Home Chapter 16 Concept Check

Retail store types pass through stages of growth and decline that
can be described as the _____.
wheel of retailing

product life cycle

retail life cycle

retail positioning map

levels of retailing

Stores use _____ to measure a product's handling costs from the

time it reaches the warehouse until a customer buys it.
economic order quantity

direct product profitability

break-even analysis

product differentiation

procurement analysis

_____ refers to the "look" a store has, planned to suit the target
market.
Aesthetics

Layout

Tempo

Atmosphere

Floor plan

According to most experts, the three most important keys to

success in retailing are _____.
product mix, service mix, prices

product, price, promotion

 atmosphere, products, location

communication, location, services

location, location, location

_____ are unbranded, plainly packaged, less expensive versions

of common products.
Private labels

Generics

House brands

Retailer brands

House labels

_____, also known as cash and carry wholesalers, sell a limited

line of fast moving goods to small retailers for cash.
Merchant wholesalers

Full-service wholesalers

Limited-service wholesalers

Brokers and agents

Specialized wholesalers

_____ involve(s) planning the infrastructure to meet demands,

then implementing and controlling the physical flows of
materials and final goods.
Inventory analysis

Economic order quantity

Market logistics

Demand chain management

Warehousing
_____ refers to the elapsed time between an order's receipt,
delivery, and payment.
Credit cycle

Payment-delivery cycle

Market logistics cycle

Order-to-payment cycle

Receipt-to-payment cycle

_____ consist(s) of putting the goods in boxes or trailers that

are easy to transfer between two transportation modes.
Packaging

Warehousing

Logistics

Containerization

Distribution management

_____ describes the use of rail and trucks used together as

transportation modes.
Fishyback

Trainship

Piggyback

Trainruck

Trainback

Retailing includes all activities involved in selling goods or

services directly to final consumers for personal, non-business
use.

True

False
To better differentiate themselves and generate consumer
interest, some luxury retailers are attempting to make their store
and merchandise more narrow and specialized.

True

False

Regional shopping centers refer to smaller malls with one anchor

store and between 20 and 40 smaller stores.

True

False

A community shopping center contains a cluster of stores,

usually housed in one long building, serving a neighborhood's
needs for groceries, hardware, laundry, shoe repair, and dry
cleaning.

True

False

Non-store-based retailers do not take buyers away from store-

based retailers since they are targeting different consumers.

True

False

Wholesaling includes all the activities involved in selling goods

or services to those who buy for resale or business use.

True
 False

Wholesalers finance customers by granting credit, and finance

suppliers by ordering early and paying bills on time.

True

False

Wholesalers cannot hold inventory therefore inventory costs and

risks are borne by suppliers and consumers.

True

False

Wholesalers often help retailers improve their operations by

training sales clerks, helping with store layouts and displays, and
setting up accounting and inventory-control systems.

True

False

Wholesalers rely primarily on their sales force to achieve

promotional objectives.

True

False

What are the four levels of service retailers can offer? Explain
each.
To create paragraphs in your essay response, type <p> at the beginning of the
paragraph, and </p> at the end.

After a retailer has defined the store's product assortment how

might he develop a product-differentiation strategy?

To create paragraphs in your essay response, type <p> at the beginning of the
paragraph, and </p> at the end.
Home Chapter 17 Concept Check

Concept Check

This activity contains 22 questions.

A program designed to promote or protect a company's image or

its individual products is called _____.
advertising

sales promotion

public relations and publicity

direct marketing

personal selling

_____ involves the use of mail, telephone, fax, e-mail, or

Internet to communicate directly with or solicit response or
dialogue from specific customers and prospects.
Advertising

Sales promotion

Public relations and publicity

Direct selling

Personal selling

_____ involves face-to-face interaction with one or more

prospective purchasers for the purpose of making presentations,
answering questions, and procuring orders.
Advertising

Sales promotion

Public relations and publicity

Direct selling

Personal selling
A(n) _____ appeal elaborates on product or service attributes or
beliefs.
image

performance

creative

informational

transformational

A(n) _____ appeal elaborates on non-product-related benefit or

image.
image

performance

creative

informational

transformational

_____ channels involve two or more persons communicating

directly face-to-face, person-to-audience, over the telephone, or
through e-mail.
Personal communications

