Business Unit 3

Marketers who cannot forge a close personal bond with every customer but actively gather data and pursue a connection with customers who initiate contact have a _____ with the customers.

limited relationship

Dash-N-Dee is an independent distributer that distributes cosmetics to various retailers. The company takes legal possession of the goods it distributes. The company warehouses the products but does not ship them to the retailers. It is evident that Dash-N-Dee is a(n) _____.

limited-service merchant wholesaler

Transcone is an independent distributer that distributes home décor related products to various retailers. The company takes legal possession of the goods it distributes. It warehouses the products and ships them to the retailers, but it does not provide credit or marketing assistance. It is evident that Transcone is a(n) _____.

limited-service merchant wholesaler

Operos, a laptop manufacturing company, introduces three new colors—midnight blue, aquamarine, and hot pink—in its Z Series laptops. This scenario reflects _____.

line extension

In finance, a _____ is one that can be quickly converted into cash with little risk of loss.

liquid asset

In the context of business products, _____ consist of small-ticket items that businesses consume on an ongoing basis but do not become part of the final product.

maintenance products

In the context of customer relationship management (CRM), 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.

In the context of the evolution of marketing, marketers of the _____ believe that satisfied customers can develop into advocates for businesses by becoming powerful generators of positive "word-of-mouth."

relationship era

Allied Bakeries sells processed food and beverages manufactured by Winston Corp. to the public. In this scenario, Allied Bakeries is a _____.

retailer

_____ is a guaranteed line of credit in which a bank makes a binding commitment to provide a business with funds up to a specified credit limit at any time during the term of the agreement.

A revolving credit agreement

_____ measure how effectively an organization uses its resources to generate net income.

Asset management ratios

A wave of bank failures occurred in the United States in the early 1930s as the economy sank into the Great Depression. Congress responded by passing the _____ of 1933.

Banking Act

Which of the following statements is true of customer relationship management (CRM)?

CRM works best when marketers combine marketing communication with one-on-one personalization.

A fast-food restaurant serves the student community within a university campus. The restaurant newly introduces pocket-friendly combo meals in its menu. The meals become so popular that the rest of the items on the menu are rarely ordered. Which of the following is being exemplified in this scenario?

Cannibalization

Which of the following is most likely to take place when a company launches a new product that is lower in price than the current products of the company?

Cannibalization

_____ service customers who are too small to merit in-person sales calls from wholesaler reps.

Cash and carry wholesalers

_____ is the ongoing process of acquiring, maintaining, and growing profitable customer associations by delivering unmatched value.

Customer relationship management

In the context of marketing a product, which of the following statements is true of overpromising?

Customers will be disappointed if the product falls short of very high expectations.

Emma owns a bakery in Michigan. To save time, she buys ready-made edible cake decorations from a vendor in Wisconsin. This scenario exemplifies the purchase of a _____.

business product

The _____ of 2010 expanded the Fed's regulatory authority over nondepository financial institutions, such as hedge funds and mortgage brokers that had previously operated with little regulatory oversight or accountability.

Dodd-Frank Act

The banking panic of 1907 in the United States created pressure for Congress to find a way to stabilize the nation's banking system. The result was the:

Federal Reserve Act of 1913.

The water authority of the metropolitan city of Bongkasea put up a sign near all public water taps that read the following: "Turn me off after use because I may not be free of cost in 2050." Which of the following marketing strategies does this scenario best illustrate?

Idea marketing

Which of the following is true of financial diversification?

Investing in a large number of individual securities is time consuming than investing in exchange-traded funds.

Which of the following statements is true of financial leverage?

It is the use of debt in a firm's capital structure.

In the context of retail stores, which of the following statements is true of a convenience store?

It sells a small range of everyday and impulse products at easy-to-access locations with long hours and quick checkout.

_____ measure the ability of an organization to convert assets into the cash it needs to pay off liabilities that come due in the following year.

Liquidity ratios

Tyler Connor, a famous politician who supports the ruling party of the island country of Blavanka, endorses a publishing house named Cenzefor that he owns. Many Blavankan writers want to get their books published by Cenzefor because of Connor's connection with the brand. Which of the following marketing strategies does this scenario best illustrate?

People marketing

Crystal Corp. is an independent distributor that distributes cosmetics, apparels, shoes, and bags to other business customers on a large scale. It does not take legal title to the goods it distributes. In this scenario, it can be said that Crystal Corp. is a(n) _____.

broker

Bryce Diego, the president of the developing country of Glompacia, travels to various developed countries to meet the heads of multinational business corporations. He presents before them the factors that make Glompacia, which is also a tax haven, one of the easiest countries to do business in. Which of the following marketing strategies does this scenario best illustrate?

Place marketing

Which of the following marketing strategies can be best employed for attracting tourists?

Place marketing

Which of the following utilities satisfies wants by providing goods and services at a convenient location for customers?

