question

________ is the process of planning and executing the conception, pricing, promotion, and distribution of goods and services to facilitate exchanges that satisfy individual and organizational objectives.

answer

Marketing

question

The business philosophy of "produce as much as you can because there is a limitless market" is consistent with which of the following?

answer

Production era

question

The greatest marketing need during the production era was for:

answer

distribution and storage.

question

The significant increase in consumer demand following World War II marked the beginning of the?

answer

marketing concept era

question

The __________ is based on three elements: (1) a customer orientation, (2) a service orientation, and (3) a profit orientation.

answer

marketing concept

question

Firms that have adopted _________ seek to do more than simply sell a product; they seek to learn as much as possible about their customers in order to satisfy and even delight them with goods and services over time.

answer

customer relationship management

question

Which of the following statements is most consistent with today's views on marketing?

answer

"Learn about your customers and exceed their expectations."

question

A key element of customer relationship management is to:

answer

learn as much as possible about customers.

question

While the four Ps help us remember the basics of the __________, they don't include everything that goes into the marketing process.

answer

marketing mix

question

A firm's marketing mix refers to the combination of:

answer

strategies regarding product, price, place, and promotion.

question

Which of the following describes a process in which marketers present an accurate description of a new product to potential customers and ask if they find the idea appealing?

answer

Concept testing

question

The last step in the marketing process often includes:

answer

building relationships with customers.

question

__________ consists of all the techniques sellers use to persuade consumers to buy their goods and services.

answer

Promotion

question

Which of the following tasks would be included in the marketing mix?

answer

Evaluating various distribution alternatives to determine the best way to get the product to the consumer.

question

With help from the marketing department, engineers at Easy Electronics have designed a new type of cable modem that is easier to install in computers and more reliable than any cable modems currently in use. The marketing managers want to find a way to identify the new modem in the minds of consumers and differentiate it from less sophisticated products made by Easy's competitors. An important part of this effort is likely to be the selection of a __________ for the new modem.

answer

brand name

question

Which of the following involves the analysis of markets to identify opportunities and challenges?

answer

Marketing research.

question

When making marketing mix decisions, marketing managers should consider:

answer

the environment in which the firm operates.

question

The first step in the marketing research process is to:

answer

define the problem and determine the present situation.

question

A widely used technique for collecting primary data is:

answer

the observation method.

question

Which of the following is the best example of a market?

answer

Senior citizens willing and able to cruise to the Bahamas.

question

When people consider purchasing a good, they:

answer

may evaluate and compare a variety of factors.

question

All of the following would be included in the total product offer of benefits that consumers consider when buying a good or service except the:

answer

consumer's income.

question

Which of the following is the best example of a product line?

answer

Kellogg offers Special K, Raisin Bran, Corn Flakes, and a variety of other cold ready-to- eat cereals.

question

The Procter & Gamble Company produces bar soap, disposable diapers, deodorants, laundry detergents, peanut butter, cookies, cake mix, shampoo, shortening, coffee, and many other products. These products are part of P&G's:

answer

product mix.

question

The purpose of __________ is to create real or perceived product differences.

answer

product differentiation

question

For small businesses, product differentiation:

answer

can be an important strategy to gain market share.

question

________ goods and services represent those products that consumers are unaware of or haven't thought of buying.

answer

Unsought

question

Which of the following products would normally be classified as a shopping good or service?

answer

Laptop computers

question

All of the following statements regarding convenience goods and services are accurate except:

answer

consumers buy only carefully after comparing quality and value.

question

Which of the following would be considered an unsought good or service by a typical college student?

answer

Car towing

question

Which of the following products would most likely be classified as a specialty good or service?

answer

A limited-edition print signed by the artist

question

_________ is an important part of the total product offer for a product.

answer

Packaging

question

In marketing today, packaging carries the added responsibility of:

answer

promotion and sales responsibility.

