MAR 3023 FINAL EXAM FALL 2008

1.  Assume the United States imported $900 billion dollars worth of goods last year and exported $400 billion dollars worth of goods.
What is the U.S. balance of trade?  
A.  $500 billion deficit
B.  $1300 billion deficit
C.  $500 billion surplus
D.  $1300 billion surplus
E.  Can't tell from information given
 
 
2.  A company that uses an organizational structure based on "Dinner Products" or "Baked Goods", for example, uses __________.  
A.  Areas such as marketing, finance and R&D
B.  Customer groupings
C.  Areas of geographic location
D.  Method of distribution groupings
E.  Product line groupings
 

3.  __________ are computer files that a marketer can download onto the computer of an online shopper who visits the marketer's
website.  
A.  Locator websites
B.  Promotional websites
C.  Cookies
D.  Bots
E.  Interstitials
 
4.  Consider the following PERT chart:

Develop Ad
Market Research Campaign
4
2 B D 6
What is the critical path?
 
A.  ACEFPrototype
B.  ACEBDF
A 6 6 F Launch
C.  ABDF
D.  ACDF
E.  ABEF
3 5
  C E
5.  SB.blogspot.com is a websiteBuild scrapbook 2enthusiasts
forFacility toProduct
Redesign visit and talk about their recent projects as well as give and receive help
in creating their scrapbooks.  This website is an example of what use of Internet discussed in class?  
A.  Selling Merchandise
B.  Personal Selling
C.  Virtual Community
D.  Facilitating Sales
E.  Brand Building
 

6.  Which of the following is true about Internet shopping?  

A.  Women use the Internet for shopping as much as men do.
B.  Men do more online shopping than women.
C.  Disintermediation has led to the closing of large numbers of "brick & mortar" stores.
D.  Generation Y is the only segment that uses computers for shopping.
E.  Internet shopping revenue is a very large percentage of U.S. retail sales.
 
7.  Meaghan, a marketing manager in San Antonio, has noticed over the years that international travel and communication have
increased within her company, and that her firm is now competing with companies from China and India.  This is an example of:  
A.  Cross-Cultural Analysis
B.  a Trade Deficit
C.  "Shrinking Globe"
D.  "Glocalization"
E.  Transnational Marketing
 
8.  In its business portfolio analysis, an organization's successful SBUs often start as __________ and then become __________.  
A.  Stars; question marks
B.  Question marks; stars
C.  Stars; dogs
D.  Question marks; dogs
E.  Dogs; question marks
 
9.  Lloyd Clarke Sports, a small sports retailer in Gainesville, currently has a market share of 10%.  Wishing to expand his business
and compete more effectively with Sports Authority, the owner, Lloyd Clarke, decides that he wants to expand his store's market share
so that it is 15% by the end of next year.  What "share of voice" does Lloyd Clarke Sports need next year to accomplish its goal?
(Assume that his current share of voice is 10%.)  
A.  22.5%
B.  20.0%
C.  7.5%
D.  5.0%
E.  17.5%
 

 
10. Bill McDermott is President and CEO of SAP Corp. SAP is a company that sells extremely expensive enterprise resource
planning software to large and mid-sized companies. McDermott operates at the __________ level of his organization. 
A. Strategic
B. Functional
C. Corporate
D. Back office
E. Business unit
 
11. __________ seeks opportunities by finding the optimum balance between marketing efficiencies versus R & D—manufacturing
efficiencies. 
A. Point of difference analysis
B. A sales response function
C. Synergy analysis
D. Value-based marketing
E. Value-added efficiency
  

12.  Cindy began producing earplugs 5 years ago as a newcomer in the industry.  Her initial cost to produce 5,000 earplugs was
$5,000. Over the years she produced more units and her market share has increased, allowing her today to produce earplugs for a
lower unit cost than 5 years ago by using cheaper materials, less labor, and a more efficient production process.  Which marketing
concept demonstrates why Cindy can produce earplugs today for a lower unit cost than she could when she was a newcomer to the
industry?  
A.  Efficiency Frontier
B.  Economies of Scale
C.  Barriers to Entry
D.  Experience Curve
E.  Marketing Power Increase
 
13.  A(n) __________ is the visual display on a single computer screen of the essential information related to achieving a marketing
objective.  
A.  Objective tracker
B.  Strategy visualizer
C.  Marketing screen
D.  Information screen
E.  Marketing dashboard
 
14.  Coca-Cola has created a new beverage, Liquid Adrenaline, that contains three times more caffeine than any other beverage.
Coca-Cola wants to aggressively market this product to young people all over the globe.  Coca-Cola uses the same commercials and
billboards in the United States, Europe, and China because the research they have conducted shows that the campaign appeals to
people age 15-25 regardless of country of origin.  What type of global marketing approach is this?  
A.  Transnational Marketing
B.  Multidomestic Marketing
C.  Intercontinental Marketing
D.  Multinational Marketing
E.  International Marketing
 
15. Pfizer Pharmaceuticals is offering low-income senior citizens some of its most widely used prescriptions for $15 each a month—
much below the regular costs for these drugs. This program, which serves senior citizens most likely grew out of a __________
pricing goal. 
A. Unit sales
B. Profit
C. Sales revenue
D. Market share
E. Social responsibility
 

 
16.  Not so many years ago, many U.S. consumers thought Americans who purchased Japanese-made radios, televisions and other
electronic equipment were behaving not only inappropriately, but immorally. U.S. consumers who thought buying Japanese products
was wrong were exhibiting  
A.  Cultural acclimation
B.  Consumer bias
C.  Consumer ethnocentrism
D.  Culture shock
E.  Back translation
 
17.  Anna logged onto VictoriasSecret.com and purchased a new outfit (she thought) only to find out later that it was a fraudulent
website set up to look identical to the actual Victoria's Secret website.  This is an example of:  
A.  Phishing
B.  Pharming
C.  A Hot Spot
D.  An Evil Twin
E.  A Bot
 
 

 
18.  During Vistakon's presentation, Craig Palmer stated that Johnson & Johnson has a credo that defines its commitment to four key
groups.  Which of the following groups is Johnson & Johnson's first priority?  
A.  Society
B.  Customers
C.  Employees
D.  Communities
E.  Stockholders
 
19. Websites that offer personalized content, such as MyeBay and My Yahoo have __________ as a prominent design element. 
A. Communication
B. Customization
C. Connection
D. Context
E. Content
 

20. The practice of shielding one or more sectors of a country's economy from foreign competition through the use of tariffs or quotas
is called 
A. Domestic imperialism
B. Proportionality
C. Blocked competition
D. Protectionism
E. The rule of proportional domain
 

 
21.  Corporate executives and world leaders are increasingly asked to address the issue of __________, a term that refers to meeting
present needs "without compromising the ability of future generations to meet their own needs".  
A.  Sustainable development
B.  Profit margins
C.  Strategic direction
D.  Corporate culture
E.  Acculturation
 

22.  Carolina is the marketing manager for Universal's Islands of Adventure.  She is trying to decide on next year's admission price.
Disney has already announced an admission price of $70.00.  She turns to some recent market research comparing consumer
perceptions of the two parks.  (The data shown below use the same 10-point scale used throughout the course.)

                 Disney   Islands of Adventure  Importance

    Food             7     8     6

    Rides                6     9     9

    Atmosphere     9     9     8

    Shopping     8     7     5

What is the parity price for Islands of Adventure?

 
A.  $70.00
B.  $79.42
C.  $77.00
D.  $61.69
E.  $63.64
 
23.  CJ's Leash and Collar Company is working on improving their marketing program.  They have determined various options and
are trying to decide on the best approach to increasing long-term market share.  The options include:  decreasing prices on all
products, introducing an innovative leash and collar product, opening new store locations, spending less money on advertising to
increase profit, and implementing special sales promotions in each market.  Based on the research discussed in class, which option
would have the most powerful impact on CJ's market share?  
A.  Decreasing advertising spending
B.  Opening new stores
C.  Implementing sales promotions
D.  Introducing a new product
E.  Decreasing prices
 
24. Amazon.com uses __________ to compare each user's purchases with the purchases of other users with similar preferences to
create a list of purchase recommendations. Based on a customer's desire to purchase one artist's CD, Amazon might recommend a CD
by a similar artist. 
A. Real-time e-commerce
B. Collaborative filtering
C. Interactive marketing
D. Connectivity
E. Seller personalization
 

 
25.  Sarah has a break before her next class and decides to eat lunch at the Taco Bell on campus.  While waiting for her food, she takes
out her laptop and checks her Facebook profile.  She also checks her email account and deletes an unwanted message from someone
selling cheap Viagra.  This scenario illustrates which aspects of interactive marketing and e-commerce?

    I. wireless technology

    II. sponsored links
    III. brand building
    IV. virtual communities
    V. spam
 
A.  I and IV only
B.  I, II, IV, and V only
C.  I and V only
D.  I, IV, and V only
E.  II, IV, and V only
 
26.  Megan is looking for a gift for her older brother who enjoys reading mysteries. A book by one of his favorite authors was recently
published and she plans to buy it. However, she is on a limited budget so wants to find the lowest price. The most convenient way for
Megan to find the best price for the book would be to  
A.  Drive to a large shopping center where there are several bookstores to see which one has the book at the lowest price
B.  Call all the bookstores in her community to inquire about the price of the book at each one
C.  Use a bot to comb the websites of online booksellers and locate the website with the best price
D.  Use a cookie to contact various bookstores and find the one with the best price
E.  Hold a "reverse auction" to solicit bids
 

27.  Go-Go Bubblegum is a revolutionary company that puts high amounts of caffeine in their gum to give their customers a jolt as
they chew.  Current sales are as follows; the market growth rate is 7%.

                                    Sales       

PinkPop            $32.8 million
Bubble Smack $22.3 million
Go-Go Bubblegum $9.4 million
Giant Bubble $8.4 million
All others $27.2 million

In the BCG Matrix, Go-Go Bubblegum is a _____, with a relative market share of:  
A.  Dog; 9.4
B.  Question Mark; 0.29
C.  Cash Cow; 9.4
D.  Dog; 0.29
E.  Question Mark; .129
 
 
28.  Customers can build their own bicycle at SevenCycles.com by answering a few questions and choosing from a menu of product
attributes, prices and delivery options. The design of this mass-customized bicycle is made possible through the use of a  
A.  Seller bot
B.  Choiceboard
C.  Content screen
D.  Collaborative filter
E.  Seller cookie
 

 
29.  Martha operates a shoe company and she is working on her annual marketing plan.  She begins by analyzing her current situation,
in terms of both her company's capabilities and environmental trends that affect her business.  Martha is creating a(n):  
A.  Strategic Environmental Scan
B.  Contingency Plan
C.  Executive Summary
D.  Timing Model
E.  S.W.O.T. Analysis
 
30.  Marketing executives may exploit a competitive advantage by  
A.  Always opening more locations than any of their competitors
B.  Finding and using what works for their organization and industry and allocating resources effectively
C.  Always doing more advertising than any of their competitors
D.  Conducting “reverse engineering” studies
E.  Always providing the lowest priced product in the industry  
 

31.  Macy's has decided to use the latest e-commerce technology to target customers.  The technology tracks each potential consumer's
individual actions online.  Macy's observes which display features are most effective for each segment of the population.  Then Macy's
customizes the background colors and other display features based on which segment they believe each individual falls into.
Therefore, each consumer sees ads for merchandise that will be most appealing based on each consumer's past online behaviors.  What
is this approach called?  
A.  Behavioral Targeting
B.  Integrated Marketing Communications
C.  Tailored Promotion
D.  Individual Analysis
E.  Click-through Optimization
 

 
32.  Mr. Clause owns a toy manufacturing company at the North Pole.  His toys have become incredibly popular, so he is going to
start opening stores in different countries.  The first country he would like to expand to is the U.S.  He feels he knows a lot about the
preferences of U.S. consumers because he travels there once a year at the end of December.  He can tell that American's have very
different preferences from the consumers at the North Pole.  What type of marketing should Mr. Clause use in approaching the U.S.
market?  
A.  Multinational Marketing
B.  Transnational Marketing
C.  Global Marketing
D.  Globalscan Marketing
E.  International Marketing
 

33.  The owner of Chompmenus.com is trying to determine how much it would cost to increase his market share by 4 share points in
the Gainesville market.  He is provided with the sales figures for the Gainesville dining guide industry ($27,000,000), the total
industry marketing effort ($7,000,000), chompmenu's sales ($13,000,000) and chompmenu's gross margin ($6,000,000).  What would
the expected additional profit be if chompmenus.com invested the necessary additional marketing effort to gain four share points?  
A.  $500,000
B.  $220,000
C.  $80,000
D.  $800,000
E.  $660,000
 
34. The use of barter rather than money in making global sales is called 
A. A countertrade
B. Predatory pricing
C. Economic adaptation
D. Trade feedback
E. Cross-cultural trade
 
35.  Rob, in his late 20s, has done quite well after graduating from college.  With his assertiveness and accomplishments in school, he
landed a job with one of the Fortune 500 companies and has moved up rapidly.  Rob values a high standard of quality in everything he
does and in the products he buys.  Rob would be classified as a(n) _____ in the Globalscan study.  
A.  Traditional
B.  Striver
C.  Achiever
D.  Pressured
E.  Adapter
 

    
FIGURE 22-1
 
36. According to Figure 22-1 an additional annual marketing effort of $1 million is best spent after having already spent how much in
marketing effort to date? 
A. $6 million
B. $3 million
C. $1 million
D. $2 million
E. $5 million
 
37.  Although consumers are most familiar with Johnson & Johnson's consumer products that include products such as Tylenol and
Visine, which of the following lines of business, with 40% growth in 2007, is Johnson & Johnson's largest revenue-producer?  
A.  Environmentally safe products
B.  Pharmaceuticals
C.  Medical Devices and Diagnostics
D.  Cleaning products
E.  Baby food
 
38.  Target is a leading discount store.  At Target, top management stated that they want to:  "Make Target the preferred shopping
destination for our guests by delivering outstanding value, continuous innovation and an exceptional guest experience and by
consistently fulfilling our 'Expect More.  Pay Less.' brand promise."  What does this statement by the company represent?  
A.  Marketing strategy
B.  Marketing myopia
C.  Marketing mission
D.  Corporate mission
E.  Corporate goal
 
39.  Clean and Scrub company decided to bring their floor scrubber to the Philippines.  However, the product failed to sell.  They
decided to undertake research on the cause of this failure.  They found out that Filipinos traditionally use coconut shells to scrub and
shine the floors, using the foot to move the coconut shell back and forth.  Therefore, Clean and Scrub altered their product and made it
shaped like a foot.  Eventually, sales picked up.  Clean and Scrub's initial problems were due to what sector of the international
marketing environment?
    I. Cultural
    II. Demographic
    III. Natural
    IV. Technological
    V. Regulatory  

A.  I only
B.  II & III only
C.  III only
D.  I & III only
E.  I, III, and V only
 
40.  The amount of time per month that visitors spend on a company's website is called  
A.  Stickiness
B.  Connectiveness
C.  Staying power
D.  The 8-second rule
E.  Visit time
 

41.  Coca-Cola has faced increasing competition from Pepsi in the past few years.  Among other things, they have experienced a drop
in sales (which has led to a drop in profit) and a drop in market share.  Coca-Cola executives feel that the problem lies with Coca-Cola
losing its connection to its customers.  They devise a plan to win back their customers from Pepsi with lower prices, which will hurt
their profit margins.  The Coca-Cola executives feel that this margin loss is worth the risk, because they can raise their prices once
they win back their customers.  What objective are the Coca-Cola executives pursuing right now?  
A.  Market Share
B.  Sales Revenue
C.  Segmentation
D.  Timing
E.  Profit
 
42. Many people are concerned about eating healthy, yet many of these same people still grab lunch at fast-food restaurants because
the restaurants are convenient and they like beef. In addition to its array of beef hamburgers, chicken sandwiches, etc., Burger King
has created a veggie burger that "tastes like the real thing without all the fat". Burger King is using a __________ strategy to attract
this large market that encompasses many different segments. 
A. Differentiation strategy
B. Cost leadership strategy
C. Cost focus strategy
D. Differentiation focus strategy
E. Service focus strategy
 
43.  "The Secret" is a film and book that discuss the "Law of Attraction"  - a principle that states that feelings and thoughts can
actually have an impact on individuals’ physical, emotional, and professional affairs.  This idea most closely relates to which of
Covey's "7 Habits"?  
A.  Seek first to understand, then to be understood!
B.  Begin with the end in mind!
C.  Put first things first!
D.  Sharpen the Saw!
E.  Think Win/Win!
 

44.  Jamie Lynn Spears has developed a new maternity clothing line, Bun in the Oven Fashions, and is working on her marketing
budget.  She wants to start from scratch, so she first decides that her ultimate goal is to be the most well known maternity clothing line
in the United States within 5 years.  Then, Jamie Lynn determines all of the necessary steps involved in reaching this goal, like
advertising her merchandise nationally and opening Bun in the Oven specialty stores in each state.  She can then determine how much
money should be budgeted to accomplish each step.  Which method of budgeting is Jamie Lynn using?  
A.  Optimization
B.  Affordable
C.  Competitive Parity
D.  Objective and Task
E.  Zero Abstinence
 
45.  Both Honda and Toyota own plants in the U.S. that use American labor. This example is an illustration of Honda and Toyota
practicing  
A.  Licensing
B.  Direct exporting
C.  Direct investment
D.  Indirect exporting
E.  Joint venture
 
 
46.  David Yurman jewelry is sold through traditional retail stores but is also available for purchase by consumers on their website,
davidyurman.com.  David Yurman is involved in _____ e-commerce and davidyurman.com is a _____ website.  
A.  Business-to-consumer, transactional
B.  Business-to-business, corporate
C.  Business-to-consumer, facilitating sales
D.  Business-to-business, transactional
E.  Business-to-consumer, corporate
 

47.  Meaghan is the owner of a brand of organic coffee bean.  She has just decided on a new strategy for her product.  She told her
employees there will be no more advertising for the brand and she is eliminating the sales force.  Meaghan will keep the brand on the
market but will not promote it in any way.  What strategy based on market share is Meaghan using for her coffee?  
A.  Divesting
B.  Maintaining
C.  Milking
D.  Harvesting
E.  Growing

48. Toyota was a pioneer of the __________ when it began manufacturing with very low inventories and depended on fast, well-
coordinated deliveries.  
 
A.  Distribution center system
B.  Just-in-time system
C.  Expedited inventory management system
D.  Delivery-on-demand concept
E.  Just-in-case system
 
49. Brenda decides she wants to buy a new laptop for school.  After remembering an ad that she recently saw in People magazine
for the new pink Sony Vaio notebook, she sets her mind on getting that product.  Brenda first travels to Walmart to see what
type of assortment they have to offer and to get a good deal, but an employee tells here that their store carries only Toshiba
computers.  Still on a mission, she then travels to Best Buy hoping to find her pink laptop there.  Although Best Buy does
have Sony Vaio's in stock, that particular store carries only the black and silver versions.  Brenda's friend tells her to go home
and sign on to Amazon.com.  Right there on the main screen is an advertisement for her pink Sony Vaio! Excited and
relieved, she instantly purchases the laptop.  What types of retailers were involved in Brenda's laptop purchase?

    I.     nonstore retailer

    II.    discounter
    III.   specialty retailer
    IV.   power retailer
    V.    department store  
 
A.  I, II, and IV only
B.  II, III, and IV only
C.  I, IV, and V only
D.  II, IV, and V only
E.  III and IV only
 
 
50. Alice's Restaurants are expanding throughout the U.S., and their sales are growing rapidly.  Management would like to know
their same-store sales growth, so their market research department provides the data below.  What is Alice's same-store sales
growth?

  OCT. 2007 OCT. 2008

Total # Stores 100 120
Total Net Sales $20 million $25 million
# New Stores* 15 20
Net Sales of New Stores $1.5 million $2 million
*Stores open less than 12 months  
 
A.  7.5%
B.  10.0%
C.  15.0%
D.  25.0%
E.  8.0%
 

 
51. Cindy is craving chocolate.  She stops into a store with a wide variety of chocolate and candy and encounters a sales clerk
who helps her find exactly what she is looking for.  Cindy purchases a single bar of chocolate to satisfy her compulsive
craving and now knows where to find it if she ever wants more.  In this example the retailer is adding value to the purchase by
doing all of the following EXCEPT:  
 
A.  Decreasing prices
B.  Providing assortment
C.  Holding inventory
D.  Breaking bulk
E.  Providing services
 
52. Brian's Bedazzled Buttons is a manufacturer that sells through large wholesalers that carry a wide assortment of merchandise,
ship all their products to the retailers that sell them to consumers, manage their sales and financing, etc.  This year Brian is
focusing his efforts on customer feedback and is asking his wholesalers to participate in a lot of market research on their
customers' needs and wants.  Which intermediary function is Brian focusing on?  
 
A.  Financing function
B.  Facilitating function
C.  Transactional function
D.  Logistical function
E.  Assortment function
 
 
 
53. Leslie makes pajamas for the elderly, Ye Olde Nightgowns.  They are comfortable, easy to put on (velcro) and stain proof for
when those Depends adult diapers aren't enough.  More and more retailers are buying her product as the baby boomers, with
their enormous buying power, are in need of her product.  She decides it is time that she launch her own chain of stores and
reap more profits from her product!  Leslie is creating a:  
 
A.  Contractual Channel
B.  Forward horizontally integrated channel
C.  Backward vertically integrated channel
D.  Backward horizontally integrated channel
E.  Forward vertically integrated channel
 
54. Goerings Bookstore had a beginning inventory of $7500 and an ending inventory of $8300.  Its COGS was $24,000, and it
had returns of $1000.  What is Goerings' Stockturn Rate?  
 
