Question 1

Loop Inc., an international pizza restaurant chain, is the first company that is thought of by most people when the product category of pizzas is mentioned. This instance illustrates Loop's _____.
A) brand awareness
B) concept testing
C) brand insistence
D) test marketing

Accepted Answer

Brand awareness refers to the extent to which a brand is recognized by potential customers and is correctly associated with a particular product category. The fact that Loop Inc. is the first company that comes to mind when the product category of pizzas is mentioned shows that the company has a high level of brand awareness. Option B, concept testing, refers to the process of testing new product ideas with a target market to determine their potential viability. Option C, brand insistence, refers to a situation where customers will only purchase a particular brand, even if other options are available. Option D, test marketing, refers to the process of introducing a new product in a limited area to test its performance before a wider launch.

Question 2

Galaxy Corp. buys, stores, and transfers cosmetic goods produced by Haven Inc. and sells them to consumers or business users. This scenario indicates that Galaxy is a _____.
A) direct distribution channel
B) category advisor
C) sales office
D) marketing intermediary

Accepted Answer

Galaxy Corp. is an intermediary between Haven Inc. and the end-users, as it buys, stores, transfers, and sells the cosmetic goods produced by Haven Inc. Therefore, Galaxy Corp. is a marketing intermediary.

Question 3

A(n) _____ is the major supplier designated by a business customer to assume responsibility for dealing with all the other vendors for a project and presenting the entire package to the business buyer.
A) brand manager
B) analyst
C) category advisor
D) associate

Accepted Answer

A category advisor (also known as a category captain) is a major supplier designated by a business customer to assume responsibility for dealing with all the other vendors for a project and presenting the entire package to the business buyer. Their role is to manage the assortment and pricing of products within a specific category, and to provide insights and recommendations to the retailer on how to optimize sales and profits within that category.

Question 4

Patrick's job is to make sure that his company's goods are transferred from the warehouse to retailers in a timely fashion. Patrick's job involves the _____ function.
A) distribution
B) production
C) finance
D) management

Accepted Answer

Patrick is responsible for ensuring the efficient and effective distribution of goods to retailers, which falls under the distribution function of the company. Production involves the creation of goods, finance involves the management of financial resources, and management involves overseeing and supervising various aspects of the company's operations.

Question 5

Which of the following is NOT a role of packaging and labeling?
A) To comply with government regulations
B) To protect the product from damage
C) To identify products and communicate usage
D) To control costs

Accepted Answer

The role of packaging and labeling is not to control costs. While cost efficiency may be a consideration in packaging decisions, it is not a key role of packaging and labeling. The primary goals of packaging and labeling are to comply with regulations, protect the product from damage, and communicate important information to customers.

Question 6

Marketing intermediaries include _____.
A) manufacturers and agents
B) retailers and customers
C) producers and service providers
D) wholesalers and retailers

Accepted Answer

Marketing intermediaries refer to the middlemen or intermediaries who aid in the distribution of goods and services from the manufacturer or producer to the ultimate consumers. Wholesalers and retailers are the examples of marketing intermediaries as they facilitate the flow of goods or services from producers to customers. Hence, option D is the correct answer. A, B, and C do not accurately represent marketing intermediaries.

Question 7

_____ stock the products they distribute and fill orders from their inventories.
A) Merchant wholesalers
B) Manufacturers' reps
C) Sales offices
D) Sales branches

Accepted Answer

The answer of _____ stock the products they distribute and...

Question 8

Verve Inc. sells some of its products like cellphone covers, sling bags, and wallets, by storing, displaying, and selling them in gift shops, supermarkets, and drug stores. This implies that Verve is a _____.
A) limited-function merchant wholesaler
B) merchant wholesaler
C) rack jobber
D) drop shipper

Accepted Answer

The answer of Verve Inc. sells some of its products...

