its toy suppliers to trim one square-inch of packaging from its lines, Walmart

reduced packaging by __________ tons.

a. 3,000

b. 3,500

c. 4,000

d. 4,500

e. 5,000

Target has taken the “green” concept to its advertising agency and requires

a. the use of the Green Certified Retail Operations Guide.

b. that all vehicles produce no emissions.

c. a “green” logo appears at the end of the ad.

d. that waste from shooting new commercials be recycled or composted.

e. an environmental impact report each month.

There are three general forms of retail ownership: contractual system, corporate chain, and

__________.

a. dual ownership

b. industry consortium

c. retailing cooperative

d. independent retailer

e. multi-national cartel

There are three general forms of retail ownership: contractual system, independent retailer,

and __________.

a. dual ownership



d. multi-national cartel

e. corporate chain

There are three general forms of retail ownership: independent retailer, corporate chain, and

__________.

a. dual ownership



d. contractual system

e. multi-national cartel

One of the most common forms of retail ownership is the __________ owned by a person.

a. corporate chain

b. consumer cooperative

c. contractual system


e. administered system

Independent retailers account for most of the __________ retail establishments in the United

States.

a. 50,000

b. 90,000

c. 500,000

d. 900,000

e. 1.1 million

Most of the 1.1 million retail establishments in the United States including hardware stores,

convenience stores, clothing stores, and computer and software stores are owned by

__________.

a. corporate chains

b. contractual systems

c. independent retailers

d. conglomerate

e. multinationals

Which form of retail outlet would most likely offer customer convenience, quality personal

service, and lifestyle compatibility?

a. corporate chain

b. independent retailer

c. administered system

d. contractual system

e. sole incorporation

Your neighborhood dry cleaner or florist is likely to be categorized as an independent retailer.

This means it is owned by a(n) __________.

a. individual

b. conglomerate

c. consortium

d. corporation

e. cooperative

A form of ownership that involves multiple outlets under common ownership is referred to

as a(n).

a. corporate chain

b. consumer cooperative

c. contractual system


e. administered system

Bloomingdale’s stores are all part of __________ corporate chain.

a. Dillard’s

b. Macy’s

c. Target’s

d. Walmart’s

e. Saks Fifth Avenue

Which of the following statements regarding corporate chains is most accurate?

a. Corporate chains usually avoid using centralized decision-making.

b. Corporate chains generally own most if not all of their suppliers so they do not have to

negotiate for price.

c. Consumers have fewer choices in merchandise since all buying decisions are made

unilaterally.

d. Corporate chains offer the least benefit to consumers since they are the farthest

removed from the ultimate consumer.

e. Corporate chains are multiple outlets under common ownership.

Consumers benefit in dealing with retail corporate chains because

a. corporate chains have more experience than other forms of retailers.

b. they can own stock in the same company where they shop since corporate chain stock

must be publicly-traded.

c. they can bargain with a manufacturer to obtain product volume discounts on orders,

which can be passed on to consumers in terms of lower prices .

d. there are multiple outlets with varied merchandise and independent management

policies.

e. merchandise is arranged and displayed by professional designers making their shopping

experience less stressful.

Consumers benefit in dealing with retail corporate chains because

a. corporate chains have more experience than other forms of retailers.

b. they can own stock in the same company where they shop since corporate chain stock

must be publicly-traded.

c. they can establish a credit history more easily than with other forms of retailers.

d. there are multiple outlets with similar merchandise and consistent management policies.

e. they have less stress in making decisions since merchandise is arranged and displayed

by professional designers.

The acronym RFID stands for

a. retail franchise identification designation.

b. required financial identification.

c. radar frequency identification.

d. radio frequency identification.

e. retail federation of independent department stores.

Walmart has developed a sophisticated inventory management and cost control system that

allows rapid price changes for each product in the store. The firm also uses technologies

such as __________ to improve the quality of information available about products.

a. radio frequency identification

b. encapsulation techniques

c. bar code scanners

d. nanotechnology

e. cookies

Independently owned stores that band together to act like a chain are referred to as

__________.

a. corporate chains

b. cooperative marketing systems

c. contractual systems

d. regional shopping centers

e. self-service systems

The three basic types of contractual systems are:

a. retailer-sponsored cooperatives, wholesaler-sponsored voluntary chains, and franchises.

b. dual ownership agreements, industry consortiums, and non-binding cooperatives.

c. wholesaler-sponsored voluntary chains, non-binding cooperatives, and franchises.

d. dual ownership agreements, industry consortiums, and multi-national cartels.

e. non-binding, binding, and in perpetuity.

One way neighborhood grocers can take advantage of volume discounts commonly

available to chains is to

a. purchase a franchise membership.

b. become a subsidiary of a larger supermarket chain like Kroger.

c. join a professional merchant association and hire food brokers to negotiate lower prices

for produce and dry goods.

d. create a grocery networking system to exchange coupon vouchers.

e. participate in a retailer-sponsored cooperative with other independent grocers.

Neighborhood grocers that ban together with several other independent grocers who all

agree to buy their goods directly from food manufacturers are a form of

a. retailer-sponsored cooperative.

b. consortium system.

c. administrative system.

d. conglomerate system.

e. collaborate chain.

Which method of classifying retail outlets would be most appropriate for describing

franchise operations?

a. form of ownership

b. level of service

c. merchandise line

d. method of operation

e. revenues generated

Franchising is a type of __________.

a. administered system

b. contractual system

c. vertically integrated chain

d. retail-sponsored cooperative

e. corporate system

In a(n) __________, an individual or firm contracts with a parent company to set up a business

or retail outlet.


b. vertically integrated chain

c. retail-sponsored cooperative

d. franchise system

e. corporate system

What type of contractual system describes a situation where assistance in selecting the

location, setting up the store or facility, advertising, and training personnel is provided?


b. conglomerate system

c. franchise system

d. vertical integrated system

e. retail-sponsored cooperative

As a franchisor, Radio Shack would assist a franchisee in selecting the store location, setting

up the store, advertising, and __________.

a. developing the marketing program

b. training personnel

c. offering performance bonuses

d. ordering and restocking inventory

e. paying insurance and legal fees

There are two general types of franchises:

a. product-format franchises and distribution franchises.

b. business-format franchises and manufacturing franchises.

c. business-format franchises and general service franchises.

d. business-format franchises and venture franchises.

e. business-format franchises and product-distribution franchises.

There are two general types of franchises: business-format franchises and __________

franchises.

a. product-distribution

b. general service

c. manufacturing

d. distribution

e. venture

A franchise where the franchiser provides a few general guidelines to the franchisee is

known as a

a. business-format franchise.

b. manufacturing franchise.

c. product-distribution franchise.

d. general service franchise.

e. business franchise venture.

Ford and Coca-Cola represent which type of franchise?

a. business-format franchise

b. manufacturing franchise

c. general service franchise

d. product-distribution franchise

e. business franchise venture

A franchise where the franchisor provides step-by-step procedures for most aspects of the

business is known as a

a. business-format franchise.

b. product-distribution franchise.

c. business franchise venture.

d. manufacturing franchise.

e. general service franchise.

McDonald’s, Radio Shack, and Subway are all _________.

a. product-distribution franchises

b. business franchise venture

c. business-format franchises

d. manufacturing franchises

e. general service franchise

As a business format franchisor, McDonald’s provides step-by-step procedures for most

aspects of the business and

a. provides an accounting system to pay the franchisee bills promptly.

b. shops for the best food values.

c. maintains the property.

d. guidelines for the most likely decisions a franchisee will face.

e. disciplines dishonest employees.

Subway is a popular __________.

a. business-format franchise

b. product-distribution franchise

c. business franchise venture

d. manufacturing franchise

e. general service franchise

Subway is one of the fastest growing __________.

a. product-distribution franchises

b. corporate chains

c. business-format franchises

d. independently owned retailers

e. horizontal marketing systems

Franchising is attractive for the franchisee because

a. it gives the franchisee complete control over the delivery and presentation of

merchandise.

b. the license fees paid to the franchisor are the only fees the franchisee pays.

c. it relieves the franchisee from any company or product liabilities.

d. it offers the franchisee the opportunity to enter into a well-known, established business

where managerial advice is provided.

e. the franchisee is completely his or her own boss.

Organizations that decide to franchise (franchisors) have __________ expansion costs

accompanied by __________ control, compared to owning their own retail outlets.

a. greater ; greater

b. reduced; reduced

c. greater ; reduced

d. reduced; greater

e. greater ; about the same

By selling franchises, an organization __________ the cost of expansion and __________ its

control compared to owning its own retail outlets.

a. increases; increases

b. increases; reduces

c. reduces; increases

d. increases; retains about the same

e. reduces; reduces

The three commonly used terms to describe levels of service are

a. self-service, limited-service, and full-service.

b. self-service, sales-service, and customer-service

c. self-service, automated service, and online-service.

d. limited-service, full-service, and automated-service.

e. wholesaler-service, retailer-service, and customer-service.

The level of service that requires that the customers perform many functions during the

purchase process is __________.

a. full-service

b. limited-service

c. self-service

d. customized-service

e. automated-service

Off-price retailers, warehouse clubs, and grocery stores that require customers to bag their

groceries provide what level of retail service?

a. full-service

b. limited-service

c. customized-service

d. self-service

e. automated-service

A number of U.S.-based retail chains have begun using lines and terminals that do not use

clerks. This is an example of what level of retail service?

a. full-service

b. self-service

c. limited-service

d. customized-service

e. functional-service

Costco requires customers to perform many shopping functions during the purchasing

process and all nonessential customer services have been eliminated. What level of service

does Costco offer?

a. limited-service

b. full-service

c. customized-service

d. self-service

e. restricted-service

General merchandise stores such as Walmart, Kmart, and Target are usually considered

__________ outlets.

a. exclusive-service

b. minimal-service

c. self-service

d. full-service

e. limited-service

Outlets where customers are responsible for most shopping activities, although salespeople

are available in some departments, would be classified as __________ outlets.

a. limited-service

b. exclusive-service

c. minimal-service

d. self-service

e. full-service

Loehmann’s is an upscale, off-price specialty retailer for name-brand designer fashions.

Loehmann’s provides consumers with

a. full-service.

b. limited service.

c. self- service.

d. restricted service.

e. functional service.

Target recently introduced its Target REDcard, where cardholders receive 5% back for each

purchase. Target also allows customers to return merchandise within 30 days but still does

not offer alteration services. Target offers what level of service to its customers?

a. full-service

b. self-service

c. automated-service

d. limited-service

e. customized service

At which level of service would the customer perform the least number of functions?

a. automated-service

b. minimal-service

c. self-service

d. limited-service

e. full-service

Specialty stores and department stores are frequently categorized by which level of service?

a. full-service

b. exclusive-service

c. minimal-service

d. self-service

e. limited-service

Most specialty stores and department stores, which provide many services to their

customers, are considered to be __________.

a. exclusive-service retailers

b. limited-service retailers

c. full-service retailers

d. full-domain retailers

e. upscale-retailers

Godiva Chocolatier invites consumers to stop by one of their stores for an unforgettable

experience, including delectable chocolates, decorative gift collections , and unrivaled

customer care. What type of retail service is Godiva offering?

a. full-service

b. limited-service

c. self- service

d. restricted-service

e. functional-service

Saks Fifth Avenue is an upscale retailer that offers designer brand women’s apparel,

fragrances, jewelry, and leather accessories. The retailer relies on better service to sell its

products and to retain its customers. Saks Fifth Avenue would be classified as a(n) _________.

a. exclusive-service retailer

b. limited-service retailer

c. full-service retailer

d. full-domain retailer

e. limited-domain retailer

A specialty retail store carries a broad selection of small kitchen appliances. It has an

informed staff and will even gift-wrap your purchases free of charge. It also offers a shop

for repairs should your appliances need maintenance. This store offers __________ to its

customers.


b. upscale-service

c. self-service

d. limited-service

e. full-service

Williams-Sonoma is a specialty store that caters to customers who want to cook at home.

It offers free cooking classes, has frequent demonstrations by cookbook authors, and has

employees who are knowledgeable about food preparation. The sales staff helps

customers make their selections. Williams-Sonoma is a __________ retailer.


b. full-service

c. upscale-service

d. self-service

e. limited-service

Nordstrom stores typically have 50 percent more salespeople on the floor than similarly

sized stores, and the salespeople are renowned for their professional and personalized

attention to customers. Nordstrom would be considered a(n) __________.

a. exclusive-service retailer

b. limited-service retailer

c. full-service retailer

d. upscale-retailer

e. limited-domain retailer

A Woman’s Place is a retail store, created and staffed by women, that offers products and

services relating to maternity needs. For expectant mothers, it offers advice and personal

shopping services, help with hair and/or make-up problems, and free delivery. A Woman’s

Place is an example of a(n) __________ retailer.

a. franchise

b. service

c. limited -service

d. full-service

e. upscale

Retail outlets vary by their merchandise lines, the key distinction being the __________ and

__________ of the items offered to customers.

a. breadth; span

b. breadth; depth

c. breadth; line

d. scope; inventory

e. range; span

Your local Safeway grocery store is likely to be categorized according to what form of

ownership, level of service, or merchandise line?

a. form of ownership

b. level of service

c. merchandise line

d. method of operation

e. revenue generated

Depth of product line refers to

a. the percentage of goods stored as inventory.

b. the variety of different product a store carries

c. variations in price and color on specific items in a store.

d. the number of items available within a product line.

e. the number of different product classes owned by a corporate chain.

A large assortment of each item in a store is referred to as

a. product span.

b. breadth of product line.

c. length of product line.

d. width of product line.

e. depth of product line.

Your local Hallmark retailer carries thousands of greeting cards. You can find cards for a

“twins” birthday, from my cat to yours, and many other unique occasions. This is an

example of the _________ that the Hallmark retailer carries.

a. depth of product line

b. breadth of product line

c. height of product line

d. length of product line

e. width of product line

New Balance 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 New Balance offers to its customers.

a. product items

b. depth of product line

c. breadth of product line

d. versatility of product family

e. variety of product mix

The variety of different items a store carries is referred to as the

a. retailing mix.

b. depth of product line.

c. breadth of product line.

d. width of product line.

e. length of product line.

The variety of different items a store carries is referred to as

a. the quality of merchandise a store carries.

b. the breadth of product line.

c. a wide assortment of a few related items.

d. the physical size, from large to small, of products within a product line.

e. depth of product line.

Your local Target retailer carries a variety of different items. You can find everything ranging

from socks and DVDs to baby items and groceries. This is an example of the __________

carried by Target.

a. breadth of product line

b. depth of product line

c. variety of product line

d. versatility of product line

e. product mix

Stores that carry a considerable assortment (depth) of a related line of items are referred to

as

a. limited-line stores.

b. general merchandise stores.

c. scrambled merchandise stores.

d. hypermarkets.

e. intertype outlets.

Stores that carry tremendous depth in one primary line of merchandise are referred to as

a. hypermarkets.

b. intertype outlets.

c. scrambled merchandise stores.

d. limited-line stores.

e. single-line stores.

Victoria’s Secret, a nationwide chain, carries great depth in women’s lingerie—the only type

of merchandise it carries. Victoria’s Secret is an example of a(n) __________.

a. limited-line stores

b. single-line store

c. intertype outlet

d. general merchandise store

e. scrambled merchandise store

Limited- and single-line stores are often referred to as __________.

a. specialty outlets

b. general merchandise stores

c. scrambled merchandise stores

d. intertype outlets

e. hypermarkets

Mike’s Camera is a retailer that carries a full line of professional and amateur camera

equipment, develops all types of film and digital photos, and sells darkroom equipment.

Mike’s Camera is an example of a(n) __________.

a. hypermarket

b. general merchandise store

c. scrambled merchandise store

d. intertype outlet

e. specialty outlet

A type of retail outlet that focuses on one type of product at very competitive or discount

prices and often dominates the market is referred to as a __________.

a. general merchandise store

b. specialty outlet

c. hypermarket

d. category killer

e. regional dominator

Specialty stores that dominate the market are referred to in the retail trade as _________.

a. hypermarkets

b. category killers

c. specialty outlets

d. regional dominators

e. general merchandise stores

Staples is a specialty discount retailer that focuses on one type of product—office supplies.

Staples is referred to as a

a. hypermarket

b. national dominator

c. category killer

d. regional dominator

e. general merchandise store

Stores that carry a broad product line with limited depth are referred to as __________.


b. general merchandise stores

c. scrambled merchandise stores

d. hypermarkets

e. intertype outlets

Stores like Dillard’s, Macy’s, and Neiman Marcus carry a wide range of different types of

products but not unusual sizes. They are known as __________.


b. scrambled merchandise stores

c. hypermarkets

d. intertype outlets


Offering several unrelated product lines in a single store is referred to as __________.

a. intertype competition

b. multiple distribution

c. scrambled merchandising

d. a department store

e. a specialty outlet

Scrambled merchandising refers to

a. displaying merchandise and highlighting complementary products rather than keeping

all similar items together in rows on a shelf.

b. offering several unrelated product lines in a single store.

c. changing where items are displayed in a store to create interest and expose customers

to alternative product choices.

d. retailers that purchase odd-lots of overstocks or discontinued items for resale.

e. strip malls that house a seemingly mismatched assortment of retail outlets to create

more customer traffic.

A drug store that sells pharmaceuticals, beauty aids, camera equipment, nonperishable

grocery items, and automobile motor oil is an example of a retailer using

a. multiple distribution channels.

b. full-service.

c. scrambled merchandising.

d. intertype competition.

e. dual channel marketing.

“Hypermarket” refers to

a. category killers that specialize in electronics.

b. a form of intertype competition general merchandise store.

c. shopping malls anchored by four or more department stores such as Sears or

Nordstrom’s.

d. a form of limited-service outlets focusing on general merchandise like that offered in

department stores.

e. a form of scrambled merchandising, which consists of large stores (more than 200,000

square feet) that offer everything in a single outlet, eliminating the need for consumers

to shop at more than one location.

In Europe, stores called __________ are based on the concept of one-stop shopping for

consumers. Such retail stores, which use scrambled merchandising, often encompass over

200,000 square feet and offer quality, variety, and low price for food and groceries and

general merchandise.

a. megamarkets

b. hypermarkets

c. one-stop markets

d. euromarkets

e. supercenters

Located predominately in Europe, these large stores (90,000 - 300,000 square feet) offer

20,000-80,000 different food, grocery, and general merchandise products, have annual

revenue of over $100,000,000 per store, and are referred to as

a. discount wholesalers.

b. discount retailers.

c. supermarkets.

d. hypermarkets.

e. retail cooperatives.

Which type of store gives shoppers the greatest variety of merchandise?

a. a hypermarket

b. a specialty clothing store

c. a limited-line gift store

d. a clothing outlet

e. a discount store

Meijer is a chain of hypermarkets headquartered in Michigan, which means it

a. engages in no intertype competition.

b. is a disintermediator.

c. uses scrambled merchandising.

d. can also be referred to as a category killer.

e. uses dual distribution.

A supercenter refers to

a. an auto service center that sells and leases cars as well as repairs them.

b. a type of specialty outlet.

c. a store that combines a typical merchandise store with a full-size grocery store.

d. a mall with more than 100 stores and several important anchor stores.

e. a store one step larger than a hypermarket.