question

Attracting attention, describing contents, explaining benefits and identifying the uses of a product are all functions of:

answer

packaging

question

Which of the following statements about packaging is the most accurate?

answer

Changes in packaging can improve the product itself and open up large new markets.

question

All of the following are benefits of a brand name for a buyer except:

answer

help in promotional efforts.

question

When a brand becomes commonplace and identified with a category of goods rather than the unique product of a specific manufacturer, the brand may become a:

answer

generic name.

question

Knockoff brands are ________ copies of national brand name goods.

answer

illegal

question

Brand __________ refers to the loyalty, perceived quality, and emotions people associate with a given brand name.

answer

equity

question

Products that carry the name of a distributor or a retailer instead of the manufacturer's name are called:

answer

dealer (private) brands.

question

Those organizations that assist in the movement of goods and services from producer to industrial and consumer users are known as a:

answer

marketing intermediaries.

question

A _________ is a marketing intermediary that sells to other organizations.

answer

wholesaler

question

Marketing intermediaries:

answer

have survived because they often can perform marketing functions faster and at lower cost than producers.

question

Which of the following statements about channels of distribution is most accurate?

answer

Some channels of distribution include marketing intermediaries, while in others a manufacturer sells directly to the final consumer.

question

The primary difference between retailers and wholesalers is that:

answer

retailers sell to final consumers, while wholesalers sell to other organizations, such as retailers or manufacturers.

question

Suppose that eight bakeries each tried to sell their products directly to seven supermarkets. The total number of exchange relationships that would be established is:

answer

56

question

_____ is the value or want-satisfying ability that is added to products by organizations that make the product more useful or accessible to consumers.

answer

Utility

question

_____ utility is usually provided by producers.

answer

Form

question

The types of utility commonly provided by marketing intermediaries include:

answer

time, place, possession, information, and service.

question

Placing ads in newspapers and having knowledgeable salespeople to answer customers' questions are ways marketing intermediaries can provide:

answer

information utility.

question

_________ utility adds value to goods by having them available where people want them.

answer

Place

question

Retailers who have stores at convenient locations are trying to add value by:

answer

providing place utility.

question

Which of the following statements about service utility is most accurate? Service utility is:

answer

becoming crucial to traditional retailers as they try to prevent their customers from defecting to firms using direct marketing.

question

About ____ percent of all wholesalers are classified as merchant wholesalers.

answer

80

question

___________ are merchant wholesalers who perform all of the distribution functions.

answer

Full service wholesalers

question

Limited function wholesalers that mainly serve small businesses by selling them a limited assortment of goods are known as:

answer

cash-and-carry wholesalers

question

The main way __________differ from agents is that they do not develop long-term relationships with the buyers or sellers they assist.

answer

Brokers

question

Which of the following statements provides the most accurate distinction between an agent and a broker? Agents:

answer

develop a long-term relationship with the people they represent, while brokers are usually hired on a temporary basis.

question

Which of the following would be the best example of a broker?

answer

Jill Moon helps buyers and sellers of used heavy construction equipment negotiate the terms and conditions of their transactions, but does not actually take title to any of the equipment, nor does she develop long-term relationships with the buyers or sellers.

question

Discount stores, supermarkets, and department stores are all common types of:

answer

retail stores

question

The goal of __________ is to inform and remind people in a target market about specific products, eventually persuading them to purchase the products.

answer

promotion

question

A(n) ________ combines all the promotional tools employed by a firm into one comprehensive and unified promotional strategy.

answer

integrated marketing communication system

question

The traditional promotion mix for a firm consists of the:

answer

advertising, personal selling, public relations, and sales promotion used to reach a target market.

question

_________ refers to any paid, nonpersonal message communicated through various media by

answer

Advertising

question

The medium that accounts for the largest share of total advertising expenditures is:

answer

television

question

Which of the following refers to the practice of paying to have a product appear favorably in a TV show or movie?

