Quiz
1. 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 2. 2. Which of the following is NOT an organizational benefit deriving from a vertical market system?
Assuming risk of intermediary functions
Achieving greater operational efficiency
Reducing from channel partner conflicts
Realizing economies of scale
Question 3. 3. When the British distiller Diageo expanded into Europe, Latin America, the Middle East, Africa, and
China, what challenge was it likely to face related to its Place strategy?
Adapting a channel strategy to work in each country.
Clashing cultural practices and beliefs concerning alcohol consumption.
Choosing whether to pursue a push or pull promotion strategy.
Determining whether to alter formulas to local tastes.
Question 4. 4. Which of the following examples best illustrates "inelastic demand'?
A business traveler encounters rain on the way to his meeting; finding umbrellas priced at $25 but plastic ponchos for $10, he chooses the latter.
A young man hopes to buy a DVD of a favorite movie but finds the movie available only on video cassettes, which he buys, in spite of its lower quality.
A vacationer becomes thirsty while touring Wally World. Finding Wally Water at $2 a bottle for sale, the same price as soft drinks, she purchases a Diet Sprite.
A business traveler discovers he has forgotten to bring deodorant and he pays the high price for a travel-size deodorant product in the hotel's gift shop.
Question 5. 5. What advantage does use of RFID tags bring to the logistics function of companies that adopt this technology?
The technology helps vertical market systems integrate their resources.
The devices create flows of information without accompanying transaction records.
The technology enables businesses to outsource shipping, transport, warehousing, and inventory control.
The devices reduce or eliminate manual labor in capturing data related to individual items.
Question 6. 6. What explains the growing popularity of review sites like Yelp for consumers?
Consumers place more trust in their peers' opinions than in advertisers' messages.
Consumers are able to access review sites throughout the day on the best available screen.
Increasing availability of customer data makes it possible to tie sales results to online reviews.
The increasing ability to customize content based on reviewers' stated preferences.
Question 7. 7. Which of the following examples BEST illustrates a permanent pricing strategy that uses reductions from base price?
Placing sale signs near one third of the merchandise on display.
Offering a discount for customers who pay cash.
Posting prices ending in 9.
Changing prices as supplies of goods fluctuate.
Question 8. 8. As stated in chapter 6, what is the purpose for assigning communication channels to various quadrants of the POES model?
Assures that every message channel is given equal importance.
Establishes that engagement with online communities is given greater weight than more traditional advertising techniques.
To guarantee that messages in different quadrants only appear to stakeholder in those particular channels.
Provides a useful framework for coordinating strategies across the different corporate departments that are responsible for various communication channels.
Question 9. 9. 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.
Question 10. 10. Which of the following is NOT a likely result of a business failing to follow an appropriate price strategy?
The business loses its competitive edge.
The business brings products to market but cannot attract sufficient buyers.
The business generates insufficient revenue to cover costs of production.
The business switches from a fixed price to a variable price strategy.