A.  3.16 turns per year
B.  2.91 turns per year
C.  0.34 turns per year
D.  3.04 turns per year
E.  1.52 turns per year
 
55. The Walgreens on the corner of 5th Ave & Melbourne Road is connected to six smaller stores including an ice cream shop
and a Gator Shop.  This is an example of a:  
 
A.  Lifecycle Center
B.  Power Center
C.  Regional Mall
D.  Strip Center
E.  Central Business District
 
56. Jonathon was walking through Turlington when he noticed that some people dressed in bright orange and neon green clothing
were passing out drinks to everyone that walked passed them.  He ventured over and got a free can of a new soft drink,
Gatorade Glow.  As he walked around campus throughout the next week, he continued to see similarly dressed people passing
out the new soft drink.  Attracting attention to a new product in this way illustrates what type of marketing?  
 
A.  Ambush Marketing
B.  Event Marketing
C.  Guerrilla Marketing
D.  Direct Marketing
E.  Permission Marketing
 
 
57. In a direct channel, all channel functions are performed by  
 
A.  Producers
B.  Retailers
C.  Middlemen
D.  Brokers and agents
E.  Wholesalers
 
58. The largest inventory of wedding dresses in the Southeast can be found at Low's Bridal and Formal in Brinkley, Arkansas.
Each year, from December 26 to January 16, a prospective bride shopping at Low's can find gowns once priced at $6,000 for
$2,999, $800 gowns for $400 and many other:  
 
A.  Markdowns
B.  Compressed markups
C.  Inventory shrinkages
D.  Gross markups
E.  Maintained markups
 
 
59. Independent retailers, corporate chains and contractual systems are all examples of retail outlets classified by  
 
A.  Form of ownership
B.  Method of operation
C.  Level of service
D.  Merchandise line
E.  Revenue generated
 
 
60. Kathleen is in search of a new couch for her apartment.  After traveling to Furniture Kingdom, she finds one she wants in
stock, but it is a little out of her price range.  However, Joe the salesperson quickly approaches Kathleen and tells her about
the store's recent promotion.  Since this particular couch is over $600, Kathleen can put no money down and pay no interest
for 6 months!  Excited by the idea of walking out of Furniture Kingdom with a brand new couch and not paying anything,
Kathleen decides to splurge and make the purchase.  After ringing up the sale, Joe has Kathleen fill out a survey that asks
questions about her experience in the store.  What channel functions are taking place in the situation?

    I.     transactional functions

    II.    promotional functions
    III.   facilitating functions
    IV.   logistical functions
 
 
A.  I, II, III, and IV
B.  I only
C.  I and III only
D.  I, III, and IV only
E.  II and III only
 
 
61. According to the guest speaker from Mattress Firm, Ken Murphy, there is a hierarchy of objects that are sold by retailers.
What is the correct order from the least advanced to the most advanced?  
 
A.  Commodity, Good, Service, Customization, Experience
B.  Commodity, Service, Good, Experience, Customization
C.  Commodity, Good, Service, Experience, Customization
D.  Good, Commodity, Experience, Service, Customization
E.  Good, Service, Commodity, Customization, Experience
 
62. The Oaks Mall is home to over 140 different retail stores.  You can pick up a new phone at the Verizon Wireless kiosk, make
a stuffed animal at Build-a-Bear Workshop, or shop for clothes for the whole family at Macy's.  Scott wants to buy a set of
bath soaps and lotions for his girlfriend, so he chooses to visit Bath and Body Works, one of the smaller stores in the mall.
Which type of retailer is Bath and Body Works?  
 
A.  Specialty Store
B.  Discount Store
C.  Power Retailer
D.  Jobber
E.  Department Store
 
63. Jerry just got his marketing degree and comes from a family of business people.  After graduating, his dad promised him that
he would help him begin his business.  Jerry wants to be a pioneer in a whole new type of retail store.  That's when it hits him:
Towels!  He opens up a high-end towel boutique, Le Dry, in the high end mall in his local town, but unfortunately his business
only lasts two months.  What degree of channel coverage may have been more effective for Jerry?  
 
A.  Jerry should have used Selective Distribution and sold his towels in as many locations as possible to reach as many
people as possible.
B.  Jerry should have used Intensive Distribution and sold his towels in one location with more intensive marketing.
C.  Jerry should have used Selective Distribution and sold his towels in several upscale department stores around town.
D.  Jerry should have used Exclusive Distribution and sold his towels in several upscale department stores around town.
E.  Jerry should have used Departmental Distribution and sold his towels at several upscale department stores around town.
 
 
64. Gator-Cycle is a specialty store here in Gainesville.  They have a few main suppliers with which they work closely.  Both
Gator-Cycle and the suppliers realize they are dependent on each other for the success of their businesses.  Together they are
always looking to the future and aiming for the mutual satisfaction in all their transactions.  Gator-Cycle's interaction with its
suppliers is an example of:  
 
A.  Relationship Marketing
B.  Value-Add Chain Marketing
C.  Transaction Marketing
D.  Pipeline Marketing
E.  Channel Marketing
 
65. The goals to be achieved by a firm's marketing strategy determine whether its supply chain needs to be more __________ or
more efficient in meeting customer requirements.  
 
A.  Organized
B.  Harmonized
C.  Responsive
D.  Supplier-driven
E.  Strategic
 
 
66. Pharmaceutical companies sell to hospitals and clinics directly. They market their products to large retail chains that
distribute the medicines to their stores across the nation. They also sell to drug wholesalers that sell to the remaining
independent drugstores in the U.S. What method of distribution best describes that used by pharmaceutical companies in this
example?  
 
A.  Dual distribution
B.  Exclusive distribution
C.  Vertical distribution
D.  Horizontal distribution
E.  Direct distribution
 
67. Quantum is a leading provider of distribution facilities and services with 1,759 distribution and order processing facilities in
68 markets in North America, Europe and Asia. It manages warehousing and materials handling for many different types of
manufacturers. Quantum is a  
 
A.  Third-party logistics provider
B.  Freight forwarder
C.  Freight jobber
D.  Rack jobber
E.  Wholesaler
 
 
68. Mr. Two-Bits owns a 900-square foot store specializing in Gator goods.  His store has three departments.  He needs to
determine the net sales/square foot for each department to determine if he should expand or reduce the sizes of the
departments.  He has accumulated data (shown in the table below) on the departments.  After analyzing the data, which
department should Mr. Two-Bits increase in size?

Department Total Sales Returns Sq. Ft.

Gator Apparel $190,000 $130,000 300
Gator Home Decor $70,000 $20,000 200
Gator Car Accessories $90,000 $10,000 400
 
 
A.  Gator Home Decor
B.  Both Apparel and Car Accessories
C.  Gator Apparel
D.  Keep the departments as is
E.  Gator Car Accessories
 
 
69. Nike has long been known for being the brand that dominates the NBA.  However, Nike has decided to target other segments
as well.  Therefore, Nike has entered into a contract with Columbia Pictures in which Nike will, for no charge, provide the
clothing and sneakers for all of the actors/actresses to wear in the upcoming movie, Wedding Crashers II.  What type of
arrangement does this exemplify?  
 
A.  Product Placement: Straight Fee
B.  Product Placement:  Barter
C.  Product Placement:  Cross Promotion
D.  Buzz Marketing
E.  Sponsorship
 
 
70. Keepsake Quilting is a large retail and mail order quilting shop. It carries over 10,000 bolts of cotton fabric used in quilting. It
also carries other quilting supplies such as rulers, batting, embellishments and the like. It specializes in all types of supplies
and fabric for the home quilter. Keepsake Quilting's product line would be described as __________ and __________.  
 
A.  Broad; shallow
B.  Broad; deep
C.  Narrow; deep
D.  Narrow; broad
E.  Narrow; narrow
 
71. The Limited employs a quick response system to order fast-moving fashion items. The Limited's point-of-sale scanner
records each sale. When stock falls below a minimum level, the system automatically sends an electronic order to the
manufacturer, which processes the order immediately. This system has effectively reduced  
 
A.  Customer response cycle
B.  Product flow
C.  JIT
D.  Lead time
E.  EDI
 
72. Kim Denta, a Sales Coordinator for BDA, Inc., spoke to the class about her firm and its activities.  Which aspect of the
promotional mix do BDA's activities fall into?  
 
A.  Sales Promotion
B.  Personal Selling
C.  S. W. A. G.
D.  Public Relations
E.  Direct Marketing
 
73. Intermediaries make the selling of goods more efficient by  
 
A.  Reducing manufacturing costs
B.  Identifying target markets
C.  Minimizing the number of sales contacts between producer and consumer
D.  Eliminating inventory costs
E.  Maximizing the number of contacts between producer and consumer
 
 
74. Retailers like Williams-Sonoma and The Discovery Store that sell at retail stores, through their catalog and at their online
website are examples of __________ retailers.  
 
A.  Multichannel
B.  Facilitating
C.  Vertically integrated
D.  Multimediary
E.  Intratype
 
75. FedEx package shipping service is available on their __________. In a single web session a customer can enter all the
information needed to prepare a shipper form, obtain a tracking number, print the form and schedule a pick up.  
 
A.  Internet-free system
B.  Intranet
C.  Customized search engine
D.  Personalized Internet
E.  Extranet
 
76. There are several different types of sales force compensation plans.  In her presentation Andrea Hart explained how Pfizer
pays its sales force.  What is the method of compensation used by Pfizer?  (For each answer below, benefits such as health
insurance are also included.)  
 
A.  Salary only
B.  Straight commission
C.  Salary Plus Bonus Plus Commission
D.  Salary Plus Commission
E.  Salary Plus Bonus

 
Fall 2008 Final Key
Version #1
 
1. (p. T167) A 
 
2. (p. 592) E
 
3. (p. 564) C
 
4. (p. L122) D
 
5. (p. L133) C
 
6. (p. L124) A
 
7. (p. L139) C
 
8. (p. 38) B
 
9. (p. L118) E
 
10. (p. 29) C
 
11. (p. 582) C
 
12. (p. L115) D
 
13. (p. 41) E
 
14. (p. L140) A
 
15. (p. 34) E
 
16. (p. 180) C
 
17. (p. L127) B
  
18. (p. 11/19, second hour) B
 
19. (p. 555) B
 
20. (p. 170) D
 
21. (p. 35) A
 
22. (p. L113) B
 
23. (p. L117) D
 
24. (p. 552) B
 
25. (p. L133, 137) D
 
26. (p. 561) C
 
27. (p. L113) D
 
28. (p. 552) B
 
29. (p. T44-45) E
 
30. (p. 574) B
 
31. (p. L137) A

 
32. (p. L140) A
 
33. (p. L123) C
 
34. (p. 166) A
 
35. (p. L141) C
 
36. (p. 576) B
 
37. (p. 11/19, second hour) B
 
38. (p. L111) D
 
39. (p. L139) A

40. (p. 556) A
 
41. (p. L116) A
 
42. (p. 581) A
 
43. (p. L125) B
 
44. (p. L118) D
 
45. (p. 188) C
 
46. (p. L133) A
 
47. (p. L117) D

48. (p. 431) B
 
49. (p. L91) A
 
50. (p. T454) C
 
51. (p. L96) A
 
52. (p. T391) B
 
53. (p. L91) E
 
54. (p. L99) D
 
55. (p. L90) D
 
56. (p. L65) C
 
57. (p. 392) A
 
58. (p. 451) A
 
59. (p. 440) A
 
60. (p. L89) D
 
61. (p. Nov. 5, first hour) C
 
62. (p. L91) A
 
63. (p. L90) C
 
64. (p. L94) A
 
65. (p. 418) C
 
66. (p. 396) A
 
67. (p. 425) A
 
68. (p. L98) A
  
69. (p. L65) B
 
70. (p. 443) C
 
71. (p. 423) D
 
72. (p. 10/13, 1st hour) A
 
73. (p. 390) C
 
74. (p. 457) A
 
75. (p. 422) E
 
76. (p. L 10/27, second hour) E

 
MAR 3023 ITEMS FOR FINAL EXAM FROM FALL 2009

1.  The __________ consists of twenty-seven countries that have eliminated most of the barriers to the free flow of goods, services,
capital and labor across their borders.  
A.  European Union
B.  North American Free Trade Association
C.  Latin American Free Trade Organization
D.  Commonwealth of Independent States
E.  World Trade Organization
 
2.  The University of Florida's Gymnastics Team will begin their season in January and has been working extremely hard the past few
months to be ready for their first competition against the Oklahoma Sooners.  Before each season Maranda, one of the team members,
refers to her personal mission statement, and lists her roles and goals for that year.  Most importantly she visualizes where she wants
to be at the end of the season.  This idea most closely relates to which of Covey's Seven Habits?  
A.  Put things first
B.  Synergize
C.  Begin with the end in mind
D.  Think Win/Win
E.  Be proactive
 

 3.  Which of the following is an example of a transnational marketing approach?  

A.  Procter and Gamble markets their products in other countries identically to how they market them in the United States.
B.  Lucky Brand Jeans markets their jeans similarly to young, trendy guys in multiple countries across the world.
C.  Coca-Cola flavors their soda differently in each country because of differences in regional tastes.
D.  Doritos sells ketchup flavored chips in Canada based on a national taste test.
E.  Disney markets Tokyo Disney to the Japanese the same way it markets Disney World to Americans.
 
4.  David and Cecilia Stanford, owners of Prairie Herb vinegars, decided to offer the product in 5-ounce and 13-ounce sizes as well as
in a 16-ounce European glass bottle. They decided to sell the vinegar only through the mail and to price the smaller bottles at $4.45
and the largest bottles at $13.25. These marketing mix decisions are examples of:  
A.  Missions
B.  Strategies
C.  Tactics
D.  Visions
E.  Operational procedures
 

5.  Charlie is in the market for a private jet so he and his family can travel whenever they want.  Before going to a dealer, he
researches different jets on the independent ratings website, www.airtoys.com to check out the available models, their features, and
their prices.  The primary objective of this kind of website is:  
A.  Facilitating Sales
B.  Selling Merchandise
C.  B2B E-Commerce
D.  Creating a Virtual Community
E.  Brand Building
 

 6.  A(n) __________ is an aid to implementing a marketing plan and consists of four columns. They are the task, the name of the
person responsible for accomplishing the task, the date by which the task is to be finished, and what is to be delivered.  
A.  Decision tree
B.  Program schedule
C.  PERT chart
D.  Job analysis
E.  Action item list
 
7.  Hugh Hefner's twin girlfriends, Kristina and Karissa, both signed onto the show "Girls Next Door" to become famous.  Barely into
the first season, Kristina has been very successful in grabbing headlines and has become an influential trendsetter.  On the other hand,
Karissa has had a harder time making the news, and is still working to make a name for herself.  Kristina can be described as a(n)
_____, while Karissa can be described as a(n) _____.  
A.  Achiever; Pressured
B.  Striver; Achiever
C.  Pressured; Striver
D.  Traditional; Pressured
E.  Achiever; Striver
 

8.  The __________ for Lucent Technologies is "To use our unique capabilities to ensure that our customers thrive, our business
grows, and we enrich the personal communications experience for people around the world".  
A.  Functional philosophy
B.  Mission
C.  Corporate code
D.  Business portfolio
E.  Benefit statement
 
 
9.  Sam normally buys cleats at Sports Authority's brick-and-mortar stores.  However, he doesn't have a car in Gainesville, so he
decides to purchase from their website, sportsauthority.com.  Sports Authority uses _____ e-commerce, and sportsauthority.com is a
_____ website.  
A.  Business-to-business, transactional
B.  Business-to-consumer, facilitating sales
C.  Business-to-consumer, transactional
D.  Business-to-consumer, promotional
E.  Business-to-business, promotional
  

10.  Waffles Unlimited had decided to change their marketing budgeting approach.  They used to only allocate leftover funds to
marketing, but now they have decided to allot a specific amount up front for each promotional program they have planned for the year.
They are switching from _____ to _____ budgeting.  
A.  Affordable; Competitive Parity
B.  Optimization; Objective and Task
C.  Optimization; Percentage of Sales
D.  Affordable; Objective and Task
E.  Affordable; Percentage of Sales
 
11.  Brittany is in charge of launching a new product, the iGator.  Her boss has told her that the product MUST launch in 15 months.
Consider the following PERT chart.  Determine the critical path and whether Brittany can meet the launch goal.  If she needs to reduce
the length of time, which link should she choose to try to shorten?

5 2
2 B D G 3
4
  4
A 6 H
A.  Shorten the B-D link
3 C
B.  She will meet the launch date; no need for any reductions E 8
C.  Shorten the E-G link 4
D.  Shorten the E-H link
E.  Shorten the B-E link
 
12.  Florida State's Head Football Coach Bobby Bowden just hasn't been able to put a good team together the last few years and wants
to take some steps to improve his team.  He calls University of Florida's head coach Urban Meyer and proclaims "Coach, I just don't
know how you do it.  You've got the best team in the nation; I just wish I had half the team you do!"  Coach Meyer sympathetically
lets Bobby in on his little secret, knowing that he will be gone before the next season.  "It's all about good planning and
implementation!  You must move forward and avoid paralysis by analysis."  Which of the following is a way to improve
implementation described by Coach Meyer?  
A.  Communicate
B.  Just Do It
C.  Seek Feedback
D.  Schedule Tasks
E.  Reward Performance
 

13.  The evaluation phase of the strategic marketing process includes  

A.  Taking actions to solve problems and exploit opportunities
B.  Measuring results against quantified goals
C.  Comparing goals and results to identify deviations
D.  Identifying the cause of deviations
E.  All of the above
 
14.  Which of the following correctly describes the concept of behavioral targeting?  
A.  A computer randomly generates your e-mail address so you receive unsolicited e-mail messages every day in your inbox.
B.  Google places advertisements on the side and top of each search results page that are relevant to the word or phrase being
searched.
C.  A customer of The Fresh Market signs up for their recipe club and receives special recipes for gourmet dishes via e-mail.
D.  Anthony is sent an e-mail about the best type of clothes he should buy based on a personality test he completed online.
E.  An advertisement on Gator Fever's website shows a product related to products you just looked at on Macy's.com.
 

15.  MMS.com is an interactive website for the company M&Ms, a division of MARS corporation.  MMS.com has numerous features,
including links to M&Ms Racing, My M&Ms Characters, Personalize Your M&Ms, M&M Games, and M&Ms Recipes, where users
can not only find out about delicious M&M cake recipes, but also socialize and share their cooking opinions.  Under the M&M World
link, users can purchase not just candies, but also unique M&M clothes, M&M home appliances, and M&M toys and games.  Which
of the following is (are) true about the MMS.com?
   
    I.     It serves the function of a "super sales associate"
    II.     MMS.com is exclusively a promotional website
    III.     It serves the Brand Building Function
    IV.    MMS.com is a transactional website
    V.     It serves the function of selling merchandise
 
A.  III, IV, and V only
B.  III and V only
C.  II, III, and V only
D.  II and III only
E.  I, II, III, and V only
 

16. The relationship of annual marketing effort to annual sales revenue is assumed to be an S-shaped curve because the sales response
function shows 
A. Increasing costs as a result of the attempt to gain additional market share
B. That when demand diminishes, production costs rise
C. The point at which total revenue and total cost are equal
D. An additional $1 of marketing effort results in a far greater increases of sales revenue in the mid-range than at either end
E. Decreasing costs as a result of marketing economies of scale
 
17.  A restriction placed on the amount of a product allowed to enter or leave a country is called a  
A.  GATT tax
B.  Tariff
C.  Restrictive tax
D.  Foreign excise tax
E.  Quota
 

18.  Now that it is December and the holiday season is approaching quickly, Grinch Inc. wants to look at last month's results and make
some changes to their marketing so it can be a prosperous season.  Cindy Lou Who, CEO of Grinch Inc., believes that it is a good idea
to review everything they have been doing as a company.  What part of the strategic marketing process is Cindy Lou Who
encouraging Grinch Inc. to perform?  
A.  Urgency Phase
B.  Implementation Phase
C.  Improvement Phase
D.  Control Phase
E.  Review Phase
 

19.  Anthony is the president of a newly formed company that specializes in audio and video technology.  Anthony recently met with a
consultant who helped him develop a marketing plan for his company.  While the two were meeting the consultant told Anthony about
the "Master Marketing Objective", which is:  
A.  ROI
B.  Positioning
C.  Market Share
D.  Profit
E.  Sales Revenue
 

20.  __________ is a process that automatically groups people with similar buying, preferences and behaviors and then predicts future
purchases.  
A.  Connectivity
B.  Interactive marketing
C.  Collaborative filtering
D.  Seller personalization
E.  Real-time e-commerce
 
21. __________ is the solicitation of a consumer's consent to receive e-mail and advertising based on personal data supplied by the
consumer. 
A. Seller personalization
B. Opt-out marketing
C. Permission marketing
D. E-mail facilitation
E. E-mail intermediation
 
22.  Consider the laundry detergent market shares shown below.  Suppose the laundry detergent market growth rate is 4% annually.

        Laundry Detergent Market Shares:

        Tide                              38.7%
        All                                 21.5%
        Shout                               8.3%
        Snuggle                          7.2%
        Arm and Hammer            3.3%

What is Shout's position in the BCG matrix?

