Multiple choice questions:
1. As the logistics manager, Priscilla should focus on the movement and control of the company's physical
products, while her boss, the supply chain manager, should focus on
A. the interplay between pricing and product allocation decisions.
B. awareness of and coordination of the relationships among supply chain members.
C. maximizing efficiency by constantly reducing production costs.
D. oversight and coordination of supply chain promotional considerations.
2. The fact that millions of consumers are using online search engines for comparison shopping has
A. increased the number of oligopoly markets.
B. reduced overall demand.
C. increased consumers' price sensitivity.
D. reduced the contribution per unit cross-pricing elasticity.
3. In _______ competition, there are many firms providing differentiated products.
A. conventional
B. monopolistic
C. pure
D. oligopolistic
4. Labor, materials, and energy are typically _______ costs.
A. inelastic
B. fixed
C. incidental
D. variable
5. The break-even point is estimated by
A. dividing fixed contribution per unit by variable costs.
B. multiplying revenue per unit times the quantity sold.
C. dividing fixed costs by contribution per unit.
D. multiplying fixed costs by contribution per unit.
6. _______ measures consumers' sensitivity to changes in how much is charged for an item.A. Cross-price elasticity of demand
B. Competitive price demand
C. Price elasticity of demand
D. Income elasticity
7. Benton manages a building supply company. He wants to invite 20 of his most valuable customers, who
are building contractors, to a golf outing and party. Benton will most likely use the firm's _______ to
identify these customers.
A. specialty-store sales
B. annual sales report
C. CRM database
D. Internet
8. If a one-percent decrease in price results in more than a one-percent increase in quantity demand,
demand is
A. derived demand inelastic.
B. price elastic.
C. cross-price elastic
D. price inelastic.
9. _______ communities are networks of social shoppers who see an enhanced emotional connection with
other participants during an Internet shopping experience.
A. Gen-Y
B. Self-actualizing
C. Virtual
D. Electronic loyalty program
10. Health clubs often use a low, introductory offer price to get people to join their club. These low prices
represent a _______ orientation pricing strategy.
A. maximizing profits
B. sales
C. target profit
D. target return
11. The Internet has compelled all retailers to expect more price-sensitive customers, but because
customers can purchase electronics at highly discounted prices, those stores that sell the same electronic
prices must adjust their prices and
A. take the Internet retailers to court if they feel they're being harmed.
B. try to block access to the sites that are deeply discounting the prices.
C. add services and advice to change the customer's focus away from price competition.
D. seek lower prices from the manufacturers to at least equal the prices paid for the merchandise by the Internet retailers.
12. For marketers to advertise a price as their _______ price, the Better Business Bureau recommends that at least 50 percent of the sales of a product occur at that price.A. leader
B. zone
C. regular
D. fixed
13. As a type of retailer, category specialists are fierce competitors using
A. highly trained personnel throughout the stores.
B. a complete assortment in a specific category at low prices.
C. a wide variety of merchandise.
D. highly attractive loyalty programs.
14. Supply chain management adds value for customers by
A. getting products to customers efficiently.
B. incorporating universal product codes.
C. maximizing total distribution costs.
D. use of exclusive geographic territories.
15. Traditional demand-curve economic theory is used by marketers to understand _______ in the five Cs
of pricing.
A. competitors
B. cost
C. channel members
D. customers
16. If a manufacturer was unhappy with either intensive or exclusive distribution, a logical choice, which
incorporates some features from both, would be _______ distribution.
A. selective
B. compromise
C. case by case
D. moderate
17. Jacob rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is
$15. His fixed costs are $100,000, and his profit last year was $20,000. For Jacob, the contribution per unit is
A. $85.
B. $1000.
C. $20,000.
D. $100.
18. Every marketing decision is affected by and has an effect on
A. intranet efficiency.
B. the supply chain.
C. universal product code verification systems.
D. electronic data intensity.
19. One of the benefits of EDI is that it can reduce cycle time, which is the time
A. from when an RFP is announced to the time a consumer purchases the finished product.
B. between the decision to place an order and the receipt of the merchandise.
C. between when finished good leave the manufacturer until the time they arrive, floor-ready, at the retailer.
D. from when funds are committed for purchase of raw materials to the time when the payment for the finished goods is actually
received.
20. A distribution center is typically operated by
A. joint corporate-government ventures.
B. individual consumers.
C. vertically integrated consumer networks.
D. retailers, manufacturers, or distribution specialists.
21. Which of the following is most likely to be characterized by oligopolistic competition in the United
States?
A. Soybeans
B. Men's clothing
C. Soft drinks
D. Stationary
22. Retailers with strong brand names of their own might operate outlet stores to
A. compete with category specialist stores.
B. keep manufacturers from selling similar items in their own factory stores.
C. extend the useful life of mature products.
D. sell excess inventory that might have to be sold at markdown prices in regular stores.
23. Coupons, rebates, and online discounts are types of
A. specialty product displays.
B. in-store promotions.
C. pricing promotions.
D. off-price wholesaling.
24. Knowing how customers arrive at their _______ is critical to developing successful pricing strategies.
A. perceptions of value
B. amounts of disposable income
C. social network
D. cultural attitudes about shopping
25. Naomi owns and manages a gift store that features merchandise for many holidays throughout the year.
Some are novelty items that are mass produced, and some are handcrafted. Manufacture and creation of these items occur throughout the year, but in cycles different from the customers' purchases. To be End of exam successful, Naomi must pay special attention to the supply chain management goal of providing products at the right
A. quantities.
B. locations.
C. service levels.
D. time