One of the disadvantages of reciprocity is that it can lead to: A)a price war B)higher promotional costs C)more competitive firms entering the industry D)less than optimal purchases for the buyer E)longer periods of negotiation

One of the disadvantages of reciprocity is that it can lead to:
A)a price war
B)higher promotional costs
C)more competitive firms entering the industry
D)less than optimal purchases for the buyer
E)longer periods of negotiation
by

1 Answer

Answer :

D)less than optimal purchases for the buyer
by

Related questions

Abbott's Office Supplies buys furniture and filing cabinets from Craine Furniture and Craine buys paper, pens, and folders from Abbott's, the two firms are engaged in A)cross-selling. B)tying agreements. C)producer marketing. D)reciprocity.

Description : Abbott's Office Supplies buys furniture and filing cabinets from Craine Furniture and Craine buys paper, pens, and folders from Abbott's, the two firms are engaged in A)cross-selling. B)tying agreements. C)producer marketing. D)reciprocity.

Last Answer : D)reciprocity.

Product elimination can best be described as the process of deleting a product from the product mix when it A)is perceived as a failure by top management. B)increases production costs and decreases profits. C)no longer responds to promotional efforts. D)no longer satisfies a sufficient number of customers.

Description : Product elimination can best be described as the process of deleting a product from the product mix when it A)is perceived as a failure by top management. B)increases production costs and ... C)no longer responds to promotional efforts. D)no longer satisfies a sufficient number of customers.

Last Answer : D)no longer satisfies a sufficient number of customers.

If Amstrad wants to focus its marketing efforts on price competition, the firm's long -run success will depend B)lower prices than it has historically charged. C)a promotional campaign for lower prices. D)a lower cost structure than its competitors.on having: A)lower prices than its competition.

Description : If Amstrad wants to focus its marketing efforts on price competition, the firm's long-runsuccess will depend on having: A)lower prices than its competition.B)lower prices than it has historically charged. C)a promotional campaign for lower prices. D)a lower cost structure than its competitors.

Last Answer : D)a lower cost structure than its competitors.

United Biscuits buys shortening from suppliers in the European Community. The buyer for the firm is MOST likely use which method of organisational buying? A)Description B)Inspection C)Sampling D)Negotiation E)Blind

Description : United Biscuits buys shortening from suppliers in the European Community. The buyer for the firm is MOST likely use which method of organisational buying? A)Description B)Inspection C)Sampling D)Negotiation E)Blind

Last Answer : C)Sampling

A grocery shop wants to order several dozen large grade 1 eggs from its local supplier. The shop's buyer will most likely use which purchase method: A)description B)sampling C)negotiation D)inspection

Description : A grocery shop wants to order several dozen large grade 1 eggs from its local supplier. The shop's buyer will most likely use which purchase method: A)description B)sampling C)negotiation D)inspection

Last Answer : A)description

Marketers at Premier Brands want to determine the effects of a price increase on sales of Gourmet Dinners. In setting up an experiment, the dependent variable would be: A)production costs B)price C)advertising costs D)sales E)wholesale purchases

Description : Marketers at Premier Brands want to determine the effects of a price increase on sales of Gourmet Dinners. In setting up an experiment, the dependent variable would be: A)production costs B)price C)advertising costs D)sales E)wholesale purchases

Last Answer : D)sales

One advantage of non -price competition is that: A)a firm can react quickly to competitive efforts. B)market share becomes less important. C)a firm can build customer loyalty. D)pricing is no longer a success factor.

Description : One advantage of non-price competition is that: A)a firm can react quickly to competitive efforts. B)market share becomes less important. C)a firm can build customer loyalty. D)pricing is no longer a success factor.

Last Answer : C)a firm can build customer loyalty.

Essex Office Products has decided to use a particular competitive tool that it feels will have a major impact. Its consultant, Dr. Bell, contends that this particular approach is the one most easily copied by the firm's competitors. The tool in question is: A)price B)market segmentation C)distribution D)promotion E)product innovation

Description : Essex Office Products has decided to use a particular competitive tool that it feels will have a major impact. Its consultant, Dr. Bell, contends that this particular approach is the one most ... in question is: A)price B)market segmentation C)distribution D)promotion E)product innovation

Last Answer : A)price

The major factors used to divide markets into consumer markets or organisational markets are the A)buyer characteristics and size of purchases. B)product prices and buyer characteristics C)buyer characteristics and the purposes for which they buy products. D)buyer characteristics and product characteristics. E)buyers characteristics and the frequency of purchases.

