Flexible element of a retailer's strategy mix is. A merchandise assortment



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Chapter 19

1) Any communication by a retailer that informs, persuades, and/or reminds the target market about any aspect of that firm is ________.

A) advertising

B) public relations

C) retail promotion

D) the retail communication channel

Answer: C

Diff: 1 Page Ref: 530

Skill: Terminology/Concept
2) The four elements of ________ are advertising, public relations, personal selling, and sales promotion.

A) communication

B) selling

C) communication channel

D) promotion

Answer: D

Diff: 1 Page Ref: 530

Skill: Terminology/Concept


3) Which form of promotion has media payment, a nonpersonal presentation, out-of-store mass media, and an identified sponsor?

A) sales promotion

B) advertising

C) public relations

D) personal selling

Answer: B

Diff: 1 Page Ref: 530

Skill: Terminology/Concept


4) Which retailer has the highest dollar advertising expenditures among U.S. retailers?

A) Sears Holding

B) McDonald's

C) Atlantic & Pacific Tea Company

D) General Motors Cooperative Dealer Association

Answer: A

Diff: 1 Page Ref: 531

Skill: Terminology/Concept

5) A major difference between the advertising strategies of retailers and manufacturers is that retailers ________.

A) are more prone to use broadcast media than manufacturers

B) typically have broader geographic target markets

C) have more geographically concentrated target markets than manufacturers

D) are more concerned with image-related advertising

Answer: C

Diff: 1 Page Ref: 531

Skill: Terminology/Concept


6) Which type of small retailer can have a geographically dispersed trading area?

A) convenience store

B) variety store

C) direct seller

D) direct marketer

Answer: D

Diff: 2 Page Ref: 531

Skill: Terminology/Concept


7) In cooperative advertising, ________.

A) a trade association promotes the advantages of a new product in order to increase sales

B) two or more channel members share promotional costs

C) a retailer promotes a manufacturer's brand as being on sale

D) a retailer promotes its own dealer brand as being on sale

Answer: B

Diff: 1 Page Ref: 531

Skill: Terminology/Concept


8) A major advantage of advertising as a retail medium is that ________.

A) there are no media costs

B) it can focus on the needs of individual customers

C) the costs per viewer, reader, or listener are low

D) credibility is high

Answer: C

Diff: 1 Page Ref: 532

Skill: Terminology/Concept


9) Which characteristic of advertising as a retail medium is correct?

A) Media rates are generally higher for retailers than manufacturers.

B) Since a large number of media are available, retailers are generally able to match a medium to a target market.

C) A strength of advertising is its ability to tailor messages to specific target markets.

D) Advertising messages are generally long (in terms of time or space).

Answer: B

Diff: 1 Page Ref: 532

Skill: Terminology/Concept

10) A major disadvantage of advertising as a retail medium is that ________.

A) many media utilize standardized messages that are inflexible

B) few alternative media are generally available

C) the costs of reaching a viewer, reader, or listener are high

D) retail control over message timing and content is low

Answer: A

Diff: 1 Page Ref: 533

Skill: Terminology/Concept


11) Retailers spend the highest proportion of their advertising budgets in which medium?

A) telephone directories

B) direct mail

C) newspapers

D) flyers/circulars

Answer: C

Diff: 1 Page Ref: 533

Skill: Terminology/Concept


12) A medium's circulation covers a broader geographic region than that containing the retailer's target market. This concept is referred to as ________.

A) waste

B) lead time

C) trading-area overlap

D) throw-away rate

Answer: A

Diff: 2 Page Ref: 535

Skill: Terminology/Concept


13) An advantage of a Yellow Pages listing is the ________.

A) free listing

B) absence of clutter

C) long medium life

D) alphabetical listing that does not contain competing retailers in the same section

Answer: C

Diff: 1 Page Ref: 535

Skill: Terminology/Concept


14) A characteristic of direct mail is a ________.

A) high response rate

B) low throw-away rate

C) highly targeted audience

D) long lead time

Answer: C

Diff: 1 Page Ref: 535

Skill: Terminology/Concept

15) Which medium is associated with a low response rate and a high throwaway rate?