Competition for the same or similar type of product or service between very dissimilar types

of retail outlets that results from a scrambled merchandising policy is referred to as

__________.

a. mixed merchandising

b. intertype competition


d. multi-service merchandising

e. dual distribution

Intertype competition refers to competition between

a. very similar types of retail outlets that results from a single-product/single-line

merchandising policy.

b. retailers when the items they sell are virtually indistinguishable from one another.

c. national and generic brands that are sold side-by-side in a retail outlet.

d. retailers located in separate quadrants of the retail positioning matrix.

e. very dissimilar types of retail outlets that results from a scrambled merchandising policy.

Fresh-cut flowers that only used to be available from florists can now be purchased at

neighborhood supermarkets. This is an example of __________.

a. dysfunctional competition

b. mixed-line merchandising

c. multi-product marketing

d. intertype competition

e. dual distribution

Many supermarkets have in-store restaurants where a customer can buy prepared meals to

take home or eat there. Supermarkets and restaurants that provide these kinds of meals

are engaged in __________ competition.

a. intertype

b. institutional

c. intermodal

d. functional

e. selective

Retailing that occurs outside a retail outlet, such as through direct marketing, direct selling,

and automatic vending is referred to as __________.

a. limited-line retailing

b. nonstore retailing


d. a hypermarket

e. intertype competition

Which of the following is an example of nonstore retailing?

a. hypermarkets

b. supercenters

c. shopping centers

d. vending machines


Vending machines are an example of __________.

a. hypermarkets

b. direct mail


d. intertype competition

e. nonstore retailing

Prices in vending machines tend to be higher because

a. machines are placed in high demand/traffic areas.

b. maintenance, operating, and leasing costs are high.

c. only small unit volume items are sold.

d. customary pricing requires certain coin and currency amounts regardless of the normal

retailer markup.

e. few people buy from vending machines.

About 30 percent of the products sold from vending machines are __________.

a. candy and snacks

b. personal items

c. movies and videos

d. cold beverages

e. food

Which form of retailing is Best Buy now using in airports to distribute its mobile phone and

computer accessories, digital cameras, flash drives, and other consumer electronics?

a. vending machines

b. salespeople with mobile carts

c. mall-scale traditional retail stores

d. salespeople wearing Best Buy uniforms with products in backpacks

e. free-standing kiosks manned with knowledgeable sales personnel

The 6 million vending machines currently operating in the United States generate more than

__________ in annual sales.

a. $359 million

b. $985 million

c. $3.8 billion

d. $19 billion

e. $46 billion

Vending machines are popular with consumers; recent consumer satisfaction research

indicates that __________ percent of consumers believe purchasing from a vending machine

is equal to or superior to a store purchase.

a. 15

b. 27

c. 49

d. 63

e. 82

Vending machines are no longer limited by the need for cash. In Japan, Korea, and the

Philippines, consumers use mobile phones that transmit payments to vending machines via

an infrared beam or a radio wave. This is an example of how vending machines can provide

which type of utility?

a. time

b. place

c. possession

d. product

e. form

Direct-mail and catalog retailing are examples of __________.

a. nonstore retailing

b. intertype retailing

c. online retailing

d. print-media retailing

e. dual retailing

An IKEA mail order catalog is an example of __________ retailing.

a. intrusive

b. intertype

c. scrambled

d. nonstore

e. hypermarket

The average U.S. household now receives __________ direct-mail items or catalogs each week.

a. 18

b. 24

c. 32

d. 39

e. 47

The Direct Marketing Association estimates that direct-mail and catalog retailing creates

__________ in sales.

a. $100,000

b. $14,000,000

c. $190,000,000

d. $22,000,000,000

e. $669,000,000,000

Higher paper costs, increased postage rates, the growing interest in do-not-mail legislation,

and concern for “green” mailings have resulted in

a. a switch to online catalogs and direct customer e-mail advertisements.

b. the use of thinner, lightweight paper products.

c. a focus on proven customers rather than on prospective customers.

d. the banning of “junk” mail by a growing number of environmentally-concerned

communities.

e. a resurgence in non-automated telemarketing.

Usage of specialty catalogs, like those from firms like IKEA, Crate and Barrel, and L.L.Bean

have been affected by all of the following factors except:

a. influence of larger retailers as their marketing activities have increased the number and

variety of products consumers purchase through direct mail and catalogs.

b. higher paper costs, increase in postage rates, and the possibility of the U.S. Postal

Service reducing delivery to five days a week.

c. growing interest in do-not-mail legislation.

d. concern for “green” mailings and catalogs.

e. growing influence of television home shopping where consumers order over the

telephone.

In the direct-mail and catalog retailing, the acronym PURLS stands for __________.

a. personalized URLs

b. pre-sorted URLs

c. pre-loaded URLs

d. proactive URLs

e. portable URLs

Multichannel Merchant magazine evaluates hundreds of entries to select the winners of the

Multichannel Merchant Awards in 18 categories for companies that have excelled in

a. designing the most effective direct-mail piece.

b. designing the most creative catalog cover.

c. implementing efficient direct-mail campaigns.

d. integrating their direct-mail and catalog activities with other marketing activities.

e. providing creative price promotions to channel members.

Jim Smith is an avid fly fisherman who lives in Deer Key, FL. For his hobby, Jim needs large

rubber rafts, hip waders, special fishing rods, reels, line, and an assortment of fishing tackle

and lures. There are no sporting goods stores in Deer Key, so Jim orders his fishing supplies

from a L. L. Bean catalog. His supplies are generally delivered to his home within 72 hours.

Jim is using a __________ to satisfy his fishing supply needs.

a. home delivery retailer

b. quick response retailer

c. direct-mail marketer

d. flexible response marketer

e. regional marketer

The marketing managers at Omaha Steaks used airlines’ databases to mail a special offer

to frequent flyers. Eight weeks after shipping the steaks to the frequent flyers who

responded to the offer, the company’s salespeople followed up by telephoning customers

to ask for new orders. This is an example of which types of nonstore retailing?

a. direct selling and telemarketing

b. direct-mail and telemarketing

c. telemarketing and online retailing

d. online retailing and direct-mail

e. direct-mail and direct selling

Currently, the three largest television home shopping programs in the United States are

a. QVC, HSN, and ShopNBC.

b. Shop at Home, QVC, and HSN.

c. Direct shopper, Shop at Home, and ShopNBC.

d. Valuevision, Shop at Home, and QVC.

e. Shop America, Direct shopper, and J.S. Global.

QVC is a television home shopping network . It generates sales of more than $7 billion

from its 60 million customers by

a. restricting purchases only through its Mall of America studio.

b. broadcasting live twelve hours a day 365 days a year.

c. offering more than 1,150 products each week.

d. offering overstocked items from retailers at a fraction of the original cost.

e. running live podcasts and live streaming over the Internet

Which of the following statements regarding QVC is most accurate?

a. QVC broadcasts 12 hours a day 365 days a year.

b. QVC reaches approximately 195 million households in the U.S., U.K., Germany, Italy, and

Japan.

c. QVC never offers the same product two days in a row.

d. QVC sells all its items by dropping the price to $1.00 regardless of the product value, if

it is not sold in one day.

e. QVC entices customers to “stay tuned” by offering free products to random callers.

In the past, television home shopping programs have attracted mostly

a. 20 to 30 year old men.

b. 30 to 40 year old women.

c. 40 to 50 year old men.

d. 40 to 60 year old women.

e. 50 to 60 year old men.

Several television shopping programs are developing online platforms, which may attract as

many as 50 percent of all new customers, and interactive technology, that allows viewers to

place orders

a. without having to pay sales tax.

b. without having to pay for shipping or handling.

c. through online company websites.

d. with a “double your money back guarantee” if the items are not delivered within 24

hours.

e. with their remote control rather than the telephone.

Which type of utility is created by online shopping?

a. time

b. price

c. product

d. process

e. promotion

The term “bricks and clicks” refers to __________ and __________ respectively.

a. catalogs; websites

b. search engines; websites

c. traditional retailers; online retailers

d. buildings; mice

e. computer savvy buyers; computer novice buyers

Walmart recently introduced “Pick Up Today” service that

a. offers shoppers a virtual reality shopping experience from their home computers.

b. allows customers to order online and receive free same-day pickup at a local store.

c. allows customers to place lay-away orders online and keep them at the store until they

are fully paid.

d. allows customers to surf the Internet to compare prices; for those that find a better deal,

they can e-mail Walmart and the retailer will honor competitors’ lowest price.

e. allows customers hold online auctions for Walmart overstock or seasonal items that are

being discontinued to make room for new inventory.

Online retail purchases by consumers can be the result of several very different approaches,

which include: (1) using a shopping “bot” to search for a product at the best price; (2)

participating in an online auction; (3) going directly to online malls; and (4)

a. paying dues to become a member of an online discount service.

b. becoming a secret shopper.

c. participating in a buying cooperative.

d. becoming a PURL.

e. becoming a member of a research group that evaluates new products.


which include: (1) paying dues to become a member of an online discount service; (2)

participating in an online auction; (3) going directly to online malls; and (4)

a. becoming a secret shopper.

b. participating in a buying cooperative.

c. becoming a PURL.

d. using a shopping “bot” to search for a product at the best price.

e. becoming a member of a research group that evaluates new products.


which include: (1) paying dues to become a member of an online discount service; (2) using

a shopping “bot” to search for a product at the best price; (3) going directly to online malls;

and (4)

a. becoming a member of a research group that evaluates new products.

b. becoming a secret shopper.

c. participating in an online auction.

d. participating in a buying cooperative.

e. becoming a PURL.

Some retailers now allow consumers to respond to their text messages announcing a sale

for a specified time period. Consumers must then visit the site to purchase the sale items.

Which of the following retailing websites offer these limited time “flash sales?”

a. TextBuyIt

b. Best Buy

c. PeaPod

d. eBay

e. Gilt

One of the biggest problems online retailers face is that nearly __________ of online shoppers

make it to “checkout” and then leave the website to compare shipping costs and prices on

other sites.

a. 16%

b. 26%

c. 36%

d. 56%

e. 66%

One of the biggest problems online retailers face is that nearly two-thirds of online shoppers

make it to “checkout” and then leave the website to compare shipping costs and prices on

other sites. Of the shoppers who leave, __________ percent do not return.

a. 30%

b. 40%

c. 50%

d. 60%

e. 70%

Experts suggest that online retailers should think of their websites as __________ if they are

to attract and retain customers.

a. cash cows

b. dynamic billboards

c. virtual reality stores

d. traditional retail stores

e. online entertainment

In China, 130,000 Internet cafes serve __________ customers.

a. 163,000

b. 16,300,000

c. 163,000,000

d. 1,630,000,000

e. 16,300,000,000

Using the telephone to interact with and sell directly to consumers is referred to as __________.

a. digital marketing

b. telemarketing

c. solicitation marketing

d. direct contact marketing

e. direct selling

According to the Direct Marketing Association, annual telemarketing sales exceed __________.

a. $10 billion

b. $28 billion

c. $137 billion

d. $332 billion

e. $500 billion

In the telemarketing industry, issues such as __________, ethical guidelines, and industry

standards have become a topic of discussion among consumers, Congress, the Federal Trade

Commission (FTC), and businesses.

a. competitive antics

b. coercion tactics

c. freedom of speech

d. language issues

e. consumer privacy

In the telemarketing industry, issues such as consumer privacy, __________, and industry

standards have become a topic of discussion among consumers, Congress, the Federal Trade

Commission (FTC), and businesses.

a. product quality

b. price differences

c. on-time delivery

d. competitive antics

e. ethical guidelines

Which of the following statements regarding telemarketing is most accurate?

a. Shopping bots are computers that place automated or “robo” (i.e. robotic) telemarketing

calls.

b. Direct-mail is typically viewed as more efficient means of targeting consumers than

telemarketing.

c. Telemarketing has risen in popularity as a result of the National Please-Do-Call registry

legislation.

d. Consumer privacy, industry standards, and ethical guidelines have become important

issues.

e. Some firms are considering shifting their direct-mail and door-to-door budgets to

telemarketing techniques.

Consumers who do not want to receive telephone calls related to company sales efforts can

a. purchase telephones that block unwanted calls.

b. place their telephone numbers on the National Do-Not-Call Registry.

c. request phone numbers that begin with the area code 555 that automatically block

telemarketing solicitors.

d. request phone numbers that begin with the area code 888 that automatically block

telemarketing solicitors.

e. use an unlisted telephone number.

The sales of products and services to consumers through personal interactions and

demonstrations in their homes or offices is referred to as __________.

a. direct selling

b. person-to-person sales

c. face-to-face selling

d. direct response selling

e. customized selling

Sales of goods and services to consumers through personal interactions and demonstrations

in their home or office is referred to as direct selling, or __________.

a. person-to-person sales

b. interactive selling

c. door-to-door retailing

d. individual promotion

e. customized selling

Direct selling, sometimes called _________, involves direct sales of goods and services to

consumers through personal interactions and demonstrations in their home or office.

a. interface marketing

b. flex-marketing

c. interactive selling

d. responsive selling

e. door-to-door retailing

Companies such as Avon, Fuller Brush, Mary Kay, and World Book are examples of firms

that use

a. interface marketing.

b. flex-marketing.

c. direct selling.

d. interactive selling.

e. responsive selling.

In response to the changes in the United States, many direct sellers are implementing a

__________ strategy by expanding into other countries with their current product lines.

a. market development

b. market penetration

c. accelerated development

d. product development

e. diversification

Direct selling is likely to continue to have strong growth in markets

a. in which people prefer not to have a social shopping experience.

b. where convenience is not especially important.

c. in which consumers are knowledgeable shoppers.

d. where there is a lack of effective distribution channels.

e. that have an excellent infrastructure.

Growth in the direct-selling industry is the result of two trends: (1) direct selling retailers are

expanding into markets outside the United States and (2)

a. increased gas prices and traffic congestion are causing people to want the store to

deliver the products to them.

b. the pendulum is beginning to swing back to more mothers (and fathers) staying home

during the day with children, making direct selling more convenient.

c. the purchase or lease of real estate to build an actual “brick” retail store is becoming

prohibitive.

d. graduating business students are finding it more difficult to find a traditional sales

position and like the idea of being their own bosses.

e. there is a growing number of companies that are using direct selling to reach consumers

who prefer one-on-one customer service and a social shopping experience rather than

online shopping or big discount stores.

Growth in the direct-selling industry is the result of two trends: (1) there is a growing number

of companies that are using direct selling to reach consumers who prefer one-on-one

customer service and a social shopping experience rather than online shipping or big

discount stores and (2)

a. many direct selling retailers are expanding into markets outside of the United States.

b. increased gas prices and traffic congestion are causing people to want stores to deliver

products to them.

c. the pendulum is beginning to swing back to more mothers (and fathers) staying home

during the day with children, making direct selling more convenient.

d. the purchase or lease of real estate to build an actual “brick” retail store is becoming

prohibitive.

e. graduating business students are finding it more difficult to find a traditional sales

position and like the idea of being their own bosses.

Which of the following statements regarding direct selling is most accurate?

a. Unlike other forms of nonstore retailing, direct selling takes place in the business market.

b. Direct selling is found exclusively in the United States.

c. Direct selling succeeds because it provides customers with convenience and

personalized service.

d. Direct sales have been declining rapidly in the United States since the 1980s.

e. By definition, direct selling can only take place in a home.

Direct selling is likely to continue to grow in markets

a. for people who prefer not to have a social shopping experience.

b. where there are effective distribution channels.

c. in which consumers are knowledgeable shoppers.

d. where door-to-door convenience is important.

e. that have an excellent infrastructure.

The Direct Selling Association reports that the number of companies using direct selling has

__________ in the past five years.

a. increased by 10 percent

b. increased by 30 percent

c. increased by 50 percent

d. decreased by 20 percent

e. decreased by 40 percent

A customer was unable to go to the store on her own to buy gifts for the holidays. She

contacted a Tupperware representative who came to her home, showed her not only

catalogs but actual products, answered all her questions, and had all the customer ’s gifts

sorted and delivered. This is an example of __________.

a. interface marketing

b. flex-marketing

c. direct selling

d. interactive selling

e. responsive selling

The analytical tool that positions retail outlets in terms of the breadth of their product line

and value added, such as location, product reliability, or prestige, is referred to as the

__________.

a. BCG growth share matrix

b. MAC breadth-depth of line framework

c. market-product grid

d. retail positioning matrix

e. wheel of retailing framework

The retailing positioning matrix refers to an analytical tool that

a. positions retail outlets in terms of the breadth of product line and value added.

b. identifies the best location for building or leasing a retail store.

c. identifies the specific customer base served by all stores within a given radius.

d. identifies the most likely target market for a retail outlet based upon its size.

e. identifies the elements of the retailing mix.

The vertical dimension of the retail positioning matrix is

a. depth of product line.

b. relative market share.

c. value added.

d. breadth of product line.

e. stage in the retail life cycle.

The horizontal dimension of the retail positioning matrix is

a. depth of product line.

b. value added.

c. relative market share.

d. breadth of product line.

e. stage in the retail life cycle.

The value added dimension of the retail positioning matrix includes elements such as

product reliability, prestige, and __________.

a. level of service

b. market share

c. location

d. price

e. number of employees


location, prestige, and __________.

a. level of service

b. market share

c. price

d. number of employees

e. product reliability


location, product reliability, and __________.

a. prestige

b. price

c. market share

d. number of employees

e. level of service

Which of the following stores would best fit in “A” shown in Figure 16-8 above?

a. Payless ShoeSource

b. Macy’s department store

c. 7-Eleven convenience store

d. Walmart

e. Lamborghini automobile dealer

Which of the following stores would best fit in “B” shown in Figure 16-8 above?

a. Kmart

b. Payless ShoeSource

c. Bloomingdales department store

d. 7-Eleven


Which of the following stores would best fit in “C” shown in Figure 16-8 above?

a. Kmart


c. Dillard’s department store

d. 7-Eleven


Which of the following stores would best fit in “D” shown in Figure 16-8 above?

a. Kmart


c. Dillard’s department store

d. a Toyota automobile dealer

e. Tiffany & Co.

The activities related to managing the store and the merchandise in the store, which includes

retail pricing, store location, retail communication, and merchandise are referred to as the

__________.

a. wheel of retailing

b. distribution mix

c. retail life cycle

d. retailing mix

e. retail store positioning

The retailing mix refers to the activities related to the management of and the merchandise

in the store, which includes

a. retail pricing, store location, retail communication, and merchandise.

b. product, price, promotion, and place.

c. the utilities of time, form, possession, and price.

d. the colors, sizes, shapes, and point-of-purchase display locations of the store’s products.

e. selection of store location, selection of merchandise, hiring and training of employees,

and promotion of both the store and products.

The retailing mix refers to

a. the activities related to managing the store and the merchandise in the store, which

includes product, price, promotion, and place.

b. the activities related to managing the store and the merchandise in the store, which

includes the four utilities time, form, possession, and place.

c. the activities related to managing the store and the merchandise in the store, which

includes the colors, sizes, shapes, and perceived value of the store’s products.

d. the activities related to managing the store and the merchandise in the store, which

includes retail pricing, store location, retail communication, and merchandise.

e. the activities related to managing the store and the merchandise in the store, which

includes selection of store location, selection of merchandise, hiring and training of

employees, and promotion of both the store and products.

When developing retailing strategies, marketers use what is called the retailing mix, which

includes

a. products, services, promotions, and retail communication.

b. promotions, publicity, and press releases.

c. retail pricing, store location, retail communication, and merchandise.

d. physical environment, people, process, and productivity.

e. direct mail, online stores, traditional stores, and outlet stores.

