Question 1

The most basic benefit of marketing channels is __________ where channels reduce the number of contacts necessary to exchange products.

Accepted Answer

Marketing channels provide contact efficiency which means they reduce the number of contacts necessary to exchange products. This saves time and effort for both the producer and the customer. Option A (contraction) and Option E (accumulation) do not accurately describe the benefit of marketing channels. Option B (time efficiency) is generally true, but not the most basic benefit, and Option D (contact creation) is not a benefit of marketing channels but rather a potential challenge that may arise in channel management.

Question 2

The inherent goal of product differentiation is to make the demand curve for a product more inelastic.This happens because increased differentiation:

Accepted Answer

Product differentiation reduces the number of perceived substitutes for a product, making it unique and less likely to be substituted by similar products. This uniqueness makes the demand for the product less sensitive to changes in price, resulting in a more inelastic demand curve.

Question 3

The Fairmont Hotel is widely known for its exceptional quality and impeccable customer service.Not surprisingly,the Fairmont sets prices at the top end of all competing hotels.Which pricing strategy is the Fairmont using?

Accepted Answer

The Fairmont Hotel is using prestige pricing strategy where they set their prices at the top end of all competing hotels to create a perception of high quality and exclusivity among its customers. This strategy is commonly used by luxury brands to signal high quality to consumers who are willing to pay a premium for such products or services.

Question 4

Because service capacity is perishable and service demand is highly time dependent,service firms employ yield management strategies in an effort to:

Accepted Answer

Service firms use yield management strategies to balance their need to fill unused service capacity with price and revenue considerations. This involves adjusting prices based on demand and booking patterns in order to fill capacity and maximize revenue. Yield management is effective in industries such as airlines, hotels, and restaurants where capacity utilization and time sensitivity are key factors.

Question 5

A __________ is an organized system of marketing institutions through which products,resources,information,funds and/or product ownership flow from the point of production to the final user.

Accepted Answer

A marketing channel is a system of organizations, people, activities, information, and resources involved in moving a product or service from the producer to the consumer or end user. It includes various types of intermediaries such as wholesalers, distributors, brokers, agents, and retailers who facilitate the distribution and delivery of products to customers. The marketing channel is also known as the distribution channel or trade channel.

Question 6

In business markets,__________ is used to quote prices in terms of reductions or increases based on transportation costs or the actual physical distance between the buyer and the seller.

Accepted Answer

Geographic pricing is used to quote prices in terms of reductions or increases based on transportation costs or the actual physical distance between the buyer and the seller in business markets. Transfer pricing refers to the pricing strategy used by multinational companies for internal transactions between two or more entities. Countertrade refers to a type of international trade in which goods or services are exchanged instead of currency. Logistics pricing refers to the cost of transportation, warehousing, and other related activities involved in the delivery of goods. GPS pricing is not a commonly used term in business markets.

Question 7

The creation of an extended enterprise in the supply chain depends heavily on the ability of channel members to integrate their operations.Which of the following IS NOT a key factor in successful supply chain integration?

Accepted Answer

Coercive power, or the use of threats or punishment to enforce compliance, is not a key factor in successful supply chain integration. Instead, successful integration relies on factors such as trust, interdependence, cooperation, and mutual benefit. The use of coercive power can actually harm relationships within the supply chain and lead to eventual breakdowns in communication and collaboration.

Question 8

Because the company was angered by the actions of its resellers,Acme Manufacturing decided to slow down deliveries and postpone product availability to these resellers.What type of power is Acme wielding in the channel?

Accepted Answer

Acme Manufacturing is using coercive power by threatening to slow down deliveries and postpone product availability to its resellers as a punishment for their actions. This type of power involves using threats, punishment or sanctions to influence the behavior of others.

Question 9

The goal of __________ is to maximize sales,gain widespread market acceptance,and capture a large market share quickly by setting a relatively low initial price.

Accepted Answer

The strategy described refers to penetration pricing, where a low initial price is set to quickly gain market share and acceptance. Price skimming involves setting a high price initially and gradually lowering it, while odd pricing involves using prices that end in odd numbers (e.g. $9.99) to make them seem more attractive. First-mover pricing and market acceptance pricing are not commonly used pricing strategies.