A) local magazine

B) weekly newspaper

C) daily newspaper

D) direct mail

Answer: D

Diff: 1 Page Ref: 535

Skill: Terminology/Concept


16) Which medium is characterized by large-size ads and zoning difficulties?

A) flyers/circulars

B) telephone directories

C) outdoor advertising

D) direct mail

Answer: C

Diff: 1 Page Ref: 535

Skill: Terminology/Concept


17) A(n) ________ ad should be used to communicate a new retailer opening in a market area.

A) pioneer

B) reminder

C) competitive

D) institutional

Answer: A

Diff: 1 Page Ref: 536

Skill: Terminology/Concept


18) An advertisement in a local newspaper, featuring low interest-rate financing for consumers that purchase a top-of-the-line refrigerator, illustrates a(n) ________ ad.

A) institutional

B) competitive

C) reminder

D) pioneer

Answer: B

Diff: 1 Page Ref: 536

Skill: Terminology/Concept


19) Image-related advertising illustrates a(n) ________ advertisement.

A) pioneer

B) reminder

C) competitive

D) institutional

Answer: D

Diff: 1 Page Ref: 536

Skill: Terminology/Concept

20) Vertical cooperative advertising agreements are subject to the ________.

A) Consumer Goods Pricing Act

B) Federal Trade Commission Act

C) Robinson-Patman Act

D) Sherman Antitrust Act

Answer: C

Diff: 1 Page Ref: 537

Skill: Terminology/Concept


21) In a horizontal cooperative advertising agreement, ________.

A) a manufacturer (or wholesaler) and a retailer share an ad

B) retailers' payment for an ad is based on their yearly sales of a particular product

C) competing retailers share an ad and its cost

D) two or more retailers share an ad

Answer: D

Diff: 2 Page Ref: 537

Skill: Terminology/Concept


22) A major difference between advertising and publicity is based upon ________.

A) media used

B) media payment

C) message flexibility

D) message type

Answer: B

Diff: 1 Page Ref: 537

Skill: Terminology/Concept


23) A major advantage of public relations versus advertising is ________.

A) the source of the communication is more credible

B) the high control over a message and its timing, placement, and coverage

C) the high degree of message customization

D) no costs for a public relations staff

Answer: A

Diff: 1 Page Ref: 538

Skill: Terminology/Concept


24) A major disadvantage of public relations versus advertising is ________.

A) high costs for message time or space

B) little retailer control over a message and its timing, placement, and coverage

C) no carryover effects

D) less attention paid to public relations than to clearly identified advertisements

Answer: B

Diff: 1 Page Ref: 538

Skill: Terminology/Concept

25) A major advantage of personal selling is ________.

A) the immediate feedback that is provided

B) the large number of consumers that can be reached at one point in time

C) the low costs of reaching each target customer

D) low total costs for salaries, travel, and entertainment

Answer: A

Diff: 1 Page Ref: 539

Skill: Terminology/Concept


26) Which type of salesperson is generally associated with a self-service retail environment?

A) a sales engineer

B) a closer

C) an order-taking salesperson

D) an order-getting salesperson

Answer: C

Diff: 1 Page Ref: 540

Skill: Terminology/Concept


27) PMs are best defined as ________.

A) promotional allowances paid to retailers by manufacturers and wholesalers for shelf space

B) rebates and other discounts given to buyers to induce their purchase of a manufacturer's products

C) point-of-purchase promotions developed by manufacturers to increase store traffic

D) additional compensation paid to retail salespeople by a manufacturer based on sales of its products

Answer: D

Diff: 1 Page Ref: 540

Skill: Terminology/Concept


28) The promotion form that focuses on short-run sales performance is ________.

A) advertising

B) public relations

C) sales promotion

D) personal selling

Answer: C

Diff: 1 Page Ref: 542

Skill: Terminology/Concept


29) Which sales promotion form seeks to develop store loyalty?

A) prizes

B) referral gifts

C) sweepstakes

D) frequent shopper programs

Answer: D

Diff: 1 Page Ref: 544-545

Skill: Terminology/Concept

30) The most complex method of establishing an overall promotional budget is the ________.

