BUS 101 Final Exam – Flashcards
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True or False: The use of marketing strategies is limited to the development, pricing, promotion, and distribution of goods and services.
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true
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T or F: Companies use event marketing when they sponsor sporting, cultural, or charitable events.
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true
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T or F: Throughout history, companies always focused on responding to the needs of customers quickly and completely.
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false
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T or F: A business offers value when customers judge that its products deliver a better relationship between benefits and costs than competitors' products.
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true
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T or F: Value is based on a customer's perception of quality, appearance, and price.
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true
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T or F: Successful companies strive for customer satisfaction and develop marketing programs to encourage repeat business from existing customers.
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true
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T or F: Customer loyalty is the payoff for delivering value and generating customer satisfaction.
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true
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T or F: Many firms develop a formal marketing plan to identify their target audience and how they will reach that audience.
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true
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T or F: Business leaders use target markets, which divide the market into smaller groups based on attitudes, interests, and values.
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false
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T or F: A business segments the market in order to understand the similarities and differences in consumers' needs.
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true
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Many firms develop a formal _____ to answer the question: Who is your target market and how do you plan to reach them? a) marketing mix b) market vision statement c) marketing priority list d) marketing plan
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marketing plan
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A well-chosen target market embodies the following characteristics: a) size, profitability, accessibility, and limited competition. b) size, limited profitability, and competition. c) limited size, profitability, and intense competition. d) large population with the ability to buy.
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size, profitability, accessibility, and limited competition
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Demographic segmentation divides the market by a) measurable characteristics. b) where consumers live. c) how people behave. d) people's attitudes.
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measurable characteristics
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When firms in B2C markets divide up the potential market according to values, attitudes, and lifestyles, they are making use of _____ segmentation. a) interest-based b) psychographic c) user-defined d) demographic
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psychographic
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Which of the following sets of terms describe approaches used by B2C marketers to segment their markets? a) reactive, adaptive, and resistant responders. b) opportunistic, altruistic, and grassroots buyers. c) bleeding edge, leading edge, and seeding edge customers. d) demographic, psychographic, and behavioral factors.
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demographic, psychographic, and behavioral factors
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Businesses that advertise in magazines and on the Internet are utilizing a form of segmentation referred to as a) demographic. b) behavioral. c) product-use. d) psychographic.
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psychographic
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_____ refers specifically to how people act when buying goods and services for personal consumption. a) Customer purchasing b) Cognitive dissonance c) Consumer behavior d) Utility maximization
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consumer behavior
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The consumer decision-making process involves need recognition, followed by a) information search, alternative evaluation, purchase decision, and postpurchase behavior. b) information search, learning, and postpurchase behavior. c) product search, benefit analysis, price analysis, and value analysis. d) cognitive dissonance, alternative evaluation, and learning.
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information search, alternative evaluation, purchase decision, and postpurchase behavior
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Market research involves a) analyzing, interpreting, and disseminating information to market leaders. b) collecting, analyzing, and interpreting information to uncover market inconsistencies. c) creating new opportunities from secondary data sources. d) gathering, interpreting, and applying information to uncover opportunities and challenges.
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gathering, interpreting, and applying information to uncover opportunities and challenges
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Primary data is _____ and _____ to gather than secondary data. a) costlier; more difficult b) less costly; less difficult c) costlier; less difficult d) less costly; more difficult
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costlier, more difficult
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T or F: A management consulting firm offers pure services in a management program. The program includes tools for effective time management, conflict resolution, and risk management skills.
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true
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T or F: Sam is in the market for a new computer. He is leaning toward buying a model produced by Micromax because he likes the fact that it has a two-year warranty, and he has heard good things about the company's customer phone support and website. Sam's choice appears to be influenced by the augmented benefits offered by Micromax.
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true
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T or F: The brand name, features, and the packaging of a product are considered part of the actual product.
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true
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T or F: Convenience products are goods or services that reduce the work consumers must do and make their life more convenient. Examples include household cleaning services and lawn care services.
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false
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T or F: Copy machines, fax machines, and printers would be classified as maintenance, repair, and operating products.