answer

Product placement

question

________ changes the relationship between buyers and sellers from a monologue to a dialogue in which information is shared to create mutually beneficial exchanges.

answer

Interactive promotion

question

The best advertising medium to reach a specific target market is:

answer

direct mail.

question

TV programs devoted exclusively to promoting goods and services are called:

answer

Infomercials

question

The effectiveness of magazine advertising is reduced by its:

answer

inflexibility

question

Which of the following is a major strength of direct mail advertising?

answer

Ability to accurately target specific markets.

question

The evidence supports the position that promotional efforts specifically designed for individual countries produce:

answer

better results than a global promotional strategy.

question

All of the following are advantages of magazine advertising except:

answer

Ability to quickly change message.

question

Firms with a limited advertising budget would least likely use ________ advertising.

answer

television

question

All of the following help explain the popularity of infomercials except the:

answer

interactive nature of the presentation.

question

Which of the following statements is incorrect?

answer

Word-of-mouth is the most effective form of advertising.

question

All of the following are required to build meaningful relationships with customers except:

answer

offering self-service purchases over the Internet.

question

________ refers to the face-to-face presentation and promotion of products and services. This also includes searching for prospects and providing follow-up services.

answer

Personal selling.

question

People with an unmet need, authority to buy, and willingness to listen to a sales message represent a firm's:

answer

prospects

question

The last step of the selling process is:

answer

follow-up.

question

One difference between accounting and other business functions, such as marketing and management, is that:

answer

life offers us very little experience with accounting concepts.

question

To effectively run a business, it is necessary to:

answer

understand and use accounting information.

question

A basic purpose of accounting is to:

answer

provide financial information that is useful to decision makers.

question

Accounting includes _________ information related to financial transactions.

answer

interpreting

question

Accounting transactions are very important to a firm's operations. All of the following activities would affect account balances except:

answer

forecasting consumer demand.

question

The area of accounting that provides managers of an organization with information they need to make decisions is called:

answer

managerial accounting.

question

The preparation of financial statements for people outside the firm (creditors, unions, suppliers, and others) is the goal of:

answer

financial accounting.

question

A(n) _________ is a yearly statement of the financial condition, progress and expectations of an organization.

answer

annual report

question

A(n) ___________ is an evaluation and unbiased opinion of the accuracy of a firm's financial statements.

answer

independent audit

question

Which of the following agencies would have the greatest impact on the methods used to record, classify, summarize, and interpret accounting information for Department of Transportation for the state of Kentucky?

answer

Government Accounting Standards Board

question

A basic difference between managerial accounting and financial accounting is that managerial accounting:

answer

provides information primarily intended for managers and others inside the company, while financial accounting provides information primarily intended for people outside the organization.

question

The specialized accounting book in which information from journals is accumulated into specific categories is called a:

answer

ledger

question

A bookkeeper's first task is to:

answer

divide all of the firm's transactions into meaningful categories.

question

The purpose of a trial balance is to:

answer

show whether the figures in the account ledgers are correct and balanced.

question

Accountants not only provide financial information to the firm, they:

answer

assist in interpreting that information.

question

A comparison of bookkeeping and accounting indicates that:

answer

Bookkeeping involves recording financial information, while accounting is concerned with classifying, summarizing, and interpreting this information.

question

The use of computers in accounting has:

answer

allowed firms to have continuous auditing ability so that they can continuously track financial problems and quickly spot problems like cash flow difficulties.

question

The __________ is an accounting statement that reports the financial condition of a firm at a specific point in time.

answer

balance sheet.

question

A firm's ________ reports the profit or loss for the firm over a specified time period.

answer

income statement

question

Which financial statement reports the company's revenues and selling costs over a period of time?

answer

income statement

question

_____________ is the function in business that is responsible for acquiring funds for the firm, and managing funds within the firm.

answer

Finance

question

Which of the following correctly identifies areas of responsibilities for a chief financial officer (CFO)?