A) objective-and-task method

B) percentage-of-sales technique

C) incremental method

D) all-you-can-afford method

Answer: A

Diff: 1 Page Ref: 549

Skill: Terminology/Concept


31) The overall stages in a consumer's purchase process from awareness to purchase is depicted in the ________.

A) consumer brand choice model

B) hierarchy of effects model

C) brand loyalty model

D) Howard-Sheth model

Answer: B

Diff: 1 Page Ref: 550

Skill: Terminology/Concept


32) Which promotional forms are ideal for generating awareness in the hierarchy of effects model?

A) advertising and public relations

B) advertising and sales promotion

C) personal selling and sales promotion

D) personal selling and public relations

Answer: A

Diff: 1 Page Ref: 550

Skill: Terminology/Concept


33) The efficiency of a medium can be most accurately assessed through evaluating its ________.

A) waste circulation or coverage

B) cost per thousand

C) passalong rate

D) paid circulation

Answer: B

Diff: 2 Page Ref: 551

Skill: Terminology/Concept


34) Extensive media coverage refers to ________.

A) low reach with high frequency

B) low reach with low frequency

C) high reach with low frequency

D) high reach with high frequency

Answer: C

Diff: 2 Page Ref: 552

Skill: Terminology/Concept

35) In a massed advertising effort, ________.

A) reach is stressed over frequency

B) salesmanship is stressed

C) retailers promote throughout the year

D) promotion is concentrated in seasonal periods

Answer: D

Diff: 1 Page Ref: 533

Skill: Terminology/Concept


36) A difficulty associated with the use of national magazines by an independent retailer with a narrow trading area is ________.

A) high waste in geographic coverage

B) low control over timing and placement of advertisements

C) long lead time

D) absence of discounts based on the number of insertions

Answer: A

Diff: 2 Page Ref: 553

Skill: Applied/Comprehensive/Integrative


37) Manufacturers utilize cooperative advertising agreements with retailers ________.

A) to decrease retailer waste in advertising

B) as a means of channel control

C) to take advantage of the lower rates offered to retailers

D) to comply with the Robinson-Patman Act

Answer: C

Diff: 2 Page Ref: 531

Skill: Applied/Comprehensive/Integrative


38) An important advantage of advertising in comparison to personal selling is the ________.

A) high ability to persuade a consumer

B) high message flexibility

C) low cost of reaching a target market member

D) low waste circulation

Answer: C

Diff: 1 Page Ref: 532

Skill: Applied/Comprehensive/Integrative


39) Which medium offers a retailer the greatest control in reaching a targeted geographic area?

A) Yellow Pages

B) direct mail

C) daily newspapers

D) radio

Answer: B

Diff: 2 Page Ref: 535

Skill: Applied/Comprehensive/Integrative

40) Which medium has the highest message permanence?

A) radio

B) direct mail

C) weekly newspaper

D) telephone directories

Answer: D

Diff: 1 Page Ref: 535

Skill: Applied/Comprehensive/Integrative


41) A local computer retailer desires to reach a targeted audience consisting of past customers. The retailer is offering "computer tune-ups" consisting of removal of duplicate files, virus scanning and removal, and performing diagnostic work on the system's major hardware components. Which medium is most appropriate in reducing waste?

A) direct mail

B) shopper

C) radio

D) daily newspaper

Answer: A

Diff: 2 Page Ref: 535

Skill: Applied/Comprehensive/Integrative


42) The creation of regional or zoned editions, superior graphics, and the availability of color have increased retailers' use of ________.

A) telephone directories

B) magazines

C) outdoor advertising

D) direct mail

Answer: B

Diff: 2 Page Ref: 535

Skill: Applied/Comprehensive/Integrative


43) Which type of retailer ad is most likely to include a product's price?

A) institutional advertisement

B) pioneer advertisement

C) reminder advertisement

D) competitive advertisement

Answer: D

Diff: 1 Page Ref: 536

Skill: Applied/Comprehensive/Integrative


44) The short space and long lead time make outdoor advertising least appropriate for what form of advertisements?

