Entrepreneurship - Ch 10 Quiz
In creating a marketing plan, a firm typically identifies its competition and understands its strengths and weaknesses in a stage where the firm:
examines its current situation.
Harry Howard, a successful real estate broker, has established his own real estate company in western Pennsylvania. He has on-the-job experience working at a real estate company where he had a whole staff supporting brokers' work. Now on his own, with two secretaries, Harry is building his dream of owning and growing his own business. He wants to mainly focus on middle-to-upper-income homeowners and is exploring what type of promotional material he needs to have. Which of the following would be the fastest way for Harry to build his client base?
Word-of-mouth
Which of the following is usually the first technique an entrepreneur uses to get customers?
Word-of-mouth
The "going concern" concept states that:
a successful business will stay in business.
Diversification is a strategy whose goal is growth, based on:
adding new products or services to the firm's existing collection of offerings
Wholesalers and retailers who connect manufacturers to consumers are referred to as _____.
distribution channels.
Personal selling decreases business owners' flexibility in their presentation. true/false
false
A _____ is best described as a small group (8 to 20 people) that is asked to meet to discuss a series of questions about a particular product or service
focus group
What does a Dichotomous Question mean?
questions that have only two possible choices.
A(n) _____ is a middleman business which sells to consumers or end-users of a product, typically in single or small quantities.
retailer
People who receive a promotional impression and who give some thought to buying the product are referred to as _____.
sales leads.
The proof of a customer relationship management effort is seen in higher levels of customer loyalty in existing customers. true/false
true
An implication of the bounded rationality models of management is that
the more information available to be included into the decision process, the less efficient that process will be
Your hit rate is how many prospects or leads you need to approach in order to make one sale. Also called the conversion rate.
True
The process of dividing the market into smaller portions of people that have certain common characteristics is called stereotyping. true/false
false
_____ is a form of communication, such as coupon or contests, which encourages the customer to take immediate action.
Sales promotion.
Business owners can figure how to better target ads or promotions to particular types of customers if:
They link sales and purchase basis to the type of customer.
What is a characteristic feature of sales packets?
They provide potential customers an education in a firm's product or service.
Advertising costs are usually based on cost per?
Thousand.
A clothing company that divides its market using characteristics of clothing such as practical, stylish, or for a particular sport, etc., is segmenting the market _____.
by benefits sought
Entrepreneurs can use the AIDA formula to write press releases well. In this AIDA formula, "D" stands for _____.
desire. Entrepreneurs can use the AIDA (attention, interest, desire, and action) formula to write press releases well.
Press relations are a form of communication that encourage the customer to take immediate action.
false
The close of a sale is the end of the sale.
false
Which of the following terms refers to the activities used to establish and promote a favorable opinion by the media? A. Press relations B. Word-of-mouth communications C. Sales promotions D. Ambush marketing
A. Press relations
_____ is the segment or segments a business owner selects to concentrate his or her marketing efforts. A. Target market B. Qualified market C. Customer vector D. Optimized market
A. Target market
Which of the following is most likely to be true of signs as a form of advertising? A. They must be large enough to read by passing traffic. B. They generally contain the balance sheet of the company. C. They describe the competitive strategies of the company. D. They include stories of customers whose problems were solved.
A. They must be large enough to read by passing traffic.
Segmenting a market _____ involves dividing it into different segments in terms of cities or neighborhoods. A. geographically B. economically C. demographically D. culturally
A. geographically
How much of each message conveyance a business owner uses to sell his or her product as well as his or her objective in using each one is known as: A. promotional mix. B. marketing mix. C. AIDA. D. CRM.
A. promotional mix.
Brochures and flyers are types of promotional novelties.
False. Promotional novelties range from key chains, pens, and coffee mugs to more expensive embossed briefcases and the like.
Which of the following is true of advertising? A. It works if people recall an ad even though it did not have a positive impact on them. B. It involves presentation of a company's image. C. It is the least likely to be used by businesses to convey their message to potential customers. D. It works if an ad's impression is positive even if people do not recall it. E. All of the above F. None of the above
It involves presentation of a company's image.
Which of the following is a characteristic feature of a message for a target market?
It must contain the elements of a product's value proposition.
The steps in Blank and Dorf's "Get Customers" funnel are awareness, interest, consideration, and purchase. Here, consideration refers to:
The process of getting into the prospective customer's final list of brands of products or services they may purchase.
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Trendiness refers to:
A concept in public recognition which alludes to the fit of the topic to current fashion or public interest.
Key chains, pens, coffee mugs, or embossed briefcases are examples of _____. A. promotional novelties B. signs C. flyers D. marketing kits
A. promotional novelties
Which of the following is a characteristic feature of a message for a target market? A. It is repeated less often. B. It must contain the elements of a product's value proposition. C. It must be abstract. D. It must always be distinctive from target customers.
