COMMERCE 1MA3 Final Exam MC

In the communication process, _____ refers to the process by which the receiver interprets the sender's message.

decoding

aided recall

encoding

noise

feedback

decoding

A desirable personal trait of good salespeople is _____, where they care about their customers, their issues, and their problems.

personality

optimism

empathy

self-motivation

resilience

empathy

_____ are large retailers (100,000-150,000 square feet) that offer a limited and irregular assortment of food and general merchandise, little service, and low prices to the general public and small businesses.

Convenience stores

Category specialists

Conventional supermarkets

Supercentres

Warehouse clubs

Warehouse clubs

Lucky's Imports buy different products from China and sell it to retailers in Canada to sell them. Luck's Imports is a:

Supplier

Distribution centre

Wholesaler

Shopping centre

Retailer

Wholesaler

Which of the following is NOT part of "trade channel sales promotions"

Discounts

Cooperative analysis

Allowance

Sales force training

Loyalty programs

Loyalty programs

The individual who controls the flow of information or access to important decision makers serves as the __________ in the buying centre.

influencer

gatekeeper

initiator

user

decider

gatekeeper

The __________ consists of product, price, place, and promotion as components of a firm's offering.

marketing plan

marketing exchange

marketing mix

customer franchise

channel of distribution

marketing mix

As the number of transactions in the supply chain falls and transactions are eliminated, the channel and supply chain becomes _____, which impacts customers by making it _____ to purchase merchandise.

more efficient; more difficult

less efficient; more expensive

more efficient; less expensive

less efficient; convenient

more complex; more difficult

more efficient; less expensive

Starbucks introduced Starbucks Reserve, its brand of rare and luxurious coffees. Starbucks lovers now can drink the new products at many of their retail stores. This is an example of:

product development.

product proliferation.

market development.

micromarketing.

market penetration.

product development.

Which of the following marketing mix variables is involved in the capture of value in the marketing exchange?

Promotion

Price

Place

Product

Services

Price

No Frills offers groceries, meat, and produce with limited sales of nonfood items, such as health and beauty aids and general merchandise, in a self-service format. No Frills is an example of what type of food retailer?

General merchandise retailers

Convenience store

Conventional supermarket

Big-box food retailers

Supercentres

Conventional supermarket

The Scene loyalty program was established in partnership between Scotiabank and Cineplex Entertainment. This program was developed to develop customer value by increasing loyalty and the overall service experience. This focus of this customer value development strategy is:

Locational Excellence

Operational Excellence

Customer Excellence

Product Excellence

Limitless Excellence

Customer Excellence

In most countries, central governments are the:

Engage in B2C activities only

Manufacturers of record

Largest purchasers of goods and services

Smallest purchasers of goods and services

Limit their buying to only military spelling

Largest purchasers of goods and services

If an insurance company encourages its salespeople to intentionally mislead potential customers about damage from flooding due to hurricane damage, who could be susceptible to legal action for the deceptive practice?

The insurance company.

The federal government.

The salesperson.

The insurance company and the salesperson.

The federal government and the insurance company.

The insurance company and the salesperson.

The University will purchase new computers during the summer to update its computer labs. Although the new computers will be more advanced in terms of their technology, the purchase itself will involve some of the same considerations as those used for previous purchases. This is an example of which of the following types of buying situation?

Capital buy

New buy

Standard rebuy

Straight rebuy

Modified rebuy

Modified rebuy

When choosing retail partners, a high-end cosmetics manufacturer like Coach would most likely NOT choose to sell to Shoppers Drug Mart or Dollarama due to:

customer expectations.

channel member characteristics.

channel structure.

networking capabilities.

distribution intensity.

customer expectations.

