SBM-Final – Flashcards
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Which of the following is not a focus of modern CRM?
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d. reduction in transactional relationships
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Economic benefits associated with maintaining relationships with current customers include:
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a. acquisition cost for new customers are huge
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The basic ideas forming the foundation of customer loyalty for small firms include the notion that
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c. small firms possess great potential for providing customer service
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Which of the following is not one of the suggestions for developing extraordinary customer service?
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d. question complaints
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Most customer service problems are identified by
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c. Customer complaints
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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 _____.
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c. Value equation
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Long-term transactional relationships with customers are fostered by
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c. good information.
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Of the consumer options for dealing with product or service dissatisfaction, which is the only one that is desirable to the business?
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d. privately complain to the business
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A growing number of marketers are using _____ software to form relationships with customers.
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c. Web 2.0
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In a very small business, the customer profiles maintained in the entrepreneur's _____ often constitute the firm's CRM "database."
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head
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All of the following are stages in a formal product development process except
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1) idea accumulation 2) business analysis 3) development of the product 4) product testing
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The initial stage in a formal product development process is the _____ stage.
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idea accumulation
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All of the following are legitimate sources of new product ideas within the framework of a formal product development process except
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d. competitor-owned patents.
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Every new product must be carefully analyzed in terms of financial considerations in the _____ stage of the product development process.
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d. physical product developement
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Key factors to consider when conducting the business analysis phase of the new product development process include all of the following except
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b. total product development. (* d. product testing)
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The _____ stage of the product development process entails planning for branding, packaging, and other supporting efforts such as pricing and promotion.
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Development of the Physical Product
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According to Clayton Christensen's statistics, _____ % of all innovations that eventually became successful started out in the wrong direction.
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c. 93
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A small firm can try to increase sales of an existing product by all of the following except
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d. emphasizing diversification.
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A verbal or symbolic means of identifying a product is referred to as a
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A brand
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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
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Trademark
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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
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d. Price
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The total sales revenue of a small business is a direct reflection of
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sales volume and price.
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Will's business will not be successful unless it charges a price for its products that covers its
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d. total cost and some margin of profit.
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Costs incurred by a firm in actually producing a product (e.g., materials, machinery, etc.) are considered to be a part of
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c. cost of goods sold.
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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
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cost of goods sold.
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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.
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b. overhead cost/cost of goods sold
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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.
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d. elastic demand
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In general, products that are consumed in fixed amounts have
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a. inelastic demand.
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In general, products that are consumed in different amounts have
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d. elastic demand.
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A pricing tactic whereby a firm sets a high price to convey an image of high quality or uniqueness is known as
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d. prestige pricing.
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Which of the following is not part of the communication process?
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c. Perception
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A promotional mix is influenced by the following three major factors:
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a. Geography of the market, the size of the promotional budget, and product characteristics.
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A widely dispersed market favors which of the promotional methods?
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advertising
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Which of the following is one of the basic promotional methods?
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a. Advertising
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Promotional funds are determined according to past experience in which of the following methods?
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c. Percentage of sales
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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.
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c. percentage of sales
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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.
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a. percentage of sales
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Which of the following does not describe a method of determining promotional expenditures?
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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.
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A widely used piecemeal approach to determining the level of promotional expenditures is
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b. what can be spared
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The preferred method of determining promotional expenditures is
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"what it will take to do the job".
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Employees represent a venture's _____ resources - and are perhaps the most vital of all its operations.
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b. human
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One of the largest expense categories for most businesses is
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c. payroll
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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
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a. flexible work schedules.
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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
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c. potential for greater freedom of personnel to structure their job duties.
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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?
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potential for greater freedom of personnel to structure their job duties.
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If qualified walk-ins cannot be hired immediately, their applications should be
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c. kept on file.
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Secondary and trade schools are a likely source of
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b. personnel to fill positions requiring no specific work experiences.
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An employer who hires an employee through a public employment office pays the employment office a fee of
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...
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In seeking personnel for key positions, small firms sometimes turn to recruiting specialists called
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d. headhunters.
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The owner of a growing business wonders when to hire a human resource manager. The most likely time would be when
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b. total employment exceeds 100.
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(T or F) Customer relationship management means the different things to different people.
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True
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(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.
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True
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(T or F) Strategies for goods marketing and services marketing are essentially identical.
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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).
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(T or F) Despite the limited resources of a typical small business, this type of firm should formalize the product development process.
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TRUE
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(T or F) The competitive advantage of a firm will affect consumers' demand for its product.
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TRUE
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(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.
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True
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(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.
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TRUE
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(T or F ) In estimating promotional expenses, a small business should start by assessing what it will take to do the job.
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FALSE When estimating sales promotion expenditures, it is usually a good idea to consider all four methods of budgeting funds for a small business.
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(T or F) Temporary help agencies are good sources of employees when extensive training is required.
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F. less practical?
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(T or F) A job description refers to a listing of the knowledge, skills, abilities, and other characteristics necessary to perform a job.
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FALSE job specification.