B. It must contain the elements of a product's value proposition.
_____ are the terms included in the hidden portions of a web page which are used by search engines to describe a website and evaluate its focus and category placement. A. Domain names B. Keywords C. Search terms D. Embeds
B. Keywords
Which of the following provides potential customers an education in a firm's product or service, including stories of customers' whose problems were solved, an FAQ list, as well as a page on the products or services, and a page on the business owner and his or her firm? A. Promotional novelties B. Sales packets C. Business cards D. Brochures
B. Sales packets
Which of the following is a characteristic feature of sales packets? A. They are usually large enough to read by passing traffic. B. They provide potential customers an education in a firm's product or service. C. They generally consist of pens or small calendars which are printed with the name and slogan of the company. D. They are generally hand-written.
B. They provide potential customers an education in a firm's product or service.
Which of the following terms refers to small business owners' unique selling points that will be used to differentiate their products and/or services from those of the competition? A. Sales lead B. Value proposition C. Trendiness D. Segmentation
B. Value proposition
_____ is often used to support the corporate identity and value propositions that are established through public relations efforts. A. Personal selling B. A corporate newsletter C. Advertising D. A press kit
C. Advertising
Which of the following is a component of the AIDA formula that aims to hook people to the press release? A. Action B. Desire C. Interest D. Attitude
C. Interest
Which of the following terms refers to a rule of thumb about how many prospective customers it takes to find one who will actually make a purchase? A. Lead qualification B. Value proposition C. Marketing funnel D. Segmentation
C. Marketing funnel
_____ are usually produced for pennies in quantity. A. Sales packets B. Signs C. Promotional novelties D. Marketing kits
C. Promotional novelties
_____ is the process of dividing the market into smaller portions of people who have certain common characteristics. A. Target optimization B. Market penetration C. Segmentation D. Market recognition
C. Segmentation
Which of the following is a characteristic feature of brochures and flyers? A. They contain the annual balance sheet of the company. B. They include stories of customers whose problems were solved. C. They give more information about a firm and its products than business cards. D. They provide word-of-mouth advertising.
C. They give more information about a firm and its products than business cards.
Which of the following is an example of sales promotion? A. Tara's Attire adds kids clothing to its existing range of clothes. B. Sammy Jams advertises about its new jam through billboards. C. Treats Today gives away samples of its new healthy donuts for free. D. Yen Yoga passes out flyers to advertise about a new yoga center in the Holmesville.
C. Treats Today gives away samples of its new healthy donuts for free.
Dividing the market into different segments by income, age, or religion constitutes segmenting the market _____. A. geographically B. economically C. demographically D. culturally
C. demographically
Mentions of a company or products in the media for which a firm did not pay is referred to as _____. A. buzz marketing B. sales promotion C. free ink D. viral marketing
C. free ink
What term refers to a concept in public importance which alludes to the degree to which the issue is immediate in its impact?
Currency
What term refers to a concept in public importance which alludes to the degree to which the issue is immediate in its impact?
Currency.
_____ is a type of CRM report that segments by customer or customer group on purchases or dates of purchase.
Customer vector
Which of the following is true of advertising? A. It is the least likely to be used by businesses to convey their message to potential customers. B. It works if an ad's impression is positive even if people do not recall it. C. It works if people recall an ad even though it did not have a positive impact on them. D. It involves presentation of a company's image.
D. It involves presentation of a company's image.
Which of the following is true of promotional novelties? A. They explain the competitive strategies of the company to the readers. B. They must be large enough to read by passing traffic. C. They include stories of customers whose problems were solved. D. They are given to key customers or as gifts to employees.
D. They are given to key customers or as gifts to employees.
What is true of follow-up?
Electronic approaches to follow-up dramatically lower the cost of marketing efforts.
What statement is true of sales forecasting?
In many cases, the best sales forecast you can come up with is an educated guess.
Which of the following statements is true of sales forecasting?
In many cases, the best sales forecast you can come up with is an educated guess.
Which of the following terms refers to a rule of thumb about how many prospective customers it takes to find one who will actually make a purchase?
marketing funnel
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Chapter 14
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The difference between revenue and expense is called sales.
...
Which of the following strategies is used by a business to decrease cash outflows?
Avoiding the wastage of resources
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Which of the following gives the particulars on existing customers? A. Contact data B. Performance data C. Product data D. Service data
A. Contact data
Which of the following is true of cognitive dissonance? A. It is the consistency between experience and belief. B. It happens frequently especially with more expensive items. C. It almost always happens with purchases that are not considered risky. D. It is a doubt that occurs before making a purchase.