Non-personal communications

Direct communications

Indirect communications

Congruent communications

_____ consist(s) of print media; broadcast media; network

media; electronic and display media.
Advertising
 Media

Sales promotions

Public relations

Personal communications

Some companies set their promotion budget to achieve share-of-

voice parity with competitors. This is called the _____ method.
affordable

reliable

share-of-voice

competitive-parity

symbiotic

The advantages to using _____ as a communications tool are: 1.

it can be customized, 2. it is up-to-date, and 3. it is interactive.
advertising

sales promotion

direct marketing

personal selling

public relations

_____ is a concept of marketing communications planning that

recognizes the added value of a comprehensive plan.
Integrated marketing communications

Coordinated marketing channels

Public relations and publicity

Multiple-stage campaign

Multiple-vehicle campaign
Marketing communications allow companies to link their brands
to other people, places, events, brands, experiences, feelings and
things.

True

False

Anything that causes the consumer to notice and pay attention to

the brand can increase brand awareness.

True

False

The first step in developing effective communications is to

establish the budget.

True

False

Image is the set of beliefs, ideas, and impressions a person holds

regarding an object.

True

False

Communicators use negative appeals such as fear, guilt, and

shame to get people to do things, or stop doing things.

True

False
Advocate channels consist of neighbors, friends, family members
and associates talking to target buyers.

True

False

Expert channels consist of company salespeople contacting

buyers in the target market.

True

False

Non-personal channels are communications directed to more

than one person and include media, sales promotions, events,
and publicity.

True

False

Mass communications affect personal attitudes and behavior

through a four-step process.

True

False

Marketers tend to underuse public relations in their

communication mix.

True
 False

Describe the six major modes of communication in the

communications mix.

To create paragraphs in your essay response, type <p> at the beginning of the
paragraph, and </p> at the end.

Describe the elements in the macromodel of the communications

mix.

To create paragraphs in your essay response, type <p> at the beginning of the
paragraph, and </p> at the end.
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Home Chapter 18 Concept Check

Concept Check

This activity contains 22 questions.

_____ is/are any paid form of non-personal presentation and

promotion of ideas, goods, or services by an identified sponsor.
Advertising

Mass communication

Sales promotion

Events

Public relations

_____ advertising aims to create liking, preference, conviction,

and purchase of a product or service.
Informative

Persuasive

Reminder

Reinforcement

Advocacy

_____ advertising aims to create brand awareness and

knowledge of new products or new features of existing products.
Informative

Persuasive

Reminder

Reinforcement

Advocacy
_____ is/are a pervasive medium. Its main advantages to
advertisers are its flexibility; audiences are very targeted, ads
relatively inexpensive to produce and place, and short closings
allow for quick response.
Television

Radio

Newspapers

Magazines

Web pop-up ads

_____ is finding the most cost-effective media to deliver the

desired number and type of exposures to the target audience.
Promotion strategy

Impact

Media selection

Reach

Frequency

_____, also called out-of-home advertising, is a broadly defined

category that captures many different alternative advertising
forms.
External advertising

Billboards

Mass media

Place advertising

Point-of-purchase advertising

_____ refers to the number of people with target audience

characteristics who actually saw the ad.
Circulation

Audience

Effective audience
 Effective ad-exposed audience

Cost-per-thousand

_____ consist(s) of a collection of incentive tools, mostly short

term, designed to stimulate quicker or greater purchase of
particular products or services by consumers or the trade.
Advertising

Sales promotion

Events

Direct marketing

Public relations

_____, formally known as publicity, is used to support corporate

or product promotion and image making.
Sales promotion

Mass advertising

Events sponsorship

Marketing Public Relations

The mission statement

The _____ method to measuring the effects of sponsorship

activities focuses on reported exposure from consumers.
supply-side

demand-side

direct

indirect

secondary
An advertising goal is a specific communications task and
achievement level to be accomplished with a specific audience in
a specific period of time.

True

False

Reinforcement advertising aims to stimulate repeat purchase of

products and services.

True

False

Persuasive advertising aims to convince current purchasers that

they made the right choice.

True

False

Message strategy refers to the positioning of an ad, while

creative strategy refers to how the ad expresses the brand
claims.

True

False

Although newspapers are timely and pervasive, magazines are

typically more effective at building user and usage imagery.

