Deck 14: Creating Marketing Strategies

Question 1

Radial tires installed on four-wheel drive vehicles are examples of which of the following?

A) capital items
B) semi-finished material
C) accessories
D) component parts

Answer 1

D

Question 2

Which of the following business products would be considered an accessory in an insurance claims office?

A) a computer
B) computer paper
C) a printer cartridge
D) a photocopier cartridge

Answer 2

A

Question 3

What is a relatively inexpensive item that requires very little shopping effort called?

A) a shopping product
B) a sought product
C) a convenience product
D) a specialty product

Answer 3

C

Question 4

Which of the following is a convenience product?

A) a tuxedo
B) a computer
C) a loaf of bread
D) a vacuum cleaner

Question 5

Compressor pumps installed in General Electric refrigerators would be considered which of the following?

A) raw material
B) component parts
C) accessories
D) capital items

Question 6

Which of the following business products would be considered an accessory in a supermarket?

A) foam trays for meat
B) price stickers
C) a cash register and scanning equipment
D) plastic bags

Question 7

What are the four major groupings of consumer products?

A) limited, generic, durable, and unsought
B) unsought, convenience, shopping, and specialty
C) shopping, durable, limited, and brand
D) brand, specialty, convenience, and generic

Question 8

What are products that are bought after comparing price,suitability,quality,and style known as?

A) sought products
B) generic products
C) specialty products
D) shopping products

Question 9

What is a product for which consumers may search long and hard and for which they refuse to accept substitutes?

A) a specialty product
B) a generic product
C) a shopping product
D) a convenience product

Question 10

Business products are classified into two categories.What are they?

A) special use and general use
B) capital and expense
C) installation and accessory
D) revenue and expense

Question 11

What is a product that is bought by a company for use in making another product?

A) a business product
B) an institutional product
C) a functional product
D) a distribution product

Question 12

Which of the following is considered an expense item for a dentist's office?

A) peroxide for whitening teeth
B) dental x-ray equipment
C) an office desk
D) a computer system

Question 13

Which of the following is a consumer nondurable?

A) a swimming pool
B) a dishwasher
C) a laptop computer
D) breakfast cereal

Question 14

Which of the following is a consumer durable?

A) shampoo
B) sinus medication
C) pretzels
D) a bedroom dresser

Question 15

When Katherine Cozzine graduated from high school,she chose a university that would provide her a strong business foundation even though she would have preferred to major in music.Cozzine did not know that there are over 200 music-business programs that would have allowed her to continue her music and prepare for a career in the industry.To Cozzine,the music-business programs were which of the following products?

A) specialty
B) unsought
C) shopping
D) generic

Question 16

Jay DuClerc has decided to buy a new Porsche.Since there are no Porsche dealers in his community,he must travel almost 200 kilometres to find a Porsche dealer to purchase the car of his dreams.For DuClerc,a Porsche is which of the following?

A) a sought product
B) a generic product
C) a specialty product
D) a shopping product

Question 17

Which of the following is any good or service that satisfies wants,along with its perceived attributes and benefits?

A) market
B) product
C) brand
D) exchange

Question 18

A company in Nova Scotia builds portable drilling platforms used to locate new oil fields underwater.To build a platform,the company had to construct a specially designed dock with a large permanently placed crane able to lift a 20 tonne structure onto its floating base.This expensive dock and crane are examples of which of the following?

A) structural products
B) integral parts
C) emplacements
D) installations

Question 19

Which of the following is the best example of a consumer product?

A) a car bought by a real estate agency for its salespeople to use
B) a textbook purchased by a student taking this class
C) magazines sold to a college bookstore
D) a case of toothbrushes sold to a dentist

Question 20

Robert and Maxine Thomason are planning to purchase a new refrigerator-freezer for their new home.They have compared the quality,style,and price of four models.For the Thomasons,a refrigerator-freezer is which of the following?

A) a convenience product
B) a shopping product
C) an industrial product
D) a specialty product

Question 21

Profit maximization means is best described by which of the following?

A) obtaining the largest profit possible
B) having your supplier carry your inventory
C) building the lowest cost product possible
D) selling your product at the highest price possible

Question 22

Which of the following products would be correctly described as being in the decline stage of their product life cycle?

