Question 1 Instead of having to choose between making a profit or doing good for society, companies can combine __________ and _____________ to do both while building a solid corporate reputation.
A) ethics; publicity
B) cause marketing; exceptional products
C) corporate social responsibility; senior management authority
D) ethics; corporate social responsibility
E) cause marketing; corporate philanthropy
Question 2 It is critical for marketers to provide leadership in applying ethics and ethical principles because:
A) senior management has little time or inclination to focus on business or marketing ethics.
B) marketers are seen as basically ethical as opposed to salespeople, who cannot be relied upon to act ethically.
C) the profession has been singled out for past abuses by a minority of marketers, and the profession as a whole has a responsibility to raise its profile.
D) All of these
E) None of these
Question 3 The Johnson & Johnson Credo, developed by Robert Wood Johnson, is often cited as an important document because:
A) Johnson was a leading philosopher of ethics who bridged the gap between academic philosophy and the world of business.
B) it was drafted as a response to the Tylenol recall, and it demonstrated how effectively business could respond to external stimuli and situations.
C) it places the focus clearly on shareholders who have the greatest stake in the success of the firm.
D) it guided company executives in a difficult decision-making time with very specific advice.
E) it became the standard and model for all pharmaceutical companies who have improved on the timeliness of response.
Question 4 Marketers have been identified with many different types of unethical behavior. Which of the following types of unethical behavior is LEAST likely to be observed in marketing environments?
A) High pressure sales techniques.
B) Deceptive sales tactics.
C) Misrepresentation of company data.
D) Misleading advertising.
E) Kickbacks to corporate buyers from supply chain vendors.
Question 5 Which of these is one of the "ethical norms" in the AMA's code of ethics?
A) The survival of the firm is essential; if it fails many are without jobs and products.
B) Marketers must do no harm.
C) With constant attention to the dynamic marketplace, marketers must also be prepared to make changes in ethical standards to keep pace.
D) Marketers must respect the human dignity and human rights of all stakeholders.
E) Ethics are essential for any profession, but professionalism cannot take priority over the needs of the firm.
Question 6 Firms with ______________ tend to be more socially responsible.
A) a wide product line and global presence
B) longevity of at least 50 years
C) strong ethical climates
D) diverse senior management
E) strong profits
Question 7 The Ethical Decision-Making Framework includes all of the following steps, EXCEPT:
A) identify issues.
B) choose a course of action.
C) gather information and identify stakeholders.
D) brainstorm and evaluate alternatives.
E) consult appropriate regulatory officials.
Question 8 What do the Ethical Decision-Making Metrics I and II (Exhibits 3.6 and 3.8) offer the marketer?
A) A complete checklist of ethical issues when taken together.
B) A range of choices, although the marketer can only chose one or the other.
C) Protection from accusations of unethical behavior.
D) Measurements of possible consequences.
E) A framework for looking at multiple dimensions of an issue at a time when the decision maker may be under stress.
Question 9 When a major ethical issue arises, which of the following stakeholders are likely to be affected?
A) Investors
B) Customers
C) Senior management
D) Community
E) All of these
Question 10 When developing a marketing strategy, ethics should:
A) be considered, but only after other basic parameters have been set.
B) be balanced against the higher-priority demands for profits and returns to shareholders.
C) be considered early in the planning phase to avoid having to ask questions throughout the process.
D) be considered throughout the process, using different questions at different stages.
E) be handled by outsiders or consultants, since the marketers will likely be too involved with the details to be objective.
Question 11 Scenarios are an excellent way to develop ethical decision making because:
A) stories can be used to protect innocent people by changing names and identifiers.
B) stories are simple and direct, which makes the key points of scenarios easier to grasp.
C) scenarios are developed by professionals, which makes them more effective.
D) there are usually no single correct answers, and the scenario approach offers different kinds of answers.
E) scenarios don't require students to apply principles or metrics.
Question 12 __________________ refer(s) to the actions of a firm to address a wide range of social, environmental and ethical interactions with its community. Though somewhat controversial, these actions are significant in that the company undertakes them voluntarily, and the firm realizes that these actions can be profitable, too.
A) Public relations and publicity
B) Corporate activism
C) Corporate social responsibility
D) A code of ethics
E) Corporate culture
Question 13 The consumer, the company and causes are considered CSR _______________, while employee and financial well-being and awareness and support of issues are considered CSR ________________.
A) inputs; outputs
B) liabilities; assets
C) causes; effects
D) reasons; results
E) values; actions
16. Retailing ___________________ the supply chain.
A. sits at the end of
B. is in the center of
C. maximizes the length of
D. creates rigidity in
E. focuses on production in
17. Retailing is where marketing:
A. is replaced by personal selling.
B. meets the consumer.
C. meets managing.
D. sells itself to the corporation.
E. creates corporate value.
18. Retailers address customers' needs for value by providing goods and services:
A. where the customer wants it.
B. when the customer wants it.
C. at the price the customer is willing to pay.
D. in the right color, size, or style the customer wants.
E. all of the above.
19. Natalie is opening a retail store specializing in hard-to-find gift items. Before she opens her store, what question will Natalie need to address?