The "Beef, It's What's for Dinner" campaign to encourage beef consumption is an example of _____ advertising.

product-focused

attribute-based

public service

relational

institutional

institutional

The goal of the marketing exchange is for a buyer and seller to be __________ after the exchange.

worse off

loyal

underwhelmed

better off

codependent

loyal

Omnichannel strategy refers to:

Creating consistent experience for customers across multiple distribution channels

Use of Internet to sell products

Retailers who sell through their application

Use of Kiosk to sell products

Increase share of wallet

Creating consistent experience for customers across multiple distribution channels

The __________ gap pertains to the difference between the firm's perceptions of customers' expectations and the service standards it sets.

ethical

standards

communication

knowledge

delivery

Standards

When designing in-store signage, retailers often develop yellow signs and shelf tags with bold lettering to catch consumers' attention. The use of visuals in this manner represents the _____ component of the communication process.

encoding

feedback

sender

receiver

communication channel

encoding

Many bank tellers have been replaced by ATMs, which provide consistent levels of service, and are never late, sick, or in a bad mood, thus overcoming the __________ nature of services.

inseparable

variable

intangible

perishable

un examinable

variable

________ is designed to increase demand by focusing on wholesalers, distributors, or salespeople, who push the product to consumers via distribution channels.

Buying strategy

Pull marketing strategy

Push marketing strategy

Demand strategy

Selling strategy

Push marketing strategy

JIT inventory systems are associated with all of the following EXCEPT

lower inventory investment.

frequent deliveries of less merchandise.

increased product availability.

reduced lead time.

more inventory to warehouse.

more inventory to warehouse.

Demand for movie tickets is high on weekends and holidays. To compensate for low ticket sales during the week, some movie theatres offer discounted tickets to stimulate weekday demand. This is an example of the __________ nature of services.

intangible

inseparable

immutable

perishable

variable

perishable

A firm relies on a wide variety of vendors to make and distribute its products. Manufacturers buy raw materials from suppliers, use shipping companies to transport finished goods to multiple locations, and establish relationships with the retailers who sell them to consumers. Put all these businesses together, and you have a:

value proposition.

supply chain.

marketing plan.

marketing mix.

social marketing platform.

supply chain.

EDI reduces _____, or the time between the decision to place an order and the receipt of merchandise.

the lead time

cross-docking

channel conflict

Just-in-time inventory

the cycle time

the cycle time

____________ occurs when consumers recognize the brand when its name is presented to them.

Announcement.

Positive recall.

Aided recall.

Marketing.

Negative recall.

Aided recall.

____________ are channels that are focused and generally used to reach narrow segments, often with unique demographic characteristics or interests.

Social media

Niche media

Mass media

Print media

Focused media

Niche media

In the trucking industry, demand for fuel remains relatively stable even in times when the price of fuel increases, indicating that demand for fuel in this segment is:

expandable.

elastic.

price sensitive.

flexible.

inelastic.

inelastic.

When a manufacturer based in New York City charges more to ship to customers in Los Angeles and less to ship to customers in Memphis, it is using:

variable pricing.

inflated pricing.

uniform delivered pricing.

geographic pricing.

flexible delivered pricing.

geographic pricing.

According to the Wheel of Retailing concept, as stores add services and improvements, expand their merchandise mix and upgrade their facilities, adding costs which results in higher prices. This results in:

Reduced competition in the market.

Increased interest in omnichannel retailing.

Increased brand awareness.

New lean, mean entrants enter the market.

Increased customer loyalty.

New lean, mean entrants enter the market.

____________ aims to satisfy consumers' emotional desires rather than their utilitarian needs.

aided recall

Interest

Emotional appeal

brand appeal

lagged effect

Emotional appeal

Which of the following is NOT a factor for establishing a relationship with retailers?

Developing a strategic approach

Developing a retail strategy

Choosing Retailer Partners

Managing a multichannel strategy

Identifying types of retailers

Developing a strategic approach

Although the number of their physical stores is limited, OVO is widely known for offering unique, high-quality merchandise, linked to its founder, Drake. Adding an Internet channel was particularly attractive because it allowed the company to _____ without having to build new stores.

deepen and broaden its selection

expand its market presence

increase customer satisfaction and loyalty

personalize offerings

gain consumer insights

expand its market presence

Limitations of the _____ budgeting method include not allowing firms to exploit the unique opportunities or problems they confront in a market. If all competitors use this method to set communication budgets, their market shares will stay approximately the same over time.

rule-of-thumb

competitive parity

available budget

objective-and-task

percentage of sales

competitive parity

Which of the following is NOT a step of the Marketing Plan?