A) institutional

B) pioneer

C) reminder

D) competitive

Answer: D

Diff: 2 Page Ref: 536

Skill: Applied/Comprehensive/Integrative

45) A retailer stresses its community service in a current advertising campaign. This illustrates a(n) ________ ad.

A) institutional

B) pioneer

C) reminder

D) competitive

Answer: A

Diff: 1 Page Ref: 536

Skill: Applied/Comprehensive/Integrative


46) Since vertical cooperative advertising agreements fall under the scope of the Robinson-Patman Act, a manufacturer ________.

A) must offer similar agreements to all retailers on a proportionate basis of their purchases

B) cannot offer cooperative advertising agreements to competing merchants

C) must reduce other allowances by the size of the cooperative advertising allowance

D) must require that all ads meet set criteria in terms of size and adherence to suggested list price

Answer: A

Diff: 2 Page Ref: 537

Skill: Applied/Comprehensive/Integrative


47) Noncompeting retailers can share advertisements in media with broad geographic circulation. This strategy represents a ________.

A) competitive advertisement

B) pioneer advertisement

C) vertical cooperative advertising agreement

D) horizontal cooperative advertising agreement

Answer: D

Diff: 1 Page Ref: 537

Skill: Applied/Comprehensive/Integrative


48) The major strategic difference between advertising and public relations relates to ________.

A) identification of the sponsor

B) control over the message by the marketer

C) the method of presentation

D) effectiveness

Answer: B

Diff: 1 Page Ref: 537, 530-531

Skill: Applied/Comprehensive/Integrative


49) If advertising and personal selling are classified as marketer-dominated, then public relations is classified as ________-dominated.

A) media

B) consumer

C) government

D) trade association

Answer: A

Diff: 2 Page Ref: 537

Skill: Applied/Comprehensive/Integrative

50) The effectiveness of a retailer's public relations department can be determined by evaluating ________.

A) its overall budget

B) store recognition levels

C) store image positioning by target-market customers

D) the comparable value in space if generated by advertising

Answer: D

Diff: 2 Page Ref: 538

Skill: Applied/Comprehensive/Integrative


51) Most retail salespersons in self-service operations are ________.

A) sales engineers

B) sales managers

C) order-taking salespersons

D) order-getting salespersons

Answer: C

Diff: 2 Page Ref: 540

Skill: Applied/Comprehensive/Integrative

52) Which compensation system is most appropriate for a pure order-taking position?

A) compensation cafeteria

B) PMs

C) straight commission plan



D) straight salary plan

Answer: D

Diff: 2 Page Ref: 540

Skill: Applied/Comprehensive/Integrative


53) While a computer retailer engages in extensive advertising and many consumers come to the store knowing what camera to purchase, it is concerned that salespeople do not effectively cross-sell. The retailer wants to encourage its salespersons to sell software, extra memory, tape-backup devices, and extended warranties at the same time as the computer purchase. The retailer needs to attract and motivate ________.

A) order-taking salespersons

B) order-getting salespersons

C) sales engineers

D) sales managers

Answer: B

Diff: 1 Page Ref: 540

Skill: Applied/Comprehensive/Integrative


54) Many retailers like to monitor the use of PMs by manufacturers since ________.

A) PMs may not motivate the salespersons to sell a given brand

B) salespeople may earn too much

C) salespeople may not accurately portray the benefits and limitations of all brands

D) PMs may subject the firm to the Robinson-Patman Act difficulties

Answer: C

Diff: 2 Page Ref: 540

Skill: Applied/Comprehensive/Integrative

55) The canned sales presentation can be distinguished from the need-satisfaction approach by its ________.

A) focus on the customer's demographics

B) high training costs

C) repetitive nature

D) attention to a customer's product-related needs

Answer: C

Diff: 2 Page Ref: 541

Skill: Applied/Comprehensive/Integrative


56) The major distinction between the canned sales presentation and the need-satisfaction approach is based on ________.