Description : The major factors used to divide markets into consumer markets or organisational markets are the A)buyer characteristics and size of purchases. B)product prices and buyer ... )buyer characteristics and product characteristics. E)buyers characteristics and the frequency of purchases.

Last Answer : C)buyer characteristics and the purposes for which they buy products

When marginal cost is equal to marginal revenue, the firm should A)produce more to increase profits. B)produce less to decrease total costs. C)stop producing additional units to maximise profits. D)provide discounts to encourage purchases.

Description : When marginal cost is equal to marginal revenue, the firm should A)produce more to increase profits. B)produce less to decrease total costs. C)stop producing additional units to maximise profits. D)provide discounts to encourage purchases.

Last Answer : C)stop producing additional units to maximise profits.

As part of a class project, Sue Anderson interviews Gordon Jones, Director of Marketing for Kenner Industries. When asked about Kenner's promotional strategy, Gordon responds that like most industrial firms his organisation places the greatest emphasis on: A)advertising. B)publicity. C)personal selling. D)sales promotion. E)public relations.

Description : As part of a class project, Sue Anderson interviews Gordon Jones, Director of Marketing for Kenner Industries. When asked about Kenner's promotional strategy, Gordon responds that like most industrial firms ... : A)advertising. B)publicity. C)personal selling. D)sales promotion. E)public relations.

Last Answer : C)personal selling.

Concerned about the impact on her firm's promotional messages, Karen Dickson of Magnum PLC., seeks an approach with immediate feedback. She is most likely to achieve this through. A)television advertising B)newspaper advertising C)publicity D)personal selling E)sales promotion

Description : Concerned about the impact on her firm's promotional messages, Karen Dickson of Magnum PLC., seeks an approach with immediate feedback. She is most likely to achieve this through. A)television advertising B)newspaper advertising C)publicity D)personal selling E)sales promotion

Last Answer : D)personal selling

Which of the following is NOT a major factor for firms making price decisions? A)Costs B)Competition C)Past sales D)Channel member expectations E)Legal and regulatory issues

Description : Which of the following is NOT a major factor for firms making price decisions? A)Costs B)Competition C)Past sales D)Channel member expectations E)Legal and regulatory issues

Last Answer : C)Past sales

Dropping an unprofitable product immediately is the best strategy when A)all advertising and promotional efforts have been exhausted. B)losses are too great to prolong the product's life. C)the product's performance cannot be improved. D) there is low compatibility with the firm's business strategies.

Description : Dropping an unprofitable product immediately is the best strategy when A)all advertising and promotional efforts have been exhausted. B)losses are too great to prolong the product's life. C)the ... performance cannot be improved. D) there is low compatibility with the firm's business strategies.

Last Answer : B)losses are too great to prolong the product's life.

A strategic window is A)the right combination of circumstances at the right time so that action can be taken toward a target market. B)what determines the factors that are most important in making a market attractive or strong. C)the limited period when the fit between key market requirements and a firm's capabilities is optimal. D)the process that seeks information about events and relationships in a company's outside environment.

Description : A strategic window is A)the right combination of circumstances at the right time so that action can be taken toward a target market. B)what determines the factors that are most important in ... . D)the process that seeks information about events and relationships in a company's outside environment.

Last Answer : C)the limited period when the fit between key market requirements and a firm's capabilities is optimal.

Don Evers tells his media buyer that due to the complexity of the firm's laser cutters he wants to focus exclusively on which one of the following media types? A)Radio B)Television C)Outdoor D)Broadcast E)Print

Description : DDon Evers tells his media buyer that due to the complexity of the firm's laser cutters he wants to focus exclusively on which one of the following media types? A)Radio B)Television C)Outdoor D)Broadcast E)Print

Last Answer : E)Print

Historically, Knox PLC sold industrial clamps directly to firms using these items in their production process. Knox's Chairman believes that it may be time to start using an industrial distributor because of the ability of such firms to: A)provide Knox with market information. B)supply technical information to Knox. C)provide customers with more competitive pricing. D)carry a more complete line of Knox clamps. E)market the products to Knox specifications.

