BUSN Test Chap. 8, 10, 11, 12, 13, 16 – Flashcards
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The heavy reliance on accounting information by business stakeholders has led to sometimes being called the
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Language of business
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Which of the following is a key external user of a company's accounting information?
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Competitors
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Matt is asked by Clint Publishers to carry out an external audit of its books. He is also asked to prepare the tax returns for another client, Mrs. Zhirkov. Matt is a _____.
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public accountant
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______ is a branch of accounting that addresses the needs of external stakeholders, including stockholders, creditors, and government regulators.
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Financial accounting
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Through the generally accepted accounting principles (GAAP), the Financial Accounting Standards Board (FASB) aims to ensure that financial statements are _____.
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Relevant, reliable, consistent, and independent
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The _____ reports the financial position of a firm by identifying and reporting the value of the firm's assets, liabilities, and owners' equity.
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Balance sheet
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Assets refer exclusive to ______
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The resources owned by a firm
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Kyra Inc. has applied for a business loan in the United Bank. In order to best assess the loan case, the loan officer at the bank, Sirigu, decides to look at the company's net income figure. Sirigu will find this information in Kyra's _____.
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Statement of retained earnings
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A(n) _____ opinion is issued if an external auditor does not find any problems with the way a firm prepares and presents its financial statements.
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Unqualified
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Annual reports include _____ that disclose additional information about a firm's operations and special circumstances that clarify and supplement the numbers reported on the financial statements.
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Notes
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Is the comparison of account values reported on financial statements over two or more years.
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Horizontal analysis
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_____ is a management tool that explicitly shows how a firm will acquire and use the resources needed to achieve its goals over a specific time period.
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Budgeting
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provides reports and analysis to managers to help them make informed business decisions.
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Managerial accounting
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The value of what is given up in exchange for something else
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Cost
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_________ are costs that are incurred as the result of some specific cost object.
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Direct costs
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A(n) _____ is an example of a depository institution
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Commercial bank
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A(n) _____ is a financial intermediary that specializes in helping firms raise financial capital by issuing securities in primary markets.
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Investment banking
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The _____ of 2010 expanded the Fed's regulatory authority over non-depository financial institutions, such as hedge funds and mortgage brokers that had previously operated with little regulatory oversight or accountability.
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Dobb-Frank act
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_____ to common stockholders of a company are a distribution of earnings that are paid only if declared by the company's board of directors.
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Dividends
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The price at which shares of an open-end mutual fund are issued and redeemed is based on the fund's _____.
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Face value per share
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One drawback of exchange traded funds (ETFs) is that investor is that they are not able to ____
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Diversify their investments
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The first time a company issues stock that may be bought by the general public
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Initial public offering
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The advantage of electronic communication networks (ECNs) is that they _____
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Speed up transactions
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(True or False) In general, riskier investment strategies offer the potential for higher returns.
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True
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The _____ tracks the stock prices of some of the largest and most actively traded companies listed on the Tokyo Stock Exchange.
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Nikkei 225
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A _________ is the most common depository institution.
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Commercial bank
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Which of the marketing strategies can be best employed for attracting tourists?
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Place marketing
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While driving to work, Noel hears an advertisement on the radio about the annual blood donation camp organized by the American Red Cross. The American Red Cross emphasizes the importance of blood donation for the donor and recipient. This is an example of _____ marketing.
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Idea
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The _____ is a philosophy that makes customer satisfaction the central focus of an entire organization.
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Marketing concept
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Walt owns a local chain of auto repair shops in Northern Rottawa. He goes the extra mile in pleasing his customers by providing comfortable and attractive waiting rooms, friendly service, and an exceptional warranty on all repair work. Which of the following philosophies has Walt employed to make all his customers highly satisfied?
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Marketing concept
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_____ is the ongoing process of acquiring, maintaining, and growing profitable customer associations by delivering unmatched value.
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Customer relationship management
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Which of the following is the scope of relationship of marketers who actively gather data and pursue a connection with customers who initiate contact.
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Limited partnership
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A firm selling a high-ticket product to a small customer base is most likely to pursue a full partnership with each of its key clients
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Customer relationship management
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_____ is based on a customer's perception that a product has a better relationship between the cost and the benefits than its competitors.
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Value
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Lawrence recently bought a brand new '69 Mustang, but he is not completely satisfied with it. He wished he had bought something that made a bigger impression on his colleagues at his posh Wall Street office. Lawrence's friend Howard, on the other hand, bought a Porsche 911 and is extremely happy with it. Howard becomes even more proud of his purchase when his friends compliment his car. From the marketing point of view, which of the following concepts has contributed to Howard feeling satisfied with this car?