Develop antecedents to marketing approach

Business Mission & Objectives

Identify Opportunities

Implement Marketing Mix

Situation Analysis

Develop antecedents to marketing approach

Sam is a loyal customer of WestJet. Which one describes Sam the BEST:

WestJet is Sam's favorite brand.

He doesn't fly to places that WestJet doesn't serve.

He is willing to choose WestJet over other Canadian airlines.

Sam is reluctant to patronize competitors of WestJet.

Sam supplies catering for WestJet.

Sam is reluctant to patronize competitors of WestJet.

Which of the following is an example of a marketing metric that might be used to evaluate the performance of a company's implementation of its marketing plan?

Four Ps (price, product, promotion, place)

STP (segmentation, targeting, positioning)

SBU (strategic business unit)

Net Profit

SWOT analysis (strengths, weaknesses, opportunities, threats)

Net Profit

In a(n) __________ buying centre, there may be many participants, but one person makes the decision alone.

democratic

consultative

consensual

republic

autocratic

autocratic

Purchase data collected at the point of sale is stored in a data warehouse and can be accessed on three dimensions:

age, gender, and total sales.

SKU, UPC, and RFID.

total number of items, total dollar amount spent, type of payment.

sales associate, store number, and time of transaction.

point in time, merchandise aggregation, and level of the company.

point in time, merchandise aggregation, and level of the company.

Which of the following falls into the category of being a general merchandise retailer?

Auto rental agency

Convenience store

Category specialist

Bank

Supermarket

Category specialist

Product (merchandise assortment), pricing, promotion, place, personnel, and presentation (store design and display) strategies to reach and serve consumers is known as the:

Big-box food retailers

Retail mix

Retail position

Conventional supermarket

General merchandise retailers

Retail mix

As a type of sales promotion, _____ encourage trial and reduce consumer risk, although they may negatively impact perceptions of brand value.

premiums

samples

rebates

deals

coupons

deals

The old cliché claiming the three most important things in retailing are "location, location, location" corresponds to which of the following components of the retail strategy?

Place

Promotion

Product

Price

Product placement

Place

After many quarters of poor performance, in 2020, Tim Horton's decided to remove some product lines and refocus on coffee and doughnuts. The activity taken by Tim Horton's to come to this decision is:

franchise reevaluation.

diversification.

product development.

portfolio analysis.

demarketing.

portfolio analysis.

The Marriott Hotels invest heavily in employee training and supports this with a structure for rewarding its workers for their dependability and accuracy. This corresponds to which of the following building blocks of service quality?

responsiveness

tangibles

empathy

reliability

assurance

reliability

Because it has been at the center of success for many companies, marketing is considered a cornerstone of:

upply chains.

the gross national product.

freedom of speech.

entrepreneurship.

ethics.

entrepreneurship.

Joe's Boathouse uses a profit-oriented company objective, but the ultimate goal is to generate a profit margin of at least 12% rather than maximizing profits. This involves:

target profit pricing.

status quo pricing.

premium pricing.

target return pricing.

competitive parity.

target return pricing.

When a farmer sells her unpasteurized milk to Neilson Dairy, she is engaged in __________ marketing.

B2B

C2B

C2C

B2C

A2B

B2B

Autocratic buying centres are characterized by:

a single decision maker.

collective agreement.

the solicitation of many opinions.

many decision makers.

majority rule.

a single decision maker.