True

False
Advertorials are print ads that offer editorial content that reflects
favorably on the brand and is difficult to distinguish from
newspaper or magazine content.

True

False

Sales promotion objectives are derived from broader promotion

objectives, which are derived from more basic marketing
objectives developed for the product.

True

False

A higher proportion of the promotion pie is devoted to trade

promotion tools than to consumer promotion.

True

False

Event sponsorship involves a variety of programs designed to

promote or protect a company's image or its individual products.

True

False

A public is any group that has an actual or potential interest in or

impact on a company's ability to achieve its objectives.

True
 False

What are the five major decisions, known as "the five M's" that
marketing managers must make in developing an advertising
campaign?

To create paragraphs in your essay response, type <p> at the beginning of the
paragraph, and </p> at the end.

List and discuss three elements that explain how many

exposures, E, will produce a level of audience awareness, A.

To create paragraphs in your essay response, type <p> at the beginning of the
paragraph, and </p> at the end.
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Home Chapter 19 Concept Check

Concept Check

This activity contains 22 questions.

_____ is the use of consumer-direct channels to reach and

deliver goods and services to customers without using marketing
middlemen.
Advertising

Personal communications

Personal selling

Direct marketing

Direct selling

_____ refers to calling on customers to maintain and nurture key

account relationships and give more attention to neglected
accounts.
Telesales

Telecoverage

Teleprospecting

Teleresponse

Customer service

_____ refers to taking orders from catalogs or ads and also

doing outbound calling.
Telesales

Telecoverage

Teleprospecting

Teleresponse

Customer service
A(n) _____ is a limited area on the Web managed and paid for by
an external advertiser/company.
banner

microsite

interstitial

sponsorship

sub-site

A salesperson who is not expected or permitted to take an order

but whose major task is to build goodwill is called a(n) _____.
deliverer

order taker

demand creator

technician

missionary

A _____ is a salesperson whose expertise is in the solving of a

customer's problem, often with a system of the company's
products and services.
deliverer

missionary

technician

demand creator

solution vendor

A(n) _____ sales force consists of full- or part-time paid

employees who work exclusively for the company.
staff
 direct

indirect

contractual

technical

_____ sales supervision refers to how management

communicates what the sales reps should be doing and
motivates them to do it.
Feed-forward

Backward-feed

Rotation

Feedback

Audited

The first step in the selling process is _____.

pre-approach

presentation and demonstration

prospecting and qualifying

overcoming objectives

closing

In the _____ step of the selling process the salesperson needs to

learn as much as possible about the prospect company and its
buyers.
prospecting

pre-approach

qualifying

overcoming objectives

closing
In B2B direct marketing, the prospect is often not an individual
but a group of people or a committee that includes both decision
makers and multiple decision influencers.

True

False

Interactive marketing refers to the use of the telephone and call

centers to attract prospects, selling to existing customers, and
providing service by taking orders and answering questions.

True

False

Interstitials are small, rectangular boxes containing text and

perhaps a picture.

True

False

Banner ads are advertisements, often with video or animation

that pop up between changes on a Web site.

True

False

A demand creator is a salesperson who relies on creative

methods for selling tangible products.

True
 False

A deliverer is a salesperson who acts predominantly as an inside

order taker (salesperson standing behind the counter) or outside
order taker.

True

False

Straight-salary plans provide sales reps with a secure income,

make them more willing to perform non-selling activities, and
give them less incentive to overstock customers.

True

False

Straight-commission plans attract higher performers, provide

more motivation, require less supervision, and control selling
costs.

True

False

Sales reports are divided between activity plans and write-ups of

activity results.

True

False

The stage where customers typically pose objections is during

the prospecting and qualifying stage.
 True

False

Discuss the various ways television can be used by direct

marketers.

To create paragraphs in your essay response, type <p> at the beginning of the
paragraph, and </p> at the end.

What are the seven design elements (the 7Cs) that effective Web
sites feature? Define each of these.

To create paragraphs in your essay response, type <p> at the beginning of the
paragraph, and </p> at the end.
Home Chapter 19 Concept Challenge

Concept Challenge

This activity contains 22 questions.