A) whether the salesperson tries to close the sale

B) the total time spent with a prospect

C) the method and amount of compensation

D) flexibility demonstrated by the salesperson in his or her sales presentation

Answer: D

Diff: 2 Page Ref: 541

Skill: Applied/Comprehensive/Integrative


57) "Is this your first purchase of a digital single lens reflex camera?" and "What types of lenses and flash equipment do you own? are examples of questions asked in the ________.

A) canned sales presentation

B) need-satisfaction approach

C) order-taking approach

D) promotional money approach

Answer: B

Diff: 1 Page Ref: 541

Skill: Applied/Comprehensive/Integrative


58) In which type of sales presentation does the salesperson probe the potential customer's needs in the greeting stage?

A) canned sales presentation

B) need-satisfaction approach

C) point-of-purchase promotion

D) push money

Answer: B

Diff: 1 Page Ref: 541

Skill: Applied/Comprehensive/Integrative


59) "Do you need the car this week or do you want to order one to your specifications?" illustrates what selling function?

A) demonstration of goods/services

B) sales presentation

C) closing the sale

D) greeting customers

Answer: C

Diff: 2 Page Ref: 541

Skill: Applied/Comprehensive/Integrative

60) Which element in the retail promotion mix generally emphasizes short-term sales increases?

A) sales promotion

B) public relations

C) advertising

D) personal selling

Answer: A

Diff: 1 Page Ref: 541

Skill: Applied/Comprehensive/Integrative


61) Which form of sales promotion is commonly used in conjunction with self-service merchandising?

A) contests

B) point-of-purchase promotion

C) sweepstakes

D) referral gifts

Answer: B

Diff: 2 Page Ref: 543

Skill: Applied/Comprehensive/Integrative


62) The major difference between a contest and a sweepstakes is that ________.

A) contests are aimed at repeat purchases

B) contests are tied to patronage

C) contests require skill while sweepstakes are based on chance

D) sweepstakes may not be legal in some areas

Answer: C

Diff: 1 Page Ref: 544

Skill: Applied/Comprehensive/Integrative


63) Which form of sales promotion is commonly used as part of a relationship retailing program?

A) frequent shopper programs

B) prizes

C) point-of-purchase promotion

D) coupons

Answer: A

Diff: 2 Page Ref: 544-545

Skill: Applied/Comprehensive/Integrative


64) The most difficult task in using the objective-and-task method of promotional budgeting is ________.

A) stating an objective in clear terms

B) determining success of an advertising campaign

C) outlining how each objective can be accomplished

D) determining media costs based upon the media plan

Answer: C

Diff: 2 Page Ref: 549

Skill: Applied/Comprehensive/Integrative

65) Which promotional forms are most appropriate for the earliest stages of the hierarchy of effects?

A) advertising and public relations

B) advertising and sales promotion

C) public relations and sales promotion

D) public relations and personal selling

Answer: A

Diff: 2 Page Ref: 550

Skill: Applied/Comprehensive/Integrative


66) A newspaper has a circulation of 2,000,000 and a per-page rate of $10,000. Its cost per thousand is ________.

A) $0.50

B) $5.00

C) $20.00

D) $50.00

Answer: B

Diff: 1 Page Ref: 551

Skill: Applied/Comprehensive/Integrative


67) A magazine with a circulation of 10,000,000 has a per-page rate of $50,000. Seventy percent of the magazine's readers are target customers for the retailer. The retailer's real cost per thousand for this magazine is ________.

A) $5.00

B) $7.00

C) $7.14

D) $10.00

Answer: C

Diff: 2 Page Ref: 551

Skill: Applied/Comprehensive/Integrative


68) In massed promotion effort, ________.

A) reach is regular throughout the year

B) reach is irregular throughout the year

C) frequency is regular throughout the year

D) frequency is irregular throughout the year

Answer: D

Diff: 2 Page Ref: 553

Skill: Applied/Comprehensive/Integrative


69) Massed promotion effort is most appropriate for retailers ________.

A) with high customer loyalty

B) with low advertising budgets

C) favoring reach over frequency

D) with high seasonality

Answer: D

Diff: 2 Page Ref: 553

Skill: Applied/Comprehensive/Integrative

70) The most appropriate promotional schedule for a pioneer ad is ________.

