bam 306 priciples of economics 4 417483

1. Which type of retailer tends to be the most frequently shopped?

a. Convenience stores

b. Department stores

c. Supermarkets

d. Off price retailers

e. Superstores

2. As a result of the great success of corporate chains, many independent stores choose to band

together in either a voluntary chain or a(n) ________.

a. factory outlet

b. warehouse club

c. independent off price retailer

d. retailer cooperative

e. convenience cooperative

3. While all retailers would like to achieve ________ while charging ________, the two seldom

happen together.

a. low volume; low markups

b. high volume; cut rate markups

c. high volume; low markups

d. high volume; high markups

e. low volume; high markups

4. In store demonstrations, displays, contests and visiting celebrities are examples of ________.

a. agent promotions

b. sales promotions

c. product life cycling

d. franchises

e. broker promotions

5. In response to a(n) ________, many retailers have cut costs, used price promotions and added

new value pitches to their positioning.

a. down economy

b. up economy

c. shift in retail technology

d. dot com boom

e. dot com meltdown

6. The merging of consumers, products, prices and retailers is called ________.

a. consumer convergence

b. retail clustering

c. price merging

d. retail convergence

e. retail conglomeration

7. ________ buy mostly from producers and sell to retailers and industrial consumers.

a. Discount stores

b. Wholesalers

c. Independents

d. Factory outlets

e. Megaretailers

8. ________ are the largest group of wholesalers. The group can be divided into the two broad

types of full service and limited service.

a. Brokers

b. Specialty wholesalers

c. Agents

d. Manufacturer sellers

e. Merchant wholesalers

9. ________, or manufacturers’ representatives, represent a buyer or seller on a more permanent

basis.

a. Franchises

b. Retailers

c. Agents

d. Brokers

e. Intermediaries

10. 7 Eleven, Stop N Go, and Circle K, small stores that traditionally have had a primary market of

young, blue collar men, are examples of ________.

a. specialty stores

b. department stores

c. supermarkets

d. category killers

e. convenience stores

11. Which of the following types of retailers is most likely to practice everyday low pricing (EDLP)?

a. Convenience stores

b. Department stores

c. Discount stores

d. Full service retailers

e. Category killers

12. The promotion mix is the company’s primary communication activity; the marketing mix must

be coordinated for the greatest communication impact. What is NOT included in the entire

marketing mix?

a. Price

b. Promotion

c. Competitor

d. Place

e. Product

13. Marketing communicators must do all of the following EXCEPT ________.

a. choose the media through which to send a message

b. determine the communication objectives

c. collect feedback

d. identify the target audience

e. deliver products to the customer

14. In the AIDA model, the D stands for ________.

a. decoding

b. demand

c. desire

d. data

e. do it yourself

15. All of the following are strategies a marketer would use to lead consumers into making the fi nal

step toward a purchase EXCEPT which one?

a. Offer premiums

b. Offer special promotional prices

c. Use extensive “teaser” advertising

d. Offer rebates

e. email selected customers inviting them in for a visit

16. Moral appeals are directed to the audience’s sense of what is “right” and ________.

a. positive

b. affordable

c. traditional

d. proper

e. emotional

17. A marketer is making decisions about the headline, copy, illustration and colors for a print ad.

The marketer is making decisions about the ________.

a. message channel

b. message content

c. message format

d. message medium

e. message structure

18. Which promotional tool is most effective in building up buyers’ preferences, convictions and,

most importantly, actions?

a. Sales promotion

b. Public relations

c. Segmented advertising

d. Mass market advertising

e. Personal selling

19. Which promotional mix strategy directs marketing efforts toward fi nal consumers?

a. Pulse

b. Buzz

c. Pull

d. Push

e. Blitz

20. HP’s advertising agency assembles words and illustrations into an advertisement that will

convey the company’s intended brand message. In the communication process, HP is

____________.

a. messaging

b. encoding

c. decoding

d. sending

e. responding

21. A long standing charge against intermediaries is that they mark up prices beyond the

___________.

a. resale value

b. promotion cost

c. delivery charges

d. going market price

e. value of their services

22. Advertising “puffery” is a term for ________.

a. subliminal appeals to consumers

b. emotional appeals to consumers

c. a straightforward promotional message

d. innocent exaggeration for effect

e. value added promotions

23. The two major citizen movements to keep business in line are environmentalism and ________.

a. protectionism

b. antimonopoly legislation

c. interstate commerce

d. innovation

e. consumerism

24. All of the following are choices for internal and external “greening” and “beyond greening”

activities EXCEPT ________.

a. consumerism

b. new clean technology

c. product stewardship

d. pollution prevention

e. sustainability vision

25. The philosophy of ________ holds that a company’s marketing should support the best long run

performance of the marketing system.

a. consumer oriented marketing

b. environmentalism

c. the free enterprise system

d. the sustainable marketing concept

e. corporate social responsibility