Description : Historically, Knox PLC sold industrial clamps directly to firms using these items in their production process. Knox's Chairman believes that it may be time to start using an industrial distributor because ... D)carry a more complete line of Knox clamps. E)market the products to Knox specifications.

Last Answer : A)provide Knox with market information.

Which of the following firms would most likely have a monopoly for its competitive environment? A)Sunset Cablevision B)Montgomery Transport C)Post Office Parcel ServicesD)Telecom Car Phones E)Dorset Lawn Care

Description : Which of the following firms would most likely have a monopoly for its competitive environment? A)Sunset Cablevision B)Montgomery Transport C)Post Office Parcel Services D)Telecom Car Phones E)Dorset Lawn Care

Last Answer : A)Sunset Cablevision

A practice unique to organisational sales in which two organisations agree to buy from each other is: A)a source loyal purchase B)a straight rebuy C)a modified rebuy purchase D)a reciprocity arrangement

Description : A practice unique to organisational sales in which two organisations agree to buy from each other is: A)a source loyal purchase B)a straight rebuy C)a modified rebuy purchase D)a reciprocity arrangement

Last Answer : D)a reciprocity arrangement

The three major considerations in assessing opportunities and resources are environmental scanning, evaluating market opportunities, and A)competitive scanning. B)environmental analysis. C)understanding the firm's capabilities. D)opportunity search.

Description : The three major considerations in assessing opportunities and resources are environmental scanning, evaluating market opportunities, and A)competitive scanning. B)environmental analysis. C)understanding the firm's capabilities. D)opportunity search.

Last Answer : C)understanding the firm's capabilities.

A marketing plan A)is characteristic of production -oriented firms and other mass producers. B)provides a framework for implementing and controlling marketing activities. C)always increases the marketing manager's operating costs. D)produces plans that are short -term in orientation. E)restricts the marketing manager's future options.

Description : A marketing plan A)is characteristic of production -oriented firms and other mass producers. B)provides a framework for implementing and controlling marketing activities. C)always increases the marketing ... are short -term in orientation. E)restricts the marketing manager's future options.s.

Last Answer : B)provides a framework for implementing and controlling marketing activities

Roberts PLC notices that if it produces fifteen radar detectors, its costs are £1,500 and if it produces sixteen radar detectors, its costs are £1,590. In this instance, £90 is the firm's ________cost. A)average B)fixed C)variable D)marginal E)average variable

Description : Roberts PLC notices that if it produces fifteen radar detectors, its costs are £1,500 and if it produces sixteen radar detectors, its costs are £1,590. In this instance, £90 is the firm's ________cost. A)average B)fixed C)variable D)marginal E)average variable

Last Answer : D)marginal

According to the text, cost tradeoffs enable firms to A)resolve pricing conflicts among competitors. B)minimise risk during the test marketing of new products. C)reduce costs of all distribution functions simultaneously. D)resolve pricing conflicts within marketing channels. E)combine resources for greatest cost -effectiveness.

Description : According to the text, cost tradeoffs enable firms to A)resolve pricing conflicts among competitors. B)minimise risk during the test marketing of new products. C)reduce costs of all ... . D)resolve pricing conflicts within marketing channels. E)combine resources for greatest cost-effectiveness.

Last Answer : E)combine resources for greatest cost-effectiveness.

Anna Wren, sales manager for Nordic Lumber, tells the firm's inventory manager that failure to have adequate supplies of pressure -treated lumber on hand has cost the firm £175,000 in lost sales. This figure would be used as a component management figures? A)Carrying costs B)Replenishment costs C)Stockout costs D)Safety stock costs E)Reorder costs

Description : Anna Wren, sales manager for Nordic Lumber, tells the firm's inventory manager that failure to have adequate supplies of pressure -treated lumber on hand has cost the firm £175,000 in lost ... figures? A)Carrying costs B)Replenishment costs C)Stockout costs D)Safety stock costs E)Reorder costs

Last Answer : C)Stockout costs

A limitation of sales promotion is that excessive sales promotion efforts directed at price reductions can lead to A)stronger consumer demand for information provided through advertising. B)a decline in the brand's image. C)a decline in the organization's image. D)increased costs of promotion.