 
A.  Star
B.  Cash Cow
C.  Question Mark
D.  Can't tell from information given
E.  Dog
 

23.  Matt is the manager of the marketing department for the local Gainesville comedy company Here Nor There
(HNT) Entertainment, famous for the song parody "TimTebow Take Me Home".  Annually Matt evaluates his entire marketing effort,
including the marketing mix, HNT's marketing budget, and HNT's marketing strategy.  What control (or evaluation) activity is Matt
performing?  
A.  Measuring Results
B.  Corrective Action
C.  Marketing Audit
D.  Marketing Evaluation
E.  Market Analysis
 
24.  Kevin owns Kevin's Books, a local book store.  He wants to determine which marketing strategy he should use in order to
improve his long-term market share.  Currently Kevin's Books carries many newly released books.  Kevin spends a fair amount on
advertising, but he could afford to spend more.  Every month Kevin holds a special sale in his store to attract new customers.  Based
on the research findings discussed in lecture, what is the best strategy Kevin should use to increase his market share?  
A.  Increase his advertising
B.  Carry even more newly released books
C.  Change his location
D.  Expand his sales force
E.  Lower his prices
 

25.  After learning that the Florida Gators will be playing the Cincinnati Bearcats in the Sugar Bowl, Scotty decided to look up the
opponent's statistics online.  While clicking through the ESPN website, Scotty saw many advertisements.  The two most common
types of ads were a horizontal rectangular ad across the top of the page and a long vertical rectangular ad down the right side of the
page.  Which types of ads did Scotty view the most?  
A.  Skyscraper ads and sponsored link ads
B.  Banner ads and skyscraper ads
C.  Large format ads and banner ads
D.  Banner ads and sponsored link ads
E.  Large format ads and pop-up ads
 
26.  Nelson is the brand manager of the football line at GatorSport Sporting goods store.  Nelson met with his accountant to discuss
their marketing budget and whether or not it is worth it for GatorSport to increase its marketing effort for its football line.  Based on
the information below, determine the amount of additional marketing effort required to increase the firm's market share by 5%; is it
worth it for the firm to pursue the additional market share?  (Assume GatorSport wants to increase its profits as well as its market
share this year.)

    Industry Sales:                            $50,000,000

    Firm's Sales:                                  $12,500,000
    Firm's Gross Margin:                       $2,500,000
    Total Industry Marketing Effort:     $10,000,000

A.  $500,000; worth the additional effort

B.  $750,000; worth the additional effort
C.  $750,000; not worth the additional effort
D.  $250,000; worth the additional effort
E.  $500,000; not worth the additional effort
 
27.  President Obama couldn't sleep and decided to flip through some of the U.S. financial statements in hopes to get back to sleep.
He was surprised to read that the United States imports almost $700 billion dollars worth of goods and services more than it exports
every year.  He was so surprised he woke up Vice President Biden and told him to go double check those numbers.  In general, the
term describing the difference between U.S. imports and exports is:  
A.  The shrinking globe
B.  Import surplus
C.  Trade difference
D.  Export deficit
E.  Balance of Trade
 
28.  __________ is the practice of offering small, collateral-free loans to individuals who otherwise would not have access to the
capital necessary to begin small businesses or other income-generating activities.  
A.  Macrocapitalization
B.  Mini-grants
C.  Microfinance
D.  Little Loaning
E.  Mini-bailouts
 

29.  Procter and Gamble has hundreds of brands in various industries.  Every year they formulate their strategy for each brand based
on its market share.  Tide is the market leader and they wish to keep its market share steady.  Swiffer is an up-and-coming brand and
they wish to increase its market share by 15%.  Irish Spring soap has been underperforming for years and they have decided to let the
brand die.  Bounty has also been underperforming, but they have decided to keep producing and selling it but not invest in any kind of
advertising or promotion for it.  Procter and Gamble's strategy for Bounty is called:  
A.  Coasting
B.  Maintaining
C.  Expanding
D.  Divesting
E.  Harvesting
 
 
30.  Amanda loves the Peppermint Mocha Lattes from Starbucks.  While cramming for her exams, she decides to go to Starbucks to
study and have her favorite winter drink.  She connects to the Starbucks wi-fi hotspot (she thinks), only to find out later that it is a
fraudulent wi-fi access point.  This is an example of:  
A.  Disintermediation
B.  Pharming
C.  Phishing
D.  A Scam
E.  An Evil Twin
 
31.  A strategic business unit refers to a subsidiary, division, or unit of an organization that  
A.  Also has a comparable non-business unit
B.  Directs overall strategy for the organization
C.  Markets a set of related products to a clearly defined group of customers
D.  Is usually non-profit
E.  Conducts marketing and other specialized activities
 
32.  A measure of the quantitative value or trend in a marketing activity is called a  
A.  Marketing dashboard
B.  Trend analysis
C.  Marketing metric
D.  Value analysis
E.  Marketing measurement

33. Suppose you are designing a marketing website and you would like it to be as user-friendly as possible. In particular, you do not
want repeat customers to have to enter in their address, e-mail, telephone number and credit card data every time they make an online
purchase. Rather, you would like your website to recognize each customer by name every time he or she visits the website and to
retrieve all the information about that customer automatically whenever he or she wishes to make a purchase. To achieve this goal,
you would most likely use 
A. Cookies
B. Bots
C. Push technologies
D. Portals
E. Search engines

34.  Apple's marketing department is preparing its annual marketing plan and decides to conduct a situation analysis (also known as
SWOT) for the iPhone 3GS.  Which of the following is not considered a strength in the SWOT matrix?  
A.  An incredible touch screen interface
B.  Sturdy design and construction
C.  Strong consumer demand for smart phones
D.  Thousands of "apps" to choose from
E.  All of the above are strengths

35.  According to guest speaker Sara Sharpe, which is NOT a struggle of E-Commerce that ChompMenus faces?  
A.  Delivery speed
B.  Uncooperative restaurants
C.  Technology costs
D.  Reliability concerns
E.  Consumer skepticism about non-human interactions

36.  In the early 1900s, Henry Ford revolutionized the automobile industry by developing production lines and mass producing the
Ford Model T automobile. By greatly reducing production costs, Henry Ford, Ford made the Model T quite affordable for millions of
average Americans. What business strategy did Henry Ford use to gain a competitive advantage in the automobile market?  
A.  Ford used a limited production strategy
B.  Ford used a differentiation focus strategy
C.  Ford used a differentiation strategy
D.  Ford used a cost leadership strategy
E.  Ford used a cost focus strategy

37. __________ are electronic shopping agents that comb websites to compare prices and product or service features. 
A. Extranets
B. Cookies
C. Bots
D. Intranets
E. Weblinks

38.  After graduating from college, Paige's first job was selling coin-star machines to local grocery and convenience stores.  After her
first week on the job Paige reached out to her good family friend Stephen Covey for advice on how to be a better saleswoman.  Covey
quoted habit five from his popular book, The Seven Habits of Highly Effective People, and told her, "seek first to _____, then to
_____."  
A.  Convince; negotiate
B.  Win; Compromise
C.  Understand; be understood
D.  Be understood; understand
E.  Persuade; compromise
 
39.  The table below shows the sales of a number of firms in the pizza delivery industry.  What is Papa John's relative market share?

        PIZZA HUT             $670,000
        DOMINOS               $420,000
        PAPA JOHN'S         $280,000
        CICI'S                      $  87,000
        FIVE STAR             $  53,000
        ALL OTHERS         $810,000  

A.  0.67
B.  0.35
C.  12.1%
D.  0.42
E.  Can't tell from information given
 40.  Mr. Schuester is in charge of the glee program at the high school where he teaches Spanish.  Although many fellow teachers and
students had doubts as to whether the glee club would be a success, Mr. Schuester was confident in his students and their abilities.  He
accepts full responsibility for the program and is determined to make it a success.  In terms of marketing implementation, Mr.
Schuester would be considered a/an _____.
 
A.  Believer
B.  Communicator
C.  Achiever
D.  Rebel
E.  Champion
 
41.  Men's Wearhouse (MW) caters to the man who doesn't necessarily enjoy shopping. The stores are located in outdoor shopping
centers so that customers can get in and out quickly. Additionally the MW targets the budget-conscious consumer with suit prices
ranging from $250-300. Earnings rose 23% recently, indicating that the location of the stores and the pricing strategy both are part of
the MW's:  
A.  Benchmarking expertise
B.  Viable mission
C.  Leapfrogging capabilities
D.  Competitive advantage
E.  Tactical innovation
 42.  Gulfstream Aerospace Corp. recently sold three Gulfstream V business jet aircraft to the Israeli Ministry of Defense for use as
Special Electronic Mission Aircraft. Since this was Gulfstream's first sale to a Middle Eastern country, it was engaging in a _____
strategy.  
A.  Market development
B.  Market penetration
C.  Product dissemination
D.  Diversification
E.  Product development

 
    
FIGURE 21-2
 43. The box labeled "F" in Figure 21-2 above refers to which of the following website design elements? 
A. Content
B. Community
C. Connection
D. Customization
E. Commerce
 

44. Share points are defined as 

A. The excess of incremental revenues over incremental costs
B. Percentage points of market share
C. Percentage points of revenue generated by different products within one firm
D. Measurements based on million dollar increments of industry revenue
E. The weighted number of target market revenues relative to all target markets within a firm
 
45.  In international marketing, direct investment means  
A.  A domestic firm actually owning a foreign subsidiary or division
B.  Contracting with a foreign firm to manufacture products according to certain specifications
C.  Having a company handle its own exports directly, without intermediaries
D.  A foreign company and a local firm investing together to create a local business
E.  Offering the right to a trademark, patent, trade secret or similarly valued items of intellectual property in return for a royalty or fee

46.  When sales revenue is the most important organizational goal, a firm  

A.  Increases sales levels and strives for a constant level of profits
B.  Decreases sales levels and reduces the profit margin
C.  Maintains sales levels and strives for maximum profitability
D.  Decreases sales levels but increases profit margins
E.  Maintains or increases sales levels even though profitability may not be maximized  
 
47.  MAK computers currently holds 15% of the personal computer market share and also spends 15% Share of Voice.  They would
like to increase their market share by 10% (total of 25%).  In order to accomplish this goal, what is the TOTAL Share of Voice MAK
needs to hold?  
A.  30%
B.  37.5%
C.  35%
D.  25%
E.  15%
 
48.  Despite perfecting all the components of its marketing plan, a company still has a strong chance of failure when introducing a new
product.  What should a marketing plan include to recognize the fact that key assumptions about the product or the environment may
not hold true and to provide a way of responding quickly to that situation?  
A.  A Contingency Plan
B.  A SWOT Analysis
C.  An Executive Summary
D.  Both Strategy and Tactics
E.  Measurable Objectives
 
49.  Rosie True is a women's boutique chain in Jacksonville, FL.  Angie, the owner of Rosie True, decided to open a store in Tokyo,
Japan, by the end of 2009.  She has developed the plans for the Tokyo store and has ordered a completely new assortment of clothing
that caters to women in Tokyo.  She even has changed the name of the store to Japanese Characters.  A local Tokyo ad agency is
designing her promotional program for the Japanese market.  What global marketing strategy is Angie pursuing?  
A.  Pure non-standardization
B.  Pure standardization
C.  Exporting
D.  International standardization
E.  Joint venture

50. Which of the following statements about the terms used for marketing intermediaries is true? 
A. A retailer sells to business markets
B. An agent has no legal authority to act on behalf of a manufacturer
C. The most precise terms used to describe marketing intermediaries are dealer and distributor
D. A wholesaler is an intermediary who sells to other intermediaries
E. A broker is a synonym for a dealer
 
 
51.  MachineTools.com sells grinders, boring mills and engine lathes. The website has listed goods from over 700 machinery
manufacturers, 2,500 distributors of new equipment and 650 dealers of used inventory for sale at the website. MachineTools.com
relies on a well-established network of manufacturers, distributors and machinery dealers to provide the merchandise that is sold
through this:  
A.  Electronic marketing channel
B.  Consumer-responsive channel
C.  Product-driven channel
D.  Vertically integrated channel
E.  Franchise channel
 

 
52.  There are two Sephora stores in the Oaks Mall.  Let's call the one inside JC Penney Store A and the larger store located across
from the Gap Store B.  The regional manager wants to know which store had more net sales per square foot last year.  The size of
Store A is 1200 square feet and the size of Store B is 2800 square feet.  Total sales for Store A were $730,000 and the returns were
$22,000.  Total sales for Store B were $1,380,000 and the returns were $35,000.  Which store has higher net sales per square foot and
how much is it (rounded to the nearest dollar)?  
A.  Store A; $608 / sq. ft.
B.  Store B; $480 / sq. ft.
C.  Store A; $590 / sq. ft.
D.  Store B; $493 / sq. ft.
E.  They have the same amount; $513 / sq. ft.
 

 
53.  When a store carries a large assortment of each item it sells it is referred to as having  
A.  A retailing mix
B.  Scrambled merchandising
C.  Depth of product line
D.  Breadth of product line
E.  A high stockturn rate
 
 
54.  A(n) __________ is a form of retail ownership that involves multiple outlets under common ownership.  
A.  Regional mall
B.  Administered system
C.  Independent retailer
D.  Contractual system
E.  Corporate chain
 
55.  Lawrence, National Manager for Publix, is evaluating the Publix same-store sales growth rate.  He is given the following
information:
  June 2008 June 2009
Total # of stores 1000 1013
Total Net Sales $1,200MM $1,244MM
# of New Stores 18 13
Net Sales of new stores $21MM $15MM

According to the information given in the table, what is the June 2009 same store sales growth for Publix?  (in calculations, round to
the nearest decimal)  
A.  -28.6%
B.  4.6%
C.  3.7%
D.  2.4%
E.  Can't tell from information given
 

 
56.  In a supply chain setting, replenishment time refers to the lag from ordering an item until it is:  
A.  Billed and paid for
B.  Acknowledged by the customer
C.  Received and ready for use or sale
D.  Billed to the customer
E.  Promised for delivery
 

 57.  According to Mitchell Habib from Nielsen, what is the true purpose of TV or any broadcast medium?  
A.  To provide people with a source of information
B.  To provide a platform where people can be exposed to a wide variety of shows and news content
C.  To create an audience for advertisers
D.  To provide entertainment
E.  To create an opportunity for actors
 

58.  On a recent shopping trip, Jana noted many of the great qualities about her favorite store that added value to her shopping
experience.  She loved the selection of products she had to choose from and that everything she needed was there.   Jana also loved the
way she was treated when she walked in.  Every employee asked if she needed any help finding anything and made her feel special.
Of the aspects that Jana specifically noted, which are important retail "value-add" functions?  
A.  Providing Assortments, Providing Services, Order Fulfillment
B.  Breaking Bulk, Holding Inventory, Providing Services
C.  Providing Assortments, Holding Inventory, Providing Services
D.  Providing Assortments, Holding Inventory, Providing Services, Disintermediation
E.  Breaking Bulk, Holding Inventory, Aesthetics
 
 
 

59.  With the Gators currently holding the #1 ranking, the Gator Nation is hoping for another national championship.  The Florida
Bookstore has to be ready to place large amounts of national championship gear on shelves as soon as the Gators take home the title.
What type of inventory management system does the bookstore need to use?  
A.  First-In First-Out (FIFO)
B.  Just in Time
C.  Last-In First-Out (LIFO)
D.  Vendor Managed Inventory
E.  Just in Case
 
60.  The Kangaroo on the corner of University and 13th Avenue is trying to determine the fastest moving beer brand in its store.
Listed below are the COGS, Beginning Inventory and Ending Inventory for three different brands.

Brand Miller Budweiser Coors

COGS                         $520,000     $490,000      $435,000
Beginning Inventory    $32,000       $27,000        $39,000
Ending Inventory         $26,000       $25,000        $30,000

Which brand has the quickest stockturn rate and what is it?
 
A.  Miller; 20.00
B.  Budweiser; 18.85
C.  Coors; 12.61
D.  Miller; 17.93
E.  Budweiser; 19.60
 
61.  What method of compensation did the Johnson & Johnson Vistakon Senior Leadership Development Program offer to guest
speaker Lauren Heinen?  
A.  Straight commission
B.  Salary plus bonus
C.  Salary paid only when the quota is met
D.  Salary plus commission
E.  Straight salary
 

62.  The most popular intermodal transportation combination is  

A.  Containers on air carrier
B.  Air-ground freight forwarders
C.  Trailer on flatcar
D.  Trailer on water carrier
E.  Air-truck freight carrier
 
63.  Evian, which sells bottled mineral water from the French Alps, has decided that a good way to cut costs would be to bottle their
own water, instead of buying it from Snooty French Bottling Company.  What strategy is Evian using?  
A.  Licensing
B.  Backward vertical integration
C.  Forward vertical integration
D.  Franchising
E.  Channel captain
 
 64.  Macy's is a department store that sells their own private labels and also certain brand names, such as Ralph Lauren.  An upscale
designer would like to introduce his product line into Macy's.  Due to the weak economy, Macy's is worried about the new line selling
during the upcoming holiday season and does not want to take the risk.  Which intermediary function is Macy's unwilling to perform
in this instance?  
A.  Selling Function
B.  Facilitating Function
C.  Financing Function
D.  Assortment Function
E.  Transactional Function
 
65. Rack jobbers are wholesalers who 
A. Work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory
B. Own the merchandise they sell but do not physically handle, stock or deliver it
C. Furnish the shelves that display merchandise in retail stores, perform all channel functions and sell on consignment to retailers
D. Own the merchandise they sell and use warehouse racks to store it
E. Have a small warehouse from which they stock their trucks for distribution to retailers
 
 
66.  Home Depot has been struggling the last few years to keep up with its home improvement competitor Lowe's.  Home Depot
cannot understand how Lowe's prices just can't be beat!  What Home Depot doesn't know is that Lowe's strategically warehouses their
inventory.  By setting up automated distribution centers, Lowe's minimizes the amount of time inventory sits idle.  Lowe's is able to
quickly offload inventory from its vendors' trucks and then re-load it onto Lowe's trucks bound for their stores.  This strategy saves
tremendous amounts of money by significantly lowering inventory costs.  What is the name of this logistics approach?  
A.  Cross-Docking
B.  Electronic Data Interchange
C.  Just-in-Time Inventory
D.  Vendor-Managed Inventory
E.  Disintermediation
 

67.  What does Wal-Mart's strategy of "win, play, show" refer to?  
A.  Wal-Mart "plays" by competing effectively in a category, such as being a major competitor to Best Buy in consumer electronics.
B.  Wal-Mart "wins" by being a participant in a certain category but not dominating it, such as in fashion apparel.
C.  Wal-Mart "plays" by giving consumers a pleasant shopping experience, allowing consumers to touch, feel, and try out products
before they buy.
D.  Wal-Mart "wins" by having a high same store sales rate each year, meaning they are growing sales at current stores every year.
E.  Wal-Mart "shows" by having a presence in a category but not trying to compete in it; they lack depth in the category, such as
power tools.
 