The retailing mix includes all of the following EXCEPT:

a. merchandise.

b. target market.

c. retail pricing.

d. store location.

e. retail communication.

When developing marketing strategies, marketing managers use the elements of the

marketing mix, which includes product, price, place, and promotion. In a similar fashion,

when developing retailing strategies, marketers use what is called the retailing mix, which

includes

a. retail pricing, store location, retail communication, and merchandise.

b. products and services, promotions, and communications.

c. physical distribution, promotions, and communications.

d. physical distribution, products, and personal selling.

e. products, price, and personal selling.

When setting prices for merchandise, retailers must decide on the markup, markdown, and

the __________ for markdowns.

a. relevance

b. necessity

c. percentage

d. timing

e. consequence

A markup refers to

a. the difference between the final selling price and how the customer values the product.

b. selling brand name merchandise at lower than regular prices.

c. the amount added to the cost the retailer paid for a product to reach the final selling

price.

d. the difference between the retail cost and initial selling price.

e. the reduction in retail price, usually expressed as a percentage equal to the amount

reduced, divided by the original price, and multiplied by 100.

The amount added to the cost the retailer paid for a product to reach the final selling price

is referred to as a(n) __________.

a. markup

b. markdown

c. original markup

d. maintained markup

e. cost-plus markup

The difference between the retailer ’s cost and the initial selling price is referred to as

__________.

a. markup

b. maintained markup

c. markdown

d. differential markup

e. original markup

A retailer bought a collectible Precious Moments figurine for $26. She sets the initial selling

price at $60. The final selling price was $52. What was the original markup?

a. $8

b. $16

c. $26

d. $34

e. $86

A maintained markup refers to

a. the difference between the final selling price and the retailer ’s cost.

b. the amount subtracted from the cost the retailer paid for a product to reach the initial

selling price.

c. the amount the manufacturer adds to achieve the desired suggested retail price.

d. the net margin.

e. the highest price listed on the product sales ticket.

The difference between the final selling price and the retailer ’s cost is referred to as a(n)

__________.

a. original markup


c. markdown

d. differential markup

e. discounted price

Another term for gross margin is __________.

a. original markup

b. markdown

c. return on sales

d. discounted price

e. maintained markup

Another term for maintained markup is __________.

a. original markup


c. markdown

d. gross margin

e. net margin

A retailer bought a collectible Precious Moments figurine for $26. She sets the initial selling

price at $60. The final selling price was $52. What was the original markup?

a. $8

b. $16

c. $26

d. $34

e. $86

Many retailers take a markdown as soon as sales fall to free valuable selling space and cash.

This concept of retail pricing based on _________.

a. timing

b. demand

c. availability

d. bargain hunting

e. customer value

Discounting a product when the product does not sell at the original price is referred to as

__________.

a. inverse markup

b. markdown

c. price sensitivity

d. concession pricing

e. rebate

A markdown refers to

a. the difference between the final selling price and the retailer ’s cost.

b. the amount the manufacturer adds to achieve the desired suggested retail price.

c. discounting a product when the product does not sell at the original price.

d. the lowest price to which a retailer can reduce a sales ticket and still make a profit.

e. the net margin.

When retailers set prices on new models or styles of products, the price of existing models

often is _________.

a. marked up

b. off-priced

c. value-added

d. marked down

e. maintained

Often new models or styles force the price of existing models to be __________.

a. marked up

b. off-priced

c. value-subtracted

d. maintained

e. marked down

To increase the demand for complementary products, the price of a product often is

a. marked up

b. marked down

c. off-priced

d. value-subtracted

e. maintained

Markdowns can be used to

a. increase competition with other retailers in the immediate vicinity.

b. placate dissatisfied customers.

c. enhance customer perceptions of product quality.

d. increase demand for complementary products.

e. create a sense of urgency amongst repeat buyers.

To increase demand for complementary products, the price of a product often is

a. marked up.

b. off-priced.

c. marked down.

d. value-added.

e. maintained.

Timing is an important element of markdowns. Those retailers who take a markdown as

soon as sales fall off are most likely doing so to __________.

a. placate dissatisfied customers

b. enhance customer perceptions of product quality

c. create an image as a “cutting edge” retailer

d. free up valuable selling space and cash

e. react to the entry of a new competitor

The largest inventory of wedding dresses in the Southeast can be found at Low’s Bridal and

Formal in Brinkley, Arkansas. From December 26 to January 16, a prospective bride

shopping at Low’s can find gowns once priced at $6,000 for $2,999 and $800 gowns for

$400. The reduced prices of these gowns are reflected in which retail pricing strategy?

a. markdowns

b. original markups

c. maintained markups

d. inventory shrinkages

e. net markups

Emphasizing consistently low prices and eliminating most markdowns is referred to as

__________.

a. low-margin pricing

b. everyday low pricing

c. everyday fair pricing

d. value-based pricing

e. maintained pricing

Walmart and Home Depot emphasize consistently low prices and eliminate most markdowns

with a retail pricing strategy called

a. low-margin.

b. value based.

c. everyday low pricing.

d. everyday fair pricing.

e. markdown pricing.

Many retailers advocate a(n) __________ strategy, a pricing strategy that may not offer the

lowest prices but does try to create value for customers through its service and the total

buying experience.

a. customer loyalty

b. emphasize-value

c. everyday low pricing

d. low-margin

e. everyday fair pricing

Consumers often use the prices of __________ items, such as a can of Coke, to form an overall

impression of the store’s prices .

a. benchmark

b. stoplight

c. point-of-purchase

d. value-based

e. loss-leader

Which of the following statements regarding retail pricing is most accurate?

a. Consumers will often base their perceptions of a store’s prices on a benchmark of the

highest priced item in the store.

b. Consumers are influenced more by a store’s ambiance than its product prices.

c. Stores that offer rebates and take an excessive amount of time to process them may

create negative consumer perceptions.

d. New technology has almost made shrinkage a thing of the past.

e. The only difference between everyday low pricing and everyday fair pricing is whether

the store sells food or non-food items.

Shrinkage refers to

a. the declining number of small privately owned retail stores due to economic hard times.

b. breakage, theft, and fraud by customers and employees.

c. the percentage of inventory that is damaged or unsalable because of product failure or

problems in shipping.

d. loss of profits in clothing items that are returned because of inferior materials.

e. polycarbonate packaging that encases products with a tamper-resistant plastic seal.

The National Retail Federation estimates that about __________ percent of retail shrinkage is

due to employee theft.

a. 14

b. 24

c. 34

d. 44

e. 54

Off-price retailing refers to the

a. differences between the final selling price and the retailer ’s cost.

b. sale of brand name merchandise at lower than regular prices.

c. sales of merchandise at maintained markups.

d. amount added by the manufacturer to achieve the desired suggested retail price.

e. reduction in retail price usually expressed as the gross margin.

The sale of brand name merchandise at lower than regular prices is referred to as __________.

a. discount pricing

b. everyday low pricing

c. markdown pricing

d. off-price retailing

e. loss-leader pricing

The major difference between an off-price retailer and a discount store is that off-price

retailers purchase merchandise from manufacturers __________ and discount stores buy from

wholesalers __________.

a. who are trying to offload returned or slightly irregular inventory; selling new but

inexpensive merchandise

b. at below wholesale prices; and charge a high initial price with the full intent of taking

markdowns later

c. at below wholesale prices; at full price but take a less of a markup

d. at various price points; at the lowest price points possible

e. who are part of a retailing cooperative; who are part of a wholesaling cooperative

Merchants such as the Burlington Coat Factory sell brand-name merchandise at lower than

regular prices. As such, they are using a(n)

a. off-price retailing strategy.

b. markdown pricing strategy.

c. everyday fair pricing strategy.

d. everyday low pricing strategy.

e. maintained markdown pricing strategy.

Consider the T.J. Maxx HomeGoods photo above. This retailer uses a(n) __________ pricing

practice.

a. markdown


c. gross margin

d. manufactured suggested retail

e. off-price retail

Savings to the consumer at off-price retailers are reported as high as __________ off the prices

of a traditional department store.

a. 50%

b. 60%

c. 70%

d. 80%

e. 90%

Three common forms of off-price retailers are

a. warehouse clubs, factor y outlet stores, and hypermarkets.

b. warehouse clubs, factory outlets, and extreme value retailer.

c. factory outlets, single-price retailers, online auction services.

d. factory outlets, supercenters, hypermarkets.

e. extreme value retailers, buying clubs, online auction services.

An off-price retailer that requires customers to purchase an annual membership card for the

privilege of shopping at the store is referred to as a __________.

a. outlet store

b. single-price retailer

c. hypermarket

d. warehouse club

e. supercenter

A(n) __________carries 4,000 to 8,000 items and usually stocks just one brand of appliance or

food product.

a. warehouse club


c. extreme value retailer

d. hypermarket

e. supercenter

Sam’s Club and Costco are examples of __________.

a. supercenters

b. hypermarkets

c. warehouse clubs

d. single-price retailers

e. outlet stores

A variation of off-price retailing includes __________.

a. discount wholesalers

b. outlet stores

c. discount retailers

d. supermarkets

e. hypermarkets

Nordstrom Rack and the Gap Factory Store allow retailers to sell excess merchandise and

still maintain an image of offering merchandise at full price in their primary stores. These

retailers are referred to as __________.

a. extreme value retailers

b. warehouse clubs

c. discount houses

d. outlet stores

e. community shopping centers

Consider the Saks Fifth Avenue Off 5th photo above. This retailer is an example of a(n)

__________.

a. hypermarket

b. off-price store

c. outlet store

d. category killer

e. warehouse club

Another name for an extreme value retailer is a(n) __________.

a. specialty outlet


c. hypermarket

d. outlet store

e. warehouse club

Dollar General and the Dollar Tree are examples of which type of retailer?

a. warehouse club

b. hypermarket

c. outlet store

d. everyday value retailer

e. extreme value retailer

Off-price stores that attract customers who like a “corner store” environment rather than a

large supercenter experience are referred to as __________.

a. extreme value retailers

b. hypermarkets

c. warehouse clubs

d. outlet stores

e. everyday value retailers

Most stores today are in one of five settings that include all of the following EXCEPT:

a. the regional shopping center.

b. the strip mall.

c. the uptown shopping center.

d. the community shopping center.

e. the power center.

Most stores today are near several others in one of five settings: the central business district,

the community shopping center, the strip mall, the power center, or the _______ ___.

a. exurb value center

b. urban megacenter

c. suburban downtown

d. regional shopping center

e. rural micromall


the community shopping center, the regional shopping center, the power center, or the

__________.

a. suburban downtown

b. strip mall

c. exurb value center

d. rural micromall

e. urban megacenter


the regional shopping center, the community shopping center, the strip mall,or the __________.

a. rural micromall

b. urban megacenter

c. power center

d. exurb value center

e. suburban downtown

The central business district refers to

a. a suburban mall that contains up to 100 stores and draws customer from 5 to 10 miles

away.

b. the oldest retailing setting, located in a community’s downtown area.

c. a retail location that typically has one primary store and about 20 to 40 smaller outlets,

and serves a population base of about 100,000.

d. a cluster of stores that serves people who are within a five- to ten-minute drive and

serves a population base of under 30,000.

e. a collection of large stores over 100,000 square feet that offers a mix of about 40 percent

food products and 60 percent general merchandise items.

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

as

a. the central business district.

b. main street.

c. community anchor.

d. uptown center.

e. historical commerce district.

Consumers often view central business district shopping as less convenient because of the

lack of parking, higher crime rates, and __________.

a. out-dated stores

b. a lack of ambiance

c. fewer quality restaurants

d. few public restrooms

e. exposure to the weather

Regional shopping centers refer to a

a. retail cluster in a downtown area.

b. retail location that typically has one primary store and about 20 to 40 smaller outlets,

and serves a population base of about 100,000.

c. cluster of stores that serve people who are within a five- to ten-minute drive and serves

a population base of under 30,000.

d. group of 50 to 150 stores that typically attract customers who live or work within a 5-

to 10-mile range, often containing two or three anchor stores.

e. retail cluster of stores in uptown areas.

A group of 50 to 150 stores that typically attract customers who live or work within a 5- to

10-mile range, often containing two or three anchor stores is referred to as a __________.

a. power center

b. regional shopping center

c. strip mall

d. central business district

e. urban megacenter

Large shopping areas often contain two or three __________ stores, which are well-known

national or regional stores such as Sears, Saks Fifth Avenue, and Bloomingdale’s.

a. power centers

b. mega centers

c. anchor

d. value

e. outlet

The West Edmonton Mall in Alberta, Canada is a conglomerate of more than 800 stores,

the world’s largest indoor amusement park , more than 100 restaurants, a movie complex,

and two hotels. This retail complex is an example of a(n) __________.

a. regional shopping center

b. urban microcenter

c. megaplex

d. hypermarket

e. supercenter

Which of the following stores are most likely to be an anchor store at a regional shopping

center?

a. Old Navy, Abercrombie & Fitch, and Kay-Bee toy store

b. Hickory Farms, a locally-owned jewelry store, and Radio Shack

c. an antique store, Dollar General, and a bakery

d. Sears, Macy’s, and JCPenney

e. Hallmark shop, a sporting goods consignment store, and a Barnes & Noble bookstore

A retail location that typically has one primary store (usually a department store branch)

with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to

20-minute drive is referred to as a(n) __________.

a. power center


c. community shopping center

d. central business district

e. urban megacenter

A community shopping center refers to a

a. suburban mall containing up to 100 stores that draws customer from a 5-to 10-mile

radius.

b. cluster of stores in a downtown area.

c. cluster of stores that serves people who are within a five- to ten-minute drive.

d. collection of category killers usually located outside a major amusement park or

attraction.

e. retail location that typically has one primary store (usually a department store branch)

with 20 to 40 smaller outlets serving a population of consumers who are within a 10-

to 20-minute drive.

A cluster of neighborhood stores that serves people within a 5-to 10-mile radius is referred

to as a(n)

a. suburban shopping mall.

b. strip mall.

c. mini-mart.

d. hypermarket.

e. central business district.

A strip mall refers to a

a. suburban mall containing up to 100 stores that draws customer from a 5-to 10-mile

radius.

b. a cluster of stores in a downtown area.

c. retail location that typically has one primary store (usually a department store branch)

with 20 to 40 smaller outlets serving a population of consumers who are within a 10-

to 20-minute drive.

d. cluster of neighborhood stores designed to serve people within a five- to ten- minute

drive.

e. collection of category killers usually located outside a major amusement park or

attraction.

Not every suburban store is located in a shopping mall. Many neighborhoods have clusters

of stores, referred to as a strip mall, to serve people who are within a 5- to 10-minute drive.

Unlike the larger shopping centers, the composition of these stores is usually __________.

a. unplanned

b. national anchor stores

c. privately-owned specialty stores

d. fast food restaurants

e. amusement and theme parks

A huge shopping strip with multiple anchor (or national) stores is referred to as a __________.

a. central business district



d. strip mall

e. power center

Large strip malls that often have two to five anchor stores, a supermarket, and are designed

to bring shoppers on a weekly basis are referred to as

a. suburban malls.

b. warehouse malls.

c. power centers.

d. retail malls.

e. cluster malls.

In the late 1950s, Pierre Martineau described __________ as “the way in which the store is

defined in the shopper ’s mind.”

a. size

b. location

c. product mix

d. image

e. anchor store

Impressions of the corporation that operates the store, the category or type of store, the

product categories in the store, the brands in each category, merchandise and service quality,

and the marketing activities of the store all contribute to the store’s

a. prices.

b. image.

c. emotional feelings.

d. name.

e. psychological attributes.

Texas-based Whole Foods supermarkets target people who want to eat healthy. The stores

use placards throughout, which tell shoppers about the farmers who grew and harvested

the various products sold. This use of signage to provide consumer in formation is a part

of which element of the retailing mix?

a. communication

b. pricing

c. merchandise

d. goods and services factor

e. location

Loblaws, a Canadian supermarket, features fruits and vegetables piled high on tables that

have umbrellas. The idea behind this arrangement was to give Loblaws “a market feel.” In

terms of the retailing mix, this tactic is related to __________.

a. pricing

b. goods and services factor

c. communication

d. merchandise

e. location

Price ranges, store layouts, and breadth and depth of merchandise lines are considered to

be __________ of a store’s image.

a. functional qualities

b. sociological qualities

c. psychological attributes

d. lifestyle attributes

e. atmospheric elements

Intangibles such as a sense of belonging, excitement, style, or warmth are considered to be

__________ of a store’s image.


b. sociological qualities


d. antecedent attributes

e. personality elements

Store layout, colors, lighting, and music are all considered part of a store’s retail

a. image.

b. psychological attributes.

c. antecedent attributes.

d. personality type.

e. atmosphere.

The music played in the grocery store has a slow tempo to get shoppers to stay longer and

hopefully put more items in their cart. Music is part of the grocery store’s __________.

a. atmosphere

b. image


d. personality type

e. sociological profile

The use of displays, coupons, product samples, and other brand communications to

influence shopping behavior in a store is referred to as


b. level of service

c. shopper marketing

d. lifestyle attributes

e. psychographic elements

A management approach in which a manger is assigned the responsibility for selecting all

products that consumers in a market segment might view as substitutes for each other, with

the objective of maximizing sales and profits in the category, is referred to as __________.

a. capacity management

b. product management

c. retail inventory management

d. category management

e. automated inventory control

Managing the breadth and depth of merchandise available from many manufacturers

requires retail buyers who are

a. efficient and effective managers.

b. familiar with the needs of the target market.

c. experienced shoppers.

d. familiar with retail inventory management.

e. autocratic and intelligent.

The marketing metrics related to a retailer ’s customers include all of the following EXCEPT :

a. the number of customers per day or per hour.

b. the average length of a store visit.

c. the turnover of inventory.

d. the average transaction size per customer.

e. the number of transactions per customer.

The marketing metrics related to a retailer ’s products or merchandise include all of the

following EXCEPT:

a. the cost of carrying inventory.

b. the inventory turnover.

c. the average number of items per transaction.

d. the number of returns.

e. the average length of a store visit.

The marketing metrics related to a retailer ’s finances include all of the following EXCEPT:

a. the markdown percentage.

b. the average length of a store visit.

c. the return on sales.

d. the gross margin.

e. the sales per employee.

A common financial indicator of how effectively retail space is used to generate revenue

can be calculated by determining __________.

a. net sales

b. shareholders’ equity

c. market share

d. sales per square foot

e. return on investment

An indicator of how effectively retail space is used to generate revenue is called __________.

a. sales per square foot

b. return in investment

c. percentage of markup

d. gross profit

e. same-store sales growth

An indicator of how effectively retail space is used to generate revenue is called

a. net sales.

b. shareholders’ equity.

c. market share.

d. sales per square foot.

e. return on investment.

Sales per square foot is calculated by

a. dividing total sales by selling area in square feet.

b. dividing profit margin by selling area in square feet.

c. dividing gross profit by selling area in square feet.

d. dividing return on investment by selling area in square feet.

e. dividing net sales by selling area in square feet.

Boston Pizza wants to determine how effective their retail format is compared to other pizza

establishments in the local area. The calculation for this indicator is arrived at by

determining the __________ for its store and comparing it against the same indicator for all

of the other local pizza outlets.

a. gross margin

b. same-store sales growth

c. sales per square foot

d. net profit

e. net present value

A financial indicator used to compare the increase in sales of stores that have been open

for the same period of time is __________.

a. return in investment

b. percentage of markup

c. gross profit

d. sales per square foot

e. same-store sales growth

An indicator used to compare the increase in sales of stores that have been open for the

same period of time is called

a. market share of each store.

b. same-store sales growth.

c. sales per square foot of each store.

d. gross sales per store.

e. net profit per store.