A) exercise equipment
B) manual typewriters
C) candles
D) golfing magazines

Question 23

Which of the following is a capital product for a multinational organization?

A) a corporate jet
B) fax machine paper
C) a mobile phone
D) a file folder

Question 24

Which one of the following situations best demonstrates an advantage of price skimming?

A) The low initial prices create an image of value for the customer.
B) Prices are initially low to encourage customers to purchase the product.
C) When the price is eventually lowered, consumers might think they are getting a bargain.
D) It discourages competitors from entering the market.

Question 25

Which of the following is an expense item for an independent bookstore?

A) order forms
B) the building in which store is located
C) book shelves
D) display cabinet for first editions

Question 26

Which of the following is a strategy of charging a high introductory price for a new product that invites eventual competition?

A) kiting
B) escalation
C) skimming
D) penetration

Question 27

What is a large,expensive capital product,such as the Ford assembly plant in Oakville,Ontario?

A) an integral part
B) emplacement
C) a structural product
D) an installation

Question 28

Which of the following is the production of a good or service for which the revenue from selling it exceeds the cost of producing it?

A) profit optimization
B) product specialization
C) profit maximization
D) breakeven production

Question 29

Which of the following is a common pricing objective in which the price of a product is set so as to give the company the desired profitability in terms of return on its money?

A) return optimization
B) maximized targeting
C) target return on investment
D) target marketing

Question 30

What are expense items that have undergone little or no processing and are used in the manufacture of end products?

A) component parts
B) specialty products
C) raw materials
D) installations

Question 31

Which of the following is an example of a capital product that would be found in a brewery?

A) bottling machine
B) bottle labels
C) hops to make the beer
D) glass bottles

Question 32

Which of the following is an example of a common pricing objective?

A) maximized targeting
B) target return on investment
C) target marketing
D) profit optimization

Question 33

The unprocessed corn used as the primary ingredient in many brands of dog food is an example of which of the following?

A) a component material
B) an accessory part
C) a raw material
D) a specialty product

Question 34

Which of the following is a pricing strategy in which the target market is offered a high-quality product at a fair price and with good service?

A) prestige pricing
B) variable costing
C) value pricing
D) target marketing

Question 35

The process that products go through as they pass through their introduction,growth,maturity,and decline stages is called which of the following?

A) the marketing mix
B) the marketing cycle
C) the product mix cycle
D) the product life cycle

Question 36

Which of the following are the two main new-product pricing strategies?

A) targeted return pricing and profit maximization pricing
B) value pricing and cost-plus pricing
C) price skimming and penetration pricing
D) psychological pricing and physiological pricing

Question 37

Which of the following is one of the stages in the product life cycle?

A) production
B) decline
C) development
D) pre-production

Question 38

Price is best described by which of the following?

A) It is always expressed in Canada in dollars and cents.
B) It is also called revenue.
C) It is based on the actual perception you will receive from your product.
D) It is based on the expected value you will receive from your purchase.

Question 39

Which of the following occurs during the growth stage of the product life cycle?

A) Sales grow at an increasing rate, and profits are healthy.
B) The product is frequently modified.
C) Primary demand promotion is the norm.
D) Manufacturers adopt a line extension strategy for their product.

Question 40

In which of the following stages of the product life cycle are you most likely to find the manufacturer using a line extension strategy?

A) introduction
B) maturity
C) development
D) growth

Question 41

Which of the following is the efficient management of the acquisition of raw materials to the factory and the movement of products from the producer to industrial users and consumers?

A) physical transportation
B) physical distribution
C) material handling
D) channel distribution

Question 42

Adding a certain percentage to a product's wholesale cost to arrive at the retail price is known as which of the following type of pricing?

A) markdown
B) effective cost
C) cost-effective
D) markup

Question 43

Which of the following is an example of a variable cost for Big Bob's cream store?

A) ice cream freezer
B) ice cream cones
C) rent
D) insurance

Question 44

When Top-Flite introduced its Strata golf balls with a new dimple design and a more solid core for better flight with metal clubs,it charged three times the price of golf balls currently on the market.This high introductory pricing is an example of which of the following strategies?

A) limited value pricing
B) market share pricing
C) penetration pricing
D) skimming

Question 45

A pottery manufacturer is conducting a breakeven analysis.Its line of strawberry pots has $18,000 in fixed costs.The fixed-cost contribution is $3.The pottery manufacturer must sell which of the following number of units to break event?

