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

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