B. It happens frequently especially with more expensive items.
_____ is a strategy whose goal is growth, based on selling in areas or to groups previously not served by the business. A. Market penetration B. Market expansion C. Product expansion D. Diversification
B. Market expansion
Which of the following is used when selling to existing customers? A. Market expansion B. Market penetration C. Diversification D. Vertical integration
B. Market penetration
Greg has a press release for his new product that he wants to broadcast on television. His press release has a good story and visuals. It also includes content that illustrates broad cultural themes. Which of the following is Greg most likely to generate through the press release? A. Public recognition B. Public interest C. Public importance D. Issue recognition
B. Public interest
Proximity refers to: A. a concept in public interest which alludes to events with a broad appeal within the market or population. B. a concept in public recognition which alludes to the impact level of the issue being discussed. C. a concept in public interest which alludes to the graphic interest held by an event. D. a concept in public recognition which alludes to the fit of the topic to current fashion or public interest.
B. a concept in public recognition which alludes to the impact level of the issue being discussed.
While closing a sales call, when a sales person says "I'll just need your credit card for payment," he is using the sales closing technique of _____. A. try-before-you-buy close B. assumptive close C. chances-are close D. urgency close
B. assumptive close
The proof of a CRM effort is seen in: A. high levels of cognitive dissonance in customers. B. more tracked prospects making initial purchases. C. low levels of customer loyalty in new customers. D. high levels of inconsistency among customers in terms of experience and belief.
B. more tracked prospects making initial purchases.
In the case of existing customers, _____ gives the information on the date and type of contact, since in many sales situations, it can take repeated contacts before a sale is made. A. channel data B. performance data C. intercommunication data D. sales data
B. performance data
In personal selling, _____ means cleaning up the list to remove potential clients that are unable or unlikely to buy a business owner's product. A. prospecting B. prequalifying C. polarizing D. closing
B. prequalifying
what are open-ended questions best for?
Best used for gathering preliminary information.
Due to which of the following characteristics a news story is most likely to get public importance? A. Trendiness B. Proximity C. Currency D. Cultural resonance
C. Currency
_____ refers to business owners doing what they said they would do. A. Trendiness B. Cognitive dissonance C. Follow-up D. Follow-through
D. Follow-through
Which of the following is true of personal selling? A. It involves activities used to establish and promote a favorable opinion by the media. B. It does not allow you to find out the buyers' main concerns. C. It involves entering into a joint venture with a competitor. D. It allows a business owner to be flexible in his or her presentation.
D. It allows a business owner to be flexible in his or her presentation.
Which of the following is most likely to be true regarding customer vector? A. It considerably increases cognitive dissonance. B. It makes it difficult to decide which marketing efforts to continue or expand. C. It helps marketers in identifying prospective customers. D. It helps entrepreneurs decide how to operate several key aspects of their marketing efforts.
D. It helps entrepreneurs decide how to operate several key aspects of their marketing efforts.
An inconsistency between experience and belief refers to: A. value proposition. B. segmentation. C. trendiness. D. cognitive dissonance.
D. cognitive dissonance.
Closing a sale refers to: A. asking for a referral from a prospective customer. B. being turned down by a prospective customer. C. delaying the decision to make a new product. D. obtaining a commitment from the customer.
D. obtaining a commitment from the customer.
Putting together a list of prospective clients is called _____. A. preparing B. presenting C. formulating D. prospecting
D. prospecting
Paying for a local organization's needs in exchange for recognition is referred to as _____. A. publicity B. donation C. personal selling D. sponsorship
D. sponsorship
Which of the following direct sales methods is effective for products that need demonstrations or detailed explanations?
Door-to-door sales.
The method of advertising is least likely to be used by businesses to convey their message to potential customers.
F (False)
The bank available balance and the bank ledger balance will always show the same value.
False. The bank available balance is the sum of money that has actually been received and paid out of a depositor's account. The bank available balance can vary significantly from the ledger balance.
Hiring marketing research firms is a much more inexpensive option than online surveys for small businesses.
False. There are marketing research firms that could conduct primary research for businesses, but the cost—usually several tens of thousands of dollars—tends to put it out of reach for small businesses. A much more reasonable option is an online survey.
All money is considered currency, but all currency is not considered money.
False. While all currency is money, all money is not currency.
In the context of accounting functions, which of the following is true of accounts receivable?
It records provision of credit to customers.
_____ is a strategy whose goal is growth, based on selling in areas or to groups previously not served by the business.
Market expansion
_____ is a strategy whose goal is growth, based on selling more of the firm's product or service to the existing customer base.
Market penetration
_____ is the most used item on the income statement.
Operating income
_____ is a category of marketing research that is best defined as the new information collected to solve a problem at hand or answer current questions.