A) 1,000
B) 3,000
C) 6,000
D) 10,000

Question 46

A fabric manufacturer is doing a breakeven analysis of oilcloth.It costs $15.00 to manufacture a metre of oilcloth.Customers will pay $25 a metre for oilcloth.The company's fixed costs are $10,000.The fabric manufacturer must sell which of the following number of metres to break even?

A) 400
B) 667
C) 1,000
D) 10,000

Question 47

Eli Wenzki works in the warehouse for a manufacturer of high-quality office furniture.He is involved in the transportation of metal components,fabric,lumber,etc.used to manufacture the furniture as well as the movement of the finished furniture from the manufacturing facility to the warehouse to distribution trucks.Wenzki is involved in which of the following type of distribution?

A) channel distribution
B) centralized distribution
C) physical distribution
D) component distribution

Question 48

For a manufacturer of one-of-kind evening gowns,the lace,satin,and buttons are considered which of the following costs?

A) business
B) tangible
C) fixed
D) variable

Question 49

Total fixed costs divided by fixed-cost contribution leads to which of the following figures?

A) profit maximization
B) breakeven point in units
C) perceived value
D) total revenues

Question 50

IGA marked individual-sized snacks down to 25 cents a package for the first five individual packages purchased.This was below the store's cost.These snacks would be considered which of the following type of product?

A) a differentiated product
B) a loss leader
C) a markdown
D) a bargain leader

Question 51

Which of the following is the point at which the cost of making a product equals the revenues gained from selling the product?

A) equilibrium point
B) fulcrum point
C) breakeven point
D) equity point

Question 52

Which of the following is defined as the selling price per unit times the number of units sold?

A) total revenue
B) unit cost
C) total cost
D) profit

Question 53

Charlie Vorwek sells flower arrangements made from dried wildflowers she grows in her garden.Which of the following is a fixed cost in this business?

A) decorative ribbon
B) the undecorated wreath forms
C) a rental storage building
D) silica for drying the flowers

Question 54

Selling Rolex watches for $6,000-$10,000 when a perfectly satisfactory watch can be purchased for 5 percent of that amount is an example of which of the following?

A) snob pricing strategy
B) over-value pricing strategy
C) prestige pricing strategy
D) price lining strategy

Question 55

Which of the following is a series of marketing entities through which goods and services pass on their way from producers to end users?

A) the consumption channel
B) the inventory control process
C) the distribution channel
D) the industrial channel

Question 56

Which of the following represents the markup on a scarf that costs $4 and sells for $6?

A) 50%
B) 40%
C) 33.33%
D) 20%

Question 57

The Franklin Continental Hotel offers a package of room,breakfast,and parking for $125.00.What is this strategy known as?

A) bundling
B) combining
C) aggregated pricing
D) grouping

Question 58

Which of the following is the pricing strategy of marking products below normal markup or even below cost to attract customers to a store where they would not otherwise shop?

A) rebate
B) leader
C) skimming
D) economy

Question 59

When Maurice Tsaki went online to plan his vacation to Australia,he learned that he could buy plane tickets,rent a car,and pay for a hotel in a reduced-price tourist package,which made it very convenient for him to book his trip.The website Tsaki visited used which of the following strategies to make trip planning easier and more economical?

A) price structuring
B) bundling
C) aggregated pricing
D) price grouping

Question 60

Pricing a product at $399.99 instead of $400 to make the customer view the price as in the $300 range instead of the $400 range is an example of which of the following?

A) price lining
B) odd-even pricing
C) minimized pricing
D) red-line pricing

Question 61

Within the distribution channel,retailers and wholesalers are known as which of the following?

A) inventory control agents
B) marketing intermediaries
C) movement facilitators
D) logistical managers

Question 62

Suppose a manufacturer has a product that is in strong demand and selects only one dealer to handle the product in a particular area.This is an example of which type of distribution?

A) exclusive
B) selective
C) dedicated
D) demand-pull

Question 63

The owner of Mercury Appraisal Company held a ribbon-cutting event when he opened his new business.He invited city dignitaries,representatives from news media,and anyone who might have need of his services.The goal of his promotion was most likely which of the following?