Question 10

Many products,such as candy,soft drinks,and gum are sold via intensive distribution.However,this strategy has a major drawback.What is it?

Accepted Answer

Intensive distribution involves placing a product in as many outlets as possible. This strategy can lead to manufacturers losing some control over how their products are priced and displayed because they must negotiate and comply with the practices of numerous retailers.

Question 11

Which member of the marketing channel has the primary responsibility of fulfilling the channel's main functions?

Accepted Answer

The answer of Which member of the marketing channel has...

Question 12

What is the most appropriate type of distribution to use when customers need the opportunity to comparison shop,or when after-sale services are important?

Accepted Answer

Selective distribution allows for a limited number of retailers to carry the product, giving customers the opportunity to comparison shop while still ensuring after-sale services are provided. This distribution strategy strikes a balance between exclusivity and availability.

Question 13

Retailers use __________ extensively.This occurs when the retailer compares sale prices to regular prices,such as when Best Buy promotes a DVD player as "Regularly $99,Now $49."

Accepted Answer

The description provided in the question refers to reference pricing which is used by retailers to promote their sale prices by comparing it to regular prices. EDLP stands for everyday low pricing which is a strategy of maintaining low prices consistently instead of occasional sales discounts. Odd pricing refers to ending a price with an odd number such as $9.99 instead of $10. Value-based pricing is setting prices based on the perceived value of the product or service to the customer. Sale pricing is a general term used for discounts and promotions offered temporarily by retailers.

Question 14

In the Mercedes dealer network,individual dealers are given the sole right to sell Mercedes vehicles within a defined geographic area.What type of distribution does Mercedes employ?

Accepted Answer

Mercedes has given the sole right to sell their vehicles to individual dealers within a defined geographic area, hence it employs exclusive distribution.

Question 15

Firms such as IKEA and The Home Depot are known for their use of __________ because they set reasonably low prices but still offer high-quality products and adequate customer services.

Accepted Answer

The firms such as IKEA and The Home Depot use value-based pricing, where they set reasonably low prices but still offer high-quality products and customer services to provide value to their customers. This pricing strategy helps them to attract price-sensitive customers while maintaining their quality standards.

Question 16

The Club is a local hair salon and day spa that caters to an upper-middle class clientele.Although price competition in the local area has been increasing,the owners of The Club have decided to focus their marketing efforts on quality,service,and value,and to resist the temptation to compete on price.In pursuing this non-price strategy,managers of The Club are ascribing to which of the following assumptions?

Accepted Answer

The fact that The Club is focusing on quality, service, and value rather than price competition implies that they believe they have unique differentiating characteristics that are difficult for competitors to copy. This aligns with assumption D. The other options do not necessarily align with The Club's non-price strategy.

Question 17

In terms of marketing channel functions,which of the following statements describes the concept of discrepancy of quantity?

Accepted Answer

Discrepancy of quantity refers to the situation where manufacturers produce large quantities of products, while customers usually want only one item or a small quantity. This creates a mismatch between the quantity of products produced and the quantity demanded by customers. Channels need to find ways to bridge this gap by providing smaller quantities of products to customers or by facilitating the sale of large quantities to retailers or distributors who can break them down into smaller units for end consumers.

Question 18

Ensuring the availability of products in the right place in the right quantities at the right time in a cost efficient manner is the main focus of:

Accepted Answer

The answer of Ensuring the availability of products in the...

Question 19

Price elasticity is defined as:

Accepted Answer

Price elasticity refers to the degree to which customers are responsive or sensitive to changes in price. It is a measure of how much the quantity demanded of a good or service changes when the price of that good or service changes.

Question 20

Which of the following IS NOT a situation that can cause customers to be less sensitive to price increases?

Accepted Answer

Customers are more likely to be sensitive to price increases when the total expenditure on a product is high, as it represents a larger portion of their budget. The other options (A, B, C, E) describe situations where customers might be less sensitive to price changes due to lack of alternatives, product uniqueness, necessity, or perceived value.

Quiz 6: The Marketing Program