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Perceived value
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In the context of customer satisfaction, which of the following happens when a marketer falls into the trap of underpromising?
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Less customers try a product
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Which of the following can be achieved by marketers by acquiring customer loyalty?
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Acquisition of new customers
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Peter is starting a new business. He has to develop a marketing strategy by identifying similar characteristics, attributes, and behaviors of the target market, and then group the customers according to these characteristics, attributes, and behaviors. The term used to describe Peter's strategy is:
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Market segmentation
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Which of the following is one of the characteristics of a well-chosen target market
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Good accessibility
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Neon Bolt is an energy drink manufacturer. The marketing strategies of Neon Bolt are focused on males in the age group of 16-25 years who enjoy sports and other outdoor activities. The company advertises its product at skateboard parks, basketball venues, and ski resorts. The customer group that Neon Bolt focuses on is called its _____.
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Target market
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Demographic segmentation divides the market based on measurable characteristics about _________
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People
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It is the blend of marketing strategies for product, price, distribution, and promotion.
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Marketing mix
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Jim works in the marketing department of a smartphone manufacturing firm. He is currently working on new package design ideas for the company's latest range of smartphones. In the context of the company's marketing mix, Jim's ideas contribute to the _____.
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Product strategy
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_____ is the process of continually collecting information from the external marketing surroundings.
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Environmental scanning
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Analysis of market share is a key to understanding a firm's
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Competitive environment
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What is a drawback of primary data
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More expensive
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In an effort to expand its business, music retailer MovNow offers DVD rentals online. In order to spot trends in consumer interest, MovNow has decided to evaluate the data of the hyperlinks that customers click on when they visit its website. This is an example of how a company can obtain _____ data.
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Primary
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_______ demands that marketers actively contribute to the needs of the broader community.
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Social responsibility
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Granite Inc. is a reputable company that has contributed a lot toward the social welfare of the public. Granite has improved working conditions in its overseas factories and has cut its waste emissions by half. To highlight these achievements, the company can publish a(n)
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Corporate responsibility report
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Refers to the development and promotion of products with ecological benefit
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Green marketing
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Claire sells solar-powered watches.
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Green marketing
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Horizon Inc., an automobile designer and developer, conducted a survey and built cars that suit the needs of its customers. Its newly designed cars let customers choose the color of the interiors. The company also designed touchscreens to control the entertainment, navigation, and climate in the vehicle, instead of knobs or buttons. Which of the following concepts is being illustrated in this scenario?
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Mass customization
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The type of marketing where public and private organizations market thoughts that are meant to change how people think or act is known as _________ marketing.
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Idea
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Idea marketing is often combined with _________ marketing to market ideas that are meant to change how people think or act.
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Event
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Customer relationship management (CRM) works best when marketers combine marketing communication with _______.
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Psychographic market segmentation
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Andrew has spent a lot of time gathering information about his top two clients and has decided to make them participate in his latest product development project. Andrew is trying to establish a _________ with his clients.
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Full partnership
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In the context of business market segmentation, _________ refers to dividing the market based on the concentration of customers.
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Geography-based segmentation
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A management consulting firm offers a management training program that instructs students on utilizing various tools for effective time management and aims to improve their risk management skills. Which form of product is the firm offering?
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Pure services
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EatOut Pizzeria is a food joint that serves pizza, and Pure Magic is a luxury beauty salon that sells beauty products. What do EatOut Pizzeria and Pure Magic have in common?
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Both a mix of goods and services
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What do gasoline for cars, ketchup for fries, and scarves have in common?
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Pure goods
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Jane bought a new car from Yollanda Motors, and the company offered her an exciting package that included free car washes for the first month. This package represents a _____.
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Pure services
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______ provides a tool for analyzing the relationship between goods and services.
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Goods and services spectrum
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Core benefit, actual product, augmented product
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Product layers
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The physical good or delivered service that provides a core benefit is called the _____ product.
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Actual
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Andrew's parents want him to get a good education and, therefore, send him to the best school in the town. In this case, Andrew's education is the _____ his parents were looking for when they got him admitted in the school.
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Core benefit
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_____ are the inexpensive goods and services that consumers buy frequently with limited consideration and analysis.
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Convenience products
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Which of the following business product categories refers to large capital purchases designed for a long productive life and the marketing of which emphasizes personal selling and customization?
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Installations
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Marketing of raw materials, one of the business product categories, primarily emphasizes
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Price and service
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______ requires that a product is not only different from those of its competitors but is also better
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Successful product differentiation
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Which of the following identifies how reliably a product delivers its promised level of quality?
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Product consistency
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The characteristics of a product that a marketer offers are known as _____.