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false
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T or F: Tom Taylor is in the market for a new car, but not any old car will do. He is convinced that the Gambolini Turbo-Terror roadster is the only car that will meet his needs. Thus, despite its high price tag and the fact that the nearest dealer is over 90 miles away, Tom is set to buy the car. This suggests that for Tom, the Gambolini roadster is a shopping product.
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false
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T or F: Product differentiation attempts to create real or perceived differences among competitors' products in the minds of consumers.
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true
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T or F: Today's smartest and most profitable firms have learned that the key to their success is to provide the highest possible level of performance in their products.
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false
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T or F: Cannibalization is the strategy of offering a new product in order to increase sales for other existing products.
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false
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T or F: A brand is a product's identity that sets it apart from products in the same category that are offered by competitors.
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true
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_____ involves purchasing the right to use another company's brand name or symbol. a) Diffusion b) Line extension c) Branding d) Licensing
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Licensing
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United Airlines recently announced it would serve Starbucks coffee on its flights. This is an example of a) creating a private label. b) brand extension. c) joint venturing. d) cobranding
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cobranding
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We see the Nike Swoosh on athletic shoes, as well as on an assortment of athletic apparel for almost every sport. Lately, the company has begun branching out into several entirely new product categories, such as MP3 players. This indicates that Nike has decided to pursue a strategy of a) brand equity. b) line extension. c) cobranding. d) brand extension.
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brand extension
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The global recession decreased the sale of _____ brands and increased the sale of _____ brands. a) store, national b) national, store c) private label, manufacturers' d) national, manufacturers'
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national, store
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_____ involves making slight modifications to existing products in an effort to distinguish a product from the competition. a) Continuous innovation b) Discontinuous innovation c) Dynamically continuous innovation d) Disconnected innovation
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Continuous innovation
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With the invention of the telephone, Alexander Graham Bell created a completely new way for people to communicate over long distances. His invention demonstrates a) bleeding edge innovation. b) nonderivative innovation. c) dynamically continuous innovation. d) discontinuous innovation.
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discontinuous innovation
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The stages of the new product development process are a) idea generation, idea screening, analysis, development, testing, and promotional planning. b) idea generation, idea screening, analysis, development, testing, and commercialization. c) idea generation, idea screening, market research, focus groups, intercept surveys, and observation research. d) idea generation, idea screening, market research, development, testing, and observation research.
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idea generation, idea screening, analysis, development, testing, and commercialization
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The more difficult it is for consumers to grasp what a product does and how it works, the slower that product's _____ tends to be. a) movement through the product life cycle b) rate of diffusion c) business cycle d) rate of market separability
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rate of diffusion
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Generally speaking, marketers can directly control the promotional tools they use. The tool that they cannot directly control is a) the development of a marketing plan. b) publicity. c) personal selling. d) advertising messages and their placement in the media.
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publicity
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The manager of your local Starbucks is trying to increase store traffic on Friday nights from 8 to 10 p.m. She has decided to offer live music by local musicians and to promote this change mostly through publicity and word-of-mouth. Which of the following statements about this decision is most accurate? The use of publicity and word-of-mouth a) is likely to be ineffective because it does not create as powerful an impact as advertising. b) will increase promotional expenses dramatically. c) is likely to have a powerful impact, but the manager will have little direct control over the message it creates. d) will only work if it creates a different message than the message that is created by the store's other promotional tools.
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is likely to have a powerful impact, but the manager will have little direct control over the message it creates
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T or F: The four basic functions of management are planning, organizing, leading, and controlling organizational resources.
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true
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T or F: Middle managers act as the bridge between departments and coordinate people and projects.
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true
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T or F: First line managers often need a high degree of technical skills in order to hire, train, and evaluate workers.
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true
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T or F: Top managers provide vision and direction for their organizations but do not decide how to use resources to achieve business goals.
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false
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T or F: While not needed by other types of managers, technical skills are absolutely critical for managers working in high-tech industries.
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false
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T or F: In recent weeks, Elliot has been working especially hard because he thinks he is in line for special recognition as employee of the year—an award that might eventually lead to other types of recognition and perhaps even a promotion. Elliot appears to be motivated largely by the desire to satisfy what Maslow would classify as esteem needs.