Description : A limitation of sales promotion is that excessive sales promotion efforts directed at price reductions can lead to A)stronger consumer demand for information provided through advertising. B)a decline in the brand's image. C)a decline in the organization's image. D)increased costs of promotion.

Last Answer : B)a decline in the brand's image.

Walton Food Products decided to use agents to reach industrial accounts several years ago. Logically, this decision was based on which one of the following? A)Steady demand for the firm's products B)Walton's desire to stay close to its customers C)Walton's desire to reduce selling costs D)The willingness of agents to provide market information

Description : Walton Food Products decided to use agents to reach industrial accounts several years ago. Logically, this decision was based on which one of the following? A)Steady demand for the firm's ... C)Walton's desire to reduce selling costs D)The willingness of agents to provide market information

Last Answer : C)Walton's desire to reduce selling costs

If a pint of Guinness costs less in Belfast than in Edinburgh this would reflect which of the following pricing methods? A)Price differentiationB)Base -point pricing C)Freight absorption pricing D)Transfer pricing E)Zone pricing

Description : If a pint of Guinness costs less in Belfast than in Edinburgh this would reflect which of the following pricing methods? A)Price differentiationB)Base-point pricing C)Freight absorption pricing D)Transfer pricing E)Zone pricing

Last Answer : E)Zone pricing

The first sign that a nonbusiness organisation has become aware that it is performing marketing activities is through ----- decisions: A)target -public B)distribution C)promotional D)price

Description : The first sign that a nonbusiness organisation has become aware that it is performing marketing activities is through ----- decisions: A)target -public B)distribution C)promotional D)price

Last Answer : C)promotional

Suppose the frozen foods division of Unilever purchases food trays and boxes from the organisation's packaging division. The form of pricing used to charge the frozen foods division is called: A)zone pricing. B)base -point pricing. C)business -unit pricing. D)transfer pricing. E)price discrimination.

Description : Suppose the frozen foods division of Unilever purchases food trays and boxes from the organisation's packaging division. The form of pricing used to charge the frozen foods division is called: A)zone ... B)base -point pricing. C)business -unit pricing. D)transfer pricing. E)price discrimination.

Last Answer : D)transfer pricing

Suppose marketers at Renault need to determine the effects of an increase in the advertising budget on sales of the Clio. In setting up an experiment, the independent variable would be: A)sales B)price C)advertising expense D)production cost E)wholesale purchases

Description : Suppose marketers at Renault need to determine the effects of an increase in the advertising budget on sales of the Clio. In setting up an experiment, the independent variable would be: A)sales B)price C)advertising expense D)production cost E)wholesale purchases

Last Answer : C)advertising expense

Which pricing objective de -emphasises price and can lead to a climate of nonprice competition in an industry? A)Status quo B)Return on investment C)Market share D)Survival E)Cash flow

Description : Which pricing objective de -emphasises price and can lead to a climate of nonprice competition in an industry? A)Status quo B)Return on investment C)Market share D)Survival E)Cash flow

Last Answer : A)Status quo

At a local trade show a purchaser of office equipment discussed the price of a computer work station with a representative of Haworth office furnishings. As a result of the discussion the buyer purchased a suitable work station at a lower price than the stated list price. This type of industrial pricing is called: A)transfer. B)open bid. C)solicited D)petitioned E)open

Description : At a local trade show a purchaser of office equipment discussed the price of a computer work station with a representative of Haworth office furnishings. As a result of the discussion the buyer purchased a ... of industrial pricing is called: A)transfer. B)open bid. C)solicited D)petitioned E)open

Last Answer : D)petitioned

In market-penetration pricing, the company’s objective is to ________, believing that higher sales volume will lead to lower unit costs and higher long-run profits. A. Block competitive launches B. Maximize their market share C. Minimize their market share D. Maximize volume E. None of the above

Description : In market-penetration pricing, the company's objective is to ________, believing that higher sales volume will lead to lower unit costs and higher long-run profits. A. Block competitive launches B. ... their market share C. Minimize their market share D. Maximize volume E. None of the above

Last Answer : B. Maximize their market share

Slow feedback, high costs, and difficulty in measuring effects on sales are disadvantages of which promotion mix ingredient? A)Advertising B)Public relations C)Sales management D)Sales promotion E)Personal selling

Description : Slow feedback, high costs, and difficulty in measuring effects on sales are disadvantages of which promotion mix ingredient? A)Advertising B)Public relations C)Sales management D)Sales promotion E)Personal selling

Last Answer : A)Advertising

The buyer at Exeter Furniture Store is informed that if she will increase her recent order of fifteen mattress sets to twenty, she will receive a 14 percent price reduction. This offer is due to a recent overstock condition at the factory and will not be available in the future. The discount offered here is A)cash. B)noncumulative. C)seasonal. D)trade. E)cumulative.