68.  Fit 2 Run is a retail store in Tampa that sells shoes, apparel and accessories for runners and joggers.  Inside the store, you can try
on shoes and actually test them on the "Official Mondo Track," a rubber track that winds around the store, or you can order a smoothie
at the in-store juice bar.  Fit 2 Run is using what concept to differentiate themselves and bring customers into their store?  
A.  Recreational Shopping
B.  Branding
C.  Product sampling
D.  Site Location
E.  Retailtainment
 
69. Indirect channels for consumer goods 
A. Occur when one firm's marketing channels are used to sell another firm's products
B. Include producers and end-users dealing directly with each other
C. Include intermediaries that are between the producer and consumer and perform numerous channel functions
D. Are arrangements whereby a firm reaches different buyers by employing two or more different types of channels for the same basic
product
E. Are accurately described by none of the above
 
70.  The independently-owned wholesaler for the Threadless t-shirt company in Chicago takes ownership and physical possession of
the t-shirts.  They offer credit as well as conduct some marketing research.  However, the wholesaler does not have an outside sales
force or print a catalog of the t-shirts they carry.  This wholesaler is classified as a(n):  
A.  Manufacturer's Sales Office
B.  Distributor
C.  Jobber
D.  Agent
E.  Manufacturer's Sales Branch
 
 
71.  Sarah is the owner of a popular bakery called Sweet and Sassy Savories and Such in the heart of Chicago.  Sarah not only owns
the shop where she sells her sinfully sweet baked goods, she delivers her product to multiple customers around the Windy City.  Lou
Piniella, the Cubbies' current manager, is in love with Sarah's cinnamon buns and demands to have one waiting for him on his desk
every morning.  Sarah works closely with Piniella's assistant to make this seemingly ridiculous request a reality.  Sarah believes
building this long-term rapport and mutual satisfaction with clients pays off and in the end makes customers happy, even Piniella.
What type of marketing does this scenario describe?  
A.  Relationship Marketing
B.  Long-term Marketing
C.  Satisfaction Marketing
D.  Interdependent Marketing
E.  Transaction Marketing
 
72.  The retail pricing, store location, merchandise and the communication strategy chosen by a store are known collectively as the  
A.  Retail positioning
B.  Wheel of retailing
C.  Retail gravitation
D.  Distribution mix
E.  Retailing mix
 

73.  Which type of store gives shoppers the greatest variety of merchandise?  
A.  A supercenter
B.  A supermarket
C.  A discount store
D.  A hypermarket
E.  A mini-mall
 
74.  Kim, Chrys, and Jesse all make chocolates.  Kim wants to get her milk chocolates into as many places as possible so that
customers can simply walk into any store and be able to purchase them.  Chrys is focused on only a few stores in each market and
wants to get them to sell his raspberry chocolates.  Finally, Jesse thinks that he has the best chocolate recipe in the universe and will
only sell his chocolates to the most prestigious store in each of the nation's largest cities.  Which of the following is an accurate
portrayal of channel coverage that Kim, Chrys, and Jesse are trying to achieve?  
A.  Kim:  Selective, Chrys:  Direct, Jesse:  Premium
B.  Kim:  Consumer, Chrys:  Retail, Jesse:  Manufacturer
C.  Kim:  Intensive, Chrys:  Exclusive, Jesse: Selective
D.  Kim:  Intensive, Chrys:  Selective, Jesse:  Exclusive
E.  Kim:  Inclusive, Chrys:  Selective, Jesse:  Exclusive
 

 75. Levi Strauss has a __________ with Modell's Sporting Goods in New York that uses point-of-sale scanning equipment and direct
electronic linkage between the two firms. Modell's can instantaneously inform Levi Strauss what styles and sizes of jeans are needed,
thus assuring that the correct selection of Levi jeans are in stock. 
A. Channel partnership
B. Selling agency
C. Franchise
D. Limited-service marketing system
E. Corporate vertical marketing system
 

 
76.  Customers currently link to Cisco's website to configure, price and order its networking equipment. Cisco then sends orders back
out across the Internet to part suppliers and assemblers including Celestica, Flextronics, Jabil and Solectron. Products are built and
tested to Cisco standards, sometimes with procedures run remotely by Cisco. Most are then drop-shipped to buyers, untouched by
human hands on Cisco's payroll. This scenario describes Cisco's:  
A.  Product-specific delivery system
B.  Channel of distribution
C.  Strategic information alliance
D.  Supply chain
E.  Just-in-time inventory system

 
Fall 09 Final Exam Answer Key

 
1. (p. 172; Fig. 7-4) A
  
2. (p. L125) C
  
3. (p. L140) B
 
4. (p. 49) C
 
5. (p. L133) A
  
6. (p. 590) E
 
7. (p. L141) E
 
8. (p. 32) B
  
9. (p. L131) C
  
10. (p. L118) D
 
11. (p. L123) C
 
12. (p. L124) B
 
13. (p. 594; Fig. 22-9) E
 
14. (p. L137) E
 
15. (p. L133) A
 
16. (p. 576) D
 
17. (p. 171) E
  
18. (p. L127) D
 
19. (p. L117) C
   
20. (p. 552) C
 
21. (p. 553) C
 
22. (p. L114) E
 
23. (p. L127) C
 
24. (p. L117) D
 
25. (p. L137) B
 
26. (p. L123) C
 
27. (p. T167) E
 
28. (p. 183) C
 
29. (p. L117) E
 
30. (p. L136) E
 
31. (p. 30) C
 
32. (p. 41) C
 
33. (p. 564) A
 
34. (p. L116) C
 
35. (p. 12/2, 2nd hour) A
 
36. (p. 580) D
 
37. (p. 561) C
 
38. (p. L126) C
 
39. (p. L113) D
 
40. (p. L124) E
 
41. (p. 35) D
 
42. (p. 581) A
 
43. (p. 554; Fig. 21-2) B
 
44. (p. 577) B
 
45. (p. 188) A
 
46. (p. 34) E
 
 
47. (p. L118) A
 
48. (p. L116) A
 
49. (p. L141) A

50. (p. 390) D
  
51. (p. 394) A
  
52. (p. T454) C
  
53. (p. 443) C
  
54. (p. 440) E
 
55. (p. L99) D
  
56. (p. 423) C
  
57. (p. 10/19, first hour) C
 
58. (p. L96) C
  
59. (p. T431) B
 
60. (p. L98) B
 
61. (p. 10/28, second hour) D
 
62. (p. 427) C
 
63. (p. L91) B
 
64. (p. L89) E
 
65. (p. 398) C
 
66. (p. T420) A
 
67. (p. L91) E
 
68. (p. L100) E
 
69. (p. 393) C
  
70. (p. L90) C
 
71. (p. L94) A
 
72. (p. 451) E
 
73. (p. 444) D
 
74. (p. L90) D
 
75. (p. 401) A
 
76. (p. 416) D

 
MAR 3023 FINAL EXAM SPRING 2009

1.  The "BRIC" nations are considered the most rapidly emerging economies in the global arena.  What are the BRIC nations?  
A.  Brazil, Russia, Indonesia, China
B.  Belgium, Romania, India, China
C.  Belgium, Russia, Indonesia, China
D.  Botswana, Russia, India, Czech Republic
E.  Brazil, Russia, India, China
 
2.  The Canadian marketing manager for Schick razors recently launched its first e-mail campaign that was targeted to both men and
women. Schick gave out 20,000 Xtreme III razors to customers who agreed to share information about their shaving habits and receive
e-mails from Schick. Customers were also sent updates about other new Schick products and promotions. In this example Schick used

A.  Viral marketing

B.  Personalized branding
C.  Individualized marketing
D.  Permission marketing
E.  Niche marketing
 
3.  Smarty Pants, Inc. is looking to review their company's marketing efforts.  They hire a consultant to give them a broad overview of
their entire marketing effort in order to determine what changes may need to be made.  Smarty Pants, Inc. is conducting which type of
analysis?  
A.  Profitability analysis
B.  Marketing audit
C.  Share point analysis
D.  Sales component analysis
E.  Resource allocation analysis
 
4.  Dell is trying to increase their market share in the personal computer industry.  Their current market share and current Share of
Voice are both 15%, but they would like it to increase their market share to 23%.  Based on the Competitive Parity Model, what will
Dell's total Share of Voice need to be to reach the desired market share this year, and, assuming they are successful, what will their
Share of Voice need to be next year to maintain the desired market share?  
A.  27%; 23%
B.  8%; 23%
C.  23%; 23%
D.  27%; 27%
E.  23%; 15%
 

 
5.  Keith is traveling out of the state for his job, and he needs to work on an important presentation.  As Keith is waiting in the
Gainesville airport for his plane to arrive, he decides to connect to the internet to work on his presentation.  To Keith's knowledge, the
airport offers free, wireless internet, but he is prompted to enter some personal information when he tries to log on.  Keith becomes a
little suspicious of this, and decides his presentation can wait.  What form of internet scam does Keith suspect?  
A.  Trojan
B.  Evil Twin
C.  Bot
D.  Phishing
E.  Pharming
 
6.  Toymakers at Mattel are going to make a marketing push for 50-year-old Barbie for the 2009 holiday season.  Sales reports from
2008 are shown below.  The doll market growth rate is 7.5%.  What cell does Barbie fall into in the BCG Growth-Share Matrix and
what is Barbie's relative market share?

Doll                                Sales
Barbie                      $20,000,000
Bratz                        $15,000,000
Elmo                         $10,000,000
Hannah Montana     $10,000,000
Sponge Bob             $  5,000,000
All Others                 $40,000,000

A.  Cash cow; 20%

B.  Dog; 0.75
C.  Question mark; 20%
D.  Star; 1.33
E.  Cash cow; 1.33
 
7.  Amy is a manufacturer of pirate costumes and accessories.  Below is a multi-attribute model for her company, Pirates-R-Us, and
her main competitor, Pirates-R-Them.  What is Amy's customer value add (CVA) ratio?

Feature Pirates-R-Us Pirates-R-Them Importance Weighting

Size 3 8 2
Weight 9 4 5
Color 7 2 3
 
A.  1.35
B.  0.58
C.  1.71
D.  Can't tell from information given
E.  0.74
 

 
8.  Delphi Automobile Systems manufacturers and sells satellite communications systems for all makes of automobile, new or used,
foreign or domestic, luxury or economy.. The Delphi system provides a significant and unique difference from other GPS locator
systems, as Delphi Automobile Systems connect you and your car to 24-hour-a-day emergency service, directions to a destination and
the opportunity to order a movie while on the road. Delphi Automobile Systems uses a(n)  
A.  Differentiation strategy
B.  Differentiation focus strategy
C.  Innovation strategy
D.  Cost leadership strategy
E.  Cost focus strategy
 
9.  The marketing department helps keep the organization focused on creating value both for it and for customers. As discussed in the
text, the marketing department operates at the _____ level of the organization.  
A.  corporate
B.  business unit
C.  strategic business unit
D.  grass roots
E.  functional
 
10. With interactive marketing, 
A. The seller controls the kind and amount of information presented to the buyer
B. The buyer controls the kind and amount of information received from the seller
C. Buyers and sellers communicate face-to-face in the traditional marketplace
D. Media convergence is the key
E. Real time transactions are impossible
 
11.  Of the communication skills that fall under Covey's Habit 5, Seek First to Understand, Then to be Understood, in which skill do
we typically receive little or no training?  
A.  Listening
B.  Speaking
C.  Writing
D.  Negotiating
E.  Reading
 
12.  Those characteristics of a product that make it superior to competitive substitutes are called:  
A.  Points of difference
B.  Marketing selectives
C.  Consumer standards
D.  Product stereotypes
E.  Points of parity
 
13.  Corey Brewer wants to create a line of hats for his fan club, the Brew Crew. Corey is currently at Node A and needs to get to
Node G. Using the following PERT Chart, what is the time required for the launch of the Brew Crew hats (all times in months)?  What
link should Corey try to shorten in order to get the hats on the market faster?

  3
B
 
2
E 4
A.  8 months; D-F
B.  9 months; E-G 4 3
C.  8 months; E-G A
D.  11 months; C-E
C G
E.  11 months; A-B
 
14.  Which of the following statements about cross-channel shoppers is true? F   2
A.  Sales arising from cross-channel shoppers dwarf exclusive online retail sales
B.  Cross-channel shoppers don't 1want to wait several days for delivery
C.  Cross-channel shoppers research their itemsDonline before buying
5 at a retail store
D.  Cross-channel shoppers use the internet to obtain more information than is available at the store
E.  All of the above statements about cross-channel shoppers are true
 
15.  __________ is the term used to describe the case where products are bought in a lower-priced country from a manufacturer's
authorized reseller, shipped to higher-priced countries and sold through unauthorized retailers below the manufacturer's suggested
retail price in that country.  
A.  Dumping
B.  Resale price maintenance
C.  Globalized market
D.  Black market
E.  Gray market
 
16.  When conducting transnational marketing, it is important to view the world as _____ and to identify the segments that _____
individual nations.  
A.  separate nations; fit into
B.  similar markets; reflect
C.  one market; cut across
D.  one market; are unique to
E.  segments; are unique to  

    
FIGURE 22-5
 
17. In Figure 22-5 above, the box labeled "C" illustrates which of the following market-product strategies? 
A. Market-product concentration
B. Selective specialization
C. Market specialization
D. Full coverage
E. Product specialization
 
18.  Adam's Homes is looking to increase their market share in the home building industry.  They would like to increase their market
share by four (4) share points in the next year.  They decide to use share point analysis to see if it is in their best interest to spend the
extra money to improve their market share.  When gathering information for the analysis they find that the new home industry sales
are $45,000,000 and that the total industry marketing effort is $6,000,000. They also find that Adam's Homes sales are $11,700,000,
with a gross margin of $5,200,000.  Given this information, what will be Adam's Homes short-term gain (or loss) in profit if they are
successful in their effort to expand their market share?  
A.  $1,440,000
B.  $800,000
C.  $440,000
D.  $560,000
E.  $140,000
 
19.  Lloyd is trying to win a contract from Sacred Heart Hospital to supply their syringes.  Sacred Heart has listed its syringe purchase
on a website and has solicited bids from many vendors.  Lloyd's first bid was $3,000 and his last bid was $1,000.  Lloyd is
participating in the _____ class of e-commerce and is involved in _____?  
A.  B2B, a Reverse Auction
B.  B2C, Sealed Bidding
C.  B2B, an Auction
D.  B2B, Sealed Bidding
E.  B2C, a Reverse Auction
 
20.  Danny is working on the marketing plan for Dash Enterprises.  He is currently outlining the goals the company wants to meet, the
general game plan to achieve their objectives, and the specific actions that will be taken to carry out the game plan.  Which three
components of the marketing plan is Danny working on?  
A.  SWOT analysis
B.  Vision, Mission, and Goals
C.  Segmentation, Targeting, and Positioning
D.  Budget, Plans, and Implementation
E.  Objectives, Strategy, and Tactics
 
21.  Morton's, a large furniture company in the U.S., decides to internationalize by expanding into the Chinese market.  In China,
Morton's will keep their signature Wally the Comfy Couch logo, as well as their customer guarantees and spacious layout of their
showrooms that their customers love so much.  However, they also will adapt to Chinese tastes by hiring a Chinese person to design
the furniture they will be selling.  Morton's is practicing:  
A.  Synergizing
B.  Glocalization
C.  International Integration
D.  Economic Adaptation
E.  Joint Venture
 
 
22.  Assume Chipotle is engaging in a market penetration strategy. Which of the following actions best illustrates a market penetration
strategy?  
A.  Developing a line of Chipotle toys to be sold through Toys R Us stores
B.  Removing slow-moving products from its menus
C.  Running a promotion based on the Monopoly game, whereby customers have a chance to win prizes with each purchase
D.  Opening the first Chipotle in China
E.  Adding a line of new deli sandwiches to the menu of existing Chipotle stores
 

 
23.  Two carmakers have developed a strange but successful partnership. Ford, a U.S. automaker and Mazda, an Asian carmaker, have
collaborated on several models, including the Explorer, the Probe and the Mazda 323 and MX-6. The U.S. automaker has supplied
Mazda with help in marketing, finance and styling. In return, Mazda has provided manufacturing and product development expertise
to Ford. The companies have worked together toward a common goal and both have benefited as a result of their:  
A.  International competitive agreement
B.  International contract
C.  Global oligopoly
D.  Collaborative treaty
E.  Strategic alliance
 
24.  Laura is a die-hard fan of Tide laundry detergent.  She loves everything about the product:  the smell, the look and feel of the
packaging, the nostalgia--everything!  A couple of times a week, Laura visits Tide.com; she loves to log on and read the articles
written by experts about storage, seasonal tips, and the latest detergent fashion, and she always refers to the site when she needs a stain
solution.  All this content makes Laura love Tide even more! Which business-to-consumer use of the internet is Tide.com an example
of?  
A.  Selling Merchandise
B.  Facilitating Sales
C.  Virtual Communities
D.  Transactional Website
E.  Brand Building
 
25.  Companies such as Cisco and P&G are now utilizing "sleep pods" as a method of physical and emotional renewal to improve the
quality of work being done.  Which of the Seven Habits of Highly Effective People would this fall under?  
A.  Synergize
B.  Be Proactive
C.  Sharpen the Saw
D.  Begin With The End In Mind
E.  Put First Things First
 
26.  Barry is CEO of a piano manufacturing company.  They have recently launched a new brand of keyboard guitar.  The market for
keyboard guitars is making quite a surge, growing at 20% annually.  But, as a new entrant, Barry is not the market leader.  What
would be a suitable market share strategy for Barry's new keyboard guitar?  
A.  maintain
B.  grow
C.  spread
D.  harvest
E.  divest
 
27. General Mills uses a marketing structure in which one person is ultimately responsible for the marketing of a specific product. For
instance, one person is responsible for setting marketing goals and developing and implementing related marketing strategies for the
well-known breakfast cereal, Cheerios. This person, who takes responsibility for the success or failure of the marketing of Cheerios is
called a 
A. Product manager
B. Account executive
C. Product advisor
D. Marketing advisor
E. Key strategist
 
28.  Whole Foods has decided to change its approach to determining its marketing budget.  The budgeting technique used, though
costly, carefully calculates marginal revenue and marginal cost to arrive at the budget. The budgeting technique being used by Whole
Foods is:  
A.  Percentage of Sales
B.  Affordable
C.  Competitive Parity
D.  Optimization
E.  Objective and Task
 

 
29.  Abbie did a project on cats last month for her vet medicine class in which she had to do much of her research on the internet.  In
the months that followed, she noticed that many of the ads on the websites that she was visiting were about cat adoptions, cat food, cat
toys, etc.  Abbie couldn't believe how coincidental that was.  What internet based marketing tactic was Abbie unaware of?  
A.  Permission marketing
B.  Cost-per-action
C.  Spam
D.  Self-regulation
E.  Behavioral targeting
 

30.  Lands' End ships each order within 48 hours and its guarantee is the best in the world—"Guaranteed.  Period." These aspects
of Lands' End stem from __________ goals.  
A.  Customer satisfaction
B.  Market share
C.  Employee welfare
D.  Social responsibility
E.  Environmental responsibility
 

 
31.  The United States is the world's perennial leader in terms of ___________, which is the monetary value of all goods and services
produced in a country during one year.  
A.  Balance of trade deficit (BOTD)
B.  Transfer payment options (TPO)
C.  Balance of payments (BOP)
D.  Gross domestic product (GDP)
E.  National production revenues (NPR)
 
32.  According to the presentation by Sarah from Johnson & Johnson, the document that "defines the company's commitment to
customers, employees, communities, and stockholders" is known as what?  
A.  Credo
B.  Vision
C.  Culture
D.  OGSM
E.  Mission
 

 
33. George Zimmer the CEO of Men's Wearhouse is known to the public as the bearded company pitchman who sells suits and sport
coats on TV declaring, "I Guarantee it!" He also says that to be successful, "You've got to have a company that starts with trust and
fairness". He aims to keep his employees happy and loyal. His philosophy sets the 
A. Organizational culture
B. Business edge
C. Corporate profile
D. Benefits statement
E. Corporate confirmation
 
 34.  You heard that Justin Timberlake did a Saturday Night Live skit showcasing his dance moves with Beyonce to her recent hit
"Single Ladies".  Though you don't really want to see Justin in a leotard, you want to see the skit, so you search "Single Ladies" on
YouTube.com.  When you do the search, this is what you see:

Sponsored Links:
1. Gainesville Singles
www.ItsJustLunchGainesville.com   It's Just Lunch Dating Service for  Local
professionals & busy singles
2. Single and Over 30?
OverThirtySingles.com   Dating for Sincere Singles Over 30  Where Everyone is
Screened.
Channel Results for single ladies:

SNL Beyonce and Justin Timberlake Parody Single Ladies

4 months ago 11,187,616 views guitarmaster10012001

What is true about the information?

 
A.  Through tracking searches and applying a complicated algorithm, ItsJustLunchGainesville.com are placed at the top of the page
because they have been the most clicked links when people search "single ladies".
B.  www.ItsJustLunchGainesville.com probably pays less per click than OverThirtySingles.com to advertise on YouTube.
C.  ItsJustLunchGainesville.com and OverThirtySingles.com's companies are using "Paid Search" internet advertising.
D.  OverThirtySingles.com is using a "large format" display ad by appealing to multiple geographic regions and not just the
Gainesville market.
E.  www.ItsJustLunchGainesville.com is an example of the free classified ads on the internet that are killing the newspaper business.
 35.  The Malaysian government recently exchanged 20,000 tons of rice for an equivalent amount of Philippine corn. This is an
example of  
A.  Countertrade
B.  Cross-trade feedback
C.  The gray market
D.  Cross-cultural exchange
E.  Dumping
 
36.  Annual __________ are documents that deal with the marketing goals and strategies for a product, product line or entire firm for a
single year.  
A.  Budget projections
B.  Tactical forecasts
C.  Sales forecasts
D.  Production estimates
E.  Marketing plans
 
37.  TiBo, an electronics manufacturer, produces the Touchdown VCR.  The first VCR was produced years ago, and the product is
now in the decline stage of its life cycle.  New technology like the DVD has supplanted the VCR in the market.  Knowing this, the
best market share strategy for the Touchdown VCR is:  
A.  implementation
B.  contingency
C.  harvest
D.  grow
E.  maintain
 
38.  Michelle is searching through some of her favorite websites and comes across PerezHilton.com.  While getting her daily dose of
celebrity gossip, she notices an ad for a new movie starring Matthew McConaughey in a horizontal ad at the top of the page, and a
vertical ad for Dial hand soap on the right hand side of the page.  She knows from her marketing class that these two ads are called
_____ and _____ ads, respectively.  
A.  Banner, Sky Scraper
B.  Sky Scraper, Sponsored Link
C.  Sponsored Link, Large Format
D.  Banner, Sponsored Link
E.  Sky Scraper, Banner
 
39.  Cat Cole has a trendy shoe company called Coley.  Her company has decided to introduce Coley to the Western European market.
Without doing much research, Cat concludes that the European market is very similar to the American market, and she proceeds with
the same exact marketing plan that she uses in America.  Coley can be considered a(n) _____ firm.  
A.  Global
B.  Transnational
C.  Multidomestic
D.  International
E.  Multinational
 
40.  Which of the following statements about Michael Porter's theory of national competitive advantage is true?  
A.  Clusters of strong suppliers can help accelerate innovation
B.  A firm that succeeds in global markets has first succeeded in intense domestic competition
C.  A country's natural resources, education and infrastructure can be turned into a competitive advantage
D.  The number and sophistication of domestic customers can help a nation's producers become world leaders
E.  All of the above statements about Michael Porter's theory about national competitive advantage are true
 
41.  Starbucks.com has numerous features, including links to My Starbucks Idea, Nutritional Values, Online Store, and Coffee Talk,
where consumers can chat with other coffee lovers about their favorite blends and brands.  Starbucks also generously provides links to
other coffee brands' websites but does not offer any direct comparisons or recommendations on its own site.  The Starbucks site is
providing customers with which of the following uses of the Internet?