Place utility

_____ refers to how well a product performs its core function.

Quality level

_____ measures the income earned per dollar invested by the stockholders of a firm.

Return-on-equity

_____ overturned the section of the Banking Act of 1933 that prohibited commercial banks from selling insurance or performing the functions of investment banks.

The Financial Services Modernization Act of 1999

_____ measures how long it takes for a firm to receive payment from customers who buy on credit.

The average collection period

Which of the following is a drawback of mutual funds?

The professional management touted by many funds does not come cheap.

Partypolist, a store that sells party supplies, sends discount coupons to its regular customers before Christmas and Halloween every year. In the context of the evolution of marketing, which of the following eras does this scenario most likely refer to?

The relationship era

Which of the following statements is true of convenience products?

Their promotion is done by their producers.

In the context of limited-service merchant wholesalers, which of the following statements is true of cash and carry wholesalers?

They require customers to make the trip to the wholesaler themselves and cart their own products back to their stores.

Which of the following utilities satisfies wants by providing goods and services at a convenient period for customers?

Time utility

Which of the following is a difference between credit unions and commercial banks?

Unlike commercial banks, credit unions are not-for-profit organizations.

_____ is the ability of goods and services to satisfy consumer wants.

Utility

_____ is created when your customers believe that your product has a better relationship between the cost and the benefits than any competitor.

Value

Which of the following statements is true of bonds?

When a bond's market price is below par value, it is selling at a discount.

Dividends of a company are:

a distribution of earnings that are paid to a corporation's stockholders.

For successful product differentiation, _____.

a product should not only be different from its competitor products but also be better

Plezion Corp. is an independent distributor that connects furniture sellers to its buyers. The company distributes furniture made of plastic, wood, and carbon fiber on a large scale. The company does not take legal ownership of the goods it distributes. In this scenario, it can be said that Plezion Corp. is a(n) _____.

agent

Institutional investors:

amass huge pools of financial capital from various sources.

Blue Legion, a well-known jeans manufacturer, is the main sponsor for a rock concert. Although the tickets to the concert are exorbitantly priced, the public feels that since the concert is being sponsored by a company like Blue Legion, it must be worth it. The scenario illustrates that Blue Legion has a good _____.

brand equity

Saffexo, a company that manufactures sports goods, hikes the prices of its entire range of athletic shoes. However, the company does not experience a fall in the sales of its shoes following the hike as the consumers continue to buy them. The information given in the scenario indicates that Saffexo has a good _____.

brand equity

Bolve, a company that essentially made leather bags and jackets, introduces men's cologne under its new category of skincare products. In this case, Bolve is engaged in _____.

brand extension

The _____ of a firm uses information from the sales budget and various cost budgets to develop a forecast of net earnings for the planning period.

budgeted income statement

Rosy's Sweet Treats is a small-scale restaurant that gets its supplies from Widget Suppliers that takes legal possession of the goods it distributes. The employees of Rosy's Sweet Treats make a monthly trip to Widget Suppliers to cart their own products back to the restaurant because Rosy's Sweet Treats is too small to merit in-person sales calls from customer care reps. In this scenario, Widget Suppliers is a(n) _____.

cash and carry wholesaler

A-n-Y dominates its market section by offering a wide range of toys that includes soft toys, plastic construction toys, electronic toys, and board games to the public. It is evident that A-n-Y is a _____.

category killer

Donton Inc. dominates its market section by offering a wide range of office supplies that includes printers, furniture, and cleaning supplies to final consumers. It is evident that Donton Inc. is a _____.

category killer

My Bonnie Lass, a cosmetics company, associates with a perfume brand called Lonalove to launch a face powder that is scented with one of Lonalove's signature perfumes. This new product becomes immensely popular among consumers and both the companies benefit from it. This scenario is an example of _____.

cobranding

A _____ is the most common depository institution.

commercial bank

In the context of business product categories, _____ include finished products used in producing other products.

component parts

Brenda owns a store in a small town. The store sells a small range of everyday and impulse products, such as chocolates, magazines, novelties, and snacks. The store remains open seven days a week from 08:00 a.m. to 12:30 a.m. Brenda's store can be categorized as a(n) _____.

convenience store

The Federal Reserve System was:

created to serve as the central bank in the United States.

A firm's _____ include cash and other assets expected to be converted into cash in the following year.

current assets

In the context of product differentiation and planning, the term _____ refers to the advantage that a consumer gains from specific product features.

customer benefit

In financial management, risk is referred to as the:

degree of uncertainty about the actual outcome of a decision.

Delvry Inc. is a solid fuel supplier. It supplies coal to different thermal power plants. The company takes legal possession of the coal, and they hire outside transporters to aid the delivery process. In this scenario, Delvry Inc. is a(n) _____.

drop shipper

Newzon Coal Supply takes possession of coal from 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 companies to their customers. This type of arrangement suggests that Newzon Coal Supply is a _____.

drop shipper

Techilex delivers timber directly to furniture manufacturers. The company takes legal possession of the timber it distributes. The company does not physically process timber but it facilitates timber's safe delivery to the clients. In this scenario, Techilex is a(n) _____.

drop shipper

Idea marketing is often combined with _____ to market ideas that are meant to change how people think or act.

event marketing

Leverage ratios measure the extent to which a firm uses _____.

financial leverage

Financial managers use _____ to assess the financial strengths and weaknesses of their firm.

financial ratio analysis

In the context of business product categories, the marketing of business services:

focuses on quality and relationships.

