You got this shit pt 3

What price competitive level would be indicated when the price is usually set according to the laws of supply and demand?

pure competition

Traditional demand curve economic theory is used by marketers to understand ________Blank in the five Cs of pricing.

customers

The contribution per unit is

price minus variable cost per unit.

Dynamic pricing is also referred to as ________Blank pricing.

individualized

Variable costs change with

changes in the quantity being produced

Marissa went to the store to buy some Gold Medal flour for her famous blueberry scones, but King Arthur flour was on sale so she bought that brand instead. The brands of flour are

substitute products.

For which item is demand likely to be most sensitive to price increases?

a specific brand of soft drink

Which market is most likely to be characterized as oligopolistic competition in the United States?

smartphone service providers

Because there are only a few firms in markets with oligopolistic competition,

price wars may occur.

Sales of national brands of orange juice tend to increase when the economy is doing well, while sales of generic orange juice increase when the economy is not doing well. This is an example of how ________ impacts demand for products.

the income effect

________ is/are one of the five Cs of pricing.

customers

Because there are many firms in monopolistic competition markets,

the many competitors will focus on product differentiation.

There is an old saying “If you have to ask the price of a yacht, you cannot afford it.” Products like yachts are most likely to be associated with

prestige products.

Break-even analysis is useful because it allows managers to

estimate the quantity they will need to sell at a given price to break even.

Which product is most likely to be characterized by pure competition in the United States?

soybeans

Tobias’ firm has set corporate direction to become one of the leaders in each of its significant market segments. It was Tobias’ job to examine the firm’s pricing strategy to determine how to maximize market share, even at the expense of profits in the short run. What kind of company objective would guide Tobias’ effort?

sales-oriented

Charlie is the marketing manager for an automobile dealership. His boss tells him the firm’s primary goal is to increase its local market share from 15 to 30 percent. His firm is using a ________orientation.

sales

When Umeko decides how to price new products in her gift store, she measures the value of her product offerings against those of the other stores in her area. Umeko uses a ________ pricing strategy.

competitor-oriented

Beckett gave the manager of his convenience store a set of binoculars so she could see the gasoline prices charged by the other convenience store at that intersection. Beckett told the manager to always match the gasoline prices of the other store. Beckett is using a ________ pricing strategy.

competitive parity

Managers of Sonic fast-food restaurants keep track of prices at competitors such as McDonald’s, Burger King, and Arby’s, knowing that a decrease in the prices at these other fast-food restaurants will

decrease demand for Sonic’s products.

Riley knew her established customers felt her product was better quality than her competitor’s. She was planning to expand into new markets, and she was considering pricing. She was leaning toward charging a higher price than competitors to help demonstrate that hers was a high-quality product. Riley was considering

premium pricing.

As electric cars were being produced by most major auto companies, Tesla lowered its prices significantly to capture more of the market and get ahead of the competition. Tesla was using a ________pricing strategy.

sales orientation

In one year, the City Hotel incurred $100,000 in fixed costs. Because the hotel booked 10,000 room nights, its total variable cost is $100,000 (10,000 room nights × $10 per room). Thus, its total cost is

$200,000.

Annise operates on a pretty tight budget. She is a price-conscious shopper and usually buys store or generic brands to save money. Recently, however, Annise was given a pretty substantial raise. As such, she has altered her shopping patterns and now regularly buys more expensive, name-brand goods. This is an example of

the income effect.

A study found that among addicted smokers, a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded. For these consumers, cigarettes have a(n) ________ price elasticity demand.

inelastic

Fees paid to retailers simply to get new products into stores or to gain more or better shelf space for their products are called _______ allowances.

slotting

With a ________ pricing strategy, marketers set a low initial price for the introduction of a new product or service.

penetration

In a(n) ________pricing strategy, marketers attract consumers who are not price sensitive and are willing to pay a higher price for a new item.

high/low

When firms sell the same product to different resellers at different prices, it can be considered

price discrimination.

In which pricing tactic does a consumer pay a fee to purchase the right to use a product for a specific amount of time?

lease

Marketers advertising an artificially high “regular price” are unethically attempting to influence consumers’ ________perceptions.

reference price

What makes a high/low pricing strategy appealing to sellers?

It attracts two distinct market segments.