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Product features
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OrgoDiet, a dietary food manufacturer, recently started producing organic food products. Which of the following customer benefits does OrgoDiet contribute to with this newly added feature of producing organic food items?
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A healthier planet
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Crunch Lite produces six different flavors of sugar-free cookies for the diabetic population. The company also produces a large assortment of sugar-free chocolates targeted at the same population. The sugar-free cookies and chocolates that Crunch Lite produces represent the _____ of the company.
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Product lines
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Which of the following can happen when a company launches a new product that is lower in price than the current products of the company?
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Cannibalization
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The overall value of a brand to an organization—the extra money that consumers will spend to buy that brand—is called _____.
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Brand equity
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Shirtzter, a manufacturer of men's shirts and jackets, has just reached an agreement to pay Kwasiaki a substantial fee for the right to use the company's name and logo on some of its clothing lines. This type of arrangement is known as.
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Licensing
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Which of the following scenarios leads to the consumer backlash hitting the core brand rather than the producer of the licensed product?
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Poor quality
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United Airlines recently announced that it would promote Golden Brew's cocoa coffee on its flights. This is an example of _____.
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Cobranding
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Most car dealers allow test-driving of the cars they sell to increase the _____ of their product.
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Trialability
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Enhancing the benefits of the product compared to existing ones enhances the _________
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Product diffusion rate
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In the introduction stage of the product life cycle, marketing efforts are primarily focused on:
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Building consumers awareness
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_____ begins as firms introduce their own versions of a product in the growth stage
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Competition
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Companies used to _______ to coordinate their messages through every promotional vehicle
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Integrated marketing communication
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A firm's _____ is a brief statement articulating how it wants the target market to envision its product relative to the competition.
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Positioning statement
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Sponsorship is a deep association between a marketer and a partner, whereas sales promotion is designed to stimulate immediate sales activity through specific short-term programs.
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Difference between sponsorship and sales promotion
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Both are focused toward enhancement and promotion of immediate sales are similarity's between ________
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Sales promotion and consumer promotion
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Which of the following traditional promotional tools focusses on creating positive associations to generate a favorable impression about a company or its products?
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Public relations and personal selling
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In the context of product layers, at the most fundamental level, consumers buy a ___________ that satisfies their needs
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Core benefit
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Marketers wrap their actual products in additional goods and services, called the_________, that sharpen their competitive edge.
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Augmented product
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_________ is defined by how well a product performs its core function.
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Quality level
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A _________ is a product's identity that sets it apart from other players in the same category.
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Brand
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It is a plan for delivering the right product to the right person at the right place at the right time.
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Distribution strategy
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Channels of distribution and physical distribution
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Elements of distribution strategy
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It is the path that a product takes from the producer to the consumer.
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Channel of distribution
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Hansel owns and runs a fruit juice manufacturing company. He decides that the company will sell packaged fruit juices through wholesalers and retailers. In this scenario, which of the following distribution strategies is Hansel planning to use?
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Channel intermediaries
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Which of the following statements is true of distributors in a channel of distribution?
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They add value
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Three things about members of a distribution channel
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Retailers, other wholesalers, or business users
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80% of all wholesalers
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Independent wholesalers
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Merchant wholesalers can develop their own marketing strategies, including pricing strategies, because they take __________ to the goods they help distribute.
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Legal title
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Newton Coal Supply takes possession of coal from the local mining companies. However, it does not store a single ounce of coal on its premises. Instead, it simply arranges for the coal to be shipped directly from the mining company to its customers. This type of arrangement suggests that Newton Coal Supply is a _____.
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Drop shipper
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First Bake delivers fresh cakes, breads, pies, and muffins to several small grocery stores in Central Radisova. In addition to delivering baked goods, First Bake's employees help the small store owners keep track of what they need to order, and they even remove outdated baked goods from the shelves. First Bake is an example of a _______
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Truck jobber
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A _______ sells a wide selection of merchandise within a narrow category
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Specialty store
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_____ involves placing a producer's products such as low-cost convenience goods in as many stores as possible.
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Intensive distribution
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_____ means establishing only one retail outlet in a given area.
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Exclusive distribution
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Disadvantage of online retailing
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No immediate delivery
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What statement is true of online retailing
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Lack of security
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A form of non store retailing
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Direct selling
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_____ involves hiring independent contractors to sell products to their personal network of friends and colleagues and to recruit new salespeople in return for a percentage of their commissions.
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Multilevel marketing
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The _____ includes all organizations, processes, and activities involved in the flow of goods from the raw materials to the final consumer.
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Supply chain
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Gregory works for Ocan Foods, a food supplier. His main responsibility is to make tactical decisions involving the actual movement of goods along his company's supply chain. In this case, Gregory is involved in
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Logistics
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Transportation by _______ is the fastest but most expensive means of transport.