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true
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T or F: Acknowledgement, promotions, and perks are examples of rewards that would fulfill the self-actualization needs in Maslow's hierarchy.
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false
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T or F: One element of job enrichment is to assign workers to tasks that are long-lasting and have no definite beginning or end.
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false
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T or F: Henry's professor announces on the first day of class that he has never given any student an A in his class. Henry will not be motivated to do well in the class, because his link between performance and reward has been broken.
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true
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T or F: Job enrichment is the creation of jobs with more meaningful content, reflecting the belief that workers can be motivated by challenging, creative work.
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true
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Top-level managers focus on _____, while middle managers focus on _____. a) strategic planning; operational planning b) operational planning; strategic planning c) tactical planning; strategic planning d) strategic planning; tactical planning
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strategic planning; tactical planning
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Planning for unexpected events, or _____, is usually spearheaded by _____ with input from other management levels. a) strategic planning; senior management b) tactical planning; first level management c) operational planning; middle management d) contingency planning; senior management
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contingency planning; senior management
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A SWOT analysis is used to analyze the company's a) competitive position. b) internal controls. c) management structure. d) budgetary position.
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competitive position
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A common goal shared by organization when developing a mission statement is to provide a) a clear, short-term focus for the organization. b) a strategy for competitive differentiation. c) a clear, long-term focus for the organization. d) there is no goal for the mission statement; it just sounds good.
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a clear, long-term focus for the organization
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The most effective _____ are specific and measurable, tied to a time frame, and realistic but challenging. a) tactical objectives. b) tactical goals c) need hierarchies d) strategic goals
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strategic goals
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Suzanne just finished her first week at DFG Corporation and noticed after the employee orientation that the company was in the midst of a reorganization. As a result, she saw the most up-to-date _____, so she knew where her job was located within the company structure. a) operational chart b) assignment matrix c) organization chart d) operations diagram
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organization chart
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In centralized companies, top management a) delegates a significant amount of decision-making authority to first-line management. b) relies on middle management to actively participate in making decisions. c) delegates all but the most crucial decisions to employees throughout the organization. d) makes all of the important decisions.
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makes all of the important decisions
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Firms that want to be more responsive to the needs of customers tend to adopt a more organization. a) centralized b) decentralized c) controlled d) departmentalized
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decentralized
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_____ means breaking workers into logical groups. a) Organizing b) Departmentalization c) Decentralizing d) Rightsizing
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departmentalization
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When organizations employ different types of departmentalization at different levels of the organization, their approach is called _____ departmentalization. a) functional b) customized c) free-form d) hybrid
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hybrid
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T or F: When there are similar production processes going on, the production facility may group machinery and equipment into a cell-layout, where workers can build an entire product, or a major part of a product in one location.
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true
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T or F: A local diner makes milkshakes the old fashioned way: it hand-dips premium ice cream, adds fresh whole milk and other high-quality ingredients, individually mixes the shake when ordered, and puts whipped cream and a cherry on top. The cost of this approach is higher than the cost of producing shakes at most fast food outlets, but the diner is famous among local patrons for having the best shakes in town. This diner clearly focuses more on effectiveness than on efficiency.
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true
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T or F: Lean production emphasizes the elimination of waste in all aspects of production processes.
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true
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T or F: Clients have been complaining to Katy that it is difficulty to find their way from station to station in her allergy clinic. They find it hard to locate where they need to go next for testing, allergy shots and medication refills. From a servicescape perspective, Katy should consider the functionality of her clinic.
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true
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T or F: The competitive and global nature of markets today requires operation managers to change their views on the production and distribution of goods and services from a cost perspective to a value perspective.
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true
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T or F: The assembly line is a production process in which the product moves from one station to another in a fixed sequence, with the machinery and workers at each station performing specialized tasks.
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true
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T or F: Teddy oversees the activities in creating the right goods and services in the right quantities and distributing them to the right customers. His decisions have a major impact on both the revenue and costs his firm incurs, and therefore on the firm's financial success. This is an example of operations management.
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true
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T or F: When determining the type of process that works best and how these processes should be organized. Two key consideration are the volume of production and the type of materials used in that production.