The calculation for same-store sales growth is

a. total sales ÷ selling area in square feet.

b. (store sales in year 3 ÷ store sales in year 1).

c. [store sales in year 1 ÷ (store sales in year 2 – store sales in year 1)].

d. [(store sales in year 2 – store sales in year 1) ÷ store sales in year 1].

e. store 1 square feet ÷ store 2 square feet.

Which of the following stores shown in the Sales per Square Foot Marketing Dashboard

above has the highest sales per square foot?

a. Target

b. Neiman Marcus

c. Best Buy

d. Tiffany

e. Apple

Best Buy has approximately what amount of sales per square foot according to the Sales

per Square Foot Marketing Dashboard above?

a. $500

b. $800

c. $1,000

d. $2,000

e. $4,000

Apple has approximately what amount of sales per square foot according to the Sales per

Square Foot Marketing Dashboard above?

a. $500

b. $800

c. $1,000

d. $3,100

e. $5,600

Neiman Marcus has approximately what amount of sales per square foot according to the

Sales per Square Foot Marketing Dashboard above?

a. $500

b. $800

c. $1,000

d. $2,000

e. $4,000

According to the Same-Store Sales Growth Marketing Dashboard above, which retailer has

the greatest same-store sales growth?

a. Target

b. Neiman Marcus

c. Apple

d. Best Buy

e. Tiffany

The description of how new retail outlets enter the market is referred to as the __________.

a. retail life cycle

b. product life cycle

c. wheel of retailing

d. retail life matrix

e. retail continuum

The wheel of retailing refers to

a. the life cycle of most consumer products sold at retailers.

b. the diffusion of types of retailers for a new product.

c. the progression of retail locations an outlet goes through

d. the description of how new retail outlets enter the market.

e. the description of retail management philosophies.

Many fast food retailers, including McDonald’s and Burger King, have followed a predictable

pattern of how new forms of retail outlets enter the marketplace. McDonald’s has evolved

from a relatively simple restaurant with low margins, low prices, limited product offerings,

and low institutional status to a worldwide chain with higher margins, high status, and a

diverse menu of products. This evolution of McDonald’s restaurants is consistent with the

a. slow to fast food restaurant evolutionary cycle.

b. revolution of retailing.

c. retail life cycle.

d. fast food retail sequence.

e. wheel of retailing.

According to Figure 16-9 above, “A” represents the stage in the wheel of retailing when a

retail outlet starts with

a. low prices, high margins, and high status.

b. mixed prices, mixed margins, and mixed status.

c. low prices, low margins, and low status.

d. moderate prices, high margins, and high status.

e. high prices, low margins, and mixed status.

Figure 16-9 above shows the wheel of retailing, which indicates that retail outlets typically

go through changes with the passage of time. What stage in the wheel of retailing does

“B” represent?

a. low prices, low margins, low status.

b. higher prices, higher margins, and higher status.

c. low prices, high margins, and high status.

d. mixed prices, mixed margins, and mixed status.

e. moderate prices, high margins, and high status.

According to Figure 16-9 above, where would you find the highest prices, margins, and

status?

a. “A”

b. “B”

c. “C”

d. “D”

e. “A” and “D”

Outlets such as the Checkers Drive-In Restaurant, typically enter the wheel of retailing as

a. low status, low-margin stores.

b. high status, high-margin stores.

c. moderate status, low-margin stores.

d. high price, high-margin stores.

e. mixed price, mixed status stores.

Retail outlets, like products, experience the process of growth and decline, which is referred

to as the

a. retail life cycle.

b. wheel of retailing.

c. product life cycle.

d. retail continuum.

e. retail life matrix.

The retail life cycle refers to

a. the distinct stages a product goes through before it becomes obsolete.

b. the process of growth and decline that retail outlets, like products, experience.

c. the cycle of a customer’s buying behavior from awareness of a product to its ultimate

purchase.

d. the relationship between the tangible aspects of a product and the types of services

that need to accompany it.

e. the traditional management changes that take place as a retail outlet grows.

The four stages of the retail life cycle are

a. introduction, growth, maturity, and decline.

b. awareness, inquiry, alternative evaluation, and purchase.

c. early growth, accelerated development, maturity, and decline.

d. innovation, standardization, adaptation, and obsolescence.

e. innovation, adaptation, imitation, and obsolescence.

According to the retail life cycle, __________ is the stage of emergence of a retail outlet, with

a sharp departure from existing competition.

a. decline

b. maturity

c. introduction

d. early growth

e. accelerated development

According to the retail life cycle, in which stage would market share rise gradually, although

profits may be low because of start-up costs?

a. decline

b. maturity

c. introduction

d. accelerated development

e. early growth

Which type of outlet is most likely in its early growth stage of the retail life cycle?

a. single-price stores

b. online retailers

c. supermarkets

d. warehouse clubs

e. business-district retailers

Both market share and profit achieve their greatest growth rates during which stage of the

retail life cycle?

a. decline

b. maturity

c. introduction

d. early growth

e. accelerated development

During which stage of the retail life cycle do companies establish multiple outlets?

a. decline

b. maturity


d. introduction

e. early growth

The key goal for retailers in the accelerated development phase of the retail life cycle is to

a. recover start-up costs.

b. establish a dominant position in the fight for market share.

c. delay entering the decline stage of the retail life cycle.

d. find ways of discouraging their customers from moving to low-margin, mass-volume

outlets.

e. establish a retail concept that is a sharp departure from existing competition.

Accelerated development in the retail life cycle is similar to which stage in the product life

cycle?

a. introduction

b. maturity

c. decline

d. growth

e. harvest

Which type of outlet is most likely in its accelerated development stage of the retail life

cycle?


b. online retailers

c. supermarkets

d. business-district retailers

e. convenience stores

The battle for market share is usually fought directly before the __________ stage, and some

competitors drop out of the market.

a. decline

b. growth

c. maturity

d. harvest

e. introduction phase

Discounting generally takes place during which stage of the retail life cycle?

a. early growth

b. accelerated development

c. decline

d. maturity

e. early growth and maturity

Which type of outlet is most likely in its maturity stage of the retail life cycle?


b. value-retail centers

c. online retailers



Which type of outlet is most likely in its decline stage of the retail life cycle?


b. value-retail centers

c. online retailers



According to Figure 16-10 above, market share reaches its highest level during which stage

of the retail life cycle?

a. none

b. “A”

c. “B”

d. “C”

e. “D”

According to Figure 16-10 above, “A” represents which stage of the retail life cycle?

a. introduction

b. early growth


d. maturity

e. decline

According to Figure 16-10 above, “B” represents which stage of the retail life cycle?

a. introduction

b. early growth


d. maturity

e. decline

According to Figure 16-10 above, “C” represents which stage of the retail life cycle?

a. introduction

b. early growth


d. maturity

e. decline

According to Figure 16-10 above, “D” represents which stage of the retail life cycle?

a. introduction

b. early growth


d. maturity

e. decline

Multichannel retailers are retailers that

a. sell different products through entirely different channels.

b. sell through different channels under different brand names.

c. utilize strategic and tactical wholesalers.

d. utilize and integrate a combination of traditional store formats and nonstore formats.

e. combine two channels for their offerings: one for products and the other for services.

Retailers that utilize and integrate a combination of traditional store formats and nonstore

formats are referred to as __________.

a. multichannel retailers

b. scrambled merchandisers

c. mixed-brand retailers

d. dual distribution retailers

e. mixed-channel retailers

While it is possible for a multichannel retailer to somewhat cannibalize its catalog business

with its online retailing, the positive tradeoff is

a. there is greater product awareness.

b. online retailing is a greater relationship-building medium.

c. an online transaction costs about half as much to process as a catalog order.

d. consumers make more impulse buys.

e. online retailing can provide the consumer with a more tangible decision-making tool.

Retailers like Williams-Sonoma that sell products through retail stores, catalogs, and online

are examples of __________.

a. intertype competitors

b. multichannel retailers

c. vertically-integrated retailers

d. scrambled merchandisers

e. dual distributors

The complementary role of different communication and delivery channels is referred to as

a. the cumulative effect.

b. the primary effect.

c. the cross-over effect.

d. the complementary effect.

e. the influence effect.

Retailers that integrate and leverage their stores, catalogs, and websites have seen

a. a sizeable increase in yearly sales from individual customers.

b. a small increase in yearly sales from aggregate target market segments.

c. no difference in yearly sales from individual customers.

d. a decrease in yearly sales from individual customers.

e. a large decrease in yearly sales from individual customers.

Which of the following statements regarding managing the customer experience is most

accurate?

a. As more women enter the upper levels of industry, retailers are paying less attention to

men and their shopping behavior.

b. Men were typically viewed as infrequent “mission shoppers” but they are changing their

behaviors.

c. Men will shop for electronics but leave the majority of their clothing shopping to their

wives.

d. Making the retail environment a sparse one appeals to male shoppers who value

efficiency.

e. Men prefer to shop in a social environment so they avoid shopping alone at all costs.

A department store recently replaced its fabric-covered chairs with oversized leather

couches. This was most likely done to

a. reduce the need to constantly reupholster.

b. create a more natural environment.

c. create a more masculine ambiance for male shoppers.

d. make mothers shopping with small children less nervous.

e. encourage customers to linger longer.

Independently owned firms that take title to the merchandise they handle are referred to

as

a. brokers.

b. agencies.

c. virtual retailers.

d. merchant wholesalers.

e. merchant retailers.

Merchant wholesalers are independently owned firms that __________ the merchandise they

handle.

a. take title to

b. broker

c. act as agents for

d. break bulk and repackage

e. do not deliver

Which type of wholesaler carries a broad assortment of merchandise and performs all

channel functions?

a. drop shipper

b. limited-line wholesaler

c. specialty merchandise wholesaler

d. rack jobber

e. general merchandise wholesaler

General merchandise wholesalers

a. carry a broad assortment of merchandise and perform all channel functions.

b. own the merchandise they sell but do not physically handle, stock , or deliver it.

c. have a small warehouse from which they stock their trucks for distribution to retailers.

d. work for several producers, carry noncompetitive, complementary merchandise in an

exclusive territory, and use over-the-road transportation for all product deliveries.

e. deal exclusively with small low-cost consumer products that are distributed to a select

number of large retail chains.

Wholesalers that carry a broad assortment of merchandise and perform all channel functions

are referred to as a __________.

a. limited-line wholesaler

b. drop shipper

c. rack jobber

d. specialty merchandise wholesaler

e. general merchandise wholesaler

The wholesalers most prevalent in the hardware, drug, and clothing industries would be

_________.

a. specialty wholesaler

b. full-line wholesaler

c. cash and carry wholesaler

d. limited-line wholesaler

e. universal wholesaler

A wholesaler that carries a narrow range of products and performs all channel functions is

referred to as a __________.

a. general merchandise wholesaler

b. truck jobber

c. specialty merchandise wholesaler

d. rack jobber

e. drop shipper

Specialty merchandise wholesalers

a. carry a broad assortment of merchandise and perform all channel functions.

b. own the merchandise they sell but do not physically handle, stock , or deliver it.

c. offer a relatively narrow range of products but has an extensive assortment within the

product lines carried.

d. work for several producers, carry noncompetitive, complementary merchandise in an


e. deal exclusively with small low-cost consumer goods that are distributed to a select

number of large retail chains.

Which type of wholesaler offers a relatively narrow range of products but has an extensive

assortment within the product lines carried?

a. general merchandise wholesaler

b. limited-service wholesaler

c. cash and carry wholesaler


e. drop shipper

The wholesalers that perform all channel functions and are found in the health foods,

automotive parts, and seafood industries would be _________.

a. specialty wholesalers

b. full-line wholesalers

c. limited-wholesalers

d. universal wholesalers

e. cash and carry wholesalers

Which of the following is a type of full-service merchant wholesaler?

a. cash and carry wholesaler

b. rack jobbers

c. truck jobbers


e. drop shippers

The four major types of limited-service merchant wholesalers are cash and carry wholesalers,

drop shippers, truck jobbers, and __________.

a. display vendors

b. rack jobbers

c. point of purchase wholesalers

d. transport vendors

e. container transport vendors

The four major types of limited-service merchant wholesalers are drop shippers, rack jobbers,

truck jobbers, and __________.

a. machine vendors

b. credit line wholesalers

c. transport vendors

d. cash and carry wholesalers


The four major types of limited-service merchant wholesalers are rack jobbers, cash and

carry wholesalers, truck jobbers, and _________.

a. machine vendors


c. drop shippers

d. transport vendors


The four major types of limited-service merchant wholesalers are rack jobbers, cash and

carry wholesalers, truck jobbers, and __________.

a. machine vendors



d. container transport vendors

e. desk jobbers

The four major types of limited-service merchant wholesalers are drop shippers, rack jobbers,

cash and carry wholesalers, and __________.

a. machine vendors



d. truck jobbers


Rack jobbers refer to wholesalers who

a. furnish the shelves that display merchandise in retail stores, perform all channel

functions, and sell on consignment to retailers.

b. own the merchandise they sell and have retailers store it in their warehouses.

c. own the merchandise they sell but do not physically handle, stock , or deliver it.

d. have a small warehouse from which they stock their trucks for distribution to retailers.

e. work for several producers and carry noncompetitive, complementary merchandise in

an exclusive territory.

A limited-service wholesaler that furnishes shelves that display merchandise in stores,

performs all channel functions, and sells on consignment to retailers is referred to as a

__________.

a. stack loader

b. rack jobber

c. drop shipper

d. desk jobber

e. truck jobber

A limited-service wholesaler who performs all channel functions, and sells on consignment

to retailers, which means they retain the title to the products displayed and bill retailers

only for the merchandise sold is a _________.

a. truck jobber

b. transport vendor

c. rack jobber

d. cash and carry wholesaler

e. drop shipper

Which type of wholesaler traditionally sells hosiery, toys, and health and beauty items?

a. cash and carry wholesalers

b. truck jobbers

c. general merchandise wholesalers

d. rack jobbers

e. drop shippers

Cash and carry wholesalers refer to wholesalers who

a. furnish the racks or shelves that display merchandise in retail stores, perform all channel


b. take title to merchandise but sell only to buyers who call on them, pay cash for

merchandise, and furnish their own transportation for merchandise.





Wholesalers who take title to merchandise but sell only to buyers who call on them, pay

cash for merchandise, and furnish their own transportation for merchandise are referred to

as __________.

a. rack jobbers

b. truck jobbers



e. drop shippers

Cash and carry wholesalers

a. handle bulky items like lumber, bricks, and telephone poles.

b. handle perishable items like flowers, baked goods, and deli meats.

c. handle office supplies, electrical supplies, hardware products, and groceries.

d. are a kind of full-service wholesaler.

e. lease vending machines to merchants and refill them as needed on a cash only basis.

Drop shippers

a. own the merchandise they sell but do not physically handle, stock , or deliver it.

b. perform all channel functions, and sell on consignment to retailers.

c. take title to merchandise but sell only to buyers who call on them, pay cash for





Wholesalers who own the merchandise they sell but do not physically handle, stock , or

deliver it are referred to as __________.


b. rack jobbers

c. truck jobbers

d. manufacturer ’s representatives

e. drop shippers

Wholesalers who simply solicit orders from retailers and other wholesalers and have the

merchandise shipped directly from a producer to a buyer are referred to as __________.


b. rack jobbers

c. drop shippers

d. truck jobbers

e. manufacturer ’s representatives

Coal, lumber, and chemicals, which are sold in extremely large quantities are traditionally

sold by which type of wholesaler?


b. rack jobbers

c. truck jobbers

d. general merchandise wholesalers

e. drop shippers

Another name for a drop shipper is a __________.

a. desk jobber

b. drop runner

c. transport vendor

d. container transport vendor

e. stock jobber

The term truck jobbers refers to wholesalers who



b. store all the merchandise they sell in their trucks.



e. work for several producers, carry noncompetitive, complementary merchandise in an


Wholesalers who have a small warehouse from which they stock their trucks for distribution

to retailers are referred to as __________.


b. truck jobbers

c. rack jobbers

d. drop shippers


Wholesalers who handle a limited assortment of fast-moving or perishable items that are

sold for cash directly from trucks in their original packages are referred to as __ ________.

a. rack jobbers

b. drop shippers

c. truck jobbers



Bakery items, dairy products, and meat that are sold for cash directly from trucks in their

original packages are traditionally sold by which type of wholesaler?

a. rack jobbers

b. drop shippers

c. cash and carry wholesalers

d. truck jobbers

e. general merchandise wholesalers

A __________ would be most likely to use truck jobbers to distribute its products.

a. a clothing manufacturer

b. manufacturer of electric generators

c. a leather goods importer

d. pharmaceutical company

e. meat processing plant

Which of the following firms has made the wisest wholesaler choice for its product?

a. Sam’s Coal Country uses a cash and carry wholesaler for its coal.

b. Amy’s Amazing Appetizers uses a rack jobber for its frozen apricot aperitifs.

c. Raisha’s Retros uses a rack jobber for its replica racecar radios.

d. Shayna’s Superior Supplies uses a desk jobber for its staplers.

e. Nova’s Novelties uses a truck jobber for its never-needs-a-battery night lights.


a. Sam’s Coal Country uses a drop shipper for its coal.

b. Amy’s Amazing Appetizers uses a rack jobber for its frozen apricot aperitifs.

c. Hannah’s Hardware uses a rack jobber for its hinges.


e. Nova’s Novelties uses a truck jobber for its never-needs-a-battery night lights.


a. Hannah’s Hardware uses a rack jobber for its hammers.

b. Fiona’s Floral uses a truck jobber for its cut roses.

c. Sam’s Coal Country uses a truck jobber for its subway cars.


e. Josh’s Jackhammers uses a rack jobber for its hard hats.

Which of the following statements describes the key difference between merchant

wholesalers and agents and brokers?

a. Merchant wholesalers don’t perform all channel functions and agents and brokers do.

b. Agents and brokers only deal with consumer channels.

c. Agents and brokers make their profits based on the sales of merchandise they own,

while merchant wholesalers make profits based on fees paid for their services.

d. Merchant wholesalers take title to merchandise and agents and brokers do not.

e. Agents and brokers take title to merchandise and merchant wholesalers do not.

Another name for a manufacturer ’s agent is _________.

a. manufacturer ’s desk jobber

b. manufacturer ’s transport vendor

c. manufacturer ’s representative

d. manufacturer ’s transport vendor

e. manufacturer ’s jobber

Manufacturer ’s agents refer to agents who

a. represent a single producer and carry all products in the producer ’s lines.

b. work for several producers and carry noncompetitive, complementary merchandise in




d. own the merchandise they sell but do not physically handle, stock , or deliver it.

e. furnish the racks or shelves that display merchandise in retail stores, perform all channel


Manufacturer ’s agents refer to agents who



b. take title to merchandise but sell only to buyers who call on them, pay cash for



d. have a small warehouse from which they stock their trucks for distribution to retailers .



