Multiple choice questions:
Question 1. 1. How have advances in communication technology changed Place strategy?
Advances in communication technology have made managing complex supply chains easier.
An increased number of intermediaries involved in supply chains has resulted from advances
in communication technology.
Advances in communication technology have made supply chains more complex.
Keeping the channel strategy flexible has become more difficult due to advances in communication technology.
Question 2. 2. A drug store invests in an extended line of nutritional supplements and displays them around a
staffed customer-service desk so that a trained nutritionist can help customers make decisions. Which of the following means of competitive differentiation does this example illustrate?
Increasing use of technology to improve communications.
Emphasizing specialization and face-to-face transactions.
Providing better support after the sale.
Improving merchandise assortment to better reflect market demographics.
Question 3. 3. Which of the following statements does NOT describe a reason distribution channel strategy can be complex for marketers?
The number of intermediaries that may be involved.
The difficulty of assembling a channel partner system that does not become too complex to manage well.
The need for a channel strategy that adds value but keeps costs low.
The need to choose either a hub-and-spoke or a distributed manufacturing logistics strategy.
Question 4. 4. Which statement BEST describes a situation in which a marketer might choose a "selective demand"
promotional objective?
The marketer wants to provide information to support consumers' selection process.
The marketer wants to highlight the value of a general product category, such as PCs
The marketer hopes to highlights one brand's superiority over others in its category.
The marketer aims to create an emotional connection for a general product category with potential customers.
Question 5. 5. Which statement BEST describes the strategic objective of volume maximization?
To generate as much profit (revenue) as possible in the near term.
To generate as much sales volume as possible over time.
To generate as much sales volume as possible in the near term.
To generate as much profit as possible over the life of an offering.
Question 6. 6. What is the key component of the distribution channel strategy of retailers in the t-shirt distribution case study in this chapter?
Cost control-because t-shirt imprinting businesses operate on narrow profit margins.
A vertical market system-because of the need for efficiency and economies of scale.
Flexibility-because specific assortments are needed quickly based on the outcome of
sporting events.
Private label merchandise-because sports companies are leaders in branded promotions.
Question 7. 7. Which example BEST illustrates co-creation of value as a pricing strategy?
A computer company offers a base price for specific features, but then charges more or less depending on which features customers opt to purchase.
In a popular tourist destination, prices of many goods rise during the summer season.
A software company offers to upgrade customers' templates at no additional cost to reduce the switching costs associated with adopting their product.
A retailer advertises few discounts or sales but promotes the overall value of its everyday prices.
Question 8. 8. Which answer BEST describes outbound licensing as a business model?
A business in U.S. contracts with a business in India for exclusive rights to market its products in the U.S.
A business in U.S. contracts with a business in the U.S. for exclusive rights to market its products in India.
A business in India contracts with inventors in the U.S. to develop new products to distribute in India.
A business in U.S. contracts with a business in India for exclusive rights to market its products in South America.
Question 9. 9. What differentiates primary demand from selective demand?
Primary demand relates to a specific brand or offering, while selective demand relates to a general product category.
Primary demand differentiates a product or service, while selective demand increases consumer interest in the category of products or services.
Primary demand relates to a general product category, while selective demand relates to a specific product or service offering.
Primary demand is difficult to stimulate, while selective demand is easier to stimulate.
Question 10. 10. Why are complementary businesses a factor that can make or break a retail business?
The demographics around the retail area must represent a good fit to the retailers'
merchandise assortment.
The way merchandise is displayed must be coordinated with the layout of the facility.
Too much traffic generated by nearby businesses can make customers' access difficult.
Complementary businesses dictate what type of retail activity is going on nearby.