A) peaked advertising

B) the hierarchy-of-effects schedule

C) massed promotion effort

D) distributed advertising effort

Answer: C

Diff: 2 Page Ref: 553

Skill: Applied/Comprehensive/Integrative


71) Advertising, public relations, personal selling, and sales promotion are the four elements of retail promotion.

Answer: TRUE

Diff: 1 Page Ref: 53

Skill: Terminology/Concept


72) Advertising is characterized based on payment for media, a nonpersonal presentation, and an identified sponsor.

Answer: TRUE

Diff: 1 Page Ref: 530

Skill: Terminology/Concept


73) Most smaller retailers cannot use national media as readily as a manufacturer.

Answer: TRUE

Diff: 2 Page Ref: 531

Skill: Terminology/Concept


74) Media charges are generally lower for manufacturers than for retailers.

Answer: FALSE

Diff: 1 Page Ref: 531

Skill: Terminology/Concept


75) More retail advertising is in radio than any other medium.

Answer: FALSE

Diff: 1 Page Ref: 533

Skill: Terminology/Concept


76) Direct mail is characterized by its low throwaway rate and low clutter.

Answer: FALSE

Diff: 1 Page Ref: 535

Skill: Terminology/Concept


77) Institutional advertising seeks to increase a retailer's short-run sales.

Answer: FALSE

Diff: 2 Page Ref: 536

Skill: Terminology/Concept

78) In a horizontal cooperative advertising agreement, two or more noncompeting retailers share an advertisement.

Answer: TRUE

Diff: 1 Page Ref: 537

Skill: Terminology/Concept


79) There is no identified commercial sponsor in public relations.

Answer: TRUE

Diff: 1 Page Ref: 537

Skill: Terminology/Concept


80) On the average, order-getting salespeople are higher paid and more skilled than order-taking salespersons.

Answer: TRUE

Diff: 2 Page Ref: 540

Skill: Terminology/Concept


81) The canned sales presentation approach to retail selling tailors the presentation on the basis of consumer comments, questions, and concerns.

Answer: FALSE

Diff: 1 Page Ref: 541

Skill: Terminology/Concept


82) Sales promotion has a short-run orientation.

Answer: TRUE

Diff: 1 Page Ref: 541

Skill: Terminology/Concept


83) The objective-and-task method of establishing an overall promotional budget is likely to provide too much funds in periods of high sales and too few funds in periods of low sales.

Answer: FALSE

Diff: 1 Page Ref: 549

Skill: Terminology/Concept


84) The first step in the hierarchy of effects is knowledge.

Answer: FALSE

Diff: 1 Page Ref: 550

Skill: Terminology/Concept


85) Evaluating the results of a promotional campaign are simplified when promotional goals are clearly stated in advance.

Answer: TRUE

Diff: 2 Page Ref: 554

Skill: Terminology/Concept


86) For many retailers with small trading areas, daily newspapers and weekly magazines contain a high percent of waste circulation.

Answer: TRUE

Diff: 2 Page Ref: 533

Skill: Applied/Comprehensive/Integrative

87) The lead time for Yellow Pages is relatively short.

Answer: FALSE

Diff: 1 Page Ref: 535

Skill: Applied/Comprehensive/Integrative


88) The market coverage of direct mail is controlled by the retailer.

Answer: TRUE

Diff: 2 Page Ref: 535

Skill: Applied/Comprehensive/Integrative


89) Outdoor advertising is especially suitable for competitive advertisements.

Answer: FALSE

Diff: 1 Page Ref: 535

Skill: Applied/Comprehensive/Integrative


90) Institutional advertisements typically include name brands, prices, and style/color availability.

Answer: FALSE

Diff: 1 Page Ref: 536

Skill: Applied/Comprehensive/Integrative


91) Since horizontal cooperative advertising agreements are within the scope of the Robinson-Patman Act, they must be offered to all competing retailers on a proportionate basis.

