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BUAD 332 Exam 3 2025 | Questions and
Correct Answers | Verified Answers |
University of Tennessee Knoxville
What are the 5 ways to adjust basic price to reward customers for certain responses? ---------CORRECT ANSWER-----------------1. Cash discount, 2. Quantity discount, 3. Promotional allowance, 4. Seasonal discount, 5. Trade-In allowance When do customers use price more? ---------CORRECT ANSWER-----------------When that can't judge the quality of a product What is an example of a good with a psychological value? ---------CORRECT ANSWER-----------------Rolex What are the 3 reasons to cut prices? ---------CORRECT ANSWER-----------------1. Excess capacity, 2. Falling market share, 3. Dominate market through lower prices What are the 2 reasons to increase prices? ---------CORRECT ANSWER-----------------
- Cost inflation, 2. Over-demand (company cannot supply all customers' needs
Set of interdependent organizations organizations involved in the process of making a product or service available for use or consumption by the consumer or business user. ---------CORRECT ANSWER-----------------Distribution Channel Intermediaries used for distribution channels ---------CORRECT ANSWER-------------- ---Contacts, Experience, Specialization, Scale of operation What is an example of Channel of Distribution? ---------CORRECT ANSWER----------- ------Orbit irrigation products use Home Depot as their Channel of Distribution "What should the channel look like?" answers what question? ---------CORRECT ANSWER-----------------Channel Design "How do I get the channel partners to do what I want them to do?" answers what question? ---------CORRECT ANSWER-----------------Channel Management What is an example of Disintermediation? ---------CORRECT ANSWER----------------- Estee Lauder allows you to chose how often to auto replenish your lotion by going straight through their website (no retailer)
What is a Contractual Vertical Marketing system? ---------CORRECT ANSWER--------- --------Contractual agreements among channel members What are the 3 different types of incentives? ---------CORRECT ANSWER--------------- --1. Incentives to encourage product availability, 2. Incentives to encourage promotional activity, 3. Incentives to encourage high levels of customer service What are spifs? ---------CORRECT ANSWER-----------------Sales person incentive funds Conflict that occurs among firms at the same level of the channel, i.e. retailer to retailer ---------CORRECT ANSWER-----------------Horizontal Conflict Conflict that occurs between different levels of the same channel, i.e. wholesaler to retailer ---------CORRECT ANSWER-----------------Vertical conflict When will the channel be the most effective? 2 reasons ---------CORRECT ANSWER-----------------When each member is assigned tasks it can do best AND all members cooperate to attain overall channel goals and satisfy the target market
Retailing includes all the activities involved in selling products or services directly to final consumers for their personal use ---------CORRECT ANSWER----------------- The textbook definition of retailing What is wrong with the textbook definition of retailing? ---------CORRECT ANSWER-----------------Lots of retailing for business context as well as consumer context What are the 4 ways to classify retailers? ---------CORRECT ANSWER-----------------1. Amount of service they offer, 2. Breadth and depth of product lines, 3. Relative prices charged, 4. How often they are organized Serve customers who are willing to perform their own "locate-compare-select" process to save money ---------CORRECT ANSWER-----------------Self-service retailers Provide more sales assistance because they carry more shopping goods about which customers need information ---------CORRECT ANSWER-----------------Limited- service retailers Usually carry more specialty goods for which customers like to be "waited on" ----- ----CORRECT ANSWER-----------------Full-service retailers
offer a large assortment of routinely purchased food products, nonfood items, and services ---------CORRECT ANSWER----------------- Superstores (Walmart, Tesco in Europe) What is the narrow definition of a Price? ---------CORRECT ANSWER----------------- price is the amount of money charged for a product or service What is the broad definition of a Price? ---------CORRECT ANSWER----------------- price is the sum of all the values that consumers exchange for the benefits of having or using the product or service What is an example of 2 things costing the same and not having the same price? -- -------CORRECT ANSWER-----------------Clark boots from Amazon vs. from Dillard's What are the 4 Internal Factors that affect the Pricing Decisions? ---------CORRECT ANSWER-----------------Marketing objectives, Marketing mix strategies, Costs, Organizational considerations What are the 3 External Factors that affect the Pricing Decisions? ---------CORRECT ANSWER-----------------Nature of the market and demand, Competition, Other environmental factors (economy, government, resellers, social concerns)
What are the 4 Marketing Objectives? ---------CORRECT ANSWER----------------- Survival, Current Profit Maximization, Market Share Leadership, Product Quality Leadership Marketing Object about Low prices hoping to increase demand ---------CORRECT ANSWER-----------------Survival Marketing Objective about Chose the price that produces the maximum current profit ---------CORRECT ANSWER-----------------Current Profit Maximization Marketing Objective about low as possible prices to become the market share leader ---------CORRECT ANSWER-----------------Market Share Leadership Marketing Objective about high prices to cover higher performance quality and R&D ---------CORRECT ANSWER-----------------Product Quality Leadership What is an example of Product Quality Leadership? ---------CORRECT ANSWER------ -----------Pharmaceuticals
Pricing Decision from Many Buyers and Sellers Who Trade Over a Range of Prices - --------CORRECT ANSWER-----------------Monopolistic Competition What is an example of Monopolistic Competition? ---------CORRECT ANSWER-------- ---------Clothing Pricing Decision from Few Sellers Who Are Sensitive to Each Other's Pricing/ Marketing Strategies ---------CORRECT ANSWER-----------------Oligopolistic Competition What is an example of Oligopolistic Competition? ---------CORRECT ANSWER--------- --------Airline industry, cell phone provider Pricing Decision from a Single Seller ---------CORRECT ANSWER-----------------Pure Monopoly What is an example of a Pure Monopoly? ---------CORRECT ANSWER----------------- Utilities companies, some say pharmaceutical companies
