Exam: – Value Capture and Value Delivery
1.Coupons, rebates, and online discounts are types of
A. off-price wholesaling.
B. pricing promotions.
C. in-store promotions.
D. specialty product displays.
2.Retailers with strong brand names of their own might operate outlet stores to
A. extend the useful life of mature products.
B. keep manufacturers from selling similar items in their own factory stores.
C. sell excess inventory that might have to be sold at markdown prices in regular stores.
D. compete with category specialist stores.
3._______ communities are networks of social shoppers who see an enhanced emotional connection with other participants during an Internet shopping experience.
D. Electronic loyalty program
4.The most significant potential benefit of the Internet channel is its
A. capacity for providing location options for maintaining inventory.
B. potential to provide customers with instant gratification.
C. capacity for a touch-and-feel customer experience.
D. ability to personalize information for each customer on a cost effective basis.
5.Some companies want to get their products into as many outlets as possible. These companies understand that the more exposure they get, the more of their products they’ll sell. If this idea is consistent with the company’s overall strategy, it will most likely choose _______ distribution.
C. collectively exhaustive
6._______ are combating competitive pressures by increasing the amount of exclusive and private label merchandise, strengthening customer loyalty programs, and expanding their online presence.
A. Full-line discount stores
B. Limited assortment supermarkets
C. Convenience stores
D. Department stores
7.Electronic access to manufacturer’s inventory helped transform the effectiveness of manufacturer’s representatives and outside sales forces. Using new communications tools, they could now avoid the supply chain problem of
A. increasing prices without increasing transportation charges.
B. promising delivery of products that weren’t available.
C. insufficient raw materials to produce the needed merchandise.
D. not being able to coordinate selling efforts with manufacturers’ promotional campaigns.
8._______ measures consumers’ sensitivity to changes in how much is charged for an item.
A. Price elasticity of demand
B. Cross-price elasticity of demand
C. Income elasticity
D. Competitive price demand
9.Health clubs often use a low, introductory offer price to get people to join their club. These low prices represent a _______ orientation pricing strategy.
A. maximizing profits
B. target return
D. target profit
10.Labor, materials, and energy are typically _______ costs.
11.Typically, manufacturers and retailers exchange business documents through a(n) _______ system.
A. floor-ready intranet
B. electronic data interchange
C. vertical-conflict reduction
D. cross-docking Internet
12.Jacob rents rooms in his hotel for an average of $100 per night. The variable
cost per rented room is $15. His fixed costs are $100,000, and his profit last year
was $20,000. For Jacob, the contribution per unitis
13.Naomi owns and manages a gift store that features merchandise for many holidays throughout the year. Some are novelty items that are mass produced, and some are handcrafted. Manufacture and creation of these items occur throughout the year, but in cycles different from the customers’ purchases. To be successful, Naomi must pay special attention to the supply chain management goal of providing products at the right
C. service levels.
14.For marketers to advertise a price as their _______ price, the Better Business Bureau recommends that at least 50 percent of the sales of a product occur at that price.
15.Which of the following is most likely to be characterized by oligopolistic competition in the United States?
A. Soft drinks
D. Men’s clothing
16.Benton manages a building supply company. He wants to invite 20 of his most valuable customers, who are building contractors, to a golf outing and party. Benton will most likely use the firm’s _______ to identify these customers.
A. annual sales report
B. specialty-store sales
D. CRM database
17.In _______ competition, there are many firms providing differentiated products.
18.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
19. If a one-percent decrease in price results in more than a one-percent increase in quantity demand, demand is
A. price inelastic.
B. derived demand inelastic.
C. price elastic.
D. cross-price elastic
20.When a customer purchases a DVD at a Best Buy Electronics store, three of the following information flows are started. Which one is not started?
A. Best Buy’s buyer aggregates sales at all stores and uses the information to send a reorder to the manufacturer.
B. The sales associate scans the UPC recording the sale.
C. The purchase is added to the customer’s personal and confidential purchasing habit records.
D. The sale is transmitted to Best Buy’s distribution center to adjust inventory data.
21.The fact that millions of consumers are using online search engines for comparison shopping has
A. increased consumers’ price sensitivity.
B. increased the number of oligopoly markets.
C. reduced overall demand.
D. reduced the contribution per unit cross-pricing elasticity.
22.Manufacturers use wholesalers and retailers because
A. wholesalers and retailers are traditionally accepted by frequent, loyal shoppers.
B. wholesalers and retailers create value through convenience and lower prices.
C. the wholesalers control the retailers.
D. the manufacturers have no other choice, due to the legal environment.
23.General Mills (a manufacturer of a variety of food products) might engage Target, Costco, Wal-Mart, and Kroger in a
24.The break-even point is estimated by
A. dividing fixed costs by contribution per unit.
B. multiplying revenue per unit times the quantity sold.
C. multiplying fixed costs by contribution per unit.
D. dividing fixed contribution per unit by variable costs.
25.At the break-even point, _______ are zero.
B. contributions per unit
D. price End of exam