    I.        Facilitating Sales
    II.       Virtual Communities
    III.      Selling Merchandise
    IV.      Super Sales Associate
 
A.  I and II only
B.  I and III only
C.  II and III only
D.  I, II, III, and IV
E.  I, II, and III only
 
42.  Nike is a recognized innovator in the use of __________ for creating interactivity, individuality and customer relationships. Its
Nike iD Customized Product site invites customers to create one-of-a-kind shoes, messenger bags and backpacks by simply answering
a few questions and viewing the finished product from numerous angles.  
A.  Content screens
B.  Dashboards
C.  Choiceboards
D.  Seller cookies
E.  Collaborative filtering
 
43.  Recently Old Navy has had flat sales revenue, and, under its current strategy, forecasts continued flat sales. The CEO decided to
try to overcome the no-growth results and forecast an increase in sales revenue based on new strategic initiatives. The difference
between the forecast of a continued flat level of sales revenue under the current strategy and the increased level under the new
strategy is known as  
A.  Differential location
B.  The planning gap
C.  The contribution margin
D.  The breakeven point
E.  The marginal space
 
 
 
44. When an organization goes outside of its industry and faces less competition it is following a 
A. BCG strategy
B. Hedgehog strategy
C. Green Forest Analysis
D. Fox Analysis
E. Blue Ocean Strategy
 
45.  Amanda works for Sports'R'Us, a sporting goods store that sells merchandise related to all types of sports.  Recently the economy
has taken a turn for the worse, which means that fewer people are buying sporting goods.  Luckily, because the company sells
products for a large variety of sports at low prices, Sports'R'Us has not suffered a huge decrease in sales.  For Sports'R'Us, the weak
economy is considered a(n) _____ and the variety of goods offered is considered a(n) _____.  
A.  threat; opportunity
B.  weakness; strength
C.  threat, strength
D.  weakness; opportunity
E.  strength; opportunity
 
46.  OceanSpray.com has a website that describes the company's products. The website also includes nutritional information and
recipes featuring Ocean Spray products. Since Ocean Spray products are available at nearly all supermarkets, there is no need to
include dealer information or sell the product directly to consumers. Ocean Spray uses a(n) __________ website.  
A.  Product
B.  Promotional
C.  Viral
D.  Permission-based
E.  Transactional
 
47.  A Brazilian swimsuit manufacturer makes male suits that are of a tight-fitting Speedo-like design.  The company is very
disappointed to find that exporting their product to the U.S. has been very unsuccessful.  What should the firm have done before
exporting their swim suits to the U.S. and how would this have affected their decision to export to the U.S. market?  
A.  An analysis of the economic situation in the U.S. would have revealed that all imports are taxed heavily, driving up price and
making simple imported goods too expensive in comparison to domestically-produced products.
B.  A global situational analysis of the economy would have revealed that the trade deficit makes the U.S. reluctant to put any more
foreign items on the market.
C.  An analysis of social/cultural norms in the U.S. would have revealed that the style of swimsuit is generally not considered
fashionable.
D.  A global situational analysis of the legal/regulatory laws would have revealed that imports not considered to be "necessities" are
currently illegal in the U.S. because of the trade deficit.
E.  A demographic analysis would have revealed that men in the U.S. have little free time and seldom invest in recreational goods
such as swimsuits.
 
48.  Guest speaker Sarah Anassori from Johnson & Johnson spoke to the class about the Vistakon division and the business planning
aspect of her job.  She explained how the company is focusing on increasing Acuvue contact lens revenue through a specific
"Acuminder" program.  What is the focus of this program?  
A.  Attracting new contact lens wearers into the category
B.  Increasing sales to existing customers
C.  Intensifying marketing efforts directed at eye doctors
D.  Switching customers from other contact lens brands
E.  All of the above

49.  The general manager of Publix is trying to determine the slowest moving breakfast cereals in one of his stores.  Listed below are
the Cost of Goods Sold (COGS), Beginning Inventory, and Ending Inventory for three different cereal brands.

Brand                        Captain Crunch    Rice Krispies    Honey Nut Cheerios

COGS                         $360,000              $285,000            $434,000
Beginning Inventory     $24,000               $18,000              $33,000
Ending Inventory         $23,000               $18,000              $42,000

Which brand has the slowest stockturn rate and what is it?
 
A.  Captain Crunch with a stockturn rate of 7.7
B.  Rice Krispies with a stockturn rate of 15.8
C.  Captain Crunch with a stockturn rate of 15.3
D.  Honey Nut Cheerios with a stockturn rate of 11.6
E.  Honey Nut Cheerios with a stockturn rate of 5.8
 

 
50.  Meryl is the owner of a company.  She is currently working on a deal with one of her vendors in which Meryl wants the lowest
price and the vendor wants the highest price.  Although there is cordial interaction between the vendor and Meryl, they do not share
vital information with each other.  What kind of marketing does this scenario describe?  
A.  Transaction marketing
B.  Interdependent marketing
C.  Relationship marketing
D.  Arm's length marketing
E.  "Hit and run" marketing
 

51.  What did Caroline Etter from P&G describe as the "Second Moment of Truth"?  
A.  When a customer sees an advertisement for a P&G product
B.  When a customer provides a new product idea to a P&G researcher
C.  When a customer recommends a P&G product to a friend
D.  When a customer purchases a P&G product in the store
E.  When a customer actually uses a P&G product s/he has purchased
 

52. International Products, a Burlington, New Jersey, firm that sells industrial cleansers and lubricants wanted to sell its product to
factories, hospitals and labs in China, but it did not have the necessary expertise. As a result International Products hired Asia
Marketing & Management to sell, stock and deliver a full assortment of products to the Chinese market. Asia Marketing &
Management is an example of a(n) 
A. Industrial distributor
B. Disintermediary
C. Agent
D. Retailer
E. Wholesaler
 

 
53. Many consumer firms rely on computer-to-computer or __________ technology to exchange invoices, payments and other
information. 
A. Creative computer imagery
B. Just-in-time inventory systems
C. Product-specific delivery system
D. Electronic data manipulation
E. Electronic data interchange
 

54.  Mr. Mills owns a lot of real estate.  One of his most profitable properties is an outdoor commercial shopping center located two
miles from downtown Vensatown.  His tenants include a Best Buy, a clothing store named Dash, a Walgreens, a Pinkberry, a Runners
Depot, an AT&T store, and a Home Depot.  His property is an example of a:  
A.  Strip Center
B.  Lifestyle Center
C.  Regional Center
D.  Central Business District
E.  Power Center
 

 
55.  Jaime manages the cosmetics department of Bloomingdale's.  The cosmetics department is 850 square feet.  Jaime does a great
job; the department's total sales average $6,500 a month.  Unfortunately, he has really bad allergies, which cause him to sneeze every
time he helps a customer shop for makeup.  Many customers have been returning merchandise because they get disgusted when they
get home and remember that Jaime sneezed on it.  The annual return rate is 32% across all cosmetics products.  What is the annual Net
Sales per Square foot in the Bloomingdale's cosmetics department?  
A.  $7.65
B.  $5.20
C.  $62.40
D.  $29.36
E.  $91.80
 
56.  In Europe, stores called __________ are based on the concept of one-stop shopping for consumers. These retail stores, which use
scrambled merchandising, typically encompass over 200,000 square feet of floor space and offer quality, variety and low price for
food and groceries as well as general merchandise.  
A.  Megamarkets
B.  Supercenters
C.  Hypermarkets
D.  Euromarkets
E.  One-stop markets
 

57.  ChompYou, a wholesaler of Gator gear, has decided to take more control of their distribution channel.  Having been in
Gainesville for over 20 years, the company believes its best strategy would be getting closer to the consumer.  Based on this,
ChompYou should:  
A.  franchise its wholesale business
B.  backward vertically integrate
C.  focus on a JIT inventory system so that customers must contact them more often
D.  enter into an administered relationship with retailers
E.  forward vertically integrate
 
58.  When guest speaker Caroline Etter from P&G spoke with the class, she said that a sale can be a "long-term" process.  She
described how she uses a holistic selling approach through understanding the shopper and situation, along with developing a plan that
aligns with the customer and meets shoppers' needs.  Which sales presentation format best describes Caroline's approach to selling?
 
A.  Reactive Selling
B.  "Canned" Format
C.  Multiattribute
D.  Adaptive Selling
E.  Outlined Presentation
 

 
59.  Tasers R Us is a rapidly growing retail chain.  Given the information below, what is Tasers R Us' same store sales growth?
  March 2008 March 2009
Total Number of Stores 100 300
Total Net Sales $45 MM $65 MM
Number of New Stores* 200 50
Net Sales of New Stores $10 MM $15 MM
* Stores open less than 12 months
 
A.  44.4%
B.  33.3%
C.  11.1%
D.  23.1%
E.  7.7%
 

60. 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 offers its customers 
A. Exclusive service
B. Self-service
C. Limited service
D. Economies-of-scale service
E. Full-service
 

 
61. Meyers, Inc. is an American company that manufactures and distributes coffee products in the U.S. Because of the wide popularity
of its products in the U.S., Meyers wants to initiate distribution internationally as soon as possible. The most efficient distribution
arrangement in terms of cost and time for Meyers Inc. to use would be 
A. A dual distribution agreement
B. Direct marketing
C. Cooperative distribution
D. Multi-channel distribution
E. A strategic channel alliance
 

 
62.  When traveling in Minnesota, Joe passes a variety of retail outlets, including the world-famous Mall of America outside
Minneapolis. However, Joe rarely stops to shop until he reaches a group of factory outlet stores located on the outskirts of
Minneapolis. Here, Joe can shop at the Levi's Factory Store, the Van Heusen Factory Store, the Bass Shoe Outlet and other clothing
stores offering products at prices 25 - 30 percent below retail. The factory stores at which Joe shops are engaged in __________
retailing.  
A.  Cut-price
B.  Off-price
C.  Recession
D.  Factory-price
E.  Power-store
 
63.  James has recently entered the hula-hoop business.  He makes top of the line hula-hoops which he would like to sell to the public.
However, he is having trouble marketing them on his own.  James has decided to get a wholesaler to help him sell his hula-hoops.
They will sell the hoops on James' behalf to different retailers but will not take ownership of the hula-hoops.  The wholesaler James
has decided to do business with is a(n):  
A.  Distributor
B.  Jobber
C.  Agent
D.  Manufacturer's sales branch
E.  Merchant wholesaler
 

 
64.  Jay Felts, the guest speaker from Comag Marketing Group, discussed many obstacles that his company faces in distributing the
magazines to retailers.  One of the problems that he says is facing the industry as a whole is:

I. Consumers are increasingly willing to go to large bookstores to find their magazines rather than
buying them as part of their grocery shopping.
II. Magazines as an industry are not only competing with each other for the space at the registers of
stores, but they are also competing with other products such as DVDs, soft drinks, and gum.
III. Retailers are installing more self-checkout registers.
IV. The majority of consumers prefer to download magazines to their cell phones rather than read a
printed magazine.  
A.  I, III, and IV only
B.  II and IV only
C.  II, III, and IV only
D.  II and III only
E.  I and III only
 

 
65.  Big Lots uses a system called cross docking in which there are loading docks on each side of a building.  One side is used for
incoming manufacturer drop-offs and the other side is used for outgoing shipments to Big Lots stores.  Cross docking falls into what
aspect of logistics?  
A.  Order Processing
B.  Just-in-Time Inventory Management
C.  Vendor Managed Inventory
D.  Warehousing and Materials Handling
E.  Transportation
 
 

66.  You are about to head to the beach to meet some friends and decide to stop by Publix to pick up a bag of chips.  You rush to the
checkout line, but of course, the guy in the checkout lane in front of you has a problem with his debit card and you have to wait.  You
pick up People magazine from the display in front of you and flip through it.  It looks interesting and you decide to purchase it so you
have something to read at the beach.  According to the presentation by Jay Felts of Comag, your magazine purchase was initiated by:  
A.  "Linger time" and store-in-store positioning.  You picked up the magazine because the creative display caught your eye and made
you stay at the store longer than you otherwise would have.
B.  "RFID" and product selection.  You picked up the magazine because the RFID was not working properly and they had your
favorite magazine title.
C.  Category selection and price point.  You picked up the magazine because it was the cheapest item located in the checkout line.
D.  Product recognition and "RFID".  You picked up the People magazine because it is the most popular title and the RFID technology
made it easy for your to add it to your purchase.
E.  "Linger time" and display location.  You looked at the magazine becuase you had to wait in the checkout line and the magazines
were on display next to you.
 
 
67. Reduction in delivery times both in the marketplace and the supply chain have earned firms such as Toyota and Xerox a reputation
as "time-based competitors". As used by Toyota and Xerox, logistics 
A. Does not influence their suppliers' supply chain
B. Creates utility for their customers
C. Includes the role of Toyota and Xerox as a drop shipper
D. Increases their customers' inventory
E. Increases the number of steps in the value proposition
 

 
68. A contractual arrangement between a parent company and an individual or firm that allows the individual or firm to operate a
certain type of business under an established name and according to specific rules is called 
A. A retailer sponsored cooperative
B. An administered vertical marketing system
C. Franchising
D. A wholesaler sponsored voluntary chain
E. A corporate vertical marketing system
 
69.  Ally has decided to make her famous apple pies available for the public to purchase.  Her plan is to bake the pies at home in her
kitchen and then sell them directly to local grocery stores.  Which part of the "typical" channel of distribution is Ally not using in her
plan?  
A.  Merchant
B.  Retailer
C.  Manufacturer
D.  Wholesaler
E.  Consumer
 

70.  In the channel of distribution, when channel members are engaged in buying, selling and risk taking, they are performing
__________ functions.  
A.  Transformational
B.  Implementation
C.  Logistical
D.  Facilitating
E.  Transactional
 

 
71. __________ are firms that perform most or all of the logistics functions that manufacturers, suppliers and distributors would
normally perform themselves. 
A. Third-party logistics providers
B. Freight jobbers
C. Wholesalers
D. Rack jobbers
E. Freight forwarders
 

 
72.  Sharps is a company that manufactures pencils.  They currently sell their pencils through two different retailers,  Wally-Mart and
Targeau.  Targeau recently started selling Sharps pencils at a discount that Wally-Mart was unable to match.  Soon after, Wally-Mart
decided to offer low-priced pencil sharpeners to go along with the Sharps pencils.  The tension created between Targeau and Wally-
Mart over Sharps pencils exemplifies which type of channel conflict?  
A.  Disintermediation
B.  Retailer conflict
C.  Vertical conflict
D.  Horizontal conflict
E.  Indirect conflict
 
73. The three steps used in choosing a supply chain include: (1) understand the customer, (2) understand the supply chain and (3)
__________. 
A. Understand the environment
B. Harmonize the supply chain with the marketing strategy
C. Consider the legal consequences of partnering
D. Understand the end-user consumer
E. Understand top management’s concerns
 
74.  Which of the following is an example of multi-channel retailing?  
A.  Overstock.com offering a broad and deep assortment of products through their web-only platform.
B.  The Gap advertising its stores via commercials on NBC, CBS, ABC, and Fox television.
C.  Mary Kay recruiting individuals to sell their makeup and skincare products door-to-door.
D.  Nike Shox being sold through a variety of retailers, such as Footlocker, FinishLine and official Nike stores.
E.  Victoria's Secret selling their products through their "brick-and-mortar" stores, their online store and their catalog.
 

75.  Dentyne Gum developed a new gum flavor called Pineapple Pina Colada.  Initially, the company sold its new flavor through only
a few large and high traffic grocery stores in each city.  With summer coming up, the company anticipates a higher demand for this
tropical flavor.  As a result, Dentyne decides to sell the Pineapple Pina Colada Gum in gas stations, department stores, grocery stores,
and convenience stores willing to retail their product.  How did Dentyne Pineapple Pina Colada channel coverage change?  
A.  Dentyne went from intensive channel coverage to exclusive channel coverage.
B.  Dentyne went from selective channel coverage to intensive channel coverage.
C.  Dentyne went from exclusive channel coverge to intensive channel coverage.
D.  Dentyne went from exclusive channel coverage to selective channel coverage.
E.  Dentyne went from selective channel coverage to exclusive channel coverage.
 
76.  Home Depot began as a simple retailing concept to provide one-stop shopping for construction materials and tools whether for the
professional or the do-it-yourselfer. It has evolved into a home and garden center. It now has professional home interior decorators
employed to help customers make decisions about lights, wallpaper, paint, etc. It also offers installation services on many of the items
it sells. From being a relatively simple concept, Home Depot has become an international chain with higher margins and a diverse list
of products. This evolution of Home Depot is an example of the  
A.  Wheel of retailing
B.  Retail positioning matrix
C.  Retail cycle
D.  Retail life cycle
E.  Evolution of retailing
 
77.  Shands Hospital wants to cut back on its expenses and believes that their main problem is over purchasing surgical supplies and
having to rent extra storage space for their surgical inventory.  They decide to keep  enough supplies on hand for emergencies, but
supplies for scheduled surgeries will be delivered the day before the surgery is to occur.  Shands is utilizing which technique in its
supply chain?  
A.  Transportation
B.  Just-in-time inventory management
C.  Warehouse handling
D.  Vendor-managed inventory
E.  Electronic data interchange
 

 
Spring 09 Final Key

 
1. (p. L137) E
 
2. (p. 553) D
 
3. (p. L127) B
 
4. (p. L118) A
  
5. (p. L136) B
 
6. (p. L113) E
 
7. (p. L127) C
  
8. (p. 581) A
 
9. (p. 30) E
 
10. (p. 552) B
 
11. (p. L126) A
 
12. (p. 46) A
 
13. (p. L122) D
 
14. (p. 565) E
 
15. (p. 192) E
 
16. (p. L140) C
 
17. (p. 584; Fig. 22-5) E
 
18. (p. L123) C
 
19. (p. L133) A
 
20. (p. L116) E
 
21. (p. L141) B
 

 
22. (p. 581) C
 
23. (p. 173) E
 
24. (p. L133) E
 
25. (p. L126) C
 
26. (p. L117) B
 
27. (p. 593) A
 
28. (p. L118) D
 
29. (p. L137) E
  
30. (p. 34) A
 
31. (p. 167) D
 
32. (p. 4/6, first hour) A
  
33. (p. 33) A
 
34. (p. L137) C
 
35. (p. 166) A
 
36. (p. 579) E
 
37. (p. L117) C
 
38. (p. L137) A
 
39. (p. T174) D
 
40. (p. 168) E
 
41. (p. L133) E
 
42. (p. 552) C
 
43. (p. 49) B

44. (p. 41) E
 
45. (p. L116) C
 
46. (p. 566) B
 
47. (p. L139) C
 
48. (p. 4/6, 1st hour) B

49. (p. L98-99) D
  
50. (p. L94) A
 
51. (p. 3/16, 2nd Hour) E
 
52. (p. 394) A
 
53. (p. 421 - 422) E
 
54. (p. T453) E
 
55. (p. L98) C
 
56. (p. 444) C
 
57. (p. L91) E
 
58. (p. 3/16, 2nd Hour) D

59. (p. L100) C
 
60. (p. 443) E
 
61. (p. 396) E
 
62. (p. 452) B
 
63. (p. L90) C
 
64. (p. 3/18, 2nd Hour) D
 
65. (p. L94) D
 
66. (p. 3/18, 2nd Hour) E

67. (p. 416) B
 
68. (p. 401) C
 
69. (p. L90) D
 
70. (p. 391; Fig. 15-3) E

71. (p. 425) A
  
72. (p. L90) D
 
73. (p. 418) B
 
74. (p. L100) E
 
75. (p. T404) B
 
76. (p. 455) A
 
77. (p. T431)
 MAR 3023 FINAL EXAM SPRING 2010

FORM A

1.  InStyle magazine has a magazine, www.instyle.com, that contains many different links to fun things that help to increase positive
feelings and loyalty among their readers.  The site has information about different beauty products, information about the latest trends,
and a link that allows people to perform virtual makeovers.  InStyle's website is used for:  
A.  virtual community
B.  facilitating sales
C.  brand building
D.  selling merchandise
E.  coordinating dealer/retailer exchanges
  

2.  Alex is looking to purchase a new cell phone.  He wants to do research online to make sure that he purchases the best phone for
him.  He does not want to actually buy his phone online; he just wants information on price, accessories, and other specifics.  Which
use of the Internet is Alex taking advantage of?  
A.  Selling Merchandise
B.  Virtual Communities
C.  Facilitating Sales
D.  recreational Surfing
E.  Brand Building
 
3.  __________ is identified as two-way buyer-seller electronic communication in a computer-mediated environment in which the
buyer controls the kind and amount of information received from the seller.  
A.  B2B e-commerce
B.  Electronic customer handling
C.  Electronic relationship management
D.  Interactive marketing
E.  Multichannel marketing
 
4. Bots contribute to the convenience of online shopping because they 
A. Work well with a dial-up connection to the web
B. Allow customers to engage in an electronic dialogue with marketers
C. Permit customers to design one-of-a-kind items that fit their specific needs
D. Offer customers almost any product or service they want
E. Allow customers to make online comparisons of prices and product features
 
5. The __________ is an approach whereby an organization allocates its marketing mix resources to reach its target markets. 
A. The market determinant method
B. The situational marketing process
C. The developmental market analysis
D. The strategic marketing process
E. The calibrated marketing process
 