Demand that if you raise price, the demand does not change very much --------- CORRECT ANSWER-----------------Inelastic Demand that if price changes, there is a big difference in demand ---------CORRECT ANSWER-----------------Elastic What do marketers want to do regarding price elasticity? ---------CORRECT ANSWER-----------------Reduce it Setting a High Price for a New Product to Skim Maximum Revenues from the Target Market; Results in Fewer, But More Profitable Sales. ---------CORRECT ANSWER-----------------Market Skimming What are the 3 conditions of Market Skimming? ---------CORRECT ANSWER---------- -------1. Product's Quality and Image Must Support Its Higher Price, 2. Costs Can't be so High that They Cancel the Advantages of Charging More, 3. Competitors Shouldn't be Able to Enter Market Easily and Undercut the High Price Setting a Low Price for a New Product in Order to Penetrate the Market Quickly and Deeply; Attract a Large Number of Buyers and Win a Larger Market Share. ---- -----CORRECT ANSWER-----------------Market Penetration
Intensive products ---------CORRECT ANSWER-----------------have it available in a lot of any location: Doritos Exclusive products ---------CORRECT ANSWER-----------------going to be picky about where this product can be sold (prestige): Rolex Selective products ---------CORRECT ANSWER-----------------somewhere in between intensive and exclusive: Polo What 4 tasks do manufacturers want performed in the channel of distribution? --- ------CORRECT ANSWER-----------------1. Product availability, 2. Promotional effort,
- Customer effort, 4. Market information From producer to consumer ---------CORRECT ANSWER-----------------Portland farmers market From producer to retailer to consumer ---------CORRECT ANSWER----------------- Levi's to JC Penny to consumers
Producer to Wholesaler to Retailer to Consumer ---------CORRECT ANSWER---------- -------Budweiser has to be sold through a distributor, then to Kroger, then you consumer Product and Service Producers are Bypassing Intermediaries and Going Directly to Final Buyers or That New Types of Channel Intermediaries are Emerging to Displace Traditional Ones ---------CORRECT ANSWER----------------- Disintermediation Giant specialty stores that carry a very deep assortment of a particular line and is staffed by knowledgeable employees ---------CORRECT ANSWER-----------------Category Killers (Toys R Us, Staples) A retail institution that sells standard merchandise at lower prices by accepting lower margins and selling at higher volume ---------CORRECT ANSWER-----------------Discount Store (Dollar General, Aldi) Retailer that buys at less-than-regular wholesale prices and sells at less than retail ---------CORRECT ANSWER-----------------Off-Price Retailer (TJ Maxx)
A contractual association between a manufacturer, wholesaler, or service organization (a franchiser) and independent businesspeople (franchisees) who buy the right to own and operate one or more units in the franchise system ---------CORRECT ANSWER-----------------Franchise What franchise has the most units in the world? ---------CORRECT ANSWER---------- ------- 7 - Eleven What 3 things go into the Retailer Strategy? ---------CORRECT ANSWER----------------
- Segmentation and targeting, 2. Store differentiation and positioning, 3. Retail marketing mix Brand of merchandising Merchandising events ---------CORRECT ANSWER-----------------Product Assortment Different numbers and types of services are key to non-price store differentiation ---------CORRECT ANSWER-----------------Services Mix
Physical layout and "feel" of the store ---------CORRECT ANSWER-----------------Store Atmosphere What are the 7 parts of the Future of Retailing? ---------CORRECT ANSWER----------- ------1. New Retail Forms and Shortening Retail Life Cycles, 2. Growth of Non-Store Retailing, 3. Retail Convergence, 4. Rise of the Mega-Retailers, 5. Growing Importance of Retail Technology, 6. Global Expansion of Major Retailers, 7. Retail Stores as "Communities" or "Hangouts" What 3 factors are changing the face of marketing communications? --------- CORRECT ANSWER-----------------1. Consumers are better informed and more communications empowered, 2. Mass markets have fragmented, leading to a shift away from mass marketing, 3. Changes in communications technology have created new media for interacting with targeted consumers. Firms are moving away from broadcasting and more towards what? --------- CORRECT ANSWER-----------------Narrowcasting What is an example of a brand advertising on a TV show? ---------CORRECT ANSWER-----------------Ziplock containers on the Biggest Loser
Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships ---------CORRECT ANSWER----------------- Personal Selling Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships—the use of telephone, mail, fax, e-mail, the Internet, and other tools to communicate directly with specific consumers ---------CORRECT ANSWER-----------------Direct Marketing manufacturer spending much money communicating to their channel partners, and then they give it to their consumers ---------CORRECT ANSWER----------------- Push manufacturers sell to retailers and then market to the consumers so they the consumers give the product ---------CORRECT ANSWER-----------------Pull What is an example of the Push Strategy? ---------CORRECT ANSWER----------------- Continental Tires
What is an example of the Pull Strategy? ---------CORRECT ANSWER----------------- Michelin Tires How much did North American advertisers spend in 2015? ---------CORRECT ANSWER-----------------$192 B How much did global advertisers spend in 2015? ---------CORRECT ANSWER---------- -------$500 B What are the 5 Organizations that use advertising? ---------CORRECT ANSWER------- ----------1. Business firms, 2. Nonprofit Organizations, 3. Professionals, 4. School Agencies, 5. Government What are the 4 Advertising Steps? ---------CORRECT ANSWER-----------------1. Objective setting, 2. Budget decisions, 3. Message/Media decisions, 4. Campaign evaluation What are the 4 purposes of advertising? ---------CORRECT ANSWER-----------------1. Inform, 2. Persuade, 3. Compare, 4. Remind