Description : The buyer at Exeter Furniture Store is informed that if she will increase her recent order of fifteen mattress sets to twenty, she will receive a 14 percent price reduction. This offer is due to a ... future. The discount offered here is A)cash. B)noncumulative. C)seasonal. D)trade. E)cumulative.

Last Answer : B)noncumulative.

Alicia, a buyer for Nestle, buys carpeting for use in an office area. What determines whether this carpeting is a consumer or an industrial product? A)The price of the carpet B)The type of selling organisation C)The terms of the sale D)The buyer's intended use of the product E)Whether the carpet is a replacement item

Description : Alicia, a buyer for Nestle, buys carpeting for use in an office area. What determines whether this carpeting is a consumer or an industrial product? A)The price of the carpet B)The type of selling ... the sale D)The buyer's intended use of the product E)Whether the carpet is a replacement item

Last Answer : D)The buyer's intended use of the product

Philip Morris's strategy of cutting prices on its Marlboro cigarettes to enlarge its market share in the increasingly competitive tobacco industry is known as A)market penetration. B)market development. C)product development. D)product penetration. E)concentric integration.

Description : Philip Morris's strategy of cutting prices on its Marlboro cigarettes to enlarge its market share in the increasingly competitive tobacco industry is known as A)market penetration. B)market development. C)product development. D)product penetration. E)concentric integration.

Last Answer : A)market penetration.

In the **** industry, a few large brewers supply the majority of the market. The brewing industry is an example of which of the following competitive structures: A)Monopoly B)Oligopoly C)Monopolistic Competition D)Perfect Competition E)Monopsony

Description : In the beer industry, a few large brewers supply the majority of the market. The brewing industry is an example of which of the following competitive structures: A)Monopoly B)Oligopoly C)Monopolistic Competition D)Perfect Competition E)Monopsony

Last Answer : B)Oligopoly

Organisations that rely heavily on personal selling are likely to use other promotional efforts to A)promote their less expensive products. B)urge consumers to send their comments and ideas to the firm. C)promote free gifts to consumers. D)improve the effectiveness of salespeople.

Description : Organisations that rely heavily on personal selling are likely to use other promotional efforts to A)promote their less expensive products. B)urge consumers to send their comments and ideas to the firm. C)promote free gifts to consumers. D)improve the effectiveness of salespeople.

Last Answer : D)improve the effectiveness of salespeople.

A specialty product A)requires minimal effort to purchase. B)is purchased frequently. C)requires purchase planning, and the buyer will not accept substitutes. D)is generally less expensive than other items in the same product class. E)prompts the purchaser to make comparisons among alternatives.

Description : A specialty product A)requires minimal effort to purchase. B)is purchased frequently. C)requires purchase planning, and the buyer will not accept substitutes. D)is generally less expensive than ... items in the same product class. E)prompts the purchaser to make comparisons among alternatives.

Last Answer : C)requires purchase planning, and the buyer will not accept substitutes.

Because Coke is such a popular product and the company is so powerful, Coca -Cola is in a position to exert considerable control over channel structures and the way Coke is marketed. This example illustrates channel __________ in the distribution channel. A)conflic t B)leadership C)dominance D)co -operation E)negotiation

Description : Because Coke is such a popular product and the company is so powerful, Coca -Cola is in a position to exert considerable control over channel structures and the way Coke is marketed. This ... __________ in the distribution channel. A)conflic t B)leadership C)dominance D)co -operation E)negotiation

Last Answer : B)leadership

Which method of organisational buying is appropriate when the product is highly homogeneous and examination of each item is not feasible? A)Negotiation B)Sampling C)Description D)Inspection E)Homogeneous selection