A. Where will customers want her products?
B. When will customers want her products?
C. What prices will customers be willing to pay?
D. What assortment of products will customers want?
E. all of the above.
20. Retailing is defined as the set of business activities that:
A. focuses on a firm's core values.
B. offers multiple supply chain relationships.
C. adds value to products and services sold to final consumers.
D. separates wholesaling from manufacturing.
E. occurs in brick and mortar space.
21. Which of the following is NOT one of the typical outlets used by retailers?
A. catalogs.
B. over the Internet.
C. restaurants.
D. business requests for proposals (RFPs)
E. brick and mortar stores.
22. The key factor distinguishing retailers from other members of the supply chain is:
A. they sell to consumers, businesses, and government.
B. they sell to everyone.
C. they use advertising to generate demand.
D. they employ people in personal selling.
E. they sell to customers for their personal use.
23. Wholesalers sell to all of the following EXCEPT:
A. businesses.
B. manufacturers.
C. retailers.
D. consumers.
E. industrial users.
24. Which of the following is NOT one of the broad factors manufacturers must consider when establishing a strategy for getting their products into the hands of the ultimate customer?
A. Choosing retail partners.
B. Identifying types of retailers.
C. Facilitating retail strategy.
D. Managing a multichannel strategy
E. all of the above are considered when establishing a strategy.
25. Aaron has designed innovative accessories for hard-core bicycling enthusiasts. He knows where and how he will make them, and he needs to turn his attention to the getting the products to the customers. As he chooses retail partners, which of the following should he
do?
A. Look at the channel structure.
B. Determine where the target customers will expect to find this kind of product.
C. Consider the characteristics of the channel members.
D. Consider distribution intensity.
E. All of the above.
26. In the past, _____________________ dominated supply chains.
A. retailers
B. manufacturers
C. government
D. wholesalers
E. distributors
27. Today, _______________ dominate their supply chains.
A. large retailers
B. manufacturers
C. government
D. wholesalers
E. distributors
28. Retailers like Wal-Mart, Home Depot, and Kroger dictate to their suppliers all of the following EXCEPT:
A. which competitors they should collaborate with.
B. what should be made.
C. how products should be configured.
D. when products should be delivered.
E. what products should cost.
29. The degree of difficulty a manufacturer will face in trying to get retailers to purchase its products will be determined by how vertically integrated the channel is, the relative power of the manufacturer and the retailer, and __________.
A. the warranties the product carries
B. the success - or lack of success - in test markets
C. the amount of marketing research the manufacturer has done prior to the launch
D. the strength of the brand and whether it is desired
E. whether the product is seasonal
30. When a well-established firm has chosen a new product as part of its growth strategy, it may be required to find new retailers to carry the new product. One of the critical factors in choosing new retail partners will be:
A. the power of the brand.
B. its overall reputation as a manufacturer.
C. where customers might expect to find the manufacturer's products.
D. All of the above.
E. None of the above is particularly important.
31. Knowing customer expectations is essential. Retailers need to know which manufacturers their customers prefer, while manufacturers need to know __________.
A. if customers are using credit cards or cash to make purchases.
B. how many outlets the retailers have.
C. where their target market customers expect to find their products.
D. whether the products will fill self-actualization needs through satisfying these expectations.
E. whether customers will find the store atmospherics appropriate to the neighborhood or location.
32. Generally, the larger and more sophisticated the channel member, the less likely that they will ______________.
A. use intermediaries.
B. rely on marketing research.
C. use multi-channel marketing.
D. use intensive distribution.
E. be concerned about competitive actions.
33. John had worked for a well-known and very large retail company. He left that company to go to a smaller company, and in doing so, he discovered that the channel functions were handled very differently in the smaller firm. Looking back at his experience, he noticed larger firms ___________________.
A. perform many different channel functions themselves.
B. have more control in the channel.
C. can be more efficient.
D. can save money.
E. All of the above.
34. There are three types of supply chain distribution intensity:
A. intensive, exclusive, and selective.
B. primary, secondary and tertiary.
C. administered, vertical, and independent.
D. global, national, and local.
E. corporate, contractual, and independent.
35. Some companies want to get its products into as many outlets as possible, understanding that the more exposure it gets, the more of its products it will sell. If this is consistent with the company's overall strategy, it will choose __________________.