To support the other promotional efforts, firms use _____ to generate "free" media attention.

direct marketing

advertising

sales promotion

public relations

personal selling

public relations

As an overall goal, __________ involves finding ways in which a company can best use its strengths to take advantage of attractive opportunities in the environment in order to outline specific actions to appeal to potential customers.

a strategic audit

creating a values statement

establishing a mission

marketing strategy

defining a vision

marketing strategy

Which of the following is an example of a reseller?

Government

Manufacturer

Producer

Wholesaler

Institution

Wholesaler

Rather than being just a random activity, good marketing requires __________ in determining appropriate actions to produce sound decisions.

a win-lose attitude

short-term goals

a profit orientation

thoughtful planning

corporate governance

thoughtful planning

To create strong partnering relationships, supply chain members must develop mutual trust, openly communicate, have compatible goals, recognize the benefits of interdependence, and:

be willing to invest in each other's success.

set out to make the most profits.

minimize transportation expenditures for suppliers.

maximize market share.

maximize the profitability of the largest channel member.

be willing to invest in each other's success.

Marcus sells hats at his retailer named 'Toques'. Every year he pays $100,000 of rent. He also has four full time employees that he pays $25,000 each. He sells each hat for $35 but purchases them at $15. After how many hats does Marcus breakeven?

2,800

15,000

7,800

5,200

10,000

10,000

What does a marketing strategy NOT always identify?

Firm's target market

Associated Promotion and Price strategy

Content marketing strategy

Associated Product and Place strategy

Foundation of competitive advantages

Content marketing strategy

__________ means allowing employees to make decisions about how service gets provided to customers.

Reliability

The zone of tolerance

Empowerment

Empathy

The zone of assurance

Empowerment

Coca Cola products, are mostly considered a convenience good. Convenience goods typically follow which distribution strategy?

Distribution intensity

Everywhere distribution

Exclusive distribution

Intensive distribution

Selective distribution

Intensive distribution

When introducing new products, Quaker Oats uses a _____ strategy by offering retailers discounts on the products along with point-of-purchase displays to motivate them to highlight the product.

pull

reminder

persuasive

informative

push

push

Which of the following is NOT one of the four major growth strategies?

Product development

Market Development

Market Diversification

Diversification

Penetration

Market Diversification

Hector is involved in the buying centre of a large organization. He ultimately will determine whether to buy, what to buy, how to buy, or where to buy. What role does Hector play in this situation?

Buyer

Gatekeeper

Influencer

Initiator

Decider

Decider

A firm's __________ reflects the set of values, traditions, and customs that guide its employees' behaviour.

demographics

marketing strategy

ethical climate

organizational culture

marketing plan

organizational culture

The __________ gap is the difference between the firm's service standards and the actual service it provides to customers.

knowledge

standards

communication

delivery

ethical

delivery

In terms of a pricing strategy, __________ pricing adds value by reducing consumers' search costs; consumers can spend less of their valuable time comparing prices, including sale prices, at different stores.

everyday low

cost-based

high/low

predatory

competitor-based

everyday low

Understanding consumers' __________ is fundamental to marketing success.

physical locations

needs and wants

family connections

rituals and habits

educational attainment

needs and wants

CIBC holds a 5K or 1K walk or run that raises funds for Canadian Cancer Society every year. This is an example of:

Public relations

Direct marketing

Advertising

Cause-related marketing

Product placement

Public relations

In which step in the personal selling process, the salesperson establishes goals for the meeting with the customer?

Follow-up

Qualifying leads

Preapproach

Performance assessment

Sales presentation

Preapproach

Spotify targets different consumer __________ by offering different types of playlists based on musical preferences.

geographics

fragments

modules

segments

exchanges

segments

Leonard has opened an ice cream shop and is using a market penetration strategy. He believes that setting his prices low will increase the volume of customers that come through his door. He also believes that as this occurs, his own costs will decrease as he becomes really good at running his business and making the ice cream. This is due to:

price lining.

seasonal discounts.

improvement value.

markdowns.

experience curve effects.

experience curve effects.

