Marketing 3340 Final Exam With Correct Answers

Possession Utility -Answer A factor of Utility (the benefits or costumer value received by users of the product) is the value of making an item easy to purchase through the provision of credit cards or financial arrangements. Possession Utility -- geting a product or service to consumer so they can own or use it -- accelerated in marketspace. e.g. Airline, car rental, and lodging electronic reservation systems. (Orbitz) Form Utility -Answer A factor of Utility (the benefits or costumer value received by users of the product) that is the production of the product or service . The greatest marketspace opportunity for marketers, however, lies in its potential for create form - utility. Scrambled Merchandising -Answer Scrambled Merchandising is offering several unrelated product lines in a single store. For example: **The modern drugstore carries food, cosmetics, magazines, paper products, toys, small hardware items, and pharmaceuticals. ** Super Markets sell flowers, DVD's, and pharmaceuticals, in addition to selling groceries. - A form of Scrambled Merchandising (hypermarket = large stores (successful in Europe and often more than 200,000 sf) based on a simple concept: Offer "everything under one roof," thus eliminating the need to stop at more than one location. E.g. = Carrefour 1462 hypermarkets Direct Selling -Answer Direct Selling or ("door-to-door retailing") involves direct sales of products and services to consumers through personal interactions and demonstrations in their home or office. e.g. Avon, Fuller Brush, Mary Kay Cosmetics, and World Book have created an industry with more than $36 billion in U.S. sales, and $184 billion worldwide, by providing consumers with personalized service and convenience. Maintained Markup -Answer The Maintained Markup (also known as "gross margin") is the markup (refers to how much should be added to the cost the retailer paid for the product to reach the final selling price) difference between the final selling price and retailer cost after the product is sold. Off-Price Retailing -Answer Off-Price Retailing involves selling brand-name merchandise at lower than regular prices.