Question 1

Which of the following is not a focus of modern CRM?

Accepted Answer

d. reduction in transactional relationships

Question 2

Economic benefits associated with maintaining relationships with current customers include:

Accepted Answer

a. acquisition cost for new customers are huge

Question 3

The basic ideas forming the foundation of customer loyalty for small firms include the notion that

Accepted Answer

c. small firms possess great potential for providing customer service

Question 4

Which of the following is not one of the suggestions for developing extraordinary customer service?

Accepted Answer

d. question complaints

Question 5

Most customer service problems are identified by

Accepted Answer

c. Customer complaints

Question 6

A customer\'s having a positive experience with a business can make all the difference in the world - it actually becomes part of the firm\'s _____.

Accepted Answer

c. Value equation

Question 7

Long-term transactional relationships with customers are fostered by

Accepted Answer

c. good information.

Question 8

Of the consumer options for dealing with product or service dissatisfaction, which is the only one that is desirable to the business?

Accepted Answer

d. privately complain to the business

Question 9

A growing number of marketers are using _____ software to form relationships with customers.

Accepted Answer

c. Web 2.0

Question 10

In a very small business, the customer profiles maintained in the entrepreneur\'s _____ often constitute the firm\'s CRM \"database.\"

Accepted Answer

head

Question 11

All of the following are stages in a formal product development process except

Accepted Answer

1) idea accumulation  2) business analysis  3) development of the product  4) product testing

Question 12

The initial stage in a formal product development process is the _____ stage.

Accepted Answer

idea accumulation

Question 13

All of the following are legitimate sources of new product ideas within the framework of a formal product development process except

Accepted Answer

d. competitor-owned patents.

Question 14

Every new product must be carefully analyzed in terms of financial considerations in the _____ stage of the product development process.

Accepted Answer

d. physical product developement

Question 15

Key factors to consider when conducting the business analysis phase of the new product development process include all of the following except

Accepted Answer

b. total product development.  (* d. product testing)

Question 16

The _____ stage of the product development process entails planning for branding, packaging, and other supporting efforts such as pricing and promotion.

Accepted Answer

Development of the Physical Product

Question 17

According to Clayton Christensen\'s statistics, _____ % of all innovations that eventually became successful started out in the wrong direction.

Accepted Answer

c. 93

Question 18

A small firm can try to increase sales of an existing product by all of the following except

Accepted Answer

d. emphasizing diversification.

Question 19

A verbal or symbolic means of identifying a product is referred to as a

Accepted Answer

A brand

Question 20

An entrepreneur opened a small business producing high-quality paper products. She decided to place a multicolored pine tree on all product boxes and on the sign outside the facilities, to symbolize the business. This symbol is an example of

Accepted Answer

Trademark

Question 21

The seller\'s measure of what he or she is willing to receive in exchange for transferring ownership or use of a product or service is known as

Accepted Answer

d. Price

Question 22

The total sales revenue of a small business is a direct reflection of

Accepted Answer

sales volume and price.

Question 23

Will\'s business will not be successful unless it charges a price for its products that covers its

Accepted Answer

d. total cost and some margin of profit.

Question 24

Costs incurred by a firm in actually producing a product (e.g., materials, machinery, etc.) are considered to be a part of

Accepted Answer

c. cost of goods sold.

Question 25

Marie will account for the costs incurred by a her firm in producing its products (e.g., materials, machinery, etc.) as a part of its

Accepted Answer

cost of goods sold.

Question 26

Active Feet, a small manufacturer of shoes, hired an additional vice-president and purchased a barrel of synthetic rubber used to make shoe soles. These two expenses should be considered a (an) ____ and a (an) ____, respectively.

Accepted Answer

b. overhead cost/cost of goods sold

Question 27

Hollywood Amusement, a small independent movie theater, decreased the price of admission from $5 to $4. Prior to the price decrease, the business sold 1,000 tickets each month. After the price decrease, it experienced ticket sales of 1,500 a month. If the change in sales is attributable only to the change in price, Hollywood Amusement faces ____ for its movie tickets.

Accepted Answer

d. elastic demand

Question 28

In general, products that are consumed in fixed amounts have

Accepted Answer

a. inelastic demand.

Question 29

In general, products that are consumed in different amounts have

Accepted Answer

d. elastic demand.

Question 30

A pricing tactic whereby a firm sets a high price to convey an image of high quality or uniqueness is known as

Accepted Answer

d. prestige pricing.

Question 31

Which of the following is not part of the communication process?