6.  Candace Spencer recently received an email from tigerdirect.com informing her that something was wrong with her account
information.  She was asked to email back her name, phone number, password, and credit card information so that they could verify
her records.  However, Candace knew that tigerdirect.com would never solicit any type of personal information through email, so she
did not respond.  By not responding, Candace avoided what type of Internet security issue?  
A.  Fake destination website
B.  Spam
C.  Pharming
D.  Evil Twin
E.  Phishing
 
7.  Grin and Bearit produces several kinds of toothbrushes.  One particular toothbrush called the Seminole Sludge Remover used to be
a strong seller but has recently declined sharply.  Therefore, Grin and Bearit has decided to reduce its marketing costs to virtually
nothing but continue to offer the product for sale.  Which strategy has Grin and Bearit decided to use?  
A.  decline
B.  harvest
C.  grow
D.  maintain
E.  divest
 
8.  RamTrak Trains was once the number one passenger train company in America.  As a corporation, they were solely focused on
being the best passenger train company.  Over time RamTrak Trains' revenues began declining, as other forms of transportation
became more available and affordable.  Eventually RamTrak went out of business.  By focusing their company solely on the train
business instead of something broader, like the transportation business, RamTrak suffered from:  
A.  A Diffuse Corporate Mission
B.  Predatory Pricing
C.  Low Relative Market Share
D.  Incorrect Corporate Goal-Setting
E.  Marketing Myopia
 

9.  Kraft currently sells its products through retail outlets such as Publix and Walmart.  They generate substantial revenue, but a new
CEO is taking over who actively pursues technological advancements.  He wants to sell directly to consumers.  Consumers can go to
BuyKraft.com and purchase the same products they would normally buy in a store.  This is an example of:  
A.  Disintermediation
B.  Fulfillment house
C.  Brand building
D.  Facilitating sales
E.  A promotional website

3 B 2

D 2
A 4 4
CD G
 
1
  1 E F 4
3
10. Gatorville wants to create a line of jerseys for the upcoming football season.  They are currently at Node A and need to get to
Node G.  Using the PERT chart above, how long is the critical path (in months) and which link should Gatorville try to shorten in
order to speed up the process to get to market faster?  
A.  8 months; F-G
B.  7 months; A-B
C.  10 months; F-G
D.  10 months; C-D
E.  10 months; A-B
 
11.  The famous U.S. singer and pop star, Whitney Smears, introduced a new fragrance in the U.S. that became an instant hit, just like
her computerized music.  With her profits growing across the country, her agent suggests that she expand the line overseas.
Considering her busy schedule, Whitney doesn't want to waste her time shooting another commercial, so she and her agent decide to
keep the advertising the same in other countries.  They soon realize that no one is responding to the ads the way people are in the U.S.
and no one is buying the perfume in the other countries.  What marketing approach is responsible for Whitney's fragrance flop?  
A.  Global Marketing
B.  Multinational Marketing
C.  Transnational Marketing
D.  International Marketing
E.  Multi-domestic Marketing
 
12. Which of the following actions best illustrates a product development strategy for McDonald's? 
A. Opening McDonald's restaurants in Six Flags theme parks
B. Running a promotion based on the Monopoly game, whereby customers have a chance to win prizes with each purchase
C. Adding a line of new deli sandwiches to the menu of existing McDonald's stores
D. Developing a line of McDonald's toys to be sold through Toys R Us stores
E. Opening the first McDonald's in China
 
13.  Perez Hilton is a young blogger who has become a global opinion leader.  He values his celebrity status and only accepts ads from
high quality brands such as Grey Goose, Prada, and Gucci on his site.  According to the Global Scan study in class, Perez is a(n):  
A.  Traditional
B.  Adapter
C.  Pressured
D.  Achiever
E.  Striver

 
14. Tariffs serve primarily to 
A. Encourage foreign trade
B. Raise prices on imports
C. Limit the quantity of goods leaving the domestic market
D. Provide consumers with the most competitively priced goods
E. Equalize production capacity
 

15.  Flowers-2-Go is an up-and-coming flower delivery company that is hoping to grow their online business to gain more market
share.  The current market growth rate is 8.2%, and the current sales in the industry are as follows:

                                            Sales
Flowers-2-Go                  $3.3 million
Bouguet Boutique            $2.4 million
Tulips & Co.                    $5.4 million
1-900-FLOWERS            $9.1 million
All Others                        $8.7 million

According to the BCG Matrix, Flowers-2-Go is a _____, with a relative market share of:
 
A.  Dog; 11.4%
B.  Dog; 0.36
C.  Star; 1.38
D.  Cash Cow; 1.38
E.  Dog; 0.38
 
 
16.  People in __________ positions in an organization have the authority and responsibility to issue orders to people who report to
them.  
A.  Line
B.  Product champion
C.  Clerical
D.  Stakeholder
E.  Staff
 

17.  __________ is the application of modern measurement technologies to understand, quantify and optimize marketing spending. 
A. Situation analysis
B. Marketing response evaluation
C. The marketing audit
D. Marketing ROI
E. Marketing component analysis
 
 
18.  Pfizer Pharmaceuticals Inc., decides to take a closer look at the sales performance of all their territories in the state of Florida.
From the analysis, they discover that the Gainesville/Ocala territory is underperforming and they immediately contact their sales rep in
that territory to set up further product and sales process training.  Pfizer conducted with type of analysis?  
A.  Marketing audit
B.  Resource allocation analysis
C.  Sales component analysis
D.  Profitability analysis
E.  Share point analysis
 
 
19. When Andrea visited www.disneystore.com, she looked at several different classic Pooh plush animals before she selected Piglet
and Tigger and put them in her shopping cart. She next went to checkout where she confirmed that she wanted to buy the two stuffed
animals, typed in her address and concluded the transaction by providing her credit card information. In terms of customer experience,
this example describes the __________ design element. 
A. Community
B. Content
C. Connection
D. Context
E. Commerce
 
 
 
 
20.  Mary is an avid online shopper.  She spends most of her time on apparel websites and uses Google for all of her search requests
and to find new online stores.  Lately, Mary has noticed that all the ads she sees on Google are geared toward fashion websites and
clothing discount deals.  These ads that seem relevant to Mary's online lifestyle rely on:  
A.  Permission Advertising
B.  Lifestyle Advertising
C.  Behavioral Targeting
D.  Sector Advertising
E.  Brand Building
 
21.  Consider the following trade statistics for Country A in 2009.

    Imports:  $87.5 billion

    Exports:  $52.5 billion
    GDP:  $215 billion
    
Country A has a _____ for 2009.
 
A.  $162.5 billion balance of trade deficit
B.  $35 billion balance of trade surplus
C.  $127.5 billion balance of trade surplus
D.  $35 billion balance of trade deficit
E.  $75 billion balance of trade surplus
 

22. People who referred 10 friends to the Procter & Gamble website for Physique shampoo (www.physique.com) received a free,
travel-sized styling spray and were entered in a sweepstakes to win a year's supply of the shampoo. The promotion generated 2 million
referrals and made Physique the most successful new shampoo ever launched in the United States. To accomplish this P & G used 
A. Customerization
B. Viral marketing
C. Niche marketing
D. Permission marketing
E. Opt-out marketing
 
 
23.  In 2004, the book The Secret was published, with its movie following two years later.  The Secret discusses the "Law of
Attraction" and argues that our thoughts have a direct impact on what happens in our life.  This concept is similar to the role of
visualization desired goals encompassed by which one of Covey's "7 Habits"?
 
A.  Put first things first
B.  Sharpen the saw
C.  Begin with the end in mind
D.  Think Win/Win
E.  Be proactive
 
24. Eastman Kodak accused Japanese rival Fuji Photo Film of selling photographic paper in the United States for 25 percent of what it
charges in Japan. In other words, Eastman Kodak accused Fuji of 
A. Competition
B. Channeling
C. Dumping
D. Globalization
E. Monopolistic practice
 

25.  Suppose Snickers holds 20% market share for candy bars, as well as 20% share of voice.  Mr. Mars, the brand manager for
Snickers, wants to increase his market share by 4 share points.  Snickers' total gross margin is $1 million.  If the total industry market
effort is $3 million, what is the short-term gain or loss by Snickers if it is successful in expanding its market share by the desired
amount?  
A.  Cannot tell from the information provided.
B.  $20,000 gain
C.  $200,000 gain
D.  $180,000 loss
E.  $80,000 gain
 

 
26. Customers can build their own bicycle at SevenCycles.com by answering a few questions and choosing from a menu of product
attributes, prices and delivery options. The design of a precise bicycle is made possible through the use of a 
A. Seller cookie
B. Content screen
C. Choiceboard
D. Seller menu
E. Collaborative filter
 

27.  Opa is a Greek restaurant that actually originated in Greece.  When its owners brought the restaurant chain to America, they
decided to position it in the same way as it was positioned in Greece, but to adapt its menu to be more Americanized (e.g., grilled
entrees instead of greasy ones).  This is an example of:
 
A.  Glocalization
B.  Domestic Marketing
C.  Multi-domestic Marketing
D.  Pure Standardization
E.  Pure Non-Standardization
 
28. VideoAdvantage.net is a small company that rents DVD movies by mail using the Web. It jumped into an industry where there
were no firm leaders but lots of competitors and established a loyal clientele by seizing the opportunity to provide a service that was
not available through other companies that rented movies over the Internet—reliable overnight shipment. Its delivery system created
its 
A. Sales orientation
B. Benchmarking focus
C. Competitive advantage
D. Tactical innovation
E. Viable mission
 
 
29. Direct exporting is 
A. When a foreign country and a local firm invest together to create a local business
B. When a firm sells its domestically-produced goods in a foreign country without intermediaries
C. Offering the right to a trademark, patent, trade secret or similarly valued items of intellectual property in return for a royalty or fee
D. Contracting with a foreign firm to manufacture products according to certain specifications
E. When a firm sells its domestically-produced goods in a foreign country through an intermediary
 

30. Loving Care Pets manufactures four different kinds of pet food (for dogs, cats, rabbits and gerbils), specifically created for pets
under three months of age. Assuming it is marketing to a single segment of "pet owners", in terms of the market-product grid
framework, Loving Care Pets is using a __________ strategy. 
A. Selective specialization
B. Full coverage
C. Product specialization
D. Market specialization
E. Market-product concentration
 
 
31.  The Tahitian pearl market might never have existed were it not for Salvador Assael, "pearl king" of the South Seas. Assael got
into the pearl business at the end of World War II. Tahiti had thousands of Swiss watches and suddenly had no GIs to sell them to.
Assael observed that the Japanese were desperate for watches, had no cash but still had a pearl industry. So Assael set up the swapping
of watches for pearls. This international barter is an example of  
A.  Trade feedback
B.  Countertrade
C.  Economic adaptation
D.  Predatory pricing
E.  Cross-cultural exchange
  

32. When you view a selection at Amazon.com and see "Customers who bought this (item) also bought" you are seeing the
application of __________. 
A. Collaborative filtering
B. Real-time e-commerce
C. Seller personalization
D. Connectivity
E. Interactive marketing
 
33.  Each strategic business unit has marketing and other specialized activities (e.g., finance, manufacturing, and research and
development) at the __________ level, where groups of specialists create value for the organization.  
A.  Corporate
B.  Functional
C.  Top management
D.  Business unit
E.  Strategic
 
34.  Which type of Internet sales currently accounts for the most sales revenue?  
A.  Business to Consumer transactions
B.  Consumer to Consumer transactions
C.  e-Bay transactions
D.  Reverse auction transactions
E.  Business to Business transactions
 
35.  Josh is a graduating senior at the University of Florida and is in search of a full-time job upon graduation.  In order to increase his
chances of landing a job, he has become very involved on campus, has good grades, and has had multiple summer internships.  In
terms of "The Seven Habits of Highly Effective People", which habits does Josh demonstrate?  
A.  Begin with the end in mind; sharpen the saw
B.  Be Proactive; begin with the end in mind
C.  Sharpen the Saw; think win-win
D.  Seek first to understand, then to be understood; be proactive
E.  Put first things first; think win-win
 
36.  Mountain Man Brewing Company (MMBC) is a brewing company with distribution in the east central United States.  MMBC has
deep roots in West Virginia and has a reputation for quality and distinctive flavor.  In a S.W.O.T. analysis, what are MMBC's quality
and flavor?  
A.  strategies
B.  weaknesses
C.  threats
D.  opportunities
E.  strengths
 
37.  Mark is a merchandising manager at Tools-N-More.  His job is to handle inventory, but he is known for stepping outside his role
and going far beyond his required duties.  Just last month he organized a new strategy in which all sales were recorded, so he could
analyze which tools were doing poorly.  With this information, he was able to devise a sales campaign that increased merchandise
sales by 30%.  Mark's "above and beyond the call of duty" performance is indicative of a(n):  
A.  Effective salesman
B.  Effective manager
C.  Motivator
D.  Hard worker
E.  Champion
 
38.  Those characteristics of a product that make it superior to competitive substitutes are called  
A.  Points of difference
B.  Marketing levers
C.  Perceptual maps
D.  Perceptual segments
E.  Points of parity
 
39. Which of the following statements about stakeholders is true? 
A. Employees are an example of an internal stakeholder group
B. Stakeholders have a stake in how well a company performs
C. Regulatory agencies are a type of external stakeholder
D. The community in which an organization is located is a type of external stakeholder
E. All of the above statements about stakeholders are true
 

40.  Lauren just opened a new shop to sell cycling equipment.  In order to create her marketing budget she has specified all the
objectives she would like to achieve over the next year, listed all the tasks associated with those objectives, and estimated the cost of
completing each task.  Then, she added up the costs and created her marketing budget for the year.  What is a synonym for the type of
budgeting approach is Lauren using?  
A.  competitive parity
B.  affordable
C.  zero-based budgeting
D.  percentage of sales
E.  optimization
 
41. The Economic Espionage Act 
A. Does not prescribe punishments for anyone caught engaged in economic espionage
B. Is routinely enforced by United Nations militia
C. Targets espionage activities that are commonplace in the agricultural industry
D. Makes the theft of trade secrets by foreign entities a federal crime in the U.S.
E. Is accurately described by all of the above
 
    
FIGURE 22-3
 
42. Porter's generic business strategy shown in Figure 22-3, box "A" is called 
A. Cost focus
B. Cost leadership
C. Quality focus
D. Differentiation focus
E. Differentiation
 

43.  Kara is a bride to be and has been looking for the perfect wedding dress for the past six months.  Kara finally finds her dream
wedding dress in an ad that appeared in the middle of a TMZ.com story she was reading.  (TMZ is an online magazine.)  This ad is an
example of:  
A.  A display ad
B.  Permission advertising
C.  A search ad
D.  A virtual community
E.  Spam
 
44.  Victoria's Secret has a market share of 10%.  Marketing managers at the firm want to pursue a growth strategy and have decided
to try to increase their market share to 14% next year.  What should the Victoria's Secret share of voice be next year in order to
achieve its market share goal?  
A.  14%
B.  21%
C.  16%
D.  6%
E.  19%
 
45.  Marketing managers at Rolls and Bowls are working on the strategic marketing process for the firm and are developing their
annual marketing plan.  Right now they are discussing what specific actions the firm needs to undertake in order to implement the
strategy they have decided to follow.  What aspect of the marketing plan are they working on?  
A.  Objectives
B.  Tactics
C.  S.W.O.T.
D.  Contingency Plans
E.  Situation Analysis
 
46.  Wally's World of Widgets is the price leader in its industry.  They also have the highest market share and thus produce the most
widgets in the industry every year.  Wally, who is constantly innovating and looking for better ways to produce his widgets, has
recently taken a look at his experience curve, which shows that:  
A.  As total units produced increases, unit production cost decreases
B.  As total units produced decreases, unit production cost decreases
C.  As total units produced increases, unit production cost increases
D.  As total units produced increases, unit production costs follows an S-shaped curve
E.  As total units produced increases, unit production cost stays constant
 
47.  Which of the following are true about Internet shopping?

    I.     Generation Y is the only segment that uses computers for shopping.
    II.    Women use the Internet for shopping at least as much as men do.
    III.     Price competition has increased with lower search cost.
    IV.     Disintermediation is when retailers sell directly to consumers
         
A.  I and IV only
B.  II and III only
C.  I, II and III only
D.  II, III and IV only
E.  I, II, III and IV

48.  Competition between very dissimilar types of retail outlets that carry some of the same kind of merchandise (e.g., soft drinks are
sold at supermarkets, discount stores, convenience stores, etc.) is called:  
A.  Dual distribution
B.  Intertype competition
C.  Scrambled merchandising
D.  Multi-channel retailing
E.  Multi-service merchandising
 
 

49.  Third-party logistics providers are firms that perform most or all of the logistics functions that  
A.  Manufacturers, suppliers and distributors would normally perform themselves
B.  Suppliers would normally perform themselves
C.  Distributors would normally perform themselves
D.  Manufacturers would normally perform themselves
E.  Suppliers and distributors would normally perform themselves
 

50.  Dizzles is a store chain in the southern United States.  Dizzles' service is among the best in the business, and their prices are
generally low.  Their huge stores provide a relatively narrow but also very deep selection of goods.  Dizzles is most likely a:  
A.  Department store
B.  Lifestyle store
C.  Specialty store
D.  Discount retailer
E.  Power retailer
 

51.  When the brand Burberry first came out, it was a symbol of luxury and durability.  Its lines of clothing and umbrellas were
available only to the most prestigious people through private showings.  King Edward VIII, a regular Burberry wearer, was known to
say:  "Give me my Burberry!"  However, by the 1990s, Burberry's product lines were being sold in several specialty stores and
department stores.  The brand went from a(n) _____ degree of channel coverage to a(n) _____ one.  
A.  intensive; selective
B.  selective; exclusive
C.  exclusive; intensive
D.  selective; intensive
E.  exclusive; selective
 

 
52.  The channel strategy demonstrated when Schwinn Corp. sells its Schwinn brand bicycles through select bike dealers and its "Sand
King" brand of bikes through discount stores is called  
A.  Multichannel distribution
B.  Parallel distribution
C.  A strategic channel alliance
D.  Multi-product distribution
E.  Dual distribution
 
 
53.  In retailing, __________ involve independently owned stores that band together to act like a corporate chain.  
A.  Strip centers
B.  Lifestyle centers
C.  Contractual systems
D.  Regional shopping centers
E.  Outlet malls
 
 

 
54.  Jackie is planning on opening a new store to sell ethnic foods.  She is trying to figure out the best way to add value to her store.
She decides to make sure that the store is known for having a large selection of items for her customers to choose from.  What retail
function is Jackie focusing on to add value?  
A.  Providing Assortments
B.  Holding Inventory
C.  Breaking Bulk
D.  Providing Services
E.  Product Placement
 

 
55. You probably own several pairs of shoes. Further, it is highly likely you purchased those shoes at retail stores located in a
shopping mall. It is quite unlikely you bought the shoes directly from the manufacturer. In fact, most goods are brought to you via a(n)
__________, which consists of several organizations involved in the process of marketing products or services and making them
available for our use as consumers. 
A. Marketing channel
B. Organizational chain of command
C. Marketing chain of command
D. Marketing hierarchy
E. Organizational hierarchy
 
 

56.  Fred, a Subway franchisee, refuses to abide by the "5 dollar foot-long" rules that have been laid out by the franchisor, Jared.  He
decides to price all of his foot-long subs at $8.00 each.  What type of channel conflict is being demonstrated?  
A.  Vertical
B.  Foot-long
C.  Contractual
D.  Horizontal
E.  Direct
 
 
57.  The Gainesville Walmart on NW 13th street is looking into the sales success of its many departments.  Two of the departments in
the store are up for review by Walmart management:  Home/Garden and Menswear.  Walmart management is comparing the two
departments solely on their success in terms of net sales per square foot.  Menswear occupies 2000 square feet of retail space and is
responsible for $1,000,000 in sales.  Home/Garden occupies 10,000 square feet of retail space and is responsible for $4,500,000 in
sales.  Menswear and Home/Garden have $100,000 and $500,000 in returns, respectively.  According to Walmart management, which
of the two departments is more successful and at what rate per square foot?  
A.  Menswear is more successful at $500/sq.ft.
B.  They are equally successful at $450/sq.ft.
C.  Home/Garden is more successful at $450/sq.ft.
D.  Menswear is more successful at $450/sq.ft.
E.  Home/Garden is more successful at $400/sq.ft.
 