A. wide-coverage distribution
B. collectively exhaustive distribution
C. intensive distribution
D. exclusive distribution
E. selective distribution
36. When Creative Pen Company designed a new, ergonomically-friendly pen, they wanted to, literally, get in the hands of as many consumers as possible. Creative Pen will likely choose a(n) ______________ distribution intensity.
A. intensive
B. exclusive
C. selective
D. collective
E. variable
37. If a company has a limited supply or is just launching a product, it might want to select ___________, which would help ensure enough inventory to ensure the customer has an adequate selection.
A. trade restraint distribution
B. selective distribution
C. monopolistic distribution
D. oligopolistic distribution
E. exclusive distribution
38. Heartland Plantation produces classic food products like stone-ground grits and wild rice. The company has limited production capacity and wants to control where its products are sold. Heartland will likely choose a(n) ________ distribution intensity.
A. intensive
B. exclusive
C. simplistic
D. collective
E. variable
39. ______________ distribution intensity helps a seller maintain a particular image and control the flow of merchandise into an area.
A. Intensive
B. Endogenous
C. Selective
D. Collective
E. Variable
40. If a manufacturer wasn't happy with either intensive or exclusive distribution, a logical choice, which incorporates some features from both, would be ______________.
A. moderate distribution
B. compromise distribution
C. case by case distribution
D. evolutionary distribution
E. selective distribution
41. Full-line discount, category specialist, and specialty stores are all ________________ types of retailers.
A. food
B. general merchandise
C. price sensitive
D. limited demand
E. special appeal
42. If a food producer had a full range of products, in a number of different containers sizes, which kind of store would the company NOT likely choose?
A. conventional supermarket
B. supercenter
C. warehouse club
D. convenience stores
E. None of the above. The producer should be in all of these stores.
43. Paul's family has owned and operated a small chain of conventional supermarkets. Competition from a variety of other kinds of retailers has adversely affected the business. To address the new competitive reality, Paul wants to apply what he recently learned as a marketing major and he has recommended his family should:
A. emphasize products with a high gross margin.
B. target health-conscious and ethnics consumers with the products that would appeal to them.
C. provide a better shopping environment within the store to make it more appealing to customers.
D. offer more private label brands.
E. All of the above
44. Supercenters have become the fastest retail growing category by combining broad assortments of groceries and general merchandise products. ____________ dominates this category with more than 80 percent of the supercenters in the United States.
A. Target
B. Meijer
C. Kmart
D. Kroger
E. WalMart
45. If Ellen is shopping at a warehouse club, relative to a supermarket, she can expect:
A. an irregular assortment of food and general merchandise.
B. lower service
C. lower prices
D. products for both consumers and small businesses
E. All of the above
46. A manufacturer of high-end products might consider selling products in a warehouse club if _____________.
A. there were no high-end shopping centers within a 100-mile radius of the warehouse club.
B. if the warehouse club has a good reputation.
C. if it is trying to capture additional market share.
D. it had overestimated demand or had a great deal of returned merchandise from other retailers.
E. the warehouse club wants to upgrade its image.
47. ____________ are combating competitive pressures by offering fresh food and healthy fast food, tailoring assortments to local marketing, opening locations closer to where consumers work and shop, and adding new services.
A. Warehouse clubs
B. Supercenters
C. Convenience stores
D. Department stores
E. Extreme value retailers
48. Brian purchases a snack to eat on the way to work. He buys lunch while on the road visiting customers. Brian probably does the majority of this food shopping at a:
A. convenience store.
B. warehouse club.
C. conventional supermarket.
D. drugstore.
E. category specialist.
49. If you walk into a __________________, you will likely find a broad variety of merchandise, deep assortment, and customer service, with everything divided into what appears to be a collection of specialty shops.
A. department store
B. off-price retailer
C. discount store
D. specialty store
E. category specialist
50. Kohl's, JCPenney, and Bloomingdales are examples of:
A. department stores.
B. off-price retailers.
C. discount stores.
D. extreme value stores.
E. category specialist stores.
51. __________ are combating competitive pressures by increasing the amount of exclusive and private label merchandise, strengthening customer loyalty programs and expanding their online presence.
A. Convenience stores
B. Department stores
C. Full-line discount stores
D. none of the above
E. All of the above
52. Retailers that offer a broad variety of merchandise, limited services and low prices are known as ______________________.