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true
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T or F: Automation replaces the direct human operation of machinery, but it has no impact on human control.
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false
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T or F: Just-in-time production is a production system that emphasizes the production of goods to meet actual current demand, thus minimizing the need to hold inventories of finished goods and work-in-process at each stage of the supply chain.
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true
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From an operations management perspective, a manufacturing firm's value chain includes: a) the flow of materials and finished goods through all firms involved in production and distribution, plus the corresponding flows of services, financial resources, and information. b) firms connected with the flow of output through the channel to the final customer, particularly those other companies involved with financial transactions. c) only vendors that supply goods and services in the production of a firm's product offerings. d) all and any forms of software or manufacturing technology it uses in its operation.
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the flow of materials and finished goods through all firms involved in production and distribution, plus the corresponding flows of services, financial resources, and information
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Deciding how much inventory to keep on hand can be a challenge. Jackie, a local toy store manager has ordered a large number of skateboards for the holiday season. Most likely, her reason for this tactic is: a) she wants to tie up money in inventory. b) she wants to build more storage space. c) she is preparing for a large sale and does not want to run out. d) she wants to create jobs for skateboard manufacturers.
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she is preparing for a large sale and does not want to run out
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Most manufacturing firms are concerned about the availability of reliable electricity and water supplies when making location decisions. These considerations deal with the: a) availability of human capital. b) adequacy of utilities. c) adequacy of land enhancements. d) quality of life.
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adequacy of utilities
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Which of the following statements about the relationship between efficiency and effectiveness is most accurate? a) The relationship between effectiveness and efficiency is subtle and complex. Over the long haul, becoming more effective may also allow a firm to become more efficient. b) While both effectiveness and efficiency are worthwhile objectives, achieving efficiency is more crucial to a firm's success than effectiveness. c) Efficiency and effectiveness are just two terms for the same basic concept. d) In the long run, a firm must choose either to be effective or to be efficient. The two goals are incompatible, meaning that there is no way to consistently achieve both of these goals.
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The relationship between effectiveness and efficiency is subtle and complex. Over the long haul, becoming more effective may also allow a firm to become more efficient
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The decision about where to locate a business facility, _______ a) almost always is based on the availability of skilled labor. b) seldom considers quality of life or legal and political factors because these factors seldom have a noticeable impact on costs of production. c) usually boils down to where the top manager wants to live. d) usually requires the analysis of several different factors, but the importance of each factor tends to vary according to the specific type of industry.
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usually requires the analysis of several different factors, but the importance of each factor tends to vary according to specific type of industry
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The goal of a(n)_____ system is to integrate the information flows of all aspects of a business's operations. a) enterprise resource planning b) materials requirement planning c) computer-aided design d) computer-aided manufacturing
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enterprise resource planning
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_____, as a general location factor, is one of the key reasons firms seek overseas sites for manufacturing. a) Affordable transportation b) Low-wage labor c) Low-cost land d) Reasonable utility expense
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low-wage labor
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A(n) _____ is a set of activities or steps that combine inputs to create a good or service. a) network b) process c) ERP d) forecast
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process
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_____ is concerned with all of the activities involved in creating goods and services and the distribution of those goods and services to customers. a) Marketing science b) Information management c) Management science d) Operations management
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Operations management
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In the last fifty years there have been key changes in operations management. Which of the key changes resulted in an organizational shift from a cost perspective to a value perspective? a) Mass production to mass customization b) Local competition to global competition c) Exploiting the environment to protecting the environment d) Simple supply chains to complex value chains
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simple supply chains to complex value chains
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The core goal of human resource management is to a) minimize labor costs b) get the highest possible return on investment from human resources c) balance the internal and external recruitment of employees to ensure the best mix of human resources d) satisfy all federal regulatory requirements that cover workforce issues
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get the highest possible return on investment from human resources
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Rose Holcomb is the CEO of Holcomb Engineering, a small but growing firm. She believes that the talents and abilities of her company's employees are underutilized and wants to bring someone into the organization who can help her devise more effective human resource strategies. Thus, she has decided to hire her firm's first human resource manger. Rose's decision: a) may result in better morale but is unlikely to help the firm financially b) will led to unnecessary expenses, because managers in other functional areas of the business are perfectly capable of performing human resource functions on their own c) is likely to result in a movement among works to form a union d) may well improve the firm's profitability because boosting employee effectiveness can give a firm a key competitive advantage