 
58.  Retailers like Williams-Sonoma and The Discovery Store that sell at retail stores, through their catalogs and at their online
website are examples of __________ retailers.  
A.  Vertically integrated
B.  Intratype
C.  Multichannel
D.  Multimediary
E.  Intertype
 

 
59.  A __________ is an inventory-management system whereby the supplier determines the product amount and assortment a
customer (such as a retailer) needs and automatically delivers the appropriate items.  
A.  Vendor-managed inventory system
B.  Logistics-managed inventory system
C.  Just-in-time system
D.  Customer-managed inventory system
E.  Supply chain inventory system
 
60.  Marco recently started his own computer business and knows he does not have the resources needed to market and sell to
customers directly.  Therefore, he has decided to work with an independent wholesaler.  The wholesaler performs some key logistical
and transactional functions.  The wholesaler takes ownership and physical possession of the products, but does not offer any financing
to its customers.  The wholesaler Marco has decided to do business with is a(n):  
A.  Agent
B.  Manufacturer's sales branch
C.  Manufacturer's sales office
D.  Distributor
E.  Jobber
 
 

61.  Neiman-Marcus is a retailer that many small manufacturers would like to be associated with. Distributing their product in
Neiman-Marcus will increase the prestige of a smaller brand.  These small manufacturers gladly accept Neiman-Marcus' terms in
order to get their merchandise into the stores.  For these manufacturers, Neiman-Marcus is a(n):  
A.  Entry barrier
B.  Vertical integrator
C.  Channel captain
D.  Franchisee
E.  Franchisor
 
62.  Longaberger baskets are sold at parties hosted by individual consumers.  The hostess invites friends and neighbors to see the
baskets the company has sent to display and takes orders. In return, the hostess is able to purchase the baskets at a discount.
Longaberger uses which type of retailing?  
A.  Telemarketing
B.  Direct selling
C.  TV home shopping
D.  Indirect selling
E.  Brick-and-mortar retailing
 

 
63.  According to guest speaker Alina Liakos of Johnson and Johnson, what are the characteristics of a SMART sales goal?  
A.  Specific, measurable, actionable, realistic, timely
B.  Significant, measurable, acceptable, realistic, timely
C.  Specific, measurable, acceptable, realistic, timely
D.  Strong, measurable, actionable, rational, truthful
E.  Specific, measurable, acceptable, rational, timely
 
 
64.  Custom Home Entertainment, a retailer and installer of home theaters and other household entertainment systems, is deciding
where to open a new store.  Since consumers view entertainment systems as a high involvement purchase, and Custom Home
Entertainment needs a lot of floor space to demonstrate its systems, which statement below is most accurate?  
A.  Customer Home Entertainment should be in a regional mall to maximize its exposure.
B.  Customer Home Entertainment should be located close to other consumer electronics stores to maximize convenience.
C.  Customer Home Entertainment should consider opening a stand-alone store.
D.  Customer Home Entertainment should locate its store next to a large discount store to facilitate "one-stop" shopping.
E.  Customer Home Entertainment should be located in a central business district.
 
65.  Publix sells its own private label label toothpaste brand next to Aquafresh in its stores. If Publix decided to buy a factory to
produce its own toothpaste, that would be _____; Aquafresh deciding to open a toothpaste store would be _____.  
A.  backward vertical integration; horizontal integration
B.  forward vertical integration; backward vertical integration
C.  horizontal integration; backward vertical integration
D.  horizontal integration; forward vertical integration
E.  backward vertical integration; forward vertical integration
 

 
66.  Justin Case has worked at the local Walmart for the past 10 years.  Part of his job has been to go around the store at the end of the
day and count up the remaining inventory on all the shelves.  However, this is time-consuming and inefficient, so Walmart recently
adopted a process that is run by computers.  When a consumer purchases an item, that item's bar code is scanned and immediately
inputted into the system database.  The database can detect when the store is running low on a certain product and automatically order
more from the manufacturer.  This process is made possible by which of the following?  
A.  Just-in-Time Inventory (JIT)
B.  Warehouse and Materials Handling
C.  Cross Docking
D.  Vendor-Managed Inventory (VMI)
E.  Electronic Data Interchange (EDI)
 
 
67. A __________ is essentially a sequence of linked suppliers and customers in which every customer is, in turn, a supplier to
another customer until a finished product reaches the final consumer. 
A. Supplier-customer alliance
B. Logistical flow
C. Demand chain
D. Supply chain
E. Retailer cooperative
 
 
68. What is the first step in choosing a supply chain? 
A. Making sure the members of the supply chain harmonize with the organizational culture
B. Developing an umbrella mission statement
C. Understanding the customer
D. Creating a unifying inter-organizational strategy
E. Determining what the competition is doing
 
69.  Maggie has a "speedpass" to get gas at a local Gainesville gas station.  This small device attaches to her key chain and all she has
to do is wave the speedpass at a sensor in the pump; it has all of her relevant information, including which type of gas her car uses, so
there is no need to press any buttons at the pump.  This speedpass is really convenient, especially given her busy schedule.  All she has
to do is pump the gas and drive away; her bank account is automatically debited.  Which type of utility is the gas station providing?  
A.  Place
B.  Core
C.  Expected
D.  Augmented
E.  Time
 
 
70.  Stewie owns a chain of sub shops called Stewie's Subs.  Stewie is concerned about his shops' growth since other competing sub
shops have opened in the area.  He has the following information available:
Year 2008 2009
Total number of stores 100 123
Total net sales $10,000,000 $13,000,000
% of total net sales attributable to new stores 10% 20%

Determine Stewie's same-store sales growth from these data.

 
A.  23.0%
B.  17.0%
C.  30.00%
D.  4.0%
E.  -74.0%
 
 
71.  Publix is trying to determine how many shelf facings each of their taco shell brands will get.  Old El Paso's Taco Shells' Cost of
Goods Sold = $450,000, its beginning inventory = $22,000 and its ending inventory = $15,000.  La Tijuana's Taco Shells' Cost of
Goods Sold = $675,000, its beginning inventory = $57,000 and its ending inventory = $26,000.  What is Old El Paso's stockturn rate
(rounded to the nearest cent) and which of the two brands should receive an increased number of shelf facings at Publix?  
A.  20.45; Old El Paso
B.  16.27; La Tijuana
C.  12.16; Old El Paso
D.  30.00; La Tijuana
E.  24.32; Old El Paso
 

72.  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 hamburger joint with low margins, low prices, limited
product offerings and low institutional status to a worldwide chain with higher margins, high status and a diverse list of products. This
evolution of McDonald's restaurants is an example of which concept discussed in the text?  
A.  Restaurant evolutionary cycle
B.  Wheel of retailing
C.  Retail cycle
D.  Fast food retail cycle
E.  Evolution of retailing
 

 73. Which of the following is an element of total logistics cost? 

A. New product development
B. Advertising
C. Inventories
D. Personal selling
E. All of the above

 
Spring 2010 Final Key
Version A

1. (p. L133) C
  
2. (p. L133) C
 
3. (p. 552) D
 
4. (p. 561) E
 
5. (p. 42) D
 
6. (p. L136) E
 
7. (p. L117) B
 
8. (p. L112) E
 
9. (p. L136) A
 
10. (p. L122) D
 
11. (p. L140) D
 
12. (p. 582) C
 
13. (p. L141) D
 
14. (p. 170) B
 
15. (p. L113) B
  
16. (p. 592) A
 
17. (p. 594) D 

18. (p. L127) C
  
19. (p. 555) E
 
20. (p. L139) C
 
21. (p. L139) D
 
22. (p. 563) B
 
23. (p. L125) C
 
24. (p. 192) C
 
25. (p. L123) B
 
26. (p. 552) C
 
27. (p. L141) A
 
28. (p. 35) C
 
29. (p. 186) B
 
30. (p. 583) D
  
31. (p. 166) B
 
32. (p. 552) A
 
33. (p. 30) B
 
34. (p. L133) E
 
35. (p. L125) B
 
36. (p. L116) E
 
37. (p. L124) E
 
38. (p. 46) A
 
39. (p. 32) E
 
40. (p. L118) C
 
41. (p. 169) D
 
42. (p. 580; Fig. 22-3) B
 
43. (p. L139) A
 
44. (p. L118) C
 
45. (p. L116) B
 
46. (p. L115) A
 
47. (p. L136) B

48. (p. 444) B
 
49. (p. 425) A
 
50. (p. L96) E
 
51. (p. L90) E
  
52. (p. 396) E
 
53. (p. 441) C
 
54. (p. L96) A
  
55. (p. 390) A
 
56. (p. L90) A
 
57. (p. L98) D
 
58. (p. 457) C
 
59. (p. 432) A
 
60. (p. L90) E
  
61. (p. 408) C
 
62. (p. 392) B
 
63. (p. 3/15, second hour) C
 
64. (p. L97) C
 
65. (p. L91) E
 
66. (p. L94) E
  
67. (p. 417) D
 
68. (p. 418) C
 
69. (p. T438) E
 
70. (p. L99) D
  
71. (p. L98) E
 
72. (p. 455) B
  
73. (p. 422) C
 
 CH. 15 MARKETING CHANNELS & WHOLESALING

CHANNEL STRATEGY NATURE & IMPORTANCE OF MAKTG CHANNELS

1. Definition: individuals and firms involved in the
(Related chapter in text: 15)
process of making a product/service available for
use and consumption by consumers or industrial
users
2. Value created by intermediaries: intermediaries
LEARNING OBJECTIVES
minimize number of sales contacts necessary to
reach to reach a target market
 Understand how channel - Middle man: intermediary between manufacturer
strategy creates time and place
utility. and end-user markets
 Delineate key functions of the - Agent/broker: intermediary w/ legal authority to
channel of distribution.
 Distinguish intensive vs.
act on behalf of manufacturer
selective vs. exclusive channels - Wholesaler: intermediary who sells to other
and direct vs. indirect channels.
intermediaries (retailers/consumer markets)
- Retailer: intermediary who sells to consumers
LEARNING OBJECTIVES
- Distributor: intermediary who perform a variety
 Know the roles of the various of distribution functions, including selling,
forms of marketing maintaining inventory, extending credit, (also
intermediaries - wholesalers and
retailers. referred to wholesalers)
 Know the advantages and - Dealer: same as distributor, retailer, wholesaler
disadvantages of contractual,
administered, and vertically- 2.1. Functions performed by intermediaries:
integrated channels. make possible the flow of products from
producers to buyers by performing functions
CREATING PLACE AND TIME
2.1.1. Transactional: involving buying, selling,
UTILITIES risk taking because stock merchandise
TIME UTILITY in anticipation of sales
. CONVENIENCE - Buying: purchase product for resale or as agent
. SPEED
for supply of product
PLACE UTILITY - Selling: contact potential customers, promote
. CONVENIENCE
. PRESTIGE product, seek orders
- Risk taking: assume business risks in ownership of
DISTINGUISHING CHANNEL OF DISTRIBUTION
inventory that can become obsolete or
FROM PHYSICAL DISTRIBUTION OF PRODUCTS deteriorate
2.1.2. Logistical: gather, store, disperse
• Logistical Functions products
– Assorting, Transporting
• Transactional Functions
- Assorting: create product assortment from
– Selling, Risk taking several sources
• Facilitating Functions
– Financing, Market research
- Storing: assemble and protect products at
convenient location to offer better customer
service
- Sorting: purchase in large quantity and break in
smaller amounts demanded by customers
- Transporting: physically move the product to
consumers
2.1.3. Facilitating: assist producers in making
good/service more attractive to buyers
 DEGREE OF CHANNEL
COVERAGE - Financing: extending credit to customers
- Grading: inspect, test, judge products and assign
3 BASIC OPTIONS
quality grades
 INTENSIVE
 SELECTIVE
- Mktg information and research: provide info and
 EXCLUSIVE competitive conditions and trends to customer
and suppliers
2.2. Consumer benefits from intermediaries:
have the goods/services you want, when you
want, where you want, in the form you want
2 BASIC TYPES OF
CHANNELS (time, place, form, possession)

 DIRECT CHANNEL STRUCTURE & ORGANIZATION

 INDIRECT 1. Mktg channel for consumer good/service: search
the most efficient route from producer to buyer;
as number of intermediaries between producer
and buyer increases, channel increases in length
A "TYPICAL" CHANNEL 1.1. Direct channel: producer and ultimate
consumers deal directly w/each other
MANUFACTURER
1.2. Indirect channel: intermediaries are
WHOLESALER between producer and consumer and perform
numerous channel functions
RETAILER
2. Mktg channel for business goods/services:
CONSUMER shorter and rely on none or one intermediary
because business users are fewer and more
TYPES OF CHANNEL concentrated geographically and buy in larger
MEMBERS quantity
(ALSO KNOWN AS INTERMEDIARIES
OR MIDDLEMEN) 2.1. Direct channel: firms maintain their own
salesforce and perform all channel functions;
 WHOLESALERS when buyers are large and defined, sales
 RETAILERS require extensive negotiations, products are
of high unit value and require hands on
expertise for installation/use
WHOLESALERS 2.2. Indirect channel: one or more
intermediaries to reach industrial users
 MERCHANT WHOLESALERS - Industrial distributors: act like wholesaler and
- DISTRIBUTOR perform variety of mktg channel functions – sell,
- JOBBER
 AGENTS
stock delivery product assortment, finance
 MANUFACTURER'S SALES - Agents: independent seller of producers and
BRANCH VS. SALES OFFICE represent producer to industrial fasteners
- Both: longest channel
3. Electronic mktg channels: use internet to make
goods/services available to consumers and
business buyers combining electronic and
traditional intermediaries to create time, place,
form, and possession utility for buyers
4. Marketing: ways to reach buyers
4.1. Direct mktg: allow consumers to buy
products by interacting w/ various advertising
 RETAILERS media w/o face-to-face meeting
w/salesperson (mail order, direct-mail sales,
 STORE telemktg, interactive media, televised home
- SPECIALTY
- DEPARTMENT STORES
shopping
- POWER RETAILERS 4.2. Multichannel mktg: blending of different
- DISCOUNTERS communication and delivery channels
 NONSTORE
mutually reinforcing in attract, retain, build
relationships w/ customers who buy in
CHANNEL TYPES
traditional intermediaries and online;
integrate a firm’s electronic and delivery
channels; leverage the value-adding
 CONTRACTUAL capabilities of different channels (pick online
 e.g., Franchising order at nearest store)
 ADMINISTERED 5. Dual distribution & strategic channel alliances:
 VERTICALLY INTEGRATED
5.1. Dual distribution: firm reaches different
buyers employing 2+ different types of
channels for the same product (se multiple
channels w/ multiband strategy to minimize
KEY TRADEOFF cannibalization of firm’s family brand and
differentiate channels); distribute modified
COST VS. CONTROL products through different channels
(CHANNEL CAPTAIN)
5.2. Strategic channel alliances: one firm’s
mktg channel is used to sell another firm’s
products; popular in global mktg where
creation of mktg channels relationships is
expensive and time consuming. Ex: Kraft
QUESTION:
WHY USE distributes Starbucks coffee to retailers
INTERMEDIARIES? 6. Channel intermediaries: engage in wholesaling
activities involving selling products/services to
ANSWER:
TRANSACTION EFFICIENCY resale or business
6.1. Merchant wholesalers: independently
owned firms that take title to the merchandise
they handle
6.1.1. Full service:
- General merchandise (full-line): carry a broad
assortment of merchandise and perform all
channel functions (prevalent in hardware, drug,
clothing industry, but don’t retain much
assortment of specific product line)
- Specialty merchandise (limited-line): offer
relative narrow range of products but have
extensive assortment of product lines; perform all
channel functions (health foods, automotive
parts, seafood industry)
6.1.2. Limited service:
- Rack jobbers: furnish racks/shelves that display
merchandise in retail stores, perform all channel
functions, sell on consignment to retailers (retain
title to products displayed and bill retailers only
 for the merchandise sold – hosiery, toys,
housewares, health/beauty)
- Cash and carry: take title to merchandise but sell
only to buyers who call on them, pay cash, furnish
own transportation; carry limited assortment and
don’t delivery, extend credit, supply mkt info
(electric and office supplies, hardware products,
groceries)
- Drop shippers (desk jobbers): own merchandise
they sell but don’t handle physically, stock, or
deliver; they solicit order from retailers and other
wholesalers and have merchandise shipped
directly from producer to a buyer (coal, lumber,
chemicals)
- Truck jobbers: small wholesalers that have small
warehouse from which stock trucks for
distribution to retailers; handle limited
assortments of fast-moving or perishable item
sold for cash directly from trucks in their original
packages (bakery, dairy, meat)
6.2. Agents & brokers: don’t take title of
merchandise and perform fewer channel
functions; make profit from commission or fee
paid for services
- Manufacturer’s agent (manufacturer’s
representative): work for several producers and
carry noncompetitive, complementary
merchandise in exclusive territory; act as
producer’s sales arm in a territory and are
responsible for transactional channel functions,
primarily selling (automotive supply, footwear,
fabricated steel industry)
- Selling agents: single producer responsible for
entire mktg function of producer; design
promotional plans, set prices, determine
distribution policies, make recommendations on
product strategy (small producer like textile,
apparel, food, home furnishing)
- Brokers: independent firm/individuals whose
function is to bring buyers and sellers together;
no continuous relationship w/ buyer or seller but
negotiate contract between parties and move on
(seasonal products like fruit and vegetable and
real estate)
- Food brokers: act on behalf of producers on
permanent basis and receive commission
(candies, margarine, peanuts, cookies, crackers)
6.3. Manufacture’s branches/offices: owned
extensions of producer that perform
 wholesaling activities when there are no
intermediaries to perform functions; few
customers and geographically concentrated,
order is large or require significant attention;
carry producer inventory and perform full-
service functions ; doesn’t carry inventory,
perform only sales function, serves as
alternative to agents and brokers
7. Vertical mktg systems: professionally managed
and centrally coordinated mktg channels to
achieve channel economies and maximum impact
7.1. Corporate system: combination of
successive stages of production and
distribution under a single ownership;
companies seeking to reduce distribution
costs and gain control over supply sources or
resale their products pursue forward and
backward integration
- Forward integration: producer own the
intermediary at next level down into channel. Ex.
Manufacturer clothing and own apparel store
- Backward integration: retailer own
manufacturing operation. Ex: store brand
manufacturers appliances
7.2. Contractual system (most popular):
independent production and distribution firms
integrate their efforts on contractual basis to
obtain greater functional economies and mktg
impact than alone
- Wholesaler-sponsored voluntary chains:
wholesaler that develops contractual relationship
w/ small, independent retailers to standardize
and coordinate buying practices, merchandising
programs, inventory management efforts and to
compete w/ chain stores
- Retailer-sponsored cooperatives: small,
independent retailers form an organization that
operates a wholesale facility cooperatively and
concentrate their buying power through
wholesaler and plan collaborative promotional
and pricing activities
- Franchising: contractual arrangement between
parent company (franchisor) and individual/firm
(franchisee) that allows franchise to operate
certain type of business under established name
and specific rules
i. Manufacturer-sponsored retail franchise
system: manufacture licenses dealers to
sell its cars subject to sales and services
 conditions (automobile industry)
ii. Manufacturer-sponsored wholesale
system: manufacturer licenses
wholesalers that purchase concentrate
and carbonate, bottle, promote, and
distribute its product to supermarkets and
restaurant (soft drink industry)
iii. Service-sponsored retail franchise
system: firms w/ unique approach for
performing service and profit by selling
franchise to others (regular franchising)
iv. Service-sponsored franchise system:
franchisors license individuals/firms to
dispense services under trade name and
specifics guidelines (employment services)
7.3. Administered system: achieve
coordination at successive stages of
production and distribution by the size and
influence of one channel member rather than
through ownership (Wal-Mart)
7.4. Channel partnerships: agreements and
procedure among channel members to order
and distribute producer’s products through
channel to ultimate consumer; collaborative
use of information and communication
technology to better serve customers and
reduce time and cost of performing channel
functions

CHANNEL CHOICE & MANAGEMENT

1. Factors affecting channel choice & mngt: mktg
channels link producer to buyer and provide
means to firm implement elements of mktg
strategy
1.1. Environmental factors: changes in family
lifestyles, higher employment among women,
online buyers, advances in technology,
transportation, and storage, regulatory factors
1.2. Consumer factors: consumer
characteristics, who potential customers are,
where, when, how, and what they buy
1.3. Product factors: highly sophisticated,
unstandardized, or high unit products are
distributed directly to buyers; otherwise,
through indirect channels; product’s stage in
life cycle affects mktg channel
1.4. Company factors: firm’s financial, human,
technological capabilities (firms unable to
employ salesforce use manufacturer’s agents;
 firms w/ multiple products for particular
target market use direct channel, and limited
product line use intermediaries
2. Channel choice considerations: which channel
and intermediary provide best coverage of target
mkt, satisfy buying requirements of target mkt, is
most profitable
2.1. Target market coverage: requires
attention to density (number of stores in
geographical area) and type of intermediaries
at retail level of distribution
- Intensive distribution: firm tries to place
products/services in as many outlets as possible,
usually chosen for convenience products or
services (candy, fast food, newspaper, soft drinks)
- Exclusive distribution: only one retail outlet is
specified geographical area carries that product,
typically chosen for specialty products/services
(automobiles, luxury women’s fragrance, apparel
and accessories, yachts, computer brands)
- Selective distribution: few retail outlets in specific
geographical area carry products (luxury watches
and furniture, golf clubs)
2.2. Satisfying buyer requirements:
information (for buyers w/ limited knowledge
or desire specific data through in-store
display, demonstration, personal selling),
convenience (proximity or driving time to
retail outlet, or 8 sec rule for websites),
variety (numerous competing and
complementary item), pre- or post-sale
services (required for products such large
appliances that require delivery, installation,
credit)
2.3. Profitability: margins earned (revenue –
cost) including distribution, advertising, selling
expenses
3. Global dimensions of mktg channels: traditions,
customs, geography, economy history of
countries/societies; channel relationships bond
(vertical integration and social and economic ties)
producers and intermediaries together
4. Channel relationship (conflict, cooperation, law):
disagreements on who performs which channel
functions because channels consist of
independent individuals and firms
4.1. Sources of conflict in mktg channels:
- Vertical conflict: between different levels in mktg
channel when a channel member bypasses
 another member and sells or buy products direct
(disintermediation), how profit margins are
distributed among channel members, and when
manufactures believe wholesalers or retailers are
not giving adequate attention to products
- Horizontal conflict: between intermediaries at the
same level in mktg channel when a manufacturer
increases distribution coverage in geographical
area and when different retailers carry same
brands (dual distribution)
4.2. Securing cooperation in mktg channels:
destructive effects on work of mktg channel
4.3. Channel captain: a channel member that
coordinates, directs, supports other channel
members (strong consumer followed,
coordinates/supports product flow from
numerous small manufactures, strong
consumer image, number of outlets,
purchasing volume)
4.4. Channel influence: ability to influence
behavior of other member; economic (ability
to reward other members given strong
financial position or customer franchise,
expertise, identification w/ particular channel
members, influence (one channel member
direct behavior of others to gain concessions,
allowance payments to stock or display
products - extortion)
4.5. Legal consideration: resolved through
negotiation or exercise of influence by
channel members
- Dual distribution: legal but viewed as
anticompetitive
- Vertical integration: legal but subject to Clayton
Act if lessen competition or foster monopoly
- Exclusive dealing: supplier requires channel
members to sell only its products or restricts
distributors from selling directly competitive
products
- Tying arrangements: supplier requires distributor
to purchase some products to buy others (often in
franchising); refusal to deal
- Resale restrictions: supplier attempts to stipulate
to whom and specific area distributors may resell
products (courts apply ‘rule of reason’)
 CH. 16 CUSTOMER DRIVEN SUPPLY CHAIN & LOGISTICS MNGT