Intermediaries that work for several producers and carry noncompetitive, complementar y

merchandise in an exclusive territory are referred to as__________.

a. selling agents

b. line brokers

c. distribution brokers

d. manufacturer ’s agents

e. brokers

A regional bakery makes organic breads and muffins. It feels the choice of distribution

channel is critical to the product’s success, especially since it wants to have the product

distributed nationally. However, it will take some time before sales take off, and the bakery

wants to make sure the marketing program is consistent everywhere. It should use

a. a manufacturer ’s agent to sell to truck jobbers who in turn will deal with retailers.

b. its own salesforce to sell directly to retailers.

c. the services of a selling agent to sell to general merchandise wholesalers who will sell

to retailers.

d. a dual distribution system composed of both direct and indirect wholesalers.

e. a rack jobber who will sell to a merchant wholesaler and who will in turn sell to retailers.

Selling agents refer to agents who



b. represent a single producer and are responsible for the entire marketing function of

that producer.

c. work for several producers and carry noncompetitive, complementary merchandise in


d. take title to merchandise but sell only to buyers who call on them, pay cash for

merchandise, and furnish their own transportation for the merchandise.

e. sell primarily large bulky products.

Intermediaries that represent a single producer and are responsible for the entire marketing

function of that producer are referred to as __________.

a. brokers

b. line brokers

c. selling agents

d. distribution brokers

e. manufacturer ’s agents

Intermediaries that represent a single producer and are responsible for designing

promotional plans, setting prices, determining distribution policies, and making

recommendations on product strategy are referred to as _________.

a. brokers

b. line brokers

c. distribution brokers

d. selling agents

e. manufacturer ’s agents

Carla’s Cards uses a __________ to sell and market the entire line of greeting cards. They

design promotional plans, set prices, determine distribution policies, and make

recommendations to Carla on product strategy.

a. manufacturer ’s agent

b. broker

c. manufacturer ’s branch office

d. manufacturer ’s sales office

e. selling agent

Brokers are independent firms or individuals who

a. represent a single producer and are responsible for the entire marketing function of

that producer.

b. work for several producers and carry noncompetitive, complementary merchandise in



merchandise, and furnish their own transportation for the merchandise.

d. own the merchandise they sell but do not physically handle, stock , or deliver it.

e. bring buyers and sellers together to make sales.

Independent firms or individuals whose principal function is to bring buyers and sellers

together to make sales are referred to as __________.

a. manufacturer ’s agents

b. brokers

c. selling agents

d. manufacturer ’s branches

e. manufacturer ’s sales offices

Originally, filters for Mr. Coffee electric-drip coffee makers were sold through appliance and

mass merchandise stores. If the company decided to sell the filters in grocery stores where

customers purchased their coffee, what type of intermediaries would the company most

likely hire?

a. a full-line wholesaler

b. drop shippers

c. food brokers

d. truck jobbers


A unique broker that acts in many ways like a manufacturer ’s agent is a food broker,

representing buyers and sellers in the grocery industry. Food brokers differ from

conventional brokers because they act on behalf of producers on a permanent basis and

a. receive a commission for their services.

b. are paid a flat fee for each time the shelves are stocked.

c. are paid by both the buyer and seller separately depending upon the size of the order.

d. are paid a commission by the buyer and a bonus by the seller.

e. are paid a flat fee by both the buyer and seller, but receive a bonus based upon the

percentage of increased sales by quarter.

Freightfinder.com is an Internet company that is called a “go-between.” If a trucker needs

to find a load for a particular trade lane, he or she can visit this site, list the price and

available truck space, and find a company that needs a shipment moved. Since the purpose

of this website is to put buyer and sellers together so that a sale can be made, this website

can be categorized as a__________.

a. broker

b. selling agent


d. manufacturer ’s agent

e. administrator

A business in Kansas City, Missouri, looking to rent office space should use a __________ to

help it locate the most suitable space at the best possible rate.

a. selling agent

b. broker


d. manufacturer ’s agent

e. administrator

Wholly-owned extensions of the producer that perform wholesaling activities are referred

to as

a. general merchandise wholesalers.

b. cash and carry wholesalers.

c. agents and brokers.

d. manufacturer ’s branches and sales offices.

e. merchant wholesalers.

Unlike merchant wholesalers, agents, and brokers, manufacturers’ branches and sales offices

are __________ that perform wholesaling activities.

a. independent distribution managers

b. independent intermediary channels

c. wholly-owned extensions of the producer

d. wholly-owned extensions of the distributor

e. wholly-owned extensions of the retailer

A manufacturer ’s branch office

a. carries a producer ’s inventory and performs the functions of a full-service wholesaler.

b. performs a sales function as an option to agents and brokers.

c. works for several producers and carries noncompetitive, complementary merchandise

in an exclusive territory.

d. takes title to merchandise but sells only to buyers who call on them, pays cash for

merchandise, and furnishes their own transportation for the merchandise.

e. brings buyers and sellers together to make sales.

A manufacturer ’s sales office

a. works for several producers and carries noncompetitive, complementary merchandise

in an exclusive territory.

b. takes title to merchandise but sells only to buyers who call on them, pays cash for

merchandise, and furnishes their own transportation for the merchandise.

c. carries a producer ’s inventory, performs the functions of a full-service wholesaler and is

an alternative to a merchant wholesaler.

d. does not carry inventory, typically performs a sales function, and is an a lternative to

agents and brokers.

e. brings buyers and sellers together to make sales.

A channel intermediary that does not carry inventory, typically performs only a sales function,

and is an alternative to agents and brokers is referred to as a _________ _.

a. brokering agent

b. cash and carry wholesalers

c. manufacturer ’s sales office

d. manufacturer ’s branch office

e. merchant wholesalers

The Mall of America is an example of which type of setting for a store location?

a. central business district



d. strip mall

e. power center

Mall of America has verbalized its __________ strategy with the slogan, “A place for fun!”

a. retail mix

b. wheel of retailing

c. retail life cycle

d. distribution

e. retail positioning

A significant difference between the Mall of America and other regional shopping centers

is that

a. all MOA employees are required to be multilingual because of the store’s international

draw.

b. MOA has twice as much space devoted to specialty stores than to anchor stores.

c. retail store owners can live in attached condominiums, at reduced rates, so they don’t

have to worry about getting to work in bad weather.

d. employees can take classes on the premises offered through a local community college.

e. employees get a 50% discount at all the food establishments.

Experts have observed that our marketplace is in the midst of an “age of engagement.”

What does “engagement” mean at Twitter?

a. one-way communication

b. multimedia communication

c. free advertising

d. Marketers are “loud.”

e. The recipient takes some action.

Which of the following is a suggestion for ensuring the success of a Twitter-based integrated

campaign?

a. The message should not be serious.

b. There should be several tweets each day.

c. There should not be any links in the messages.

d. The campaign should take place in real time.

e. There should be an “engagement” letter.

Which of the following is the newest way to engage consumers?

a. television advertising

b. QR codes

c. e-mail

d. magazine advertising

e. public service announcements

The __________ element of the marketing mix consists of communication tools, including

advertising, personal selling, sales promotion, public relations, and direct marketing.

a. product

b. price

c. place

d. promotional

e. advertising

The __________ includes advertising, personal selling, sales promotion, public relations, and

direct marketing.

a. promotional mix

b. promotion channel

c. communication message

d. marketing matrix

e. media mix

The promotional mix includes __________, personal selling, sales promotion, public relations,

and direct marketing.

a. publicity

b. infomercials

c. advertising

d. risk-free trials

e. word-of-mouth

The promotional mix includes advertising, __________, sales promotion, public relations, and

direct marketing.

a. publicity

b. personal selling

c. merchandising

d. branding

e. people

The promotional mix includes advertising, personal selling, __________, public relations, and

direct marketing.

a. publicity

b. infomercials

c. merchandising

d. word-of-mouth

e. sales promotion

The promotional mix includes advertising, personal selling, sales promotion, __________, and

direct marketing.

a. public relations

b. infomercials

c. merchandising

d. word-of-mouth

e. publicity

The promotional mix includes advertising, personal selling, sales promotion, public relations,

and __________.

a. public relations

b. direct selling

c. merchandising

d. word-of-mouth

e. direct marketing

Promotion represents the fourth element in the marketing mix. The promotional element

consists of communication tools, including sales promotion, public relations, personal selling,

direct marketing, and __________.

a. people

b. advertising

c. social media

d. branding

e. merchandising


consists of communication tools, including advertising, public relations, sales promotion,

direct marketing, and __________.

a. people

b. merchandising

c. social media

d. personal selling

e. branding


consists of communication tools, including advertising, personal selling, sales promotion,

public relations, and __________.

a. people

b. merchandising

c. direct marketing

d. social media

e. branding

The promotional mix refers to

a. the three underlying appeals used that make promotions effective: (1) sex appeal, (2)

humor appeal, and (3) fear appeal.

b. the combination of both paid and non-paid marketing tools used to promote product

interest.

c. the set of promotional tools designed to motivate prospective buyers to purchase

products and services: (1) awareness, (2) interest, (3) evaluation, (4) trial, and (5) adoption.

d. the composition of the objectives of the promotion: (1) to inform, (2) to persuade, (3)

to remind, and (4) to phase out.

e. the combination of one or more communication tools used to: (1) inform prospective

buyers about the benefits of the product, (2) persuade them to try it, and (3) remind

them later about the benefits they enjoyed by using the product.

The combination of one or more communication tools used to: (1) inform prospective buyers

about the benefits of the product, (2) persuade them to try it, and (3) remind them later

about the benefits they enjoyed by using the product is referred to as the __________.

a. promotion channel

b. channel of communication

c. marketing matrix

d. promotional mix

e. media mix

The __________ can be used to inform prospective buyers about the benefits of the product.

a. promotional mix

b. promotion channel

c. communication channel

d. marketing mix

e. media mix

The promotional mix can be used to: (1) inform prospective buyers about the benefits of

the product, (2) __________, and (3) remind them later about the benefits they enjoyed by

using the product.

a. explain how to use the product

b. persuade them to try it

c. inform customers of complementary offerings

d. inform customers of pricing changes

e. lure customers away from competitors’ products

The promotional mix can be used to: (1) inform prospective buyers about the benefits of

the product, (2) persuade them to try it, and (3) __________.

a. explain how to use the product

b. inform customers of complementary offerings

c. remind them later about the benefits they enjoyed by using the product

d. inform customers of pricing changes

e. lure customers away from competitors’ products

In a marketing context, the acronym IMC refers to __________.

a. interactive media convergence

b. internal marketing communications

c. integrated marketing collaboration

d. integrated marketing communications

e. international marketing communications

The concept of designing marketing communications programs that coordinate all

promotional activities—advertising, personal selling, sales promotion, public relations, and

direct marketing—to provide a consistent message across all audiences is referred to as

__________.

a. the media mix

b. the marketing matrix

c. the promotional blend

d. marketing by objectives (MBO)

e. integrated marketing communications (IMC)

Integrated marketing communications is the concept of designing marketing

communications programs that coordinate all promotional activities—advertising, personal

selling, sales promotion, public relations, and direct marketing—to provide __________.

a. retailers with cooperative media buys

b. a consistent message across all audiences

c. the firm with a feedback loop

d. a marketing matrix

e. a media mix useful to all types of companies

Integrated marketing communications (IMC) programs coordinate a variety of promotion

alternatives to provide

a. a promotional channel.

b. a communications message.

c. a consistent message across audiences.

d. a media mix useful to all types of companies.

e. a marketing matrix.

By taking consumer expectations into consideration, integrated marketing communications

(IMC) is a key element in a company’s __________ strategy.

a. generic business

b. retail life cycle

c. market segmentation

d. sustainable development

e. customer experience management

To promote its theme parks to groups, Disney uses advertising, direct marketing, Internet

promotion, and sales promotions with other companies such as McDonald’s. In other

words, Disney uses IMC, which stands for

a. integrated marketing cooperation.

b. interactive media convergence.

c. an infrastructure of market customization.

d. integrated marketing communications.

e. integrated media convergence.

Disney uses an integrated marketing communications program (IMC) to promote group

travel to its theme parks because

a. its strategy includes using all types of promotional activities that deliver a consistent

message.

b. it does not want to reach any member of its target audience more than once to conserve

resources.

c. IMC is less expensive than other forms of promotion such as public service

announcements.

d. if it didn’t, Disney would have to use indirect personal selling.

e. it is more concerned about frequency of attendance than geographic reach.

Allegra is an antihistamine. To create brand awareness, the company is offering people

who request information about the product a seat cushion to use at their favorite sporting

event. Its television ad shows a woman half-heartedly watching a sporting event. The

voiceover asks if she is bored or congested. In the next scene, the person is having a great

time and is decongested after taking Allegra. This use of the same promotional theme

throughout a company’s marketing campaign is an example of how marketers use __________.

a. the retailing mix

b. integrated marketing communications (IMC)

c. the branding mix

d. coordinated channels of communication

e. marketing by objectives (MBO)

The process of conveying a message to others that requires six elements—a source, a

message, a channel of communication, a receiver, and the processes of encoding and

decoding—is referred to as __________.

a. exchange

b. dialogue

c. communication

d. advertising

e. feedback

Communication is the process of conveying a message to others and it requires six elements.

These elements include: __________, a message, a channel of communication, a receiver, and

the processes of encoding and decoding.

a. a concept

b. a brand

c. a slogan

d. a source

e. an offer


These elements include: a source, __________, a channel of communication, a receiver, and


a. a message

b. a concept

c. a brand

d. a slogan

e. an offer


These elements include: a source, a message, __________, a receiver, and the processes of

encoding and decoding.

a. a concept

b. an offer

c. a brand

d. a slogan

e. a channel of communication


These elements include: a source, a message, a channel of communication, __________, and


a. a concept

b. a receiver

c. an offer

d. a brand

e. a slogan


These elements include: a source, a message, a channel of communication, a receiver, and

__________.

a. a concept

b. an offer

c. a slogan

d. a brand

e. the processes of encoding and decoding

Figure 17-1 above depicts the communication process, which consists of 10 key elements

(“A” through “J”). The position labeled “A” is referred to as __________.

a. the message

b. the receiver

c. the source

d. the field of experience

e. feedback

Figure 17-1 above depicts the communication process, which consists of 10 key elements

(“A” through “J”). The position labeled “B” is referred to as __________.

a. the source

b. the message

c. the receiver

d. encoding

e. feedback

Figure 17-1 above depicts the communication process, which consists of ten key elements

(“A” through “J”). The position labeled “C” is referred to as __________.

a. the source

b. the message

c. the receiver


e. feedback


(“A” through “J”). The position labeled “D” is referred to as __________.

a. encoding

b. the message

c. decoding


e. feedback


(“A” through “J”). The position labeled “E” is referred to as __________.

a. the source

b. the message

c. the field of experience

d. feedback

e. the receiver


(“A” through “J”). The position labeled “F” is referred to as __________.

a. the response

b. the message

c. the feedback loop


e. feedback


(“A” through “J”). The position labeled “G” is referred to as __________.

a. noise

b. the message

c. the feedback loop


e. feedback


(“A” through “J”). The position labeled “H” is referred to as _________.

a. noise

b. the message

c. the receiver


e. feedback

17-1 above depicts the communication process, which consists of ten key elements (“A”

through “J”). The position labeled “I” is referred to as _________.

a. the response

b. the source

c. the message

d. the receiver

e. the field of experience


(“A” through “J”). The position labeled “J” is referred to as _________.

a. the source

b. the message

c. the receiver

d. the feedback loop

e. the field of experience

A source refers to

a. any paid form of advertising.

b. consumers who read, hear, or see the message during the communications process.

c. a company or person who has information to convey during the communications

process.

d. people with similar understanding and knowledge who are willing to share that

knowledge with others.

e. a group of individuals who are willing to receive information from others.

A company or person who has information to convey during the communication process is

referred to as a(n) __________.

a. encryptor

b. message carrier

c. originator

d. receiver

e. source

Procter & Gamble created an advertisement for its High Endurance men’s antiperspirant.

In terms of the communication process, the __________ of the information in the product’s

advertisement is Procter & Gamble, its manufacturer.

a. receiver

b. source

c. message

d. decoder

e. communication channel

In a marketing context, a message refers to

a. product information regarding, benefits, price, and usage found on a product’s package.

b. the slogan or tagline of a specific product.

c. proprietary information linking a specific product to a promotional campaign.

d. the information sent by a source to a receiver during the communication process.

e. a television or radio commercial from the buyer to the seller.

The information sent by a source to a receiver during the communication process is referred

to as ___________.

a. an advertisement

b. publicity

c. a message

d. feedback

e. a missive

Procter & Gamble Co. created an advertisement for its Old Spice Red Zone antipersp irant.

In terms of the communication process, the __________ in the ad informed prospective

customers that the antiperspirant offered more protection than the Old Spice High

Endurance brand.

a. lesson

b. message

c. memo

d. source

e. feedback

A channel of communication refers to

a. the selection of either paid or non-paid forms of information dissemination.

b. a similar understanding and knowledge that a sender and receiver apply to a message.

c. an open-ended dialogue between the marketing department and the firm responsible

for developing the IMC program.

d. a social network–based forum that allows customers to communicate their likes, dislikes,

suggestions, and concerns to an organization 24 hours a day, 365 days a year.

e. the means (salesperson, advertising media, or public relations tools) of conveying a

message to a receiver during the communication process.

The means (salesperson, advertising media, or public relations tools) of conveying a message

to a receiver is referred to as a(n) __________.

a. vehicle

b. field of experience

c. channel of communication

d. direct feedback loop

e. information highway

A message is conveyed by means of a(n) __________ such as a salesperson, advertising media,

or public relations tools.

a. vehicle

b. channel of communication

c. field of experience

d. direct feedback loop

e. information highway

The means (salesperson, advertising media, or public relations tools) of conveying a message

to a receiver during the communication process is referred to as the __________.

a. channel of communication

b. information corridor

c. communications highway

d. information pathway

e. information channel

All of the following are channels of communication that convey a message from a source

to a receiver EXCEPT:

a. magazine

b. news release

c. salesperson

d. chief marketing office (CMO)

e. TV

L’Oréal created an advertisement for its Visible Lift makeup. Glamour magazine, in which

the ad for the L’Oréal Visible Lift makeup appeared, is an example of (a) __________.

a. message

b. noise

c. feedback loop

d. source

e. channel of communication

The billboards that Sony uses to advertise its PlayStation 3 video game console are __________.

a. channels of communication

b. messages

c. noise

d. feedback loops

e. sources

Consumers who read, hear, or see the message sent by a source during the communication

process are referred to as __________.

a. purchasers

b. the target market

c. receivers

d. sources

e. encoders

The term “receivers” refers to

a. only those consumers who read, hear, or see a message about a product or service and

then choose to buy it.

b. consumers who read, hear, or see the message sent by a source during the

communication process.

c. a firm that obtains a basic message or theme from its advertising agency and translates

that vision into a useable IMC campaign.

d. promotional firms that select the best channels through which to convey advertising

messages.

e. customers who read, hear, or see the message sent by a source and misinterpret or

reinterpret the message to fit their individual beliefs.

