MKT 300 Final Exam Review

Mass merchandisers...

• operate on the "buy low, sell high" philosophy

• usually operate with low margins

• try to reduce costs by reducing inventory turnover

• face a bright future and increasing profits because of decreasing competition

At the airport, a brand of headphones has a print ad at a kiosk that highlights its superior technology, quality of sound, and comfortable fit compared to other options. This is an example of which type of advertising?

• Pioneering advertising

• Indirect competitive advertising

• Primary advertising

• Direct competitive advertising

• Institutional advertising

Which of the following is NOT an advantage of shopping online?

• Wide assortment

• Rich variety of product information from many sources

• Instant access to products and instant gratification

• Simplified price and product feature comparison

With ________ merchandising, retailers carry any type of product that they believe they can sell profitably, even if not traditionally carried.

• Scrambled merchandising

• Top-line-focused merchandising

• Profit-focused merchandising

• Wholesale merchandising

A wholesaler that sells electronics is trying to increase sales. They currently sell to several different customer groups, each with very specific and different needs. Which method should they use to better meet the needs of customers and improve their sales?

• Accumulating

• Assorting

• Sorting

• Bulk-breaking

Using the total cost approach, Fresh Market should select which of the following shipping options?

• Shipping via truck – Transportation: $50, Spoilage: $50, Inventory holding costs: $50

• Air freight – Transportation: $200

• Shipping via boat – Transportation: $100, Spoilage: $100, Inventory holding costs: $50

• Shipping via train – Transportation: $25, Spoilage: $75, Inventory holding costs: $75

Which of the following is NOT an example of the customer service level concept?

• An Apple store has enough iPhone’s in stock to sell to all customers wanting to purchase one that day

• Online shoppers expect to receive the exact item they ordered from Amazon

• The local ice cream truck must have the lowest price

• Business executives renting cars from Avis want the cars to be ready when they get off their planes

Consumers took part in a taste test with Coca-Cola and Pepsi. When both cans were labeled, consumers  overwhelmingly chose Coke, but when the samples were not labeled, preferences were evenly split. This example demonstrates the strong brand ________ of Coca Cola.

• Preference

• Equity

• Insistence

• Familiarity

• Loyalty

Which of the following is NOT true about warranties:

• It may promise more than common law provides

• If firms choose to offer a warranty, it is usually a full warranty

• In recent years, many firms have decreased the period of warranty coverage

• A supplemental warranty can be purchased to extend coverage of a product

Intense sales competition between the retailer Costco’s Kirkland brand light bulbs and General Electric light bulbs would be an example of a battle between ________ brands and ________ brands, respectively.

• Generic; Manufacturer

• Private; Dealer

• Manufacturer; Individual

• Family; Private

• Dealer; Manufacturer