SUPPLY CHAIN MANAGEMENT SIGNIFICANCE

1. Relating mktg channels, logistics, supply chain mngt
(Related chapter in text: 16)
1.1. Logistics: activities to get right amount of right
product to right place at right time at lowest cost
1.2. Logistics management: organize cost-effective
flow of raw materials, in-process inventory,
finished goods, and related info from origin to
SUPPLY CHAIN MANAGEMENT consumption to satisfy consumer requirements
The integration and organization
in cost-effective manner, by collaboration,
of information and logistics coordination, and information sharing among
activities across firms in a manufacturers, suppliers, and distributors
supply chain for the purpose of
creating and delivering goods
2. Supply chains x mktg channels
and services that provide value 2.1. Supply chain: sequence of firms performing
to consumers. activities required to create and deliver a
good/service to consumers or industrial users
Supply Chain Management
(differ from mktg channel in terms of
membership)
2.2. Supply chain mngt: integration and organization
• Subsumes Logistics
of information and logistics activities across
• Relies heavily on
firms in supply chain w/ purpose of create and
e-commerce
deliver good/service
3. Supply chain mngt and mktg strategy
3.1. Aligning supply chain w/ mktg strategy
LOGISTICS FUNCTIONS - Understand costumer: identify their needs (low price,
purchase convenience)
• TRANSPORTATION
• WAREHOUSING AND MATERIALS
- Understand supply chain: be responsive to customer
HANDLING requirements and demand of efficiency w/ goal of
• ORDER PROCESSING
- ELECTRONIC DATA INTERCHANGE (EDI)
supplying products at lowest delivered cost
• INVENTORY MANAGEMENT - Harmonize supply chain w/ mktg strategy: be
- JUST-IN-TIME (JIT)
- VENDOR-MANAGED INVENTORY (VMI) consistent w/ target customer’s need and mktg strategy
3.2. Responsive supply chain (Dell): target customers
who desire the most up-to-date computer
systems customized to their needs, willing to
wait to have customized computer system
THE STRUGGLE FOR CHANNEL
LEADERSHIP BETWEEN
delivered in few days and pay reasonable but not
MANUFACTURERS AND lowest price in mkt; use expensive transportation
RETAILERS
for receipt of components from suppliers and
deliver of finish products; product variety and
manufacturing efficiency by designing common
platforms across several products and using
common components; investment in information
technology to link w/ suppliers and customers
3.3. Efficient supply chain (Wal-Mart): mass
consumption consumer goods; inexpensive and
slower transportation; emphasize economies of
scale in production by reducing variety of system
configurations offered and limit assembly and
 inventory storage facilities (cross docking –
CHANNEL DYNAMICS
unload products from suppliers, sorting products
for individual stores, quick reload products onto
POWER/CONFLICT own trucks for particular store); investment in
COOPERATION information technology to operate supply chain,
feeding information about customer
RELATIONSHIPS requirements and demand from stores back to
suppliers. Lessons: there is no one best supply
chain for every company; the best supply chain is
the one consistent w/ customer needs and
RELATIONSHIP MARKETING complements company’s mktg strategy; supply
EMPHASIZES LONG-TERM chain mngr make trade-off between efficiency
RELATIONSHIPS WITH and responsiveness on various elements of
SUPPLIERS, DISTRIBUTORS
AND CUSTOMERS supply chain

OBJECTIVE OF INFORMATION & LOGISTICS MNGT

1. Objective: minimize logistics cost while delivering
TRANSACTION MARKETING maximum customer service
2. Information’s role in supply chain responsiveness and
• SHORT TERM efficiency
• PRICE EMPHASIS 2.1. Information: data and analysis of inventory,
• PRODUCT QUALITY transportation, distribution facilities, customers
• "ARM'S LENGTH" in supply chain and manage them for efficiency
and responsiveness
2.2. Technology: way to transmit and manage
RELATIONSHIP MARKETING
information in supply chain
- Electronic Data Interchanges (EDI): combine proprietary
• LONG TERM
computer and telecommunication technologies to
• MUTUAL SATISFACTION exchange electronic invoices, payments, information
• INTERACTION QUALITY among suppliers, manufacturers, retailers
• INTERDEPENDENT - Extranet: less expensive and more flexible to operate
internet-based network that permits secure business-to-
business communication between manufacturer and
suppliers, distributors, partners (advertising agencies)
VIEWING THE CHANNEL 3. Total logistics cost concept: expenses associated w/
AS A CUSTOMER VALUE- transportation, material handling and warehousing,
ADD CHAIN
inventory, stockouts (being out of inventory), order
processing, return goods handling – usually interrelated
Old View: Channel as pipeline
4. Customer service concept: if supply chain is a flow, the
New View: Channel as value-add end of (output) it is the service delivered to customers
chain by providing superior customer service while controlling
logistics costs; customer service is an expense and a
mean to increase customer satisfaction and sales
- Customer service: ability of logistics management to
satisfy users in terms of time, dependability,
communication, convenience
4.1. Time: lead time for an item; the lag from
ordering until received and ready to use or sale
(order cycle time or replenishment time) –
 recognize need to order, order transmittal, order
processing, documentation, transportation; make
process as simples as possible by electronic data
and inventory systems (quick response or
efficient consumer response delivery system)
4.2. Dependability: consistency of replenishment
(consistent lead time, safe delivery, complete
delivery)
4.3. Communication: link between buyers and seller
to help monitor service and anticipate future
needs (status report)
4.4. Convenience: minimum effort of buyer in doing
business w/ seller
5. Customer service standards: written customer service
standards; objective and provide benchmark against
results that can be measured for control purposes;
necessary to know what competitors offer and customer
willingness to pay more for better service

LOGISTICS FUNCTIONS
1. Transportation: provides movement of goods necessary
in supply chain; cost (charges for transportation), time
(speed of transit), capability (what can be realistic
carried w/ this mode), dependability (reliability of
service regarding time, loss, damage), accessibility
(convenience of mode’s route), frequency (schedule)
1.1. Railroad: carry heavy, bulky items over long
distances; can carry more weight but routes are
less extensive; unit train (dedicated to one
commodity and specific schedule); intermodal
transportation (combine different transportation
modes to get best features – piggyback/trailer on
flatcar, containers)
1.2. Motor carriers: many small firms/truckers to
transport own products; advantage is to
complete door-to-door service; disadvantage is
size and weight enforced by states
1.3. Air carriers and express companies: costly but
speed creating savings in lower inventory; item
carried are limited by space constraints and are
usually valuable, time-sensitive, lightweight
1.4. Freight forwarders: firms that accumulate small
shipments into larger lots and then hire a carrier
to move it at reduced rate; forwarders collect
many small shipments consigned to a common
destination and pay the carrier the lower rate
based on larger volume so they often convert
shipments that are less-than-truckload (LTL) into
full truckloads w/ better shipping rates
2. Warehousing and material handling
2.1. Storage warehouse: goods are intended to come
to rest for some period of time, as in the aging of
products or storing household goods; materials
handling (move goods over short distances into
and out of warehouses and manufacturing plants
– high labor costs and rates of loss and damage)
2.2. Distribution center: designed to facilitate the
timely movement of goods and represent
important part of supply chain (second most
significant cost after transportation); allow firms
to hold stock in decentralized locations and
consolidate products from different
manufacturing plants or suppliers; physical
transformation can take place such as mixing or
blending different ingredients, labeling, and
repacking
3. Order processing: evaluated in terms of speed and
accuracy, transmit order by variety of means (internet,
extranet, electronic data interchange), enter order I
appropriate database, send information to those
needing it - backorder (if item is currently out of stock);
check customer credit; prepare order documentation;
arrange transportation; send confirmation
4. Inventory management: primary responsibility of
supply chain mngt; maintain delicate balance between
too little (result in poor service, stockouts, brand
switching, loss of market share) and too much (higher
cost because of money tied up in inventory and chance
to become obsolete
4.1. Reasons for inventory: offer buffer against
variations in supply and demand caused by
uncertainty in forecasting demand, provide
better services for those customer who wish to
be served on demand, promote production
efficiencies, provide hedge against price
increases by suppliers, promote purchasing and
transportation discounts, protect firm from
contingencies (strikes and shortages); inventory
is something to be moved not stored, and more
liability than asset
4.2. Inventory costs: hard to detect because are
difficult to measure and occur in different parts
of firms
- Capital cost: (always present) opportunity cost resulting
from tying up funds in inventory instead of use them in
more profitable investments (related to interest rates)
- Inventory services costs: (variable) insurance and state
taxes
 - Storage costs: (variable) warehousing space and
material handling
- Risk cost: (variable) possible loss, damage, pilferage,
perishability, obsolescence
4.3. Supply chain inventory strategies
- Just-in-case: firm protects itself against uncertainty by
maintaining reserve inventory at each of its production
and stocking points – causes unnecessary levels of
inventory
- Just-in-time (JIT): inventory supply system that operates
w/ very low inventories and requires fast, on-time
delivery where demand forecast is reliable
- Vendor-managed inventory (VMI): inventory mngt
system where supplier determines product amount and
assortment a customer (retailer) needs and
automatically delivers the appropriate items
Third-party logistics providers: firms that perform most of
all logistics functions that manufacturers, suppliers, and
distributors would normally perform themselves

REVERSE LOGISTICS
Process of reclaiming recyclable and reusable materials, returns,
and reworks from point of consumption or use for repair,
remanufacturing, redistribution, or disposal; seen in the
reduced landfills and lowered operating costs for companies
1.
  Which of the following is TRUE regarding channels of distribution?

  Student Value Correct Answer Feedback

Response

A. When    
Blockbuster
produces its
own films, it is
engaging in
forward
vertical
integration.

B. A    
disadvantage
of franchising
is the high
failure rate of
individual
franchisees.

C. Transaction    
efficiency is an
advantage
gained
through the
use of
intermediaries
.

D. Administered    
channels are
controlled by
legal
agreements.

E. The recently 0%    
emerging view
of channels is
that of a
pipeline to
move products
from the
manufacturer
to the
consumer.
General Lecture page 92:
Feedback
: A. When Blockbuster produces its own films, it is engaging in backward vertical integration,
not forward.
B. Franchises often perform better than privately owned companies when it comes to
avoiding failure.
C. Correct! Intermediaries increase market efficiency since they allows buyers to purchase
many different products from different manufacturers in the same location. Rather than
going to several different manufacturers, intermediaries allow buyers to purchase different
products in one location.
D. Contractual systems are maintain through legal agreements, while administered systems
are maintained by the relative influence of channel members.
E. Rather than a “pipeline”, the emerging view discussed in class is “value-added” chain.
 Score: 0/1
 
2.
Marco traveled across three states to shop at Tiffany's to buy his girlfriend, Jana, a present. This is the
only Tiffany's store in the entire region. The degree of channel coverage for Tiffany's is:

  Student Value Correct Answer Feedback

Response

A. Intensive    

B. Exclusive 100%    

C. Transactiona    
l

D. Logistical    
  E. Speed    
General Lecture page 90:
Feedback
: A. Intensive channel coverage is where the product is distributed in as many places as
possible. This strategy is commonly used for convenience goods.
B. Correct! Exclusive channel coverage means that the good is not widely distributed.
Exclusive channel coverage provides an individual store with the exclusive right to distribute
the product in a given area. Exclusive coverage is generally used for specialty goods.
C. This term does not define a degree of channel coverage.
D. This term does not define a degree of channel coverage.
E. This term does not define a degree of channel coverage.
Score: 1/1
 
3.
  Which type of marketing channel arrangement is good for a firm to use in international marketing where
the creation of marketing channel relationships is expensive and time consuming?

  Student Value Correct Answer Feedback

Response

A. cooperativ    
e
distribution

B. integrated    
global
channel
alliance

C. multi-    
channel
distribution

D. dual    
distribution

E. strategic 100%   A strategic channel alliance is where one firm's

channel marketing channel is used to sell another firm's
alliance products. For example, Kraft Foods distributes
Starbucks coffee in the U.S. and internationally. It is
easier for Starbucks to have Kraft Foods distribute their
products because Kraft already has an existing channel
 in place for distribution. Rather than spending time and
money on creating a separate channel it is easier for
Starbucks to create a strategic alliance with Kraft in
order to distribute their products.  
General Text page 396
Feedback A) Created term.
: B) Created term.
C) Multi-channel retailing refers to retailers who use some combination of physical stores,
websites, and catalogues to reach their customers.
D) Dual distribution is an arrangement whereby a firm reaches different buyers by employing
two or more different types of channels for the same basic product. Creating a marketing
channel internationally is expensive and time consuming. Given this, it would not be wise for
a firm to create two different channels for the same product.
E) A strategic channel alliance is where one firm's marketing channel is used to sell another
firm's products. For example, Kraft Foods distributes Starbucks coffee in the U.S. and
internationally. It is easier for Starbucks to have Kraft Foods distribute their products
because Kraft already has an existing channel in place for distribution. Rather than spending
time and money on creating a separate channel it is easier for Starbucks to create a strategic
alliance with Kraft in order to distribute their products.
Score: 1/1
 
4.
  Cross-docking and inventory management are examples of what concept?

  Student Value Correct Answer Feedback

Response

A. The    
distinction
between a
channel of
distribution
and actual
physical
distribution
of a
product

B. Logistics 100%    

C. Transaction    
Marketing

D. Channel    
Dynamics

E. Relationshi    
p Marketing
General Lecture page 94: Logistics focuses on getting the right amount of the right product to the
Feedback right place at the right time at the lowest possible cost. The emphasis of logistics is on
: distribution, getting the product from point of origin to point of consumption. Cross-docking
allows for the quick and efficient method of sorting goods coming from the manufacturer to
the retailer. Cross-docking essentially involves two docks, an arrival dock and a departure
dock. Goods coming from the manufacturer enter the plant at the arrival dock and are then
sorted and prepared to exit on the departure dock. Thus, cross-docking serves an important
logistical function since it allows goods to flow quickly and efficiently from the manufacturer
to the retailer. Inventory management requires coordination between suppliers and vendors
in order to maintain optimal levels of inventory. This an example of logistics since inventory
management focuses on the movement of products in a cost effective manner throughout
 the supply chain.
Score: 1/1
 
5.
In a logistics setting, replenishment time refers to lead time for an item, which means the lag from
ordering an item until it is:

  Student Value Correct Answer Feedback

Response

A. promised for    
delivery.

B. billed and    
paid for.

C. acknowledge    
d by the
  customer.

D. received and 100%    

ready for use
or sale.

E. billed to the    
customer.
General Text page 423: By definition, the time between ordering an item until it is received and
Feedback ready for use or sale is replenishment time. Replenishment time is also known as order cycle
: time or lead time. A current emphasis in supply chain management is to reduce lead time, or
replenishment time, so that the inventory levels may be minimized.
Score: 1/1
 
6.
  Karl Zimmerman imports furniture from Germany-some antiques but mostly new pieces made and
painted in the Black Forest. To keep costs down, he has arranged to ship the furniture only when there
is enough to fill a 40-foot container. The container moves through Germany by truck, river barge, and
train before being loaded on a container ship. When the ship docks in the U.S., the container is loaded
onto a train and then a truck for delivery to Zimmerman's shop. Zimmerman's method of bringing goods
to the U.S. is called:

  Student Value Correct Answer Feedback

Response

A. strategic    
channel
alliances.

B. international 0%    
trading
alliances.

C. intermodal    
communication
.

D. intermodal    
transportation.

E. international    
 marketing.
General Text page 427:
Feedback
: A. Strategic channel alliances involve using one firm’s marketing channel to sell another
firm’s products.
B. Created term.
C. Created term.
D. Correct! Intermodal transportation involves combining different transportation modes in
order to get a product to the market. The product in this example travels on truck, river
barge, train, and ship.
E. Distracter.
Score: 0/1
 
7.
  MGM is a company that makes and distributes movies and television shows, but some say the
company's real value lies in its library of over 4,100 films, on which it currently collects licensing fees.
Concerning future growth for the company, a news article states, "[MGM CEO] Yemenidjian's vision,
viewed as solid by Wall Street and industry watchers alike, is to develop branded channels, such as
MGM Drama or MGM Comedy, through which it can leverage the library to reap distribution and
advertising fees as well." MGM's strategy of launching cable television channels on which to display its
movies and shows is an example of:

  Student Value Correct Answer Feedback

Response

A. franchising    

B. horizontal    
integration

C. administere    
d channeling

D. backward    
vertical
integration

E. forward 100%    
vertical
integration
General Lecture page 91
Feedback A) Franchising is a contractual arrangement between a parent company and an individual or
: firm that allows the franchisee to operate a certain type of business under an established
name and according to specific rules. Here MGM would own everything and not be
contracting with another firm.
B) Horizontal integration occurs when a company buys another firm in the same industry. In
this case if MGM bought another film library this would be horizontal integration.
C) Administered vertical marketing systems achieve coordination at successive stages of
production and distribution by the size and influence of one channel member rather through
ownership. Administered channeling is not a marketing term.
D) Backward vertical integration occurs when a firm owns the channel of distribution at a
level further away from the consumer. In this example, if MGM owned TV channels and then
bought a film library to show on the channels that would be backward vertical integration.
E) MGM is a producer of movies and TV channels are a mode of distributing movies to
consumers. By starting its own cable TV channels, MGM is forward vertically integrating
toward the consumer market rather than selling or renting its movies to independently
owned cable channels.
Score: 1/1
  
8.
Which of the following is NOT a type of limited-service wholesaler?

  Student Value Correct Answer Feedback

Response

A. drop shipper    

B. rack jobber    

C. cash and    
carry
wholesaler

D. general    
merchandis
e wholesaler

E. truck jobber 0%    
 
General Text page 398
Feedback A) A drop shipper is a limited-service wholesaler who owns the merchandise they sell but
: does not physically handle, stock, or deliver it.
B) A rack jobber is a limited-service wholesaler who furnishes the racks or shelves that
display merchandise in retail stores, 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
C) Cash and carry wholesaler take title to merchandise but sell only to buyers who can call
on them, pay cash for merchandise, and furnish their own transportation for merchandise.
They are limited-service wholesalers.
D) General merchandise wholesalers carry a broad assortment of merchandise and perform
all channel functions. They are full-service wholesalers.
E) Truck jobbers are small wholesalers who have a small warehouse from which they stock
their trucks for distribution to retailers. They are limited-service wholesalers.
Score: 0/1
 
9.
  Relationship Marketing is characterized by:
I. A long-term perspective
II. A product quality focus
III. Interdependence
IV. An emphasis on price

  Student Value Correct Answer Feedback

Response

A. II, III, and 0%    

IV only

B. I, II, III,    
and IV

C. I and III    
only

D. I, II, and    
IV only

E. I and IV    
only
 General Lecture page 94
Feedback A) A long-term perspective characterizes relationship marketing, while price emphasis and
: product quality focus are characteristics of transaction marketing not relationship marketing.
B) Price emphasis and product quality focus are characteristics of transaction marketing not
relationship marketing.
C) A long-term perspective and interdependence are characteristics of relationship
marketing.
D) Interdependence is a characteristic of relationship marketing. Price emphasis and product
quality focus are characteristics of transaction marketing not relationship marketing
E) Price emphasis is not a characteristic of relationship marketing.
Score: 0/1
 
10
.
  For 20 years, Regardo Inc. has produced small specially-ordered machine parts. It sends out numerous
small-sized orders throughout the week. This has been a very expensive way of doing business, and its
logistics manager wants to save money on outbound transportation costs. What should she do?

  Student Value Correct Answer Feedback

Response

A. Use an air    
express
company to
ensure that
orders arrive
on time

B. Use an    
intermodal
transportatio
n method to
haul the
orders

C. Charter a    
plane once a
week to carry
all necessary
orders

D. Employ the    
services of a
freight
forwarder

E. Work with 0%    
her suppliers
to design a
JIT system
General Text page 428
Feedback A) Orders arriving on time is not the problem. The problem is high transportation costs and
: air freight is very costly.
B) An intermodal approach would generally be larger shipments and Regardo Inc. has many
small-sized orders.
C) Chartering a plane would not save money on transportation costs and would be very
expensive in fuel costs alone
D) Regardo Inc. sends out a lot of small orders. This is a precisely the circumstance that calls
for the use of a freight forwarder, which combines small shipments from several sources to
secure all of them more efficient shipping and lower their expense.
 E) Designing a JIT system has to do with inventory costs. It will not help her reduce her
outbound transportation costs.
Score: 0/1