In the communication process, the 18- to 34-year-old men who see a NASCAR TV

commercial advertising P&G’s Old Spice High Endurance antiperspirant are called __________.

a. purchasers

b. the target market

c. wasted coverage

d. receivers

e. encoders

The process of having the sender transform an idea into a set of symbols during the

communication process is referred to as __________.

a. decoding

b. encrypting

c. message formation

d. advertising

e. encoding

In a brainstorming session for a new drug to lower cholesterol, the members of the

marketing department agreed the benefits of the new drug could best be promoted by

comparing the drug to those currently on the market. In terms of the communication

process, the transformation of this idea into an ad campaign is an example of __________.

a. noise

b. receiving

c. encoding

d. decoding

e. messaging

When Procter & Gamble bought the Old Spice brand in 1990, it planned to transform the

old, stagnating brand into a men’s “personal-care powerhouse.” The ads that P&G

developed shed the older-man image and now appeal to the 18 to 34 age group. In terms

of the communication process, P&G had to __________ its idea to create the message shown

to the new target market.

a. respond

b. discuss

c. decode

d. encode

e. feedback

Decoding refers to

a. receiving a message within a common field of experience and breaking down that

information into small useable units to better interpret its meaning.

b. having a receiver take a set of symbols, the message, and transform them back to an

idea.

c. receiving a message that requires integration of new information to fully understand

the intended meaning.

d. having the sender transform an abstract idea into a set of symbols that can be

universally understood.

e. having a sender take a set of symbols, the message, and transform them back to an

idea.

The process of having the receiver take a set of symbols, the message, and transforming

them back to an idea during the communication process is referred to as __________.

a. decoding

b. encoding

c. integrating

d. back translation

e. transformation

After watching a 30-second commercial from Jarrod’s fine jewelry, Mariah was certain the

brooch she saw would look spectacular on her new evening dress. In terms of the

communication process, Mariah engaged in the task of __________.

a. integrating

b. sending

c. decoding

d. messaging

e. encoding

After watching the 30-minute infomercial on Oxy-Clean, Sarah was certain the cleaning

product would remove the grape juice stain from her white carpet. In terms of the

communication process, Sarah was __________ the message from Oxy-Clean.

a. integrating

b. transforming

c. translating

d. decoding

e. encoding

Errors in communication can occur in several ways: (1) the source may not adequate ly

transform the abstract idea into an effective set of symbols, (2) __________, (3) the receiver

may not properly transform the set of symbols into the correct abstract idea, or (4) feedback

may be so delayed or distorted that it is of no use to the sender.

a. a properly encoded message may be sent through the wrong channel and never make

it to the receiver

b. in an attempt to be creative, the encoder creates a message with too much noise

c. the communications channel is not properly funded

d. the message is considered too ordinary because there is too broad a field of experience

e. there is no interest on the part of the receiver because the product itself is inadequate

Errors in communication can occur in several ways: (1) the source may not adequately

transform the abstract idea into an effective set of symbols; (2) a properly encoded message

may be sent through the wrong channel and never make it to the receiver ; (3) the receiver

may not properly transform the set of symbols into the correct abstract idea; or (4) __________.

a. the communications channel is not properly developed

b. there is no interest on the part of the receiver

c. feedback may be so delayed or distorted that it is of no use to the sender

d. the message is considered too ordinary because there is too much field of experience

e. the encoder is inexperienced, resulting in too much noise

Errors in communication can occur in several ways: (1) the source may not adequately

transform the abstract idea into an effective set of symbols; (2) a properly encoded message

may be sent through the wrong channel and never make it to the receiver ; (3) __________; or

(4) feedback may be so delayed or distorted that it is of no use to the sender.

a. in an attempt to be creative, the encoder creates a message with too much noise

b. there is no interest on the part of the receiver because the product itself is inadequate

c. the communications channel is not properly developed

d. the message is considered too ordinary because there is too broad a field of exper ience

e. the receiver may not properly transform the set of symbols into the correct abstract

idea

Which of the following messages represents a potential communication error?

a. “Once-in-a-lifetime offer!”

b. “Buy one, get one free!”

c. “Can’t read? Let us help. Free literacy classes.”

d. “Great part-time job opportunity; transportation required.”

e. “Two bottled waters for $3.00 or $1.75 apiece.”

A similar understanding and knowledge that the sender and receiver apply to the message

so that it can be communicated effectively during the communication process is referred to

as __________.

a. common ground

b. field of experience

c. McLuhanism

d. hermeneutics

e. back translation

A field of experience refers to

a. the unique set of terms, expressions, or jargon that carries a specific meaning within a

specific field (i.e., the medical profession, legal profession, etc.).

b. the designation given to different elements in the communications channel based upon

their specific area of expertise (i.e., advertising, publicity, etc.).

c. a similar understanding and knowledge between the manufacturer or service provider

and department or firm handling its IMC campaign so there is no incorrect decoding

of the sender ’s message.

d. a mutually shared understanding and knowledge between the manufacturer or service

provider and department or firm handling its IMC campaign so there is no incorrect

encoding of the sender ’s message.

e. a similar understanding and knowledge that the sender and receiver apply to the

message so that it can be communicated effectively during the communication process.

For a message to be communicated effectively, the sender and receiver must have a mutually

shared field of experience, which means a similar __________ they apply to the message.

a. common ground

b. national, regional, or ethnic origin

c. understanding and knowledge

d. feeling

e. psychographics

When an English-speaker reads the KFC slogan “Finger-lickin’ good!,” he or she interprets

this as an indication that the food tastes very good. When this slogan was translated into

Chinese, the Chinese-speaker interprets the same words as “eat your fingers off!” The

different interpretations of the ad are primarily due to differing __________.

a. product consumption behaviors

b. fields of experience

c. channels of communication

d. educational systems

e. advertising appeals

Cardiac Science is a California-based company that makes defibrillators, heart monitors, and

other medical equipment. It is preparing to market its products in Greece. The company’s

marketing manager is responsible for the promotional campaign in Greece, and she wants

to avoid any problems that might arise because her field of experience does not coincide

with that of her Greek target audience. Which of the following is the best example of a

communications problem that might arise because her field of experience is different from

that of her audience?

a. The name of the product, when translated into Greek, has an unintentional meaning.

b. Her target audience is strongly ethnocentric.

c. The trade journals in which the company wants to run its ads do not accept ads from

foreign companies.

d. A Greek bureaucrat who is responsible for determining that the Cardiac Science products

meet national standards has taken a personal dislike to her.

e. The ads are in trade journals that Greek hospital administrators don’t read.

The marketing professor wanted to do everything possible to ensure that her students

understood her lectures. Accordingly, she used examples of marketing activities that most

students were familiar with. For example, the professor discussed the marketing exchanges

between students and grocers, college bookstores, convenience stores, and clothiers. The

examples used by the professor were her attempt to __________ her message to encourage

better understanding on the part of her students.

a. create common ground for

b. create noise in

c. effectively decode

d. develop a mutually shared field of experience with

e. back translate

A _________ consists of a response and feedback.

a. feedback loop

b. consequence

c. source reaction

d. primary significance

e. concept effect

In the feedback loop, the impact the message has on the receiver ’s knowledge, attitude, or

behaviors during the communications process is referred to as __________.

a. feedback

b. a field of experience

c. noise

d. a response

e. a hierarchy of effects

In a feedback loop, a response refers to

a. the number of times a consumer must hear a message before it can be accurately

decoded.

b. the impact the message had on the receiver ’s knowledge, attitude, or behaviors during

the communications process.

c. the positive or negative feedback that a consumer expresses immediately after exposure

to a company’s message.

d. the impact, either positive or negative, that occurs when one consumer interprets a

firm’s message through word of mouth to another potential consumer using his or her

own words.

e. the length of time required for a typical customer to associate a specific slogan, theme,

melody, or logo with a specific product brand.

Ann recently saw an ad for Claritin, a medicine perfect for counteracting her allergy

symptoms. She immediately went to the store to purchase the product. In terms of the

communication process, the Claritin ad created a(n) __________.

a. stimulus

b. exposure

c. field of experience

d. subconscious impulse

e. response

Melissa saw an ad promoting Vermont as a tourist destination and a great place to live.

The ad contained a postage-paid reply card that could be used to request more information.

In terms of the communication process, the mailing in of the postcard with a request for

further information is an example of __________.

a. a stimulus

b. a field of experience

c. a response

d. noise

e. a feedback loop

After a receiver responds to a message, the sender ’s interpretation of the response

indicating whether the message was decoded and understood as intended during the

communications process is referred to as __________.

a. encoding

b. receiver response

c. feedback

d. noise

e. message loop

In the feedback loop, feedback refers to

a. the sender ’s interpretation of the response that indicates whether the message was

decoded and understood as intended.

b. the impact the message had on the receiver ’s knowledge, attitude, or behaviors du ring

the communications process.

c. a mutually shared understanding and knowledge the sender and receiver apply to a

message so that it can be communicated effectively during the communication process

a message loop.

d. any unsolicited response from consumers or potential consumers regarding a company’s

message.

e. extraneous factors that can work against effective communication by distorting a

message or the feedback received.

In the communication process, _________ ensure(s) that messages are decoded properly.

a. responses

b. replies

c. feedback

d. pretesting

e. looping

In the communication process, noise refers to

a. any unsolicited response from consumers or potential consumers regarding a company’s

message.

b. any communication with consumers who are not in the target audience.

c. extraneous factors that can work against effective communication by distorting a

message or the feedback received during the communication process.

d. the use of colors, words, sounds, or images that make an otherwise simple message

more complex.

e. a unique set of terms, expressions, or jargon that carries a specific meaning within a

specific field (i.e., the medical profession, legal profession, etc.) .

In the communication process, printing mistakes that affect the meaning of a newspaper

advertisement, or using words or pictures that fail to communicate the message clearly, are

referred to as

a. noise.

b. clutter.

c. feedback.

d. distortions.

e. annoyances.

Mary’s Cookies submitted an ad to the local newspaper with a coupon s tating that a dozen

cookies cost $2.99. The newspaper instead printed the price on the coupon as $29.99.

Consequently, no customers came in to buy cookies by using the coupon. The factor

working against effective communication between Mary and her target market in this case

was most likely the result of __________.

a. feedback disruption

b. noise

c. a decoding error

d. a communication barrier

e. message interference

The marketing manager from a heavy-equipment manufacturer in Dallas, Texas, was

attending an international trade show in Japan. There were many prospective customers

from different countries who seemed interested in the firm’s product. However, they had

difficulty following the manager ’s explanations of product features due to his heavy Texas

drawl. In this case, the accent would be considered __________.

a. an encoding error

b. a decoding error

c. culture shock

d. noise

e. distortion

Each year, advertisers spend millions of dollars during the Super Bowl half-time show.

These marketers hope to reach the millions of sports enthusiasts tuned into the NFL’s

greatest spectacle. Unfortunately, during the half-time festivities, many viewers dash to the

kitchen for a sandwich and a soda and do not see or hear the persuasive promotional

messages of the advertisers. The desire for food and drink is an example of __________,

which inhibits effective communication.

a. distraction

b. diversion

c. ineffective encoding

d. information overload

e. noise

Advertising, personal selling, sales promotion, public relations, and direct marketing are

marketing communications alternatives that make up a firm’s __________.

a. cooperative advertising

b. marketing mix

c. media strategy

d. promotional mix

e. communication source

To communicate with consumers, a company can use one or more of five promotion

alternatives. In Figure 17-2 above, the promotional element labeled “A” represents _________.

a. advertising

b. personal selling

c. public relations

d. sales promotion

e. direct marketing


alternatives. In Figure 17-2 above, the promotional element labeled “B” represents _________.

a. advertising

b. personal selling

c. public relations

d. sales promotion

e. direct marketing


alternatives. In Figure 17-2 above, the promotional element labeled “C” represents _________.

a. advertising

b. personal selling

c. public relations

d. sales promotion

e. direct marketing


alternatives. In Figure 17-2 above, the promotional element labeled “D” represents

_________.

a. advertising

b. personal selling

c. public relations

d. sales promotion

e. direct marketing


alternatives. In Figure 17-2 above, the promotional element labeled “E” represents _________.

a. advertising

b. personal selling

c. public relations

d. sales promotion

e. direct marketing

Advertising, sales promotion, and public relations are often said to use _________ because

they are used with groups of prospective buyers.

a. cooperative selling

b. mass selling

c. customized selling

d. collection selling

e. bulk selling

Which of the following would be LEAST LIKELY to be used for mass selling?

a. advertising

b. public relations

c. sales promotion

d. publicity

e. personal selling

In a promotional sense, customized interaction refers to

a. the creation of unique products based upon the needs and wants of individual

consumers.

b. the translation of a company’s message into multiple languages for use in advertising

in different countries or regions.

c. personal selling between a seller and a prospective buyer that can include face-to-face,

telephone, and interactive electronic communication.

d. the creation of different promotional campaigns based on gender, age, or ethnicity.

e. the use of different images (such the covers of Sports Illustrated) to reach different

product groupings.

Which of the following types of promotion uses customized interaction?

a. advertising

b. public relations

c. sales promotion

d. personal selling

e. publicity

Which of the following types of promotion uses customized interaction?

a. advertising

b. direct marketing

c. public relations

d. sales promotion

e. publicity

Advertising refers to

a. any nonpersonal, indirectly paid presentation of an organization, service, or product.

b. a short-term inducement of value offered to arouse interest in buying a product or

service.

c. methods used to identify a target market for a particular product or service.

d. any paid form of nonpersonal communication about an organization, product, service,

or idea by an identified sponsor.

e. any unpaid form of personal presentation of products and services.

A paid form of nonpersonal communication about an organization, product, service, or idea

by an identified sponsor is referred to as __________.

a. sales promotion

b. publicity

c. advertising

d. direct marketing

e. mass communication

What is the nature of the “paid” aspect of advertising?

a. Fees are paid for space or time.

b. Fees are paid to salespeople as either salaries or commissions.

c. Fees are paid to creative arts contributors but there is no direct payment to media.

d. There is a wide range of fees paid depending upon the promotion selected.

e. The primary costs are now associated with communication through mail, telephone, or

the Internet.

Which of the following statements about advertising is most accurate?

a. Advertising can communicate specific product benefits to prospective buyers.

b. Advertising has limited control as to when and where an advertisement will be used.

c. A key advantage of advertising is its ability to use customized interactions.

d. Advertising can be a very effective “attention getter” especially for new products, but

has little impact for repeat buys.

e. Advertising is one of the least costly forms of promotion because it reaches a mass

market.


a. Advertising has limited control as to when and where an advertisement will be used.

b. Advertising allows a firm to reach a mass market.

c. A key advantage of advertising is its ability to use customized interactions.

d. Advertising can be a very effective “attention getter” especially for new products, but


e. Advertising is one of the least costly forms of promotion because it reaches a pretested

market.


a. Advertisers have limited control as to when and where their advertisements will be

placed.

b. A key advantage of advertising is its ability to use customized interactions.

c. Advertising can be a very effective “attention getter” especially for new products, but


d. Advertising is one of the least costly forms of promotion because it reaches a pretested

market.

e. Through advertising, a company can control what it wants to say, when they want to

say it, and to some extent, to whom the message is sent.

Which of the following is an inherent strength of advertising?

a. Advertising provides immediate feedback.

b. Advertising can deliver complex information.

c. Advertising can create messages quickly.

d. Advertising is an efficient means for reaching large numbers of people.

e. Advertising is often the most credible source of information for consumers.

Which of the following is an inherent weakness of advertising?

a. extremely high expense per exposure

b. difficult to get media cooperation

c. high absolute costs

d. easily duplicated

e. can easily lead to promotion wars

Which of the following statements describes a key difference between advertising and public

relations?

a. Public relations is more expensive on a cost-per-contact basis than advertising.

b. Public relations is usually directly paid while advertising is usually indirectly paid.

c. Advertising is usually directly paid while public relations is usually indirectly paid.

d. Advertising provides an immediate feedback loop while public relations does not.

e. Public relations always has a much greater reach than advertising.

When Sears places a multiple-page booklet in the local newspaper about its President’s Day

sale, it is using which element of the promotional mix?

a. advertising

b. sales promotion

c. publicity

d. personal selling

e. direct marketing

New Balance recently spent $13 million for time on television and space in selected

magazines to promote its athletic shoes. What form of marketing communication did it

use?

a. public relations

b. personal selling

c. publicity

d. sales promotion

e. advertising

The two-way flow of communication between a buyer and a seller, often in a face-to-face

encounter, designed to influence a person’s or group’s purchase decision is referred to as

a. sales promotion.

b. personal selling.

c. direct selling.

d. advertising.

e. public relations.

Personal selling refers to

a. a seller-directed flow of communications, often in a face-to-face encounter, designed to

promote a product with the purpose of making a sale.

b. an individualized communications program specifically designed for a single customer

because the item being sold is unique to that person.

c. a mass selling approach that has been be tailored to meet the more select needs of a

target market based on age, gender, ethnicity, or occupation.

d. the two-way flow of communication between a buyer and a seller, often in a face-to-

face encounter, designed to influence a person’s or group’s purchase decision.

e. any spoken (rather than visual or print) attempt to promote a product for the purpose

of making a sale.

Which of the following is an inherent strength of personal selling?

a. Personal selling can provide the target audience with complex information.

b. Personal selling has low seller involvement.

c. Personal selling can prepare messages quickly.

d. Personal selling is an efficient means for reaching large numbers of people.

e. Personal selling is often the most credible source in the consumer’s mind.

Which of the following in an inherent weakness of personal selling?

a. It is difficult to receive good feedback.

b. It is difficult to get media cooperation.

c. Messages may differ between salespeople.

d. It can be easily duplicated.

e. It can can easily lead to promotion wars.

Communication with consumers who are not in the target audience is referred to as

__________.

a. excess coverage

b. wasted coverage

c. exhaustive coverage

d. squandered coverage

e. dissipated coverage

Wasted coverage can be reduced by which of method of promotion?

a. sales promotion

b. public relations

c. advertising

d. public service announcements

e. personal selling

Which promotional mix alternative has the advantage of allowing the seller to see and/or

hear the potential buyer ’s reaction to the message?

a. advertising

b. personal selling

c. public relations

d. sales promotion

e. publicity

Which of these promotional elements has the inherent weakness of extremely high expense

per exposure?

a. advertising

b. sales promotion

c. publicity

d. direct marketing

e. personal selling

Which of the following statements describes a disadvantage associated with personal selling?

a. Presentations often provide little opportunity for consumer feedback.

b. Personal selling permits too much wasted coverage.

c. There may be inconsistency in the presentation of the message from one salesperson

to another.

d. A salesperson cannot control to whom a presentation is made.

e. Personal selling is subject to extensive federal, state, and company regulation.

Which of these promotional elements has the highest cost-per-contact or exposure?

a. advertising

b. personal selling

c. sales promotion

d. publicity


When a company telephones people to ask them to contribute to the Police Benevolent

Association (PBA), the calling company is using __________.

a. advertising

b. personal selling

c. sales promotion

d. public relations

e. publicity

When a representative for Pampered Chef cooking utensils invites friends to her home and

spends 30 minutes demonstrating the superiority of the Pampered Chef products, she is

engaging in __________.

a. missionary sales

b. sales promotion

c. public relations

d. personal selling

e. a public service announcement

Businesses vary as to the amount of security they require or can afford to access their

computer files. A company that sells a complete line of firewalls, from a no-frills version

to one that uses complex retinal scans, would most likely employ which promotional

element to effectively promote its product to businesses?

a. personal selling

b. advertising

c. sales promotion

d. public relations

e. social media

Lenox China Co. would like to get its annual Christmas ornament series into Macy’s

department stores. Macy’s has a buyer in New York City who makes decisions on its

giftware. Which promotional element would be most appropriate for Lenox to use to reach

the Macy’s buyer?

a. advertising

b. sales promotion

c. personal selling

d. public relations

e. advertising and public relations

A form of communication management that seeks to influence the feelings, opinions, or

beliefs held by customers, prospective customers, stockholders, suppliers, employees, and

other publics about a company and its products or services is referred to as __________.

a. sales promotion

b. publicity

c. advertising

d. public relations

e. personal selling

Public relations refers to

a. a seller-directed flow of communication, often in a face-to-face encounter, designed to

promote a product with the purpose of making a sale.

b. an individualized communications program specifically designed for a single customer

because the item being sold is unique to that person.

c. a mass selling approach that has been be tailored to meet the more select needs of a

target market based on age, gender, ethnicity, or occupation.

d. a form of communication that is intended to counteract any negative information or

misinformation that has been fomented by competitors or disgruntled customers.

e. a form of communication management that seeks to influence the feelings, opinions,

or beliefs held by customers, prospective customers, stockholders, suppliers, employees,

and other publics about a company and its products or services.