Accepted Answer

c. Perception

Question 32

A promotional mix is influenced by the following three major factors:

Accepted Answer

a. Geography of the market, the size of the promotional budget, and product characteristics.

Question 33

A widely dispersed market favors which of the promotional methods?

Accepted Answer

advertising

Question 34

Which of the following is one of the basic promotional methods?

Accepted Answer

a. Advertising

Question 35

Promotional funds are determined according to past experience in which of the following methods?

Accepted Answer

c. Percentage of sales

Question 36

Inspiring Toys, a small manufacturer of educational toys, is formulating a budget for next year\'s promotional activities. The company decides to budget $40,000 for promotional expenses (5 percent of the current year\'s $800,000 in sales). Inspiring Toys is using the ____ method of budgeting.

Accepted Answer

c. percentage of sales

Question 37

The major problem with the ____ method of determining promotional expenditures is the tendency to spend more when sales are increasing and less when they are declining.

Accepted Answer

a. percentage of sales

Question 38

Which of the following does not describe a method of determining promotional expenditures?

Accepted Answer

a. matching industry forecast  1) spending as much as much as the competition  2) what can be spared  3) percentage of sales  4) what is needed to do the job.

Question 39

A widely used piecemeal approach to determining the level of promotional expenditures is

Accepted Answer

b. what can be spared

Question 40

The preferred method of determining promotional expenditures is

Accepted Answer

\"what it will take to do the job\".

Question 41

Employees represent a venture\'s _____ resources - and are perhaps the most vital of all its operations.

Accepted Answer

b. human

Question 42

One of the largest expense categories for most businesses is

Accepted Answer

c. payroll

Question 43

Tom Clancy is experiencing difficulty in recruiting competent technicians for his business. One way to increase the attractiveness of his small business is by using

Accepted Answer

a. flexible work schedules.

Question 44

A small business owner wishes to persuade a highly qualified applicant (a business school graduate) to consider a position with his firm carefully, even though the applicant has also had offers from large corporations. The owner should most strongly emphasize the

Accepted Answer

c. potential for greater freedom of personnel to structure their job duties.

Question 45

Small firms compete with large firms for qualified personnel, but they have several potential advantages over large firms in attracting personnel, including which of the following?

Accepted Answer

potential for greater freedom of personnel to structure their job duties.

Question 46

If qualified walk-ins cannot be hired immediately, their applications should be

Accepted Answer

c. kept on file.

Question 47

Secondary and trade schools are a likely source of

Accepted Answer

b. personnel to fill positions requiring no specific work experiences.

Question 48

An employer who hires an employee through a public employment office pays the employment office a fee of

Accepted Answer

...

Question 49

In seeking personnel for key positions, small firms sometimes turn to recruiting specialists called

Accepted Answer

d. headhunters.

Question 50

The owner of a growing business wonders when to hire a human resource manager. The most likely time would be when

Accepted Answer

b. total employment exceeds 100.

Question 51

(T or F) Customer relationship management means the different things to different people.

Accepted Answer

True

Question 52

(T or F) The goals of a CRM program for most small firms are the complete customization of products and/or services to fit individual customer needs.

Accepted Answer

True

Question 53

(T or F) Strategies for goods marketing and services marketing are essentially identical.

Accepted Answer

FALSE  Strategies for the marketing of goods and services are not the same, they differ along the a number of dimensions (e.g., tangibility, standardization, and perishability).

Question 54

(T or F) Despite the limited resources of a typical small business, this type of firm should formalize the product development process.

Accepted Answer

TRUE

Question 55

(T or F) The competitive advantage of a firm will affect consumers\' demand for its product.

Accepted Answer

TRUE

Question 56

(T or F) Prestige pricing (setting a high price to convey an image of high quality or uniqueness) is a pricing tactic that reflects competitive advantage.

Accepted Answer

True

Question 57

(T or F) The approach called spending as much as the competition does can lead the firm to copy the mistakes of rival firms, as well as their successes.

Accepted Answer

TRUE

Question 58

(T or F ) In estimating promotional expenses, a small business should start by assessing what it will take to do the job.

Accepted Answer

FALSE  When estimating sales promotion expenditures, it is usually a good idea to consider all four methods of budgeting funds for a small business.

Question 59

(T or F) Temporary help agencies are good sources of employees when extensive training is required.

Accepted Answer

F. less practical?

Question 60

(T or F) A job description refers to a listing of the knowledge, skills, abilities, and other characteristics necessary to perform a job.

Accepted Answer

FALSE  job specification.

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