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may well improve the firm's profitability because boosting employee effectiveness can give a firm a key competitive advantage
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the practice of outsourcing a) currently only affects workers in low-skill, low-wage jobs b) has failed to catch on in the United States as much as it has in Europe and Asia c) only occurs when a firm contracts with foreign producers d) has begun to impact high-tech, high-pay positions as well as low-end jobs
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has begun to impact high-tech, high-pay positions as well as low-end jobs
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A major challenge human resource managers face with their baby boom generation employees in that a) many of these works lack education and experience, leading to high training costs at a time when most American firms are under pressure to keep labor costs as low as possible b) they have little loyalty to their employer, resulting in high labor turnover c) workers in this generation are more likely that other works to demand flexible work schedules so that they can enjoy a better work-leisure balance d) this very large group is nearing retirement age, raising the possibility that firms will lose many of their most talented and experienced employees
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this very large group is nearing retirement age, raising the possibility that firms will lose many of their most talented and experienced employees
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Jesse Livermore, Human Resources Director of GA Trading Company recently read a report on the aging of the population that he believes is factually correct. To respond to this growing trend, he has created a employee program that hopes to attract and retain _______ through flexible schedules, training opportunities, and creative pay schedules. a) younger workers b) female workers c) older workers d) foreign workers
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younger workers
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In order to gain the respect of other managers within their organizations, HR managers must: a) focus more of their efforts on the legal aspects of their company's human resource problems b) learn to trust their own judgment and be more assertive c) become knowledgeable about their company's broad goals, key customers, and competition d) concentrate on the non monetary aspects of the organization that other managers tend to ignore
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become knowledgeable about their company's broad goals, key customers, and competition
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As a member of the human resources department you have been asked to examine what exactly needs to be done in each position to maximize the effectiveness of the organization. You have been asked to complete a) job description b) job analysis c) job forecast d) job specifications
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job analysis
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Kace Grelly is a HR manager with Danze Enterprises, a mid-sized consulting firm. She will soon be recruiting works to fill some new positions. Before doing so, she wants to review the specific responsibilities associated with each job. She can find this information in each position's a) job description b) job metric c) expectations statement d) job specification
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job description
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Firms that use internal recruitment to fill job openings are likely to benefit in all of the following ways EXCEPT a) it will boost morale of existing workers b) it is less expensive than external recruiting c) it ensures that a highly qualified individual will get the job d) firms have more knowledge about the track record of internal employees
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it ensures that a highly qualified individual will get the job
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T or F: job specifications define the job holder's responsibilites
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false
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T or F: the structured interview process is an interview approach that involves developing a list of questions beforehand and asking the same questions in the same order to each candidate
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true
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T or F: probationary periods are only necessary for younger, less experienced works about whom the employer has strong reservations as to whether or not the newly hired worker has the ability to perform the job
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false
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T or F: When conducting a structured interview, a list of interview questions is not developed until the interview starts, thus giving the interviewer the opportunity to ask each candidate a set of different questions
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false
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T or F: on-the-job training is usually an effective first stage in the training of workers hired to perform complex and challenging jobs
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false
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T or F: human resource managers must maintain awareness of the latest government legislation that impacts HR management
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true
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T or F: the EEOC regulations and enforces the acceptable behaviors organizations must demonstrate in hiring employees
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true
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T or F: John is scheduled for an interview tomorrow. He calls the HR manager to reschedule his appointment because he has to take his grandmother to a doctor's appointment. After explaining his situation, to John's surprise, the HR manager says that the position is no longer available. John contacts the EEOC to file a complaint because the Family and Medical Leave Act prohibits organizations from discrimination in hiring in the case of employees who care for their elderly family members
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false
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T or F: affirmative action was meant to "right a wrong" in hiring practices by giving preferential treatment with respect to race, gender, and ethnicity
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True
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T or F: as a HR manager, Justin is concerned with diversity in the workforce. His work experience makes him confident that a diverse population at works stands to benefit the business
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True