Press conferences and image management are tools used by a firm’s __________ department.

a. advertising

b. sales promotion

c. direct marketing

d. public relations

e. personal selling

Publicity refers to

a. a nonpersonal, indirectly paid presentation of an organization, product, or service.

b. a short-term inducement of value offered to arouse interest in buying a product or

service.

c. methods used to get a nonpersonal, directly paid presentation of a company or its

products.

d. a paid form of nonpersonal communication about an organization, product, service, o r

idea, by an identified sponsor.




A nonpersonal, indirectly paid presentation of an organization, product, or service that can

take the form of a news story, editorial, or product announcement is referred to as __________.

a. direct sales

b. publicity

c. direct marketing

d. a public service announcement

e. personal selling

Which of the following statements describes a key difference between advertising and

publicity?

a. Publicity is more expensive on a cost-per-contact basis than advertising.

b. Publicity is usually directly paid, and advertising is usually indirectly paid.

c. Advertising is usually directly paid, and publicity is usually indirectly paid.

d. Advertising provides an immediate feedback loop, and publicity does not.

e. Publicity always has a much greater reach than advertising.

Travelers throughout the world have relied on Frommer’s guides such as Italy from $90 a

Day. These books outline out-of-the-way, inexpensive restaurants and hotel, giving

invaluable _________ to these establishments.

a. direct sales

b. publicity

c. direct marketing

d. personnel selling


A restaurant review published in the local newspaper is an example of __________.

a. publicity

b. sales promotion

c. advertising

d. direct marketing

e. personal selling

Which of the following is an inherent strength of publicity?

a. It can receive immediate feedback.

b. It can provide the target audience with complex information.

c. It can prepare messages quickly.

d. It is an efficient means for reaching large numbers of people.

e. It is often the most credible source in the consumer’s mind.

Which of the following is an inherent weakness of publicity?

a. high absolute costs

b. difficult to receive good feedback

c. easily duplicated

d. a lack of user control over it

e. can easily lead to promotion wars

The local radio station broadcast a story about a dry-cleaner that had requested coat

donations. The company offered to clean the coats and deliver them to people in need.

The various addresses of the dry-cleaner chain were also broadcast so that donations could

be dropped off. Since this featured business did not pay for this exposure, it benefited

from __________.

a. advertising

b. direct marketing

c. personal selling

d. publicity

e. sales promotion

A small film company is releasing a documentary about the efforts of a group dedicated to

saving endangered species. However, the firm has little resources to promote the film.

Which promotional element should it employ?

a. Hire a salesperson to speak to environmental groups.

b. Ask local radio and television stations to run a favorable story about the film.

c. Advertise on billboards in each local market.

d. Invite students to participate in a contest to win free tickets.

e. Send postcards to all people within a 25-mile radius of a theater showing the movie

Imagine a small agrichemical laboratory with a very small marketing budget develops a

seed that produces grass that grows two inches high and no higher. Which promotional

element should it use to communicate its discovery?

a. advertising

b. personal selling

c. sales promotion

d. publicity

e. missionary sales

Although the lack of control means that it is rarely the main element of a promotional

campaign, __________ is an important element of most promotional campaigns.

a. publicity

b. advertising

c. personal selling

d. sales promotion

e. direct marketing

Research indicates that publicity followed by advertising with the same message

a. undermines the credibility of the first message and therefore lessons its effect.

b. increases the positive response to the message.

c. increases the positive response to the message when it is delivered by a well-known

spokesperson.

d. is less effective than publicity followed by a sales promotion with a similar theme.

e. is no more or less effective than when used alone.

A short-term inducement of value offered to arouse interest in buying a product or service

is referred to as __________.

a. customer incentive

b. customer enticement

c. free publicity

d. sales promotion

e. purchase incentive

Sales promotion refers to

a. a short-term inducement of value offered to arouse interest in buying a product or

service.

b. a single-themed IMC campaign employing multiple advertising and personal selling

strategies.

c. individualized communications programs that are specifically designed with a single

customer in mind because the item being sold is unique to that customer.

d. a long-term inducement of value offered to build and sustain loyal customer

relationships.

e. a sequence of value inducements aimed at retaining channel members.

Coupons, rebates, samples, and sweepstakes are all examples of __________.

a. endorsements

b. sponsorships

c. free publicity

d. purchase aids

e. sales promotions

All of the following are examples of sales promotion tools EXCEPT:

a. samples

b. sweepstakes

c. BOGOs

d. catalogs

e. rebates

Sales promotions cannot be the sole basis for a promotional campaign because

a. all sales promotions have legal time limit restrictions to prevent unfair trade practices.

b. gains from the sales promotion are often temporary and sales drop off when it ends.

c. sales promotions are too costly and soon become a financial liability.

d. sales promotions are traditionally handled by outside firms and not the manufacturer,

which often results in a significant loss of profit.

e. consumers obtain an inflated impression of a product’s actual value or worth.

If used continuously, which of the following promotional elements will most likely lose its

effectiveness?

a. advertising

b. personal selling

c. sales promotion

d. publicity

e. direct marketing

Which of the following weaknesses is associated with sales promotions?

a. They have high absolute costs.

b. Messages differ between the sales promotion tools.

c. It is difficult to get media cooperation.

d. They can easily lead to promotion wars.

e. Their effectiveness diminishes when used continuously.

When you redeem a 50-cents-off coupon for Crest toothpaste at your local supermarket,

you are being influenced primarily by __________.

a. advertising

b. sales promotion

c. public relations

d. publicity

e. personal selling

DLS Cosmetics is trying to create brand awareness by sending households free samples of

its products as well as coupons. These free samples and coupons are examples of __________.

a. free advertising

b. personal selling

c. sales promotions

d. free publicity

e. direct sales

Procter & Gamble introduced Old Spice High Endurance antiperspirant, targeted to teen -

aged boys who don’t watch much TV. P&G did grassroots marketing, including handing

out samples at skateboarding events and sponsoring a contest for high-school football

player of the year. P&G emphasized which promotional element in this example?

a. sales promotion

b. advertising

c. personal selling

d. public relations

e. word-of-mouth

A food warehouse store got a very good buy on a brand of frozen orange juice and, rather

than maintain it as extra inventory, needs to sell it quickly to consumers. Which

promotional element should be used?

a. advertising

b. personal selling

c. publicity

d. sales promotion

e. direct marketing

A promotion alternative that uses direct communication with consumers to generate a

response in the form of an order, a request for further information, or a visit to a retail

outlet is referred to as __________.

a. personal selling

b. sales promotion

c. publicity

d. advertising

e. direct marketing

Direct marketing refers to

a. individualized communications programs specifically designed with a single customer

in mind because the item being sold is unique to that customer.

b. a promotion alternative that uses direct communication with consumers to generate a

response in the form of an order, a request for further information, or a visit to a retail

outlet.

c. communication between a seller and a prospective buyer that can include face-to-face,

telephone, and interactive electronic communication.

d. a sales strategy whereby the exchange takes place at the time of engagement, such as

selling produce at a local farmer ’s market.




All of the following are examples of direct marketing tools EXCEPT:

a. e-mail solicitations

b. telephone solicitations

c. Groupon

d. catalogs

e. direct response ads on TV

Which of the following is an inherent strength of direct marketing?

a. Direct marketing can be adapted quickly to facilitate customer relationships.

b. Direct marketing is often the most credible source in the consumer’s mind.

c. Direct marketing can provide complex information.

d. Direct marketing can quickly stimulate and maintain market share.

e. Direct marketing is a low cost means of reaching the target market.

Which of the following is an inherent weakness of direct marketing?

a. It is a low cost means of reaching the target market.

b. Its messages may differ between direct mailings, confusing the target market.

c. It is expensive and time consuming to develop and maintain a database.

d. It is difficult to get media cooperation.

e. It can lead to promotion wars.

Which of the following is an inherent weakness of direct marketing?

a. high absolute costs

b. declining customer response

c. differing messages between salespeople

d. difficult to get media cooperation

e. easily duplicated and can easily lead to promotion wars

Which of the following promotional elements requires expensive database management and

often experiences declining response rates?

a. advertising

b. personal selling

c. sales promotion

d. publicity

e. direct marketing

Like personal selling, __________ often consists of interactive communication.

a. direct marketing

b. advertising

c. a sales promotion

d. publicity


Like personal selling, __________ has the advantage of being customized to match the needs

of specific target markets. Messages can be developed and adapted quickly to facilitate

one-to-one relationships with customers.

a. advertising

b. a sales promotion

c. publicity

d. direct marketing


The growing concern about __________ has led to a decline in direct marketing response

rates among some customer groups.

a. government regulation

b. privacy

c. landfill waste

d. postal rates

e. fraud

Direct marketing has the advantage of being __________ to match the needs of specific target

markets.

a. priced

b. uniform

c. customized

d. engaged

e. integrated

All of the following factors are used to BALANCE the use of the promotional mix elements

EXCEPT:

a. the channel of distribution.

b. the product’s life cycle.

c. the decision stage of the buyer.

d. the different departments responsible for implementing the sales promotion strategy

and tactics.

e. the characteristics of the product.

Which of the following statements regarding the promotional mix is most accurate?

a. For maximum impact, funding for promotions should be equally divided among the five

elements of the promotional mix.

b. The promotional mix can be influenced by the product’s life cycle, characteristics of the

product, purchase decision stage of the buyer, and the channel of distribution.

c. Regardless of which other elements are selected, advertising must be included in every

promotional decision in order for an IMC campaign to be successful.

d. Decisions regarding the promotional mix should be left to each manager in the

marketing department who knows best what to do for his or her own specialty.

e. It is not necessary to have a coordinated goal for an IMC campaign provided each

department has a goal of its own.

According to recent research, _________ consumers are most likely to respond to mobile

marketing programs.

a. baby boomers

b. baby busters

c. baby boomlets

d. Generation Y

e. Generation X

Marketers can communicate best with Generation Y consumers by __________.

a. using cable TV ads since this generation watches TV more than any other medium

b. adding mobile media to their IMC campaigns

c. placing ads on Sirius XM radio

d. using the 24/7 approach

e. using radio ads since this generation listens to radio more than any other medium

The practice of __________ is so common that researchers estimate a typical media day for

Generation Y consumers is 31 hours.

a. simultaneous media use

b. media addiction

c. extended multimedia ad campaigns

d. the never sleeping Internet user

e. the ability of telemarketers to call nonstop across time zones

Which promotional element is particularly important to business buyers?

a. public relations

b. publicity

c. sales promotion

d. rebates

e. personal selling

Many promotional efforts are focused towards __________, who help coordinate promotional

campaigns sponsored by the manufacturer and provide marketing advice and expertise.

a. sales personnel

b. ultimate consumers

c. intermediaries

d. repeat buyers

e. nonprospects

All products go through a product life cycle of __________ stages: __________.

a. two; new and improved

b. two; growth and decline

c. three; new, improved, and obsolete

d. four ; awareness, interest, involvement, and evaluation

e. four ; introduction, growth, maturity, and decline

“To inform” is the promotional objective of which stage of the product life cycle?

a. early growth

b. growth


d. maturity

e. introduction

“To persuade” is the promotional objective of which stage of the product life cycle?

a. early growth

b. growth


d. maturity

e. introduction

“To remind” is the promotional objective of which stage of the product life cycle?

a. early growth

b. growth


d. maturity

e. introduction

“To phase out” is the promotional objective of which stage of the product life cycle?

a. decline

b. growth

c. decelerated development

d. maturity

e. introduction

The promotional objective of the introduction stage of the product life cycle is to __________

consumers in order to increase their level of awareness of the product offering.

a. inform

b. persuade

c. compare

d. remind

e. sway

The promotional objective of the growth stage of the product life cycle is to __________

consumers.

a. inform

b. remind

c. update

d. persuade

e. hark back

The promotional objective of the maturity stage of the product life cycle is to __________.

a. inform

b. persuade

c. remind

d. sway

e. convince

Which promotional element would you most likely use during the growth stage of the

product life cycle to solidify channels of distribution?

a. advertising

b. sales promotion

c. publicity

d. personal selling

e. direct marketing

Persuading the consumer to buy the product rather than substitutes is the promotional

objective during which stage of the product life cycle?

a. introduction

b. growth

c. maturity


e. early growth

Reminding buyers of the product’s existence is the promotional objective during which stage

of the product life cycle?

a. introduction

b. growth

c. maturity


e. early growth

At which stage in the product life cycle are discounts and coupons offered to both

consumers and intermediaries to maintain loyal buyers?

a. introduction

b. growth

c. incubation

d. maturity

e. decline

An unsatisfied customer who switches brands is hard to replace. Which stage of the

product life cycle is focused on maintaining loyal buyers so that customers will not switch

brands?

a. introduction

b. maturity

c. growth

d. incubation

e. decline

The promotional objective of the decline stage of the product life cycle is to __________.

a. inform

b. persuade

c. compare

d. remind

e. phase out

What stage of the product life cycle is a period when little money is spent in the promotional

mix?

a. decline

b. maturity

c. growth

d. introduction

e. incubation

Which stage of the product life cycle is usually a period of phase-out for the product, when

little money is spent in the promotional mix?

a. introduction

b. growth

c. maturity

d. decline

e. termination

There’s a new prescription drug on the market that helps reduce common allergy symptoms.

Ads for the medicine in magazines and in medical journals would be primarily used to

a. remind customers that such a product exists.

b. increase the level of customer awareness for the product.

c. differentiate the product from all other allergy medications.

d. support a product penetration pricing strategy.

e. help in harvesting the product.

Albert Searchware is a type of search engine used at company websites to handle customer

questions. The firm is trying to determine what promotional strategy should be employed

with its flagship product. It has determined that search engine software is in the growth

stage of its product life cycle. Which of the following options should it employ?

a. Devote 40 percent of the promotional budget to sales promotions that supply the public

with demonstration CDs to prove the merits of Albert Searchware.

b. Spend 30 percent of the budget in the effort to generate publicity for Albert Searchware.

c. Use the majority of its promotional budget on advertising that focuses on brand

differences.

d. Use a balanced budget and spend equally for each of the four promotional choices in

an attempt to even out sales growth.

e. Encourage its tech support staff to emphasize the superiority of Albert Searchware and

its after-sale support.

The proper blend of elements in the promotional mix depends on the type of product. The

three specific characteristics to be considered are __________, risk , and ancillary services.

a. complexity

b. adaptability

c. durability

d. accessibility

e. acceptability


three specific characteristics to be considered are complexity, __________, and ancillary

services.

a. durability

b. adaptability

c. risk

d. accessibility

e. acceptability


three specific characteristics to be considered are complexity, risk , and __________.

a. size

b. durability

c. accessibility

d. ancillary services

e. acceptability

The proper blend of elements in the promotion mix depends on a product’s characteristics.

Personal selling would most likely be used to sell __________.

a. dog dandruff shampoo

b. an aircraft

c. fresh produce

d. a bottle of soda

e. printer paper

With respect to a product’s characteristics , complexity refers to

a. the degree of service or support required after the sale.

b. the assessment of financial risk , social risk , and physical risk .

c. the number of component parts used in the construction of the original products: the

more parts, the more complex the product.

d. the number of distinct product attributes in terms of color, size, form, and function.

e. the technical sophistication of the product and the amount of understanding required

to use it.

A product characteristic known as __________ refers to the technical sophistication of the

product and the amount of understanding required to use it.

a. user friendliness

b. risk

c. complexity

d. ancillary service

e. accessibility

The Olympus Eye Trek is a device that provides “a high-quality personal TV experience.” It

resembles a pair of glasses and when worn makes the user think he or she is watching a

52-inch television. An ad for the device contains both a telephone number that can be

called and a website that can be visited for further information on how the product works.

This Olympus Eye Trek is most likely high in __________.

a. user friendliness

b. complexity

c. risk

d. synergy

e. accessibility

A product characteristic known as __________ is relevant to promotional mix decisions and

has financial, social, and physical components.

a. risk

b. complexity

c. ancillary services

d. empathy

e. synergy

With respect to a product for which a promotional mix is being developed, risk

a. refers to the degree of service or support required after the sale.

b. refers to the technical sophistication of the product and hence the amount of

understanding required to use it.

c. in a product means there should be less emphasis on personal selling.

d. can be assessed in terms of financial, social, and physical aspects.

e. is irrelevant.

In terms of product characteristics, the greater the risk , the greater the need for __________

as a key element of the promotional mix.

a. advertising

b. personal selling

c. sales promotion

d. publicity

e. public relations

With many industrial products and consumer purchases, ancillary services are an important

consideration in selecting the promotional mix. The role of __________ is important to

establish the seller ’s reputation. However, __________ is essential for building buyer

confidence and providing evidence of customer service.

a. direct marketing; personal selling

b. personal selling; direct marketing

c. advertising; personal selling

d. sales promotion; advertising

e. public relations; direct marketing

In Figure 17-4 above, line “A” shows that __________, a tool of the promotion mix, is highest

in importance during the purchase stage of the consumer purchase decision process.

a. advertising

b. public relations

c. communication

d. sales promotion

e. personal selling

In Figure 17-4 above line “B” shows that __________, a tool of the promotion mix, is highest

in importance during the purchase stage of the consumer purchase decision process.

a. advertising

b. public relations

c. communication

d. sales promotion

e. personal selling

In Figure 17-4 above line “C” shows that __________, a tool of the promotion mix, is highest

in importance during the prepurchase stage of the consumer purchase decision process.

a. advertising

b. public relations

c. communication

d. sales promotion

e. personal selling

In Figure 17-4 above line “D” shows that __________, a tool of the promotion mix, is least

important during the purchase stage of the consumer purchase decision process.

a. advertising

b. public relations

c. communication

d. sales promotion

e. personal selling

In the prepurchase stage of the consumer purchase decision process,

a. trade promotions are more effective than personal selling.

b. publicity is the most effective promotion tool.

c. advertising is more helpful than personal selling.

d. personal selling is more effective than advertising.

e. personal selling is the most effective way to communicate with potential buyers.

During the postpurchase stage of the consumer purchase decision process, marketers want

to reduce postpurchase anxiety for their customers. Which of the following would be most

useful for accomplishing this objective?

a. advertising only

b. personal selling only

c. sales promotion and advertising

d. publicity and advertising

e. advertising and personal selling

Channel “A” in Figure 17-5 above represents which type of promotional channel strategy?

a. direct

b. indirect

c. push

d. pull

e. vertical

Channel “B” in Figure 17-5 above represents which type of promotional channel strategy?

a. direct

b. indirect

c. push

d. pull

e. vertical

A push strategy is when a manufacturer

a. advertises a great deal to its wholesalers, retailers, and ultimate consumers with the use

of nationwide advertising campaigns.

b. directs the promotional mix to channel members to gain their cooperation in ordering

and stocking the product.

c. forces a retailer to promote its products by placing national ads in local newspapers.

d. directs its efforts in the form of advertising and sales promotions to ultimate consumers

to encourage them to ask the retailer for the product.

e. directs retailers to promote one product over another to help balance fluctuations in

inventory.