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Planes
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A company using the strategy of penetration pricing makes a huge profit from the sheer volume of sales is true of _________
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Penetrating pricing
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Pentogreen, a company that manufactures soda, offers its latest products at very low prices. Pentogreen's strategy is based on the assumption that more customers will be willing to buy its products if they're offered at lower prices. Pentogreen has adopted this strategy to attract a larger customer base and increase its sales volume even though it will only gain a small profit on each individual sale. In this scenario, Pentogreen has implemented the _____ strategy.
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Penetration pricing
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Joanne works in the marketing department of a toy manufacturing company. Her company offers discounts for soft toys but sells electronic toys at a price higher than that of its competitors. In this scenario, Joanne's company is adopting the strategy of _______
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High/low pricing
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Rancone Technologies, a laptop manufacturer, released a new laptop model that was priced at $800 to attract customers who could afford to pay a higher price. After a few months, it introduced low-priced versions of the same laptop to attract new buyers. By doing so, it maximized profitability by targeting different segments of the market. In this scenario, Rancone Technologies has used the _____ strategy.
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Skimming pricing
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Mopsun, a garment store, sells customized hoodies at $7 per unit. The total fixed costs add up to $8000 per year, and the variable costs add up to $3 per unit. How many hoodies should Mopsun sell every year in order to cover all costs?
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2000
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_____ remain constant regardless of how many products are sold.
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Fixed costs
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_________ determines price by adding a fixed margin to the per-unit cost of the product.
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Cost based pricing
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In _____, marketers determine prices based on what consumers are willing to pay and then subtract desired margins to yield target costs.
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Demand based pricing
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_________ refers to the practice of charging prices that fall slightly below even dollars and cents in order to create a perception of greater value.
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Odd pricing
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It is the idea that if a television costs $599 instead of $600, consumers perceive the first one to be far cheaper than it actually is.
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Odd pricing
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_________ are distribution organizations—informally called "middlemen"—that facilitate the movement of products from the producer to the consumer.
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Channel intermediaries
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A(n) _________ takes legal possession of the goods to be distributed.
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Merchant wholesaler
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The _________ is a classic distribution theory which suggests that retail firms and retail categories become more upscale as they go through their life cycles.
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Wheel of retailing
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The _________ involves determining how a product will flow through the distribution channel from producer to consumer.
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Physical distribution strategy
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Sending products by _________ is the least expensive option available to producers.
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Ship
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_____ refers to the physical components used to collect, input, store, and process data, and to display and distribute information.
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Hardware
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The two broad categories of software are:
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System and application
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_____ is often referred to as the world's largest computer network.
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The internet
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Firms create _____ by offering limited access to certain areas of their intranets to select groups of people.
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Extranets
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The benefit that ________ provides to individual users is that it allows them to store large files without taking up valuable space on their computers' hard drives.
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Cloud computing
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_____ is most likely to allow companies access to a vast array of computing resources without the need to invest heavily in IT personnel.
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Cloud computing
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Data become _____ when they are processed, organized, and presented in a way that makes them useful to a decision maker in a company.
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Information
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_____ are files of related facts and figures organized according to a logical system and stored on hard drives or some other computer-accessible storage media.
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Databases
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_____ refers to marketing, buying, selling, and servicing of products over a network, usually the Internet.
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E-commerce
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It involves businesses selling supplies, components, machinery, equipment, or services to other businesses. (B2B)
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Businesses-to-business e-commerce
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_____ are best described as specialized Internet sites, which provide a platform to interact for businesses, specifically those involved in business-to-business (B2B) transactions.
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E-marketplaces
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_____ is a technology that stores information on a microchip—such as a unique serial number—and transmits it to a reader when it is within range.
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Radio frequency identification
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_____ is software that installs itself on a computer without permission and then tracks its behavior in some way.
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Spyware
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Which of the following refers to programs that install themselves on computers without the users' knowledge or permission and spread by attaching themselves to other files that are transferred from computer to computer?
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Computer viruses
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_____ refers to unsolicited commercial emails, usually sent to a large number of people with little regard for the users' interest in the product or its promotion.
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Spam
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Recently, Candice found it difficult to find legitimate email messages due to the hundreds of unsolicited commercial emails in her inbox. To prevent this from occurring in the future, Candice should install a _____.
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Spam filter
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_____ is a scam in which official-looking emails are sent to individuals in an attempt to get them to divulge private information such as passwords, usernames, and account numbers.
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Phishing
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Security experts suggest that organizations restrict access to computer resources by requiring users to have strong _____.
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Passwords