_____ is when direct marketers gather or buy as many names as

possible and send out a mass mailing.
Carpet bombing

Database marketing

Interactive marketing

Real-time personalized marketing

Lifetime-value marketing

_____ is when direct marketers mine the database to identify

prospects who would have the most interest in an offer.
Carpet bombing

Database marketing

Interactive marketing

Real-time personalized marketing

Lifetime-value marketing

Ads for Johnson and Johnson's Tylenol headache reliever pop up

on brokers' Web sites whenever the stock market falls by 100
points or more. These ads are called _____.
banner ads

sponsorships

alliance ads

interstitials

crawlers
There are almost 1 million independent Internet companies that
post Amazon.com banners on their Web sites through a(n)
_____ with Amazon.
endorsement program

sponsorship

affiliate program

target program

microsite agreement

John's first task as a new salesperson is to look for leads. This is

called _____.
targeting

prospecting

communicating

selling

allocating

As a seasoned salesperson, Rhonda's job is deciding which

customer will get products during product shortages. This task is
called _____.
targeting

prospecting
communicating

selling

allocating

The _____ component of sales force compensation is intended to

stimulate and reward effort.
fixed amount

variable amount

expense allowance
 benefits

total amount

The _____ component of sales force compensation is intended to

provide security and job satisfaction.
fixed amount

variable amount

expense allowance

benefits

total amount

The AIDA formula in selling refers to _____.

advantages, income, dividend, action

advantages, interest, demand, alternatives

action, interest, demand, attention

attention, interest, demand, action

advantages, interest, demand, attention

In _____ exchange the terms are established by administered

programs of pricing and distribution.
negotiated

routinized

contractual

automatic

maintenance

Direct marketing can be timed to reach prospects at the right

moment and receive higher readership because it is sent to more
interested prospects.

True

False

In direct marketing an order-response rate of 2 percent is

normally considered good.

True

False

One of the great disadvantages of direct marketing is the

inability to test, under real marketplace conditions, different
elements of an offer strategy.

True

False

With a leveraged sales force, the sales force focuses on selling

the company's more complex and customized products to larger
accounts, while low-end selling is done by inside salespeople and
through Web ordering.

True

False

A direct sales force consists of manufacturers' reps, sales agents,

and brokers, who are paid a commission based on sales.

True

False
A direct sales force includes inside sales personnel and field
sales personnel.

True

False

Fixed compensation receives more emphasis in sales with a high

ratio of non-selling to selling duties and in jobs where the selling
is technically complex and involves teamwork.

True

False

Variable compensation receives more emphasis in jobs where

sales are cyclical or depend on individual initiative.

True

False

Logical resistance includes resistance to interference, preference

for established supply sources or brands, apathy, and reluctance
to giving up something.

True

False

Psychological resistance might consist of objections to the price,

delivery schedule, or certain product or company characteristics.

True
 False

What five components of the mailing itself are an important part

of the direct mailing and contribute to its effectiveness?
Elaborate on each of these.

To create paragraphs in your essay response, type <p> at the beginning of the
paragraph, and </p> at the end.

The term sales representative covers a broad range of positions.

Discuss six ranging from the least to the most creative types of
selling.

To create paragraphs in your essay response, type <p> at the beginning of the
paragraph, and </p> at the end.
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Home Chapter 18 Concept Challenge

Concept Challenge

This activity contains 22 questions.

A factor to consider when setting the advertising budget is

_____. This is because new products typically receive larger
advertising budgets to build awareness and gain consumer trial.
competition and clutter

market share and consumer base

stage in the product life cycle

advertising frequency

product substitutability

_____ refers to the number of repetitions needed to put across

the brand's message to consumers.
Competition and clutter

Advertising frequency

Product substitutability

Repetition ration

Hierarchy-of-effects

A _____ statement describes the objective, content, support, and

tone of the desired ad.
creative brief

message strategy

positioning

copy strategy

campaign
 Which advertising medium is characterized by the fleeting nature
of the message and high production and placement costs?
television

radio

newspapers

magazines

web pop-up ads

_____ refers to the number of different persons or households

exposed to a particular media schedule at least once during a
specified time period.
Impact

Frequency

Reach

Timing

Exposure

If a full-page print ad costs $200,000 and the magazine's

estimated readership is 3.1 million people, the cost of exposing
the ad to 1,000 persons is approximately _____.
$650

$6500

$65

$70

$700

Home Chapter 17 Concept Challenge

Concept Challenge

This activity contains 22 questions.