A) to show how his services were improved
B) to create awareness
C) to keep loyal customers
D) to retain customers

Question 64

Which of the following is the act of informing,persuading,and reminding the target market about a product?

A) distribution
B) operations
C) marketing
D) promotion

Question 65

Eve Sheisedo Design Inc.has just started manufacturing sets of triangular and rectangular dinner plates.The design company will use wholesalers,retailers,and consumers to get its plates to market.What is this chain collectively called?

A) the industrial channel
B) the consumer channel
C) the distribution channel
D) the promotional channel

Question 66

In Toronto,Black and Decker has granted nine distributors the rights to carry its products.It hopes customers will seek out the Black and Decker products.Black and Decker uses which of the following type of distribution?

A) centralized
B) exclusive
C) demand-pull
D) selective

Question 67

A person who works as a sales representative for a manufacturer or wholesaler and gets paid a commission on any sales is known as which of the following?

A) merchant wholesaler
B) broker
C) agent
D) merchandiser

Question 68

Which of the following is the dividing of large shipments of similar merchandise into smaller,more usable quantities that can be sold to consumers and end users?

A) product separation
B) lot dispersal
C) breaking bulk
D) inventory dispersion

Question 69

Car dealers that sell Bentley automobiles are few and far between.Even in very large metropolitan areas,there is only a small probability that there will be more than one car dealer authorized to sell Bentleys.The manufacturer of Bentley cars uses which of the following type of distribution?

A) selective
B) geographical
C) exclusive
D) demand-pull

Question 70

What are airlines trying to achieve when they use frequent flyer programs,which give customers points that can be redeemed for free travel,rental cars,and other merchandise?

A) to get consumers to try their product
B) to create product awareness
C) to provide information
D) to increase the amount and frequency of use

Question 71

Which of the following are the three intensities of market coverage?

A) partial, varietal, and interactive
B) contractual, hierarchical, and administrative
C) internal, external, and interactive
D) selective, exclusive, and intensive

Question 72

What is a set of unique features that the target market perceives as important and better than the competition?

A) superlative advantage
B) market uniqueness
C) differential advantage
D) promotional difference

Question 73

Which of the following statements best describes the functions performed by channels?

A) Channel functions can easily be eliminated.
B) Inventory handling is the least expensive of all functions performed by channel members and can profitably be performed by the manufacturer.
C) The average customer understands the importance of channels in maintaining low prices.
D) Although channel members can be eliminated, their functions cannot.

Question 74

The chain of manufacturer,agent,wholesaler,and retailer through which items such as x-ray machines,dental equipment,and safety goggles flow is known as which of the following?

A) the service channel
B) the distribution channel
C) the consumer channel
D) the industrial channel

Question 75

The owner of Mercury Appraisal Company held a ribbon-cutting event when he opened his new business.He invited city dignitaries,representatives from news media,and anyone who might have need of his services.The presence of news representatives,whom he hoped would cover the event in their respective media,was an attempt to use which of the following elements of the promotional mix?

A) advertising
B) sales promotion
C) personal selling
D) public relations

Question 76

The process of packing 24 rolls of double-ply toilet tissue in super-sized packages such as those sold at Superstore and Costco is an example of which of the following functions?

A) accumulating
B) sorting out
C) adaptive packaging
D) allocating

Question 77

Which of the following is the combination of advertising,personal selling,sales promotion,and public relations used to promote a product?

A) the product strategy
B) the promotional mix
C) the marketing mix
D) the distribution strategy

Question 78

Which of the following is the best example of an industrial user?

A) a teacher who buys a new clock for her kitchen
B) a retail clerk who buys a soft drink during her break
C) a wholesaler that buys snack foods for redistribution
D) a manufacturer that buys welding equipment for constructing customized vehicles

Question 79

A retailer separates children's clothing purchased from Ralph Lauren into various sizes and types of clothing,such as shirts,shorts,and sun dresses.This process is known as which of the following?

A) sorting out
B) allocating
C) accumulating
D) adaptive packaging

Question 80

Felix Bhuton's job in the lumber industry is to bring together buyers and sellers.Bhuton is paid a commission,usually by the seller.Bhuton is acting in which of the following roles?

A) broker
B) distribution captain
C) distributor
D) merchant wholesaler