Week 9 Quiz

An illustrative family farm sells carrots at its own farm stand and also sends crates to a grocery co-op in town, where shoppers buy them off the shelf. Which describes the path through the grocery co-op?

Select one.

• A direct channel, because every carrot still comes straight from the farm's own fields and crates
• An indirect channel, because the co-op stands between the farm and the shopper
• A wholesale channel, because the co-op buys more than one crate of carrots at a time
• A promotion decision, because shoppers see the carrots on the co-op's shelf

An illustrative business buys apples by the truckload from orchards and resells them to grocery stores, never to shoppers. Which intermediary is it?

Select one.

• A retailer, because the apples it sells end up in shoppers' kitchens and lunch bags all over town
• An agent, because it arranges sales between orchards and grocery stores
• A producer, because it is the business the grocery stores buy from
• A wholesaler, because it buys in large amounts and resells to other businesses

An illustrative city transit agency must move a bus route's schedule. It holds a community meeting and answers a local news reporter's questions, paying for none of that attention. Which tool in the promotional mix is it using?

Select one.

• Advertising, because many riders across the whole city hear about the schedule change at once
• Personal selling, because agency staff talk with riders in person
• Public relations, because it earns goodwill and attention instead of buying space
• Sales promotion, because the meeting rewards riders for coming

An illustrative transit agency's posters at its stops show a route's new times, its website still shows the old ones, and its drivers tell riders a third story. Which idea does this break?

Select one.

• Supply-chain management, because the schedule is a material flowing forward
• Integrated marketing communications, because riders hear more than one message
• Distribution, because the posters are an indirect channel for the bus rides
• Personal selling, because the drivers are talking to riders one to one

The illustrative coffee cart plans to sell 15,000 drinks in its first year at 5 dollars each, and it sets its promotion budget at 4 percent of planned revenue. What is the promotion budget for the year?

Select one.

• 2,400 dollars
• 3,000 dollars
• 18,750 dollars
• 300,000 dollars

The illustrative coffee cart's promotion budget is 3,000 dollars for the year. Each drink sells for 5 dollars and has a variable cost of 2 dollars. How many drinks of per-unit margin does it take to pay for the promotion budget?

Select one.

• 600 drinks
• 1,500 drinks
• 9,000 drinks
• 1,000 drinks

The illustrative coffee cart's punch card says "buy nine, the tenth is free." Because the customer pays nothing for the tenth drink, the punch card costs the cart nothing.

True or false.

• True
• False

An illustrative campus bookstore adds a page to its website where students order a sweatshirt, pay, and pick it up at a side counter. In the marketing mix, what is that order page?

Select one.

• A place decision, because students can complete the purchase there
• Advertising only, because the page appears on a screen
• Public relations, because the store earns goodwill from shorter lines
• A price decision, because the sweatshirt is paid for online

The illustrative coffee cart's owner drafts three posts. Which one is a claim the cart may make, because it is specific, true, and supportable?

Select one.

• "Voted the best coffee in the city," though no vote ever took place
• "Nine out of ten office workers prefer us," though no one ever surveyed a single office worker
• "Every espresso drink made to order while you wait," which anyone can watch and check
• A five-star review the owner wrote personally and then signed with a regular customer's name

Which statement best separates what is legal from what is ethical for a promotional claim?

Select one.

• A claim that no customer has ever complained about is, for that reason, both legal and ethical in every case
• The law sets a floor the FTC polices, and ethics asks whether the claim is fair and defensible in public
• Legality and ethics are one test, so any claim the law allows is also ethical
• The FTC decides whether a claim is ethical, so a business need not ask itself