answer

Accounting and finance

question

Undercapitalization refers to the problem of:

answer

insufficient start-up funds.

question

All of the following are primary areas of concern for financial managers except:

answer

inability to recruit qualified workers.

question

Which business function involves collecting payments from customers?

answer

Finance

question

A(n) __________ is responsible for verifying that the accounting procedures within a firm are consistent with established accounting principles.

answer

internal auditor

question

Which of the following activities is most likely to be performed by a financial manager?

answer

Analysis of the tax implications of various managerial decisions.

question

The overall objective of financial planning is to:

answer

optimize the firm's profitability.

question

The first step in the financial planning process is:

answer

forecasting financial needs.

question

The budget that estimates a firm's projected cash inflows and outflows, as well as cash shortages or surpluses during a given time period is called the ________ budget.

answer

cash

question

Financial managers identify three steps to financial planning. Which of the following is not one of the three key steps to financial planning?

answer

Preparing the income statement and balance sheet.

question

One of the challenges of effective financial management is:

answer

to have that sufficient cash on hand without compromising the firm's investment potential.

question

The concept of the time value of money indicates that:

answer

a dollar received today is worth more than a dollar received a year from today.

question

Money has a time value because:

answer

money earns interest over time.

question

A major concern for firms selling on credit is:

answer

the large amount of assets tied up in accounts receivable.

question

A just-in-time inventory system allows a firm to:

answer

reduce their investment in inventory

question

Acquiring funds through borrowing represents:

answer

debt financing.

question

A firm acquires _________ through the sale of ownership in the firm.

answer

equity financing

question

________ represents funds acquired for major purchases that will be repaid over a year or longer.

answer

Long-term financing

question

Financing that must be repaid within one year represents:

answer

short-term financing.

question

Businesses benefit from securities markets primarily by:

answer

obtaining the capital they need to finance their operations.

question

Private investors benefit from securities markets primarily by:

answer

having a convenient place to invest in stocks and bonds.

question

A(n) ________ refers to the first public offering of a corporation's stock.

answer

initial public offering (IPO).

question

The trading of previously issued securities from one investor to another takes place in the:

answer

secondary market.

question

When possible, businesses prefer to meet their long-term funding by:

answer

using retained earnings.

question

Corporations receive the proceeds for the sale of their stock in:

answer

the primary market.

question

As the chief financial officer (CFO), you identify that your firm needs to raise additional funds by selling new shares of stock. Which of the following refers to a specialist that assists corporations in the issue and sale of new securities?

answer

An investment banker.

question

How do investment bankers generate revenues for their firms?

answer

They buy, at a discount, the entire issue of a new security and then sell the issue to investors at full price.

question

Issuing bonds to obtain long-term funds legally compels a firm to pay regular ________ payments and repay the ________ at the maturity date.

answer

interest; principal

question

The cost of borrowing money is called the:

answer

interest rate.

question

In the language of bonds, face value is synonymous with:

answer

principal

question

The ________ of a bond represents the amount of debt incurred by the issuer of the security.

answer

principal

question

Which of these accurately describes an advantage of selling bonds to raise long-term capital?

answer

Interest is a tax-deductible expense.

question

Firms establish a ________ fund so that sufficient funds are available to repay bondholders on the maturity date.

answer

sinking

question

According to the Standard & Poor's Investor Services ratings, which of these ratings indicate a highly speculative bond?

answer

C

question

All of these represent disadvantages of issuing bonds except:

answer

bondholders receive voting rights.

question

The face value of bonds must be repaid on the ________ date:

answer

maturity

question

Which of these represents a special feature included with some bond issues?

answer

Convertibility of debt security into an equity security.

question

Which of the following securities provides the owner the right to vote for the corporate board of directors?

answer

Common stock

question

Many firms offer two types of stock issues:

answer

common and preferred stock.

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