Receivers in the communication process will often hear what fits
into their belief system. This concept is referred to as _____.
selective attention

selective perception

selective distortion

selective retention

selective reception

People will retain in long-term memory only a small fraction of

the messages that reach them. This concept is called _____.
selective attention

selective perception

selective distortion

selective retention

selective reception

People are bombarded with so many messages each day; this

explains advertisers' concerns about _____.
selective attention

selective perception

selective distortion

selective retention

selective reception

The principle of _____ implies that communicators can use their

good image to reduce some negative feelings toward a brand but
in the process might lose some esteem with the audience.
confidence

credibility

congruity
 conformity

confluence

_____ channels consist of company salespeople contacting

buyers in the target market.
Expert

Advocate

Social

Direct

Non-personal

Samples, coupons, and premiums are examples of _____.

advertising

sales promotions

events and experiences

public relations

personal selling

The _____ method of determining the promotion budget is

criticized for viewing sales as the determiner of promotion rather
than as the result.
affordable

percentage-of-sales

competitive-parity

objective-task

symbiotic
Home Chapter 16 Concept Challenge

Concept Challenge

This activity contains 22 questions.

Independent retailers who use a central buying organization and

joint promotional efforts are called a _____.
retailer cooperative

consumer cooperative

voluntary chain

corporate chain store

merchandising conglomerate

A retail firm owned by its customers in which members

contribute money to open their own store, vote on its policies,
elect a group to manage it, and receive dividends is called a
_____.
retail cooperative

consumer cooperative

voluntary chain

corporate chain store

merchandising conglomerate

The oldest and most heavily trafficked city area is called a(n)
_____.
prime location

general business district

regional shopping center

community shopping center

urban district
Giant retailers called _____ concentrate on one product category
such as toys (Toys "R" Us) or home improvement (Home Depot).
supercenters

box stores

department stores

variety stores

category killers

Retailers such as Benetton, The Body Shop, and Marks and

Spencer carry mostly own-brand merchandise. These are called
_____ brands.
private label

house

retail label

creative label

generic label

A(n) _____ fee is the charge many supermarkets impose for

accepting a new brand to cover the cost of listing and stocking it.
stocking

slotting

listing

inventory

initiation

_____ carry stock, maintain a sales force, offer credit, make

deliveries, and provide management assistance.
Merchant wholesalers
 Full-service wholesalers

Limited-service wholesalers

Brokers and agents

Specialized wholesalers

The market logistics task calls for _____, involving materials

management, material flow systems, and physical distribution,
abetted by information technology.
inventory analysis systems

integrated logistics systems

integrated supply systems

information technology analysis

logistical economic systems

Which of the following is not one of the four major decisions that
must be made with regard to market logistics?
How should orders be handled?

Where should stock be located?

How should stock be financed?

How much stock should be held?

How should goods be shipped?

The _____ quantity can be determined by observing how order-

processing costs and inventory carrying costs sum up at different
order levels.
near-zero order

processing-carrying

optimal carrying

optimal processing

optimal order
Non-store retailing has been growing at a faster rate than store
retailing.

True

False

Most retail stores are independently owned.

True

False

Although only a third of a retailers' products produce a profit,

most retailers are unaware of which third of their products is
generating the profit.

True

False

Different types of stores (discount stores, catalog showrooms,

department stores) all compete for the same consumers by
carrying different types of merchandise.

True

False

In the United States store brands now account for one of every
five items sold.

True
 False

The growing power of store brands ultimately helps strengthen

national brands.

True

False

Wholesalers absorb some risk by taking title and bearing the cost
of theft, damage, spoilage and obsolescence.

True

False

One of the functions of wholesalers is to supply information to

suppliers and customers regarding competitors' activities, new
products, price developments, etc.

True

False

Most companies today are trying to lengthen the order-to

payment cycle.

True

False

The longer the order-to-payment cycle, the lower the customer's

satisfaction and the lower the company's profit.
 True

False

What are the four major categories non-store retailing falls into?
Explain each of these.

To create paragraphs in your essay response, type <p> at the beginning of the
paragraph, and </p> at the end.

Why are wholesalers used at all? Why don't manufacturers sell

directly to retailers or final consumers? Discuss the functions
wholesalers perform to make the selling process more efficient.

To create paragraphs in your essay response, type <p> at the beginning of the
paragraph, and </p> at the end.
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