Each new generation of cell phones has provided greater clarity, range, security, and functionality. If marketers of cell phones use these features as a basis for pricing, they would be using ________pricing.

improvement value

Price skimming focuses on selling products to ________Blank and _______ in the consumer adoption process model.

innovators; early adopters

The pricing method that considers what consumers may be willing to pay for a particular product based on the value received over the product’s entire lifetime is the ________pricing method.

cost-of-ownership

The _______ occurs when unit cost drops as the quantity sold increases.

experience curve effect

Price advertisements should never

deceive customers to the point of doing harm.

If all three supermarkets in town decide to charge the same price for a dozen eggs, what type of pricing tactic is being used?

horizontal price fixing

What is the difference between a coupon and a rebate?

The retailer handles coupons while manufacturers handle most rebates.

Supermarkets often offer great deals on bread or milk to get customers into their stores, knowing that many customers will also purchase items that have higher markups for the store. These supermarkets are using a ________ pricing tactic.

leader

Jo’s Gas & Goods often sets prices relative to what the other gas station down the street is charging. This is an example of what type of pricing method?

competition-based

The local sporting goods store may purchase outdoor pool-related products only during the winter months because the manufacturer offers a better price to the sports store. This type of pricing tactic is known as a

seasonal discount.

Kory owns a home and garden business. From experience, she has found that Toro lawn equipment lasts almost twice as long as competitors’ machines. For Toro, Kory’s perception about its products makes ________ pricing a logical choice.

cost-of-ownership

When Burroughs Wellcome introduced the first anti-AIDS drugs, it initially set the price at $10,000 for a year’s supply. Burroughs Wellcome was probably pursuing a(n) ________ pricing strategy.

skimming

Cherrie moved into her first home at the end of summer. She went to her local home improvement store to purchase discounted patio furniture and lawn equipment that she could use the following year. Cherrie is

taking advantage of seasonal discounts.

Several airlines have agreed to charge the same fare for a single route. The airlines are using

horizontal price fixing.

Johanna estimates the average cost to make her bracelets is $15 regardless of whether she is making 5 or 25 pieces that day. She adds a standard markup to the $15 estimate to determine her price. Johanna is using a(n) ________ pricing method.

cost-based

Tariq is a price-sensitive customer. He has been known to go shopping on the day after Christmas to be among the first to buy sale items. Tariq would likely respond to a ________ pricing strategy.

high/low

Many stores e-mail codes to their customers that can be used on their websites or printed and brought into the store to receive discounts for products purchased. In this instance, the customer is receiving a discount through a

coupon

When Toyota introduced its Scion line of cars, the lowest-price model was listed for $15,000 while the highest-priced model was listed for $21,000, with two other list prices in between. Each price point represented distinct differences in the features and quality of the cars. Toyota used a ________ pricing approach.

price lining

In marketing’s four Ps, place refers to all activities required to get

the right product to the right customer when that customer wants it.

What differentiates a distribution center and a fulfillment center?

A distribution center sends goods to company stores.

________ enable the retailer to lower inventory investments systemwide.

Distribution centers

___between supply chain members that is based on mutual benefits is key to developing and sustaining the relationship.

Interdependence

Students of marketing often overlook or underestimate the importance of place in the marketing mix simply because

it happens behind the scenes.

Which statement is true regarding getting merchandise to customers?

Many retailers now offer free expedited service.

When the operating entities within marketing channels ________, conflict is less likely to occur.

share common goals

Today, when a customer orders merchandise from a retailer’s online website and chooses to pick it up in the store, ________ allows the store associate closest to the ordered item to physically pull it and verify its availability.

mobile task management

In order to anticipate demand, advertising and promotions must be coordinated with the

departments that control inventory.

Although conflict is likely to occur in any marketing channel, it is generally mitigated by

the degree to which one channel member has power over another.

Marketing channels and supply chains comprise various buying entities that form relationships with one another. The basic motivating factor in these interactions is

each party wants something from the others.

What is required to build a successful strategic relationship?

credible commitments

A(n) ________marketing system is a supply chain whose members are controlled by a parent company.

corporate vertical

When the parent company has complete power and can dictate the priorities and objectives of the marketing channel because it owns multiple segments of the channel, such as manufacturing plants, warehouse facilities, and retail outlets, it is operating in a(n) ________ marketing system.

corporate vertical

When Lenovo sells computers to University of San Diego, it engages in a ________ transaction, but when it sells to students individually, it is a ________ operation.

B2B; B2C

What is an outcome of a retailer using a distribution center?

It saves money since the storage space at a distribution center is generally less expensive than that of a store.

