MKTG 461 Exam 3
1. percentage change in quantity sold divided by percentage change in price-
: Price elasticity
2. Describes demand that is not very sensitive to a change in price more then
-1: Inelastic
3. describes demand that is very sensitive to a change in price, more then
-1: elastic
4. the business practice of selling the same good at different prices to different
customers: price discrimination
5. agreement between retailers in direct competition with others to charge the
same prices: horizontal price fixing
6. the increase in retail price of an item after the initial markup percentage has
been applied but before the item is placed on the selling floor - difference
between retail price and cost of an item: mark up
7. - Inventory shrinkage
- Reductions
- Initial markup
- Maintained markup: Mardowns
8. - Fund provided by a vendor to a retailer to cover decreased gross margin
from markdowns and other merchandising issues: Markdown definition
9. - Sell to another retailer (Ross and TJ Max)
- Consolidate unsold merchandise (Saks OFF fifth, Nordstrom rack)
- Sell on the internet (eBay)
- Return to vendor (negotiate and send back)
Carry over to next season (relatively high priced non fashion): liquidating
markdown merchandise (5)
10. - Assures customers of low prices lets customers know that they are
getting low prices
- Reduces advertising/operating costs: limit the need for weekly sales adver-
tising
- Reduces stockouts and improves inventory management reduces large
variations in demand caused by frequent sales with large markdowns: benefits
of EDLP
11. pricing strategy in which certain items are priced lower than normal to
increase traffic flow of customers or to increase the sale of complementary
products (milk, eggs, Coca-Cola): leader pricing
12. communication elements integrated to deliver comprehensive, consistent
message across all elements of retail mix and across all delivery channels
- CVS:: integrated marketing communications
13. : online marketing
1/8
, MKTG 461 Exam 3
14. o Search engine marketing: improve visibility of their websites in searches
o Search engine optimization: adjusting website contact to show upcloser to
engine provider
o Search engine results page: response to key words: website
15. o Sentiment analysis
o YouTube
o Facebook
o Blogs- word of mouth
o Twitter: social media
16. - Search engine marketing - methods that marketers use to improve visi-
bility of the websites: SEM
17. - Search engine optimization - designing website content to improve the
positioning site on search engine results: SEO
18. internet channels accessed through tablets, smartphones, or other hand-
held devices. Also known as M-commerce: Mobile marketing
19. - upload, share, view, and comment on videos- chance to express them-
selves: YouTube
20. more than 1.5 billion active users - create a "wall": Facebook
21. individual and "word of mouth": Blogs
22. - Twitter: microblog- short version of a blog: Twitter
23. assessments that monitor social media to determine how customers view
the firm: Sentiment analysis
24. : advertising
25. any brochure, catalog, advertisement, or other printed marketing material
delivered directly to consumer through the mail or private delivery company-
: direct mail
26. o Coupons
o Rebates
o Premiums: sales promotions
27. -retains current users
-encourages brand switching
-increases in-home inventory
-lengthens purchase cycle: Benefits of coupons
28. o Build and maintain positive image
o Handle unfavorable stories or events
o Maintain positive relationships with media
§ EX: Neiman Marcus and its Christmas catalog
§ Macys and cause related marketing
§ Retailers and product placement: public relations
2/8
1. percentage change in quantity sold divided by percentage change in price-
: Price elasticity
2. Describes demand that is not very sensitive to a change in price more then
-1: Inelastic
3. describes demand that is very sensitive to a change in price, more then
-1: elastic
4. the business practice of selling the same good at different prices to different
customers: price discrimination
5. agreement between retailers in direct competition with others to charge the
same prices: horizontal price fixing
6. the increase in retail price of an item after the initial markup percentage has
been applied but before the item is placed on the selling floor - difference
between retail price and cost of an item: mark up
7. - Inventory shrinkage
- Reductions
- Initial markup
- Maintained markup: Mardowns
8. - Fund provided by a vendor to a retailer to cover decreased gross margin
from markdowns and other merchandising issues: Markdown definition
9. - Sell to another retailer (Ross and TJ Max)
- Consolidate unsold merchandise (Saks OFF fifth, Nordstrom rack)
- Sell on the internet (eBay)
- Return to vendor (negotiate and send back)
Carry over to next season (relatively high priced non fashion): liquidating
markdown merchandise (5)
10. - Assures customers of low prices lets customers know that they are
getting low prices
- Reduces advertising/operating costs: limit the need for weekly sales adver-
tising
- Reduces stockouts and improves inventory management reduces large
variations in demand caused by frequent sales with large markdowns: benefits
of EDLP
11. pricing strategy in which certain items are priced lower than normal to
increase traffic flow of customers or to increase the sale of complementary
products (milk, eggs, Coca-Cola): leader pricing
12. communication elements integrated to deliver comprehensive, consistent
message across all elements of retail mix and across all delivery channels
- CVS:: integrated marketing communications
13. : online marketing
1/8
, MKTG 461 Exam 3
14. o Search engine marketing: improve visibility of their websites in searches
o Search engine optimization: adjusting website contact to show upcloser to
engine provider
o Search engine results page: response to key words: website
15. o Sentiment analysis
o YouTube
o Facebook
o Blogs- word of mouth
o Twitter: social media
16. - Search engine marketing - methods that marketers use to improve visi-
bility of the websites: SEM
17. - Search engine optimization - designing website content to improve the
positioning site on search engine results: SEO
18. internet channels accessed through tablets, smartphones, or other hand-
held devices. Also known as M-commerce: Mobile marketing
19. - upload, share, view, and comment on videos- chance to express them-
selves: YouTube
20. more than 1.5 billion active users - create a "wall": Facebook
21. individual and "word of mouth": Blogs
22. - Twitter: microblog- short version of a blog: Twitter
23. assessments that monitor social media to determine how customers view
the firm: Sentiment analysis
24. : advertising
25. any brochure, catalog, advertisement, or other printed marketing material
delivered directly to consumer through the mail or private delivery company-
: direct mail
26. o Coupons
o Rebates
o Premiums: sales promotions
27. -retains current users
-encourages brand switching
-increases in-home inventory
-lengthens purchase cycle: Benefits of coupons
28. o Build and maintain positive image
o Handle unfavorable stories or events
o Maintain positive relationships with media
§ EX: Neiman Marcus and its Christmas catalog
§ Macys and cause related marketing
§ Retailers and product placement: public relations
2/8
