Question 1

Electronic retailing is selling goods and services over the Internet to the final consumer.

Accepted Answer

Electronic retailing or e-tailing is the practice of selling goods and services directly to the final consumer through the internet or other electronic channels.

Question 2

Successful firms coordinate pricing objectives and strategies with decisions regarding product design,packaging,branding,distribution,and promotion.

Accepted Answer

Pricing objectives and strategies are interconnected with other marketing decisions such as product design, packaging, branding, distribution, and promotion. Coordination among these aspects is essential for a successful pricing strategy.

Question 3

Either reducing fixed or variable costs will reduce the break-even point.

Accepted Answer

Both fixed and variable costs are part of the calculation for the break-even point. Therefore, reducing either one will lower the break-even point.

Question 4

Budd's Floral Shoppe is located in a large town that has several other florists.The owner,Rose Budd,is likely to find that the presence of many larger competitors means that the only way she can survive is to charge rock bottom prices.

Accepted Answer

While increased competition may make it more difficult for Budd's Floral Shoppe to succeed, charging rock bottom prices is not the only solution. Rose Budd could differentiate her shop by offering unique flower arrangements, a wider variety of plants, faster delivery times, or exceptional customer service. Additionally, some consumers may prefer to support a small, locally owned business over larger chain stores.

Question 5

Price leadership is a demand-based pricing strategy.

Accepted Answer

The answer of Price leadership is a demand-based pricing strategy....

Question 6

Admiral Motors is the dominant firm in the auto market.When Admiral announces an increase in the prices of its automobiles,the smaller firms in the market,usually quickly announce similar price increases for their own cars.This situation is an example of demand-oriented pricing.

Accepted Answer

This situation is an example of price leadership, a form of competition-oriented pricing, where smaller firms follow the pricing strategy of a dominant firm in the market.

Question 7

Unlike other promotional tools,publicity is free.

Accepted Answer

Publicity is a form of promotion that is not paid for, unlike advertising and other promotional tools.

Question 8

The break-even point is that level of sales where total revenues equals total costs.

Accepted Answer

The break-even point is the point where the total sales revenue equals the total cost, indicating that no profit or loss is made.

Question 9

As consumers evaluate the benefits of a product,price plays a small role.

Accepted Answer

Price is a significant factor in consumer decision making as it directly affects the perceived value of a product or service.

Question 10

Words 4 Hire is a nationwide chain of stores that offers such a huge selection of paperback and hardcover books at such competitive prices that small local bookstores have a hard time competing with them.Words 4 Hire is best classified as a discount store.

Accepted Answer

The answer of Words 4 Hire is a nationwide chain...

Question 11

Direct selling has all but disappeared as a major form of non-store retailing because the trend toward two-income households means fewer opportunities for selling in the home.

Accepted Answer

Direct selling, although not as prevalent as before, still exists as a major form of non-store retailing. The trend toward two-income households has not completely eliminated the opportunities for selling in the home.

Question 12

Firms that rely on electronic retailing are almost guaranteed success because they give companies easy access to literally millions of consumers all over the world.

Accepted Answer

While electronic retailing does provide access to a large number of consumers, it does not guarantee success. Successful electronic retailing requires effective marketing strategies, competitive pricing, quality products, and efficient fulfillment and customer service operations.

Question 13

Small firms often rely on non-price competition when competing against larger firms.

Accepted Answer

Small firms often cannot compete with larger firms on price alone, so they rely on other factors such as quality, customer service, innovation, and niche specialization to differentiate themselves and attract customers.

Question 14

Marketing intermediaries charge a price for the functions they perform.Thus,a sure-fire way to reduce distribution costs is to eliminate marketing intermediaries from the channel of distribution.

Accepted Answer

While eliminating marketing intermediaries may reduce distribution costs, it can also lead to a loss of efficiency, effectiveness, and expertise in the distribution process. Marketing intermediaries perform valuable functions such as transportation, storage, promotion, and customer service. Removing them from the channel of distribution may result in higher costs and lower sales.

Question 15

Phil's activities as a salesperson for Marquette Publishing are part of Marquette's promotional mix.

Accepted Answer

Phil's activities as a salesperson fall under the personal selling component of Marquette's promotional mix.

Question 16

Brand managers have direct responsibility for all the elements of the marketing mix for a particular brand or product line.

Accepted Answer

Brand managers are responsible for the overall marketing strategy of a particular brand or product line, which includes all the elements of the marketing mix such as product, price, promotion, and place.

Question 17

Sales promotion programs can be used to generate employee enthusiasm.

Accepted Answer

Sales promotion programs can provide incentives and rewards for employees, leading to increased motivation and enthusiasm.

Question 18

Marketers utilize pricing,advertising,and packaging to successfully differentiate their products from competitors' products even when actual differences are quite small.

Accepted Answer

Marketers often use various strategies to create a distinct identity for their products, even when there is little actual difference between their product and their competitors'. This can include things like pricing strategies, advertising campaigns, and packaging designs that help position the product in the minds of consumers as unique or desirable.

Question 19

Although their names are similar,brand loyalty and brand equity are unrelated.

Accepted Answer

Brand loyalty refers to the level of commitment or attachment a consumer has towards a particular brand, while brand equity refers to the overall value and perception of the brand in the market. The two concepts are related in the sense that brand loyalty can contribute to the development of brand equity, but they are not the same thing.

Question 20

Different stages in the product life cycle call for different marketing strategies.

Accepted Answer

This statement is true. A product goes through different stages in its life cycle, including introduction, growth, maturity, and decline. Each stage calls for different marketing strategies and tactics to ensure the product's success and continued profitability. For example, in the introduction stage, the focus may be on building awareness and generating interest, while in the maturity stage, efforts may shift to maintaining market share and increasing customer loyalty.

Quiz 15: Managing the Marketing Mix: Product, Price, Place, and Promotion