When a manufacturer directs the promotional mix to channel members to gain their

cooperation in ordering and stocking the product, it is using a(n) __________ strategy.

a. push

b. pull

c. inertia

d. exclusivity

e. logistics

Chrysler Corporation provides support and incentives for its Chrysler and Jeep dealers.

Through a multilevel program, Chrysler provides incentives to reward dealers for meeting

sales goals. Dealers receive an incentive when they are near a goal, another when they

reach a goal, and a larger incentive if they exceed sales projections. All of these actions

are intended to encourage Chrysler dealers to __________ the Chrysler products through the

channel to consumers.

a. dump

b. pull

c. unload

d. no haggle

e. push

Directing the promotional mix at ultimate consumers to encourage them to ask retailers for

the product is referred to as a(n) __________.

a. push strategy

b. intense strategy

c. inertia strategy

d. exclusivity strategy

e. pull strategy

A pull strategy is when a manufacturer

a. advertises a great deal to its wholesalers, retailers, and ultimate consumers with the use

of nationwide advertising campaigns.

b. forces a retailer to promote its product by placing national brand ads in local

newspapers.

c. directs the promotional mix at ultimate consumers to encourage them to ask retailers

for the product.

d. directs the promotional mix toward channel members to gain their cooperation in

ordering and stocking the product.

e. directs retailers to promote one product over another to help balance fluctuations in

inventory.

Pharmaceutical companies now spend more than $4 billion annually on __________

prescription drug advertising to complement traditional personal selling and free samples

directed only at doctors.

a. consumer integrated

b. doctor cohort

c. informational DVD

d. direct-to-consumer

e. customized on-line

The manufacturers of drugs encourage patients to learn more about the drugs and ask for

them by name from the doctor. The manufacturers of these drugs are using a(n) __________

promotional strategy.

a. pull

b. intense

c. push

d. inertia

e. exclusive

Many prescription drugs such as Lipitor have national TV advertising campaigns to

encourage patients to learn more about the drugs and ask for them by name from their

doctors. The manufacturers of these drugs are using a(n) __________ promotional strategy.

a. intense

b. pull

c. push

d. inertia

e. exclusive

The promotion decision process is divided into three phases. In Figure 17-6 above, “A”

refers to the _________ phase.

a. planning

b. forecasting

c. evaluation

d. realization

e. implementation

The promotion decision process is divided into three phases. In Figure 17-6 above, “B”


a. scheduling

b. development

c. implementation

d. evaluation

e. planning

The promotion decision process is divided into three phases. In Figure 17-6 above, “C”


a. planning

b. implementation

c. forecasting

d. discharge

e. evaluation

The actions a firm takes during the promotion decision process include __________, executing,

and assessing the promotion program.

a. pretesting

b. developing

c. stating the mission

d. selecting the appeal

e. selecting the media

The first decision in developing the promotion program is to __________.

a. set the budget

b. state the mission

c. identify the target audience

d. select the appeal

e. select the media

During the planning phase of an IMC program, a firm will __________, specify the promotion

objectives, set the budget, select the right promotional tools, design the promotion, and


a. pretest the promotion

b. identify the target audience

c. state the mission

d. identify possible advertising or promotional firms

e. carry out the promotion

During the planning phase of an IMC program, a firm will identify the target audience,

__________, set the budget, select the right promotional tools, design the promotion, and


a. specify the promotion objectives

b. pretest the promotion





specify the promotion objectives, set the budget, __________, design the promotion, and



b. state the mission

c. identify possible advertising or promotional firms

d. carry out the promotion

e. select the right promotional tools


specify the promotion objectives, set the budget, select the right promotional tools,

__________, and schedule the promotion.


b. design the promotion




During the implementation phase of an IMC program, a firm will __________ and carry out

the promotion.

a. posttest the promotion




e. pretest the promotion

During the implementation phase of an IMC program, a firm will pretest the promotion and

__________.




d. carry out the promotion

e. identify possible advertising or promotional firms

During the evaluation phase of an IMC program, a firm will __________ and make needed

changes.






During the planning phase of the promotion program, marketers focus on the “four Ws,”

which include all of the following, in question form, EXCEPT:

a. “What are (a) the promotion objectives? (b) the amounts of money that can be budgeted

for the promotion program? and (c) the kinds of copy to use?”

b. “Why is the promotion being done?”

c. “When should the promotion be run?”

d. “Who is the target audience?”

e. “Where should the promotions be run?”

The _________ is defined as the group of prospective buyers toward which a promotion

program is directed.

a. directed audience

b. intended audience

c. promotion audience

d. selling audience

e. target audience

The group of prospective buyers toward which a promotion program is directed is referred

to as a

a. target audience.

b. target selection.

c. selected audience.

d. prospective audience.

e. media audience.

Promotional programs are specifically directed toward a group of prospective buyers, or a(n)

__________.

a. source

b. diffuser

c. encoder

d. target audience

e. particular media

For a promotional campaign, the sequence of stages a prospective buyer goes through from

initial awareness of a product to eventual action is referred to as _________.

a. the purchase continuum

b. the hierarchy of effects

c. the product life cycle

d. the consumer purchasing scale

e. Maslow’s hierarchy

For a promotional campaign, hierarchy of effects refers to the stages a prospective buyer

goes through, which include:

a. awareness, interest, evaluation, trial, and rejection.

b. interest, adoption, and brand loyalty.

c. cognitive, affective, and behavioral.

d. awareness, interest, evaluation, trial, and adoption.

e. see an ad, try the product, and buy the product.

A prospective buyer goes through a sequence of stages from initial awareness of a product

to eventual action (either trial or adoption of the product). The stages include awareness,

interest, evaluation, trial, and adoption, and are referred to as _________.

a. the hierarchy of effects

b. Maslow’s hierarchy

c. the purchase continuum

d. the consumer-product cycle

e. the consumer purchasing hierarchy

The first stage in the hierarchy of effects is __________.

a. interest

b. awareness

c. adoption

d. trial

e. evaluation

The second stage in the hierarchy of effects is __________.

a. interest

b. awareness

c. adoption

d. trial

e. evaluation

The fourth stage in the hierarchy of effects is __________.

a. interest

b. awareness

c. adoption

d. trial

e. evaluation

The fifth stage in the hierarchy of effects is __________.

a. interest

b. awareness

c. adoption

d. trial

e. evaluation

In the hierarchy of effects, the consumer’s ability to recognize and remember the product

or brand name is referred to as the _________ stage.

a. adoption

b. evaluation

c. awareness

d. interest

e. trial

In the hierarchy of effects, awareness is defined as

a. the consumer’s first actual purchase and use of the product or brand.

b. the consumer’s repeated purchase and use of the product or brand.

c. the consumer’s appraisal of the product or brand on important attributes .

d. an increase in the consumer’s desire to learn about some of the features of the product

or brand.

e. the consumer’s ability to recognize and remember the product or brand name.

In the hierarchy of effects, an increase in the consumer’s desire to learn about some of the

features of the product or brand is referred to as the _________ stage.

a. adoption

b. evaluation

c. awareness

d. interest

e. trial

In the hierarchy of effects, interest refers to

a. the consumer’s ability to recognize and remember the product or brand name.

b. the consumer’s appraisal of the product or brand on important attributes.

c. an increase in the consumer’s desire to learn about some of the features of the product

or brand.

d. a favorable experience on the first trial, resulting in the consumer’s repeated purchase

and use of the product or brand.

e. the consumer’s first actual purchase and use of the product or brand.

Ann’s young son suffers from allergies and complains about his watery eyes and drowsiness.

Ann felt bad because she thought there was nothing she could do to help him. When Ann

saw the ad for a new drug that counters these symptoms in Martha Stewart Living magazine,

she vowed to ask his doctor about this product on her son’s next visit. Ann is at which

stage in the hierarchy of effects?

a. She is the trial stage and will move to the interest stage soon.

b. She has moved quickly from the awareness stage to the interest stage.

c. She was in the consumer development stage and will more than likely move to the

transition stage.

d. She is in the evaluation stage and will move to the interest stage soon.

e. She was in the interest stage and then moved quickly to the diffusion stage.

In the hierarchy of effects, the consumer’s appraisal of the product or brand on important

attributes is referred to as the _________ stage.

a. evaluation

b. adoption

c. awareness

d. interest

e. trial

In the hierarchy of effects, evaluation refers to




or brand.

d. a favorable experience on the first trial, resulting in the consumer’s repeated purchase


e. the consumer’s first actual purchase and use of the product or brand.

In the hierarchy of effects, the consumer’s actual first purchase and use of the product or

brand is referred to as the _________ stage.

a. adoption

b. evaluation

c. awareness

d. interest

e. trial

In the hierarchy of effects, trial refers to



c. the consumer’s first actual purchase and use of the product or brand.

d. an increase in the consumer’s desire to learn about some of the features of the product

or brand.

e. a favorable experience on the first trial, resulting in the consumer’s repeated purchase


CoolMax is a fabric made by DuPont. It is used in the manufacture of exercise clothes

because it keeps the user “cool and dry.” The ads for the fabric in health and fitness

magazines convinced Kumar to buy a pair of Thorlo CoolMax walking crew socks made of

the material. Since he had never before owned anything made with CoolMax, Kumar was

in which stage of the hierarchy of effects?

a. trial

b. diffusion

c. innovation

d. evaluation

e. interest

In the hierarchy of effects, the consumer’s repeated purchase and use of the product or

brand is referred to as the _________ stage.

a. evaluation

b. adoption

c. awareness

d. interest

e. trial

In the hierarchy of effects, adoption refers to

a. the point at which the consumer accepts the integrity of the manufacturer and the

reliability of the product.

b. the consumer’s appraisal of the product or brand on the majority of important attributes.


or brand.

d. the consumer’s actual first purchase and use of the product or brand.

e. the consumer’s repeated purchase and use of the product or brand after a favorable

experience on the first trial.

No matter what the specific objective might be, from building awareness to increasing

repeat purchases, promotion objectives should possess three important qualities. They

should be designed for a well-defined target audience, cover a specified time period, and

be

a. unique in character.

b. measurable.

c. humorous.

d. repeatable.

e. creative.

Promotion objectives should possess three important qualities. They should be designed

for a well-defined target audience, be measurable, and

a. contain some element of appeal, such as sex, fear, or humor.

b. be profitable.

c. stay within clearly defined budgetary constraints.

d. cover a specified time period.

e. retain some degree of flexibility.

Promotion objectives should possess three important qualities. They should be designed

for a well-defined target audience, cover a specified time period, and be

a. unique in character.

b. appealing.

c. measurable.

d. repeatable.

e. creative.

Which of the following companies had the largest promotional expenditures (advertising +

all other promotions) according to Figure 17-7 in the textbook?

a. General Motors

b. AT&T

c. Johnson & Johnson

d. Procter & Gamble (P&G)

e. Walmart

All of the following are methods described in the textbook that firms use to set their

promotion budgets EXCEPT:

a. objective and task .

b. number (#) of unit of sales.

c. competitive parity.

d. percentage ( percent) of sales.

e. all-you-can-afford.

Percentage of sales budgeting refers to

a. matching a competitor ’s absolute level of spending or the proportion per point of

market share.

b. allocating funds to a promotion only after all other budget items are covered.

c. allocating funds to a promotion as a percentage of past or anticipated sales, in terms

of either dollars or units sold.

d. determining a firm’s promotion objectives, outlining the tasks to accomplish these

objectives, and determining the advertising cost of performing these tasks.

e. allocating funds to a promotion based on expected profits generated from it.

A budgeting method that allocates funds to a promotion as a percentage of past or

anticipated sales, in terms of either dollars or units sold, is referred to as __________ budgeting.

a. percentage of sales

b. competitive parity

c. all-you-can-afford

d. objective and task

e. linear forecast

In which sales budgeting approach is the amount of money spent based on past or

anticipated sales?

a. competitive parity

b. all-you-can-afford

c. objective and task

d. percentage of sales

e. relative scale

A major fallacy of __________ budgeting is that by tying a promotion budget to sales, a

company may reduce the amount it spends on promotion when it actually needs to spend

more.

a. competitive parity


c. objective and task

d. linear forecast

e. percentage of sales

Imagine you have overheard the owner of a medium-sized manufacturing company saying,

“We had a good year, and I think next year will be even better. I’m going to raise this

year ’s promotion budget 4.5 percent based on last year ’s gross sales. That will let me do

more advertising than the 3.5 percent I budgeted last year.” From this information, the

manufacturer is using __________ budgeting.





e. linear forecast

Managers often use the promotion-to-sales ratio on their marketing dashboard to assess

how effective the integrated marketing communications program expenditures are at

generating _________.

a. sales

b. the media mix

c. the marketing matrix

d. the promotional blend

e. marketing by objectives (MBO)

The promotion-to-sales ratio can be used by managers to make year-to-year comparisons

of their programs, to compare the effectiveness of their program with competitors’ programs,

or to make comparisons with

a. calculated break-even points.

b. estimated return on investments.

c. promotion-to-expense ratios.

d. industry averages.

e. advertising-to-sales promotion ratios.

The best way to assess the effectiveness of all promotion expenditures during the past year

is to compute a __________.

a. break-even point

b. promotion-to-sales ratio

c. ROI

d. promotion-to-expenses ratio

e. advertising-to-sales-promotion ratio

The formula to calculate a promotion-to-sales ratio is: Total promotion expenditures divided

by

a. Total revenue.

b. Marginal revenue.

c. Average revenue.

d. Net sales.

e. Total sales.

A marketing manager at Ford computed the promotion-to-sales ratio for Ford, GM, and the

auto industry itself. She found that Ford’s ratio was 2.8 percent, GM’s ratio was 4.5 percent,

and the auto industry average was 3.2 percent. She then realized

a. she had better find a new job as she had been responsible for these results.

b. she needed to explain these numbers to her boss, especially in relation to the industry.

c. GM shortly would be taking market share from Ford.

d. she spent her promotional dollars effectively.

e. she wasn’t the marketer she thought she was.

Competitive parity budgeting refers to

a. matching a competitor ’s absolute level of spending or the proportion per point of

market share.

b. allocating funds to a promotion as a percentage of past or anticipated sales, in terms


c. allocating funds to a promotion only after all other budget items are covered.

d. determining a firm’s promotion objectives, outlining the tasks to accomplish these



Allocating funds to promotion by matching the competitor ’s absolute level of spending or

the proportion per point of market share is referred to as __________ budgeting.





e. linear forecast

Another name for competitive parity budgeting is __________ budgeting.

a. linear forecast


c. share of market

d. comparative

e. matched media

Another name for competitive parity budgeting is __________ budgeting.

a. linear forecast


c. comparative

d. matched media

e. matching competitors

Allocation of funds to promotion only after all other budget items are covered is referred

to as

a. percentage of sales budgeting.

b. all-you-can-afford budgeting.

c. competitive parity budgeting.

d. objective and task budgeting.

e. linear forecast budgeting.

All-you-can-afford-budgeting refers to

a. allocating funds to a promotion as a percentage of past or anticipated sales, in terms


b. matching a competitor ’s absolute level of spending or the proportion per point of

market share.

c. determining a firm’s promotion objectives, outlining the tasks to accomplish these


d. allocating funds to a promotion only after all other budget items are covered.


Which method of promotion budgeting would most likely be used by small businesses?

a. all-you-can-afford budgeting

b. percentage of sales budgeting

c. competitive parity budgeting

d. objective and task budgeting

e. linear forecast budgeting

Imagine a small retailer saying, “Well, after budgeting for all of our expenses for next year,

we still have about $7,500 remaining for emergencies. Let’s budget 20 percent of that

amount for advertising.” What budgeting technique is the small retailer using?

a. percentage of sales budgeting

b. competitive parity budgeting

c. objective and task budgeting

d. all-you-can-afford budgeting


Allocating funds to promotion whereby the company (1) determines its promotion

objectives, (2) outlines the tasks to accomplish these objectives, and (3) determines the

promotion cost of performing these tasks is referred to as

a. percentage of sales budgeting.

b. competitive parity budgeting.

c. all-you-can-afford budgeting.

d. objective and task budgeting.

e. linear forecast budgeting.

The best approach to budgeting is objective and task budgeting, whereby the company

determines its promotion objectives, outlines the tasks to accomplish these objectives, and

a. asks the ad agency for an estimate.

b. asks the media to propose a program.

c. determines the promotion cost of performing these tasks.

d. determines what spending level top management will allow for the proposed program.

e. surveys customers to determine what spending levels they think are appropriate.

Which of the following is the best approach to promotion budgeting?

a. objective and task budgeting

b. percentage of sales budgeting

c. competitive parity budgeting

d. all-you-can-afford budgeting


Which of the following steps in the objective and task approach to promotion budgeting

must be done correctly in order for any of the others to have the proper effect?

a. accurately estimate costs of tasks

b. identify appropriate promotion objectives

c. accurately identify each promotion budget cost item that constitutes each separate

promotion task

d. perform the promotion tasks as intended

e. accurately estimate what tasks will accomplish each promotion objective

Which form of promotion budgeting most closely relates to the marketing concept?

a. percentage of sales budgeting

b. competitive parity budgeting

c. all-you-can-afford budgeting

d. objective and task budgeting


The Olympics have become a very visible example of a comprehensive integrated

communication program. For organizers, primary importance is placed on

a. advertising and personal selling.

b. personal selling and public relations.

c. public relations and publicity.

d. sales promotion and direct marketing.

e. direct marketing and personal selling.

The design of the promotion will play a primary role in determining the message that is

communicated to the audience. Successful designs are often the result of

a. accurately estimating costs of tasks.

b. identifying appropriate objectives.

c. accurately estimating what task will accomplish each objective.

d. obtaining insights regarding consumers’ interests and behavior.

e. obtaining insights regarding task performance.

Once the design of each of the promotional program elements is complete, it is important

to determine the most effective timing of their use. The _________ describes the order in

which each promotional tool is introduced and the frequency of its use during a campaign.

a. perceptual map

b. efficiency matrix

c. sensitivity analysis

d. promotion to sales ratio

e. promotion schedule

Carrying out the promotion program can be expensive and time consuming. One

researcher estimates that “an organization with sales between $200 million and $500 million

will need __________ years” to successfully implement an IMC program.

a. two

b. three

c. four

d. five

e. ten

An important factor in developing successful IMC programs is to create a process that

facilitates their design and use. A tool used to evaluate a company’s current process is the

IMC

a. audit.

b. sensitivity analysis.

c. what-if analysis.

d. perceptual map.

e. pretest.

Which of the following statements about executing and evaluating the promotion program

is most accurate?

a. Although there are five elements in the promotional mix, the only element that really

benefits from an IMC audit is advertising.

b. Most IMC programs have no difficulty creating a pretest, but posttests are much more

difficult to construct since a number of unknown elements must be measured.

c. To fully benefit from IMC programs, companies must create and maintain a test-result

database that allows comparisons of the relative impact of the promotional tools and

their execution options in varying situations.

d. The ideal IMC program does not need any evaluation if it is executed according to plan.

e. The most effective IMC audits are external. Internal audits tend to bias the results in

the favor of the marketing staff’s expectations.

All of the following are forms of direct marketing EXCEPT:

a. catalogs

b. in-store free samples

c. telemarketing

d. paid searches

e. direct mail

Busi 330 quiz 5 liberty university answers solutions 100

Business

Transcript of Busi 330 quiz 5 liberty university answers solutions 100