Description : Which method of organisational buying is appropriate when the product is highly homogeneous and examination of each item is not feasible? A)Negotiation B)Sampling C)Description D)Inspection E)Homogeneous selection

Last Answer : B)Sampling

Which of the following products is most likely to be purchased on the basis of contract negotiation? A)Eggs B)Office supplies C)Used cars D)A custom-made bulldozer E)Wheat

Description : Which of the following products is most likely to be purchased on the basis of contract negotiation? A)Eggs B)Office supplies C)Used cars D)A custom-made bulldozer E)Wheat

Last Answer : D)A custom-made bulldoze

Procter & Gamble, like many firms in the consumer packaged -goods industry, is organised by A)function. B)product. C)region. D)types of customers.

Description : Procter & Gamble, like many firms in the consumer packaged -goods industry, is organised by A)function. B)product. C)region. D)types of customers.

Last Answer : B)product

Porter's three generic strategies that help firms achieve or maintain industry success include all of the following EXCEP T A)cost leadership B)differentiation C)focus D)competition

Description : Porter's three generic strategies that help firms achieve or maintain industry success include all of the following EXCEP T A)cost leadership B)differentiation C)focus D)competition

Last Answer : D)competition

As Don Bush prepares a market attractiveness -business position model for his firm, he comes to the point of assessing the business position of the firm's line of jet skis. Which one of the following would be an input with regard to business position? A)Seasonality B)Relative market share C)Industry sales D)Market growth

Description : As Don Bush prepares a market attractiveness -business position model for his firm, he comes to the point of assessing the business position of the firm's line of jet skis. Which one of ... with regard to business position? A)Seasonality B)Relative market share C)Industry sales D)Market growth

Last Answer : B)Relative market share

When the purchasing manager for ABBA seat covers buys material and thread, he considers a variety of factors. Which one of the following is LEAST likely to concern the buyer in the purchase decision? A)does the quality of the goods meet company specifications B)does the supplier consistently deliver on time C)does the supplier also sell to my competitors D)does the price meet the company budget requirements

Description : When the purchasing manager for ABBA seat covers buys material and thread, he considers a variety of factors. Which one of the following is LEAST likely to concern the buyer in the purchase ... )does the supplier also sell to my competitors D)does the price meet the company budget requirements

Last Answer : C)does the supplier also sell to my competitors

In developing a new herbicide, Atwell Chemicals comes up with two formulations. Option 1 is more effective in killing weeds but has a questionable impact on ground water. Option 2 is generally seen as safe but somewhat less effective than its alternative. In choosing Option 2, the firm's stance is consistent with which one of the following moral philosophies? A)Egalitarianism B)Utilitarianism C)Ethical directionism D)Contract theory E)Pluralism

Description : In developing a new herbicide, Atwell Chemicals comes up with two formulations. Option 1 is more effective in killing weeds but has a questionable impact on ground water. Option ... following moral philosophies? A)Egalitarianism B)Utilitarianism C)Ethical directionism D)Contract theory E)Pluralism

Last Answer : B)Utilitarianism

Which of the following is NOT an advantage of franchising for the franchisee? A)The franchisee can capitalise on the business experience of others. B)When problems arise, the franchisee can obtain guidance and advice from the franchiser. C)Franchised outlets are usually more successful than independently owned businesses with respect to long -term survival. D)The franchisee can participate in national promotional campaigns sponsored by the franchiser. E)The franchisee gives up a certain amount of control when participating in a franchise agreement.

Description : Which of the following is NOT an advantage of franchising for the franchisee? A)The franchisee can capitalise on the business experience of others. B)When problems arise, the franchisee can obtain ... E)The franchisee gives up a certain amount of control when participating in a franchise agreement.

Last Answer : E)The franchisee gives up a certain amount of control when participating in a franchise agreement.

In testing her firm's new TV ads for Batman action figures, Beth discovers the ads make children think the action figures can actually fly. Beth now faces an ethical decision regarding which element of the marketing mix? A)Product B)Price C)Distribution D)Promotion E)Strategy

Description : In testing her firm's new TV ads for Batman action figures, Beth discovers the ads make children think the action figures can actually fly. Beth now faces an ethical decision regarding which element of the marketing mix? A)Product B)Price C)Distribution D)Promotion E)Strategy

Last Answer : D)Promotion