Question 9

Customers who choose one brand over another are displaying _____.
A) brand awareness
B) brand recognition
C) brand preference
D) brand comprehension

Accepted Answer

Brand preference refers to a customer's tendency to choose one particular brand over others in the same product category. This indicates that the customer not only recognizes the brand but also has a positive perception and feeling towards it, which leads to choosing it over other options. Brand awareness refers to the level of familiarity a customer has with a brand, brand recognition refers to the ability of a customer to identify a brand among others, and brand comprehension refers to a customer's understanding and knowledge of a brand's value proposition and benefits.

Question 10

Gerard wants a particular brand of golf ball, but his local pro shop does not have it. Instead of buying a substitute, Gerard goes home and orders his preferred brand online. Gerard is at which stage of brand loyalty?
A) Brand awareness
B) Brand insistence
C) Brand preference
D) Brand recognition

Accepted Answer

Gerard is at the stage of brand insistence, where he is not willing to compromise on his preferred brand and is willing to go out of his way to purchase it.

Question 11

_____ is responsible for moving goods and services from producers to buyers.
A) Production
B) Distribution
C) Marketing
D) Logistics

Accepted Answer

Distribution is responsible for moving goods and services from producers to buyers. Production is concerned with the creation of goods and services, while marketing focuses on promoting and selling them. Logistics involves the management of the movement of goods and resources, but is often included as a part of distribution.

Question 12

Julie stops at the grocery store to purchase detergent. Tide is her favorite brand, but if another detergent is less expensive, she buys it. This is an example of _____.
A) brand recognition
B) brand preference
C) brand awareness
D) brand insistence

Accepted Answer

Julie has a preference for Tide, but is open to buying other brands if they are less expensive. This shows that she has a brand preference but is not insisting on buying a specific brand.

Question 13

Which of the following is NOT a category of wholesaling intermediaries?
A) Manufacturer-owned
B) Industrial
C) Independent
D) Retail-owned

Accepted Answer

The categories of wholesaling intermediaries are manufacturer-owned, independent, retail-owned, and agent/broker. Industrial is not a category of wholesaling intermediaries.

Question 14

The use of direct distribution channels is most common in the _____ market.
A) business-to-business (B2B)
B) automobile
C) business-to-consumer (B2C)
D) professional services

Accepted Answer

Direct distribution channels are most commonly used in the business-to-business (B2B) market, where manufacturers sell their products or services directly to other businesses without the involvement of intermediaries such as wholesalers or retailers. In contrast, the business-to-consumer (B2C) market often uses indirect channels such as retailers and online marketplaces. While the automobile and professional services industries may also utilize direct channels, they are not as common as in the B2B market.

Question 15

Mercedes-Benz is an example of a company that benefits from the added value of its successful name. This brand _____ can result in financial gain due to large market shares and less price sensitivity.
A) awareness
B) recognition
C) equity
D) association

Accepted Answer

The term "brand equity" defines the value a brand enjoys due to consumer perception of the brand. This includes recognition, awareness, and association. Mercedes-Benz has built a strong brand with positive associations, resulting in high brand equity, which allows them to charge a premium for their products and still maintain a large market share.

Question 16

The Pampered Chef sells gourmet cooking supplies to consumers through the use of cooking parties at the homes of its salespeople. The Pampered Chef is a _____ retailer and uses _____.
A) store; direct selling
B) store; direct-response retailing
C) nonstore; direct selling
D) nonstore; direct-response retailing

Accepted Answer

The Pampered Chef does not have physical stores and instead sells its cooking supplies directly to consumers through its salespeople at home parties, making it a nonstore retailer. Because the sales are made in person, it is considered direct selling.

Question 17

Which of the following is NOT a benefit of using the Universal Product Code (UPC)?
A) It controls inventory.
B) It speeds up retail transactions.
C) It provides caloric and nutrition information.
D) It evaluates customer purchases.

Accepted Answer

The Universal Product Code (UPC) does not provide caloric and nutrition information. It is a system of identifying products using a series of black and white bars that can be scanned. The benefits of using UPC are that it controls inventory, speeds up retail transactions, and evaluates customer purchases.