Sales promotions such as free samples and point-of-purchase displays, are designed to build:

brand attitudes.

short-term sales.

long-term sales.

customer loyalty.

brand image.

short-term sales.

__________ indicates that the demand for related products can either be positively or negatively related.

The substitution effect

Complementary products effect

The supply curve

Cross-price elasticity

The income effect

Cross-price elasticity

Frank's Pizza oven is broken and he will need to buy a replacement. The purchase of capital equipment such as the oven is an example of a __________ situation.

capital buy

modified rebuy

new buy

straight rebuy

standard rebuy

new buy

Standardized products such as grains and chemical products, where consumers perceive them as commodities are characteristic of:

oligopolies.

monopolistic competition.

competitive parity.

pure competition.

monopolies.

pure competition.

Salespeople who sell a manufacturer's products on an extended contract basis but are not employees of the manufacturer are known as

order takers.

contract employees.

manufacturer's reps.

order getters.

cold callers.

manufacturer's reps.

In _____ marketing channels, one or more intermediaries work with manufacturers to provide goods and services to customers.

ancillary

indirect

modified

direct

secondary

indirect

When Rogers Communications offers its customers a discount when they order their television, Internet, and phone service all in a package. This is an example of:

price bundling.

a rebate.

leader pricing.

quantity discounting.

a markdown.

price bundling.

When retailers use __________ pricing, it can create excitement and attract customers through the "get them while they last" atmosphere that occurs.

high/low

predatory

cost-based

competitor-based

everyday low

high/low

P&G is one of the largest producers of consumer products. Majority of the products by P&G are convenience products. Which distribution intensity is MORE suitable for P&G?

Multi-Channel

Direct

Exclusive

Intensive

Selective

Intensive

_____ is/are the number of times an ad appears in front of the user.

Reach

Impressions

Clicks

Frequency

Relevance

Impressions

Mary, Lemoine, and Tyrell are discussing whether or not to choose a local company to supply them with corn starch as a main ingredient in their biodegradable cutlery. In order for a final decision to be made, all three must agree on the outcome. This represents which type of buying centre?

democratic

republic

autocratic

consultative

consensus

consensus

Many hotels send a satisfaction survey to their clients shortly after their visit finish. This strategy is to:

Increase service reliability

Provide opportunity for customers to be heard

Customer emotional support

Change customer perception

Increase customer loyalty

Provide opportunity for customers to be heard

In 2010, David Letterman, Oprah Winfrey, and Jay Leno appeared in a 15-second television commercial for The Late Show with David Letterman during the Super Bowl. This is an example of which promotional element?

Public relations

Sales promotions

Advertising

Direct marketing

Personal selling

Advertising

Which one is NOT the purpose of SWOT analysis?

Recognize where the company should improve

Discover opportunities for future growth

Highlight the factors in the environment that may place the company at risk.

Help the company to define its mission statement

Indicate what the company do well

Help the company to define its mission statement

In a service recovery situation, the extent to which a customer perceives the benefits of the "solution" compared to the costs of the inconvenience associated with the service failure will determine the level of:

assurance.

the communication gap.

fairness.

the zone of tolerance.

satisfaction.

fairness.

When marketing to consumers, marketers need to meet consumer expectations if they want to protect their corporate reputation. ______ is a way to improve brand and corporate reputation.

Expanding the firm's global presence

Reducing the benefits that customers perceive against the cost of the product

Developing a marketing strategy

Sustainability

Gathering and analyzing information about customers and competitors

Sustainability

Service providers require the systems and equipment to deliver the service properly. This is known as __________.

instrumental support.

assurance.

distributive fairness.

procedural support.

emotional support.

instrumental support.

The __________ measures the difference between what the customer really wants and what he or she will accept before going elsewhere.

zone of tolerance

service recovery

voice-of-the-consumer

standards gap

dimensions of service quality

zone of tolerance

A prominent place in people's memories that triggers a response without them having to put any thought into it is:

negative recall

positive recall

announcement

marketing

top-of-mind awareness

top-of-mind awareness