Mars is an independent distributer that distributes goods, such as keyboards, monitors, and computer cabinets to various business users. The company takes legal possession of the goods it distributes. The company warehouses the products, ships them to its customers, provides promotional assistance to the manufacturers, provides product repairs, and credit to customers. It is evident that Mars Inc. is a _____.

full-service merchant wholesaler

Financial capital refers to the:

funds a firm uses to acquire its assets and finance its operations.

A whole range of public and private organizations market beliefs that are meant to change how people think or act. This is referred to as _____.

idea marketing

A(n) _____ is the first time a company issues stock that may be bought by the general public.

initial public offering

One of the benefits of licensing is:

instant name recognition.

Anvis Asset Management Fund is a mutual fund company that sells securities to investors and uses the money to purchase bonds and corporate stocks. Anvis Asset Management Fund is a(n) _____.

institutional investor

For a corporation, direct investment from owners occurs when:

it sells newly issued stock.

The _____ is a business philosophy that makes customer satisfaction—now and in the future—the central focus of the entire organization.

marketing concept

Merc Enterprise is an independent distributor that distributes coffee machines and water purifiers to firms on a large scale. In addition to taking legal possession of the goods it distributes, the company also provides a complete array of services that includes warehousing, shipping, product repairs, and credit to its business buyers. In this scenario, it can be said that Merc Enterprises is a(n) _____.

merchant wholesaler

Plut Enterprise is an independent distributor that distributes paper cups, pens, pencils, and notepads to other firms on a large scale and takes legal possession of the goods it distributes. In this scenario, it can be said that Plut Enterprise is a(n) _____.

merchant wholesaler

In the context of marketers selling their products, _____ means encouraging consumers to buy through different venues.

multichannel retailing

TrinkCan is a soda manufacturing company. People can buy the company's soda from grocery stores, restaurants, vending machines, and online. In this scenario, it is evident that TrinkCan has adopted _____.

multichannel retailing

During the 2016 presidential campaign, President Trump marketed himself as the way to "Make America Great Again." This is an example of _____.

people marketing

Paris Hilton declaring, "I am a marketing genius" is an example of _____.

people marketing

A(n) _____ is a type of stock that gives its holder priority over common stockholders in terms of dividends and claims on assets.

preferred stock

In the context of business product categories, marketing of raw materials primarily emphasizes:

price and service.

The characteristics of a product that a marketer offers are known as _____.

product features

Streetlore, a footwear manufacturing company, makes business and casual shoes for both men and women. The company also makes school bags for children between the ages of five to ten years. The entire line of goods made by Streetlore represents the _____ of the company.

product mix

Mr. Troy wants to buy stocks of a local retail company. He needs help with market research and requires some investing advice, as well as someone to do the trading for him. Mr. Troy should contact a(n) _____.

securities broker

Product augmentation:

sharpens the competitive edge of the marketer's products.

In the context of consumer product categories, both producers and retailers are apt to promote _____ but to a highly targeted audience.

specialty products

Merchant wholesalers can develop their own marketing strategies, including pricing strategies, because they:

take legal title to the goods they distribute.

If Carl is a preferred stockholder at Cedia Inc., and Cedia goes out of business, Carl's claim on the firm's assets:

takes precedence over common stockholders.

Aaron buys 300 shares in a tobacco company. Within a year, he receives a capital gain on his stocks. This means that:

the price of the shares soared in the market.

The difference between the prices at which securities dealers buy and sell a security is called _____.

the spread

Lynk Corp. drives perishable goods, such as eggs, bread, and muffins to small grocery stores. In addition to taking legal title of the goods it distributes, Lynk Corp. also checks the stock and suggests reorder quantities to the grocery stores. It is evident that Lynk Corp. is a(n) _____.

truck jobber

Teri Bake delivers fresh cakes, breads, pies, and muffins to several small grocery stores in Central Radisova. In addition to delivering baked goods, Teri 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 store shelves. Teri Bake is a _____.

truck jobber

The responsibilities of _____ often include checking the stock, suggesting reorder quantities, and removing out-of-date goods.

truck jobbers

HealthAssure Corp. manufactures Nicoloss, a nicotine-free supplement that helps people overcome their cigarette addiction. To promote its product, the company puts up kiosks inside a college campus. However, the product gets only a mild response from the students. Consequently, the company resorts to more active and aggressive promotional activities. In this scenario, Nicoloss is an example of a(n) _____.

unsought product

The Securities and Exchange Commission (SEC) has the authority to go after individuals who engage in illegal insider trading, which is the practice of:

using inside information to profit unfairly from trading in a company's securities.