Tesla Motors, manufacturer of electric automobiles, represents a(n) ________ because it manufactures its own cars and it operates its own retail stores in high-foot-traffic locations such as malls and shopping streets.

corporate vertical market system

What is one potential disadvantage of JIT systems?

There is no backup stock if demand suddenly increases.

When supply chain members view their goals and ultimate success as intricately linked, or ________, they develop deeper long-term relationships.

interdependent

On the Go Inc. manufactures bicycles. The company recently started buying parts for its bicycles from a firm in Germany. This German company is part of On the Go’s

supply chain

When a firm is just starting out or entering a new market, it often

cannot choose from whom it buys or to whom it sells.

Target may have _______power if a supplier desperately wants to be associated with Target, because being known as an important Target supplier enables that supplier to attract other retailers’ business.

referent

Companies are considered wholesalers when they

sell to contractors or restaurant owners.

Because manufacturers with JIT systems produce merchandise closer to the time of sale, they can

reduce inventories needed to satisfy retailers’ demand.

What problem has developed as a result of increased package delivery?

package theft

How does a retail distribution center supporting a store channel most obviously differ from one supporting an Internet channel?

in quantity of items shipped

Retailing is defined as the set of business activities that

adds value to products and services sold to consumers for their personal or family use

________Offer an inconsistent assortment of brand-name merchandise at low prices.

Off-price retailers

Compared to conventional supermarkets, warehouse clubs have

a lower level of service.

A company that buys products from manufacturers and resells them to retailers is a

wholesaler.

When a company offers consumers the ability to make purchases via a smartphone, it is known as

M-commerce.

As an omnichannel retailing operation matures, as in the case of Walmart, what tends to happen to its organizational structure?

operational integration of all channels

The knowledge retailers can gain from their store personnel and customer relationship management databases is valuable for developing

increased customer loyalty.

In the past, ________controlled supply chains, while today ________ control supply chains.

manufacturers; retailers

What are typical outlets used by retailers?

hotels

If a manufacturer wants to sell a full range of products in a number of different container sizes, which kind of store would the company be least likely to choose as a retailing partner?

convenience stores

________are combating competitive pressures by providing better value with private-label merchandise; adding value-added services such as online ordering and delivery options; and providing a better shopping experience.

Conventional supermarkets

________are combating competitive pressures by offering fresh food and healthy fast food, tailoring assortments to local markets, opening locations closer to where consumers work and shop, and adding new services.

Convenience stores

Macy’s, Kohl’s, and Nordstrom are examples of

department stores.

________can purchase merchandise at substantial discounts from the original wholesale prices because they do not ask the suppliers for advertising allowances or markdown adjustments.

Off-price retailers

Andre has designed innovative accessories for hard-core motorcycle enthusiasts. He knows where and how he will make them, and he needs to turn his attention to getting the products to the customers. As Andre chooses retail partners, what is least important in this process?

encouraging new motorcycle enthusiasts

Aaliyah represents a manufacturer who makes unique, high-end purses. When making a recommendation about potential retail partners, what should be Aaliyah’s first consideration?

How likely is it for certain retailers to carry this product?Correct

Greenwald’s Mart sells snacks, fills prescriptions, and offers a green line of beauty items like shampoo. Greenwald’s Mart is known as a

drugstore

Which retail store would emphasize personal selling the most as part of the firm’s promotional efforts?

jewelry store

Which retailer is the best example of a category killer?

Staples

August wants customers in his specialty cigar store to feel at home, as if they were in their personal smoking den. He uses lighting, music, and soft chairs to create a “look and feel” that will get customers to relax and return. August is focusing on which aspect of the marketing mix?

presentation

Miranda is opening a store selling the latest gadgets in electronics. Because these advanced technologies often confuse her customer base, which area of the marketing mix should she focus on?

personnel

Sandeep has purchased a number of books from Amazon.com, and he has learned to trust the recommendations made to him. More than once he was pleasantly surprised at the books and authors that he discovered this way. In this case, Amazon.com was creating value for Sandeep through

personalized offerings.

Recently starting out, Decadent Delights produces organic pet food products. The company has limited production capacity and wants to carefully control where its products are sold. Decadent Delights will likely choose ________distribution intensity.

exclusive

Elliot manufactures furniture. He is trying to determine what kind of stores would be appropriate to carry his products. What factor of establishing a relationship with retailers is this?

identifying types of retailers