Answer: FALSE

Diff: 2 Page Ref: 537

Skill: Applied/Comprehensive/Integrative


92) Vertical cooperative advertising agreements are commonly used by members of a chamber of commerce or shopping center retail association in a joint promotion.

Answer: FALSE

Diff: 2 Page Ref: 537

Skill: Applied/Comprehensive/Integrative


93) A basic managerial distinction between advertising and public relations is based on degree of retailer control.

Answer: TRUE

Diff: 2 Page Ref: 537

Skill: Applied/Comprehensive/Integrative


94) Order-getting salespersons are most likely to engage in cross-selling and trading-up of customers.

Answer: TRUE

Diff: 1 Page Ref: 540

Skill: Applied/Comprehensive/Integrative


95) The use of PMs by manufacturers may result in channel conflict due to a retail salesperson's divided loyalty.

Answer: TRUE

Diff: 2 Page Ref: 540

Skill: Applied/Comprehensive/Integrative

96) The canned sales presentation approach more closely fulfills the retailing concept than the need-satisfaction approach.

Answer: FALSE

Diff: 1 Page Ref: 541

Skill: Applied/Comprehensive/Integrative


97) Since sales promotion seeks to increase short-term sales, it is easier to determine the success of sales promotion than of institutional advertising.

Answer: TRUE

Diff: 2 Page Ref: 542

Skill: Applied/Comprehensive/Integrative


98) Frequent shopper programs are part of a relationship retailing program.

Answer: TRUE

Diff: 2 Page Ref: 544-545

Skill: Applied/Comprehensive/Integrative


99) A magazine has a circulation of 3,000,000 and a per-page ad rate of $100,000. Its cost per thousand is $33.33.

Answer: TRUE

Diff: 2 Page Ref: 551

Skill: Applied/Comprehensive/Integrative


100) A magazine has a circulation of 3,000,000, a per-page ad rate of $100,000, and waste of 30 percent. Its real cost per thousand is $57.33.

Answer: FALSE

Diff: 2 Page Ref: 551

Skill: Applied/Comprehensive/Integrative


101) Describe the major differences between retailers' and manufacturers' advertising strategies.

Diff: 1 Page Ref: 551


102) What are the advantages and disadvantages of a reliance on advertising as a promotional type from the perspective of a small, local retail chain?

Diff: 2 Page Ref: 532-533


103) What are the benefits to each channel member in using a vertical cooperative advertising agreement? ...a horizontal cooperative advertising agreement?

Diff: 1 Page Ref: 537


104) Develop a vertical cooperative agreement to ensure that a manufacturer's advertising goals are being achieved.

Diff: 2 Page Ref: 537


105) How can a retailer determine the effectiveness of its public relations program?

Diff: 1 Page Ref: 538

106) a. What is the proper role of an order-taking salesperson in a seasonal furniture department of a department store?

b. What is the proper role of an order-getting salesperson in a seasonal furniture department of a department store?

Diff: 2 Page Ref: 540
107) a. "The need-satisfaction approach best represents the marketing concept applied to retailing." Explain this statement.

b. Under what circumstances should retail salespersons use the canned sales approach?

Diff: 2 Page Ref: 540
108) Develop a promotional budget for a family-oriented Italian restaurant located three blocks from your college/university. Use the all-you-can afford approach, the incremental method, and the objective-and-task method. While the restaurant is very popular for phone orders over the weekend, sales are comparatively slow on weekday evenings and during lunch times.

Diff: 2 Page Ref: 548-549


109) a. Describe the importance of the hierarchy of effects to a retailer.

b. What types of promotions would you use at each stage? Explain.

Diff: 1 Page Ref: 550
110) a. Differentiate between the cost per thousand criterion versus the cost per thousand (target market) criterion.

b. How can a retailer determine the amount of waste circulation?

Diff: 1 Page Ref: 551
111) a. Describe the importance of both reach and frequency in terms of media choice.

b. How can a retailer increase both reach and frequency with a constant budget?

Diff: 1 Page Ref: 552
112) Under what circumstances would a retailer utilize a massed advertising effort? ...a distributed advertising effort? Explain your answers.

Diff: 2 Page Ref: 552-553




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