Question 18

Gordon purchased a new PC from Dell Computer's web site. He purchased his product via a(n) _____.
A) direct distribution channel
B) indirect distribution channel
C) wholesaler
D) retailer

Accepted Answer

Gordon purchased his product directly from Dell Computer's web site, which is an example of a direct distribution channel. In this type of channel, the manufacturer or producer sells their products directly to the end consumer, without the involvement of intermediaries such as wholesalers or retailers.

Question 19

Which of the following is NOT a benefit of marketing intermediaries?
A) Costs of buying and selling are decreased.
B) Makers of a product can contact customers cost effectively.
C) Marketing utility is created.
D) Services such as transporting merchandise to convenient locations are performed.

Accepted Answer

Marketing intermediaries serve as a connecting link between makers and customers. However, they do not directly enable makers to contact customers cost-effectively.

Question 20

A food producer's goods are carried by thousands of grocery stores across the country. Which of the following distribution channels is the manufacturer most likely to use?
A) Producer to retailer to consumer
B) Producer to wholesaler to retailer to consumer
C) Producer to wholesaler to wholesaler to retailer to consumer
D) Producer to consumer

Accepted Answer

A food producer with products available in thousands of grocery stores across the country is most likely to use the producer to wholesaler to retailer to consumer distribution channel. This is because the volume of their distribution is likely too large and widespread to handle directly with retailers, so they rely on wholesalers to help distribute their products to retailers across the country. From there, retailers are responsible for selling the products to consumers. Option A is not as likely because it skips the wholesaler step. Option C includes an extra wholesaler step, which is not efficient, and option D involves selling directly to consumers, which would not be practical for a large-scale food producer.

Quiz 12: Product and Distribution Strategies

Loop Inc., an international pizza restaurant chain, is the first company that is thought of by most people when the product category of pizzas is mentioned. This instance illustrates Loop's _____.

Galaxy Corp. buys, stores, and transfers cosmetic goods produced by Haven Inc. and sells them to consumers or business users. This scenario indicates that Galaxy is a _____.

A(n) _____ is the major supplier designated by a business customer to assume responsibility for dealing with all the other vendors for a project and presenting the entire package to the business buyer.

Patrick's job is to make sure that his company's goods are transferred from the warehouse to retailers in a timely fashion. Patrick's job involves the _____ function.

Which of the following is NOT a role of packaging and labeling?

Marketing intermediaries include _____.

_____ stock the products they distribute and fill orders from their inventories.

Verve Inc. sells some of its products like cellphone covers, sling bags, and wallets, by storing, displaying, and selling them in gift shops, supermarkets, and drug stores. This implies that Verve is a _____.

Customers who choose one brand over another are displaying _____.

Gerard wants a particular brand of golf ball, but his local pro shop does not have it. Instead of buying a substitute, Gerard goes home and orders his preferred brand online. Gerard is at which stage of brand loyalty?

_____ is responsible for moving goods and services from producers to buyers.

Julie stops at the grocery store to purchase detergent. Tide is her favorite brand, but if another detergent is less expensive, she buys it. This is an example of _____.

Which of the following is NOT a category of wholesaling intermediaries?

The use of direct distribution channels is most common in the _____ market.

Mercedes-Benz is an example of a company that benefits from the added value of its successful name. This brand _____ can result in financial gain due to large market shares and less price sensitivity.

The Pampered Chef sells gourmet cooking supplies to consumers through the use of cooking parties at the homes of its salespeople. The Pampered Chef is a _ retailer and uses _.

Which of the following is NOT a benefit of using the Universal Product Code (UPC) ?

Gordon purchased a new PC from Dell Computer's web site. He purchased his product via a(n) _____.

Which of the following is NOT a benefit of marketing intermediaries?

A food producer's goods are carried by thousands of grocery stores across the country. Which of the following distribution channels is the manufacturer most likely to use?