A. full-line discount stores
B. convenience stores
C. home improvement stores
D. category specialists
E. department stores
53. If you're a manufacturer, and you want to showcase your product in store that has a narrow but deep selection of merchandise and where sales associates can assist customers with their selections, you'd likely choose:
A. a category specialist.
B. a specialty store.
C. a department store.
D. an extreme value retailer.
E. a cross-over warehouse club.
54. If you are a marketer for a manufacturer, and the marketing mix for your product focuses on very specific market segments, you'd like to sell your product through:
A. department stores.
B. category specialist stores.
C. extreme value retailers.
D. specialty stores.
E. All of the above
55. The retail category that has experienced sustained growth due to the aging population is:
A. category specialists.
B. convenience stores.
C. drugstores.
D. department stores
E. full-line discount stores.
56. Category killers are also known as:
A. full-line discount stores
B. category specialists
C. specialty stores
D. warehouse clubs
E. extreme value retailers
57. As a type of retailer, category specialists are fierce competitors using:
A. a wide variety of merchandise.
B. highly trained personnel throughout the stores.
C. a complete assortment in a specific category at low prices.
D. highly attractive loyalty programs.
E. All of the above.
58. A retailer with an extensive assortment in a particular category that potential competitors do not bother to carry is called a(n):
A. endemic specialty retailer.
B. house breaker.
C. market mammoth.
D. revolutionary.
E. category killer
59. ___________________ offer general merchandise at lower prices and are often found in lower-income urban and rural areas.
A. Department stores
B. Off-price retailers
C. Discount stores
D. Extreme value stores
E. Category specialist stores
60. _______________ reduce costs and maintain low prices by buying opportunistically from manufacturers with excess inventory, offering limited assortments and operating in low-rent locations.
A. Category killers
B. Specialty stores
C. Factory outlets
D. Extreme value retailers
E. Convenience stores
61. ________________ are likely to target low-income consumers who demand national brands, but cannot afford to buy large-sized packages.
A. Category killers
B. Department stores
C. Extreme value retailers
D. Specialty stores
E. Warehouse club stores
62. Off-price retailers can purchase merchandise at one-fifth to one-fourth of the original wholesale prices because they do not ask the suppliers for ___________________.
A. advertising allowances
B. return privileges
C. markdown adjustments
D. delayed payments
E. All of the above
63. ______________ offer an inconsistent assortment of brand-name merchandise at low prices.
A. Department stores
B. Specialty stores
C. Category killers
D. Off-price retailers
E. None of the above
64. Because of the way __________ buy merchandise, customers can never be confident that the same merchandise will be in stock each time they visit the store.
A. department stores
B. off-price retailers
C. discount stores
D. downstream value stores
E. category specialist stores
65. Consumers visiting __________ often comment that they feel like they are on a treasure hunt, searching for a bargain.
A. department stores
B. off-price retailers
C. discount stores
D. lower value stores
E. category specialist stores
66. If you were a marketer for a manufacturer and you wanted to improve revenues from irregulars, production overruns and returns, you would be attracted to using _____________.
A. department stores
B. specialty stores
C. category specialists
D. factory outlets
E. supercenters
67. Retailers with strong brand names of their own might operate outlet stores to:
A. sell excess inventory that might have to be sold at markdown prices in regular stores.
B. compete with category specialist stores.
C. keep manufacturers from selling similar items in their own factory stores.
D. train employees who will later be transferred to the main stores.
E. All of the above
68. One of the most fundamental activities of retailers is to provide __________, satisfying the needs of their target market.
A. wholesaling opportunities
B. persuasive advertising
C. the right mix of merchandise and services
D. corrective price controls
E. category killing profitability
69. Retailers address the conflict between consumers wanting or needing only one item and manufacturers wanting to produce and ship in quantity by providing:
A. reciprocity.
B. simplicity.
C. discounting.
D. storage.
E. extreme value labeling.
70. It is often difficult for retailers to distinguish themselves from their competitors through the merchandise they carry because:
A. they do not carry enough merchandise.
B. consumers no longer recognize brand equity.
C. big-box food retailers are shifting into specialty store product lines.
D. there is not enough merchandise to go around.
E. competitors can purchase and sell many of the same popular brands.
71. One product strategy used by retailers to differentiate themselves from competitors is:
A. the use of private label brands.
B. discount pricing.
C. removing brand labels from their merchandise offerings.
D. JIT product delivery.
E. promotional product loyalty programs.
72. For retailers, promotion refers to:
A. supply chain communication.
B. the relationship between price and product.
C. the image a store attempts to maintain through their pricing strategy.
D. both their in-store environment and their mass media communications.
E. the seasonal discounts offered to move end-of-season items.
73. Retailers use ____________________ to get customers into their stores.
A. in-store promotions
B. specialty product displays
C. supply chain relationships
D. off-price wholesaling
E. mass media advertising
74. Kim wants to maximize sales to the customers who walk into her store. Of the following, Kim will likely focus on:
A. in-store promotions.
B. specialty product lines.
C. supply chain relationships.
D. off-price wholesaling.
E. mass media advertising.
75. _______________________ are subtle forms of promotion that facilitate shopping in retailers' stores.
A. Billboards and electronic signs
B. Store credit cards and gift cards
C. Personal selling and volume discounts
D. Quick response and just-in-time delivery systems
E. Extreme value offers and specialty share of the wallet programs