Primary research.
_____ refers to amounts that are owed to a business for merchandise that was sold on credit.
Receivables
Advertising is often used to support the corporate identity and value propositions that are established through public relations efforts.
T (True)
It is customary for a small business to concentrate its efforts on one target market at the beginning and consider secondary ones later.
T (True)
Promotion includes getting the message out to the target market so that they can make decisions about a product or service.
T (True)
Which of the following is the key to customer relationship management (CRM)?
The data on current or prospective customers
Which of the following is a reason for a business to do accounting?
To produce information that is useful for managing a business
A cash budget is the essential starting point for all financial and accounting considerations in a small business.
True
Cash-to-cash cycle is also referred to as operating cycle.
True
Currency is the most common form of cash.
True
Follow-up refers to the contacts you periodically make with customers in order to remind them of your business, and your interest in their business.
True
It is customary for a small business to concentrate its efforts on one target market at the beginning and consider secondary ones later.
True
The term "value proposition" refers to small business owners' unique selling points that will be used to differentiate their products and/or services from those of the competition.
True
The usefulness of the income statement for managing a small business is related to the amount of detail available in the statement.
True
There are three typical locations for services: at a client's location, at a mutually accessible location, and at the firm's location.
True
Variance analysis is the process of determining the effect of price and quantity changes on revenues and expenses.
True
The information that the account holder knows about his or her account, but the bank does not know, includes:
any deposits the holder has made after bank closing.
By using multiple screens of questions in online surveys, respondents can select the screen they will see based on their responses to an earlier question. In Internet survey terms, this is known as _____.
branching
A financial plan for the future based on a single level of operations is called a(n):
budget.
Money that is immediately available to be spent is called _____
cash
Debt investments that mature in less than three months are an example of _____.
cash equivalents
A reduction in the bank account of a merchant by a credit card company is termed _____.
charge back
An entity that processes checks and electronic fund transfers for banks and other financial organizations is called a _____.
clearinghouse
What is Direct Competition?
companies that make a similar product or provide a similar service.
A _____ budget is also referred to as a master budget.
comprehensive
The quantity of items sold times the price expected to be paid for each product is the calculation used for the:
cost of goods sold budget.
Naomi had always been complimented for her excellent cooking skills. Hence, she decided to commercialize this ability by starting a restaurant. Before starting the restaurant, she invited a few friends and neighbors over for dinner to taste her dishes and provide feedback that she could incorporate in her business venture. This is a typical example of conducting an informal _____.
focus group research.
Using methods to appear to be paying bills on time, when in fact the cash outflow is being delayed or avoided is called _____.
gaming the payment process
In personal selling, _____ means finding out about the clients before approaching them.
preparation. The process of personal selling includes prospect and evaluate, prepare, present, close, and follow-up. Preparation means finding out about the clients before approaching them.
When a marketer mentions the key points about his or her product or service in as few and as memorable words as possible, the resulting message is known as the _____ message.
succinct.
_____ is the segment or segments a business owner selects to concentrate his or her marketing efforts.
target market
Tammy is talented at craft but lacks the cash flow management skills required to run a business. She opens a store, Tammy's Craft Corner, with the help of her son David—a business major—who manages the budgets and expenses of the business. David prepares the quarterly budget and maintains a company book for recording all transactions. The company book balance that David regularly updates is the sum of:
the cash inflows and cash outflows recorded in the firm's accounting records.
Product expansion is a strategy whose goal is growth, based on: A. selling more of the firm's product or service to the existing customer base. B. selling in areas or to groups previously not served by the business. C. selling existing customers a product or service they have never bought before. D. adding new products or services to the firm's existing collection of offerings.
C. selling existing customers a product or service they have never bought before.
Doing business in a different location other than the hometown is comparatively less expensive.
False. Doing business in your hometown may be perfectly appropriate; however, the cost of moving a company—whether across town or across the country—can be very expensive. It pays to plan ahead.
What is true of customer retention?
It handles problems that crop up after a sale.
what is a disadvantage of leasing?
Renovation options are limited in a leased property. Leasing is an option with a considerably lower initial cash outlay, and it is often the only feasible choice for new businesses. One of the main downsides of leasing is that you are usually limited in the renovations you can do.
what is customer retention?
The name for the general approach to keeping customers is called customer retention (CM). There are two major elements to CM. One is handling problems that crop up after a sale, and the other called customer relationship management (CRM).
It is nearly impossible to design a message that will appeal universally or to find media that will reach all consumers.
True
Many small businesses experience problems in cash flow management because of the mismatch between the timing of the receipt of cash and the timing of the need to expend cash.
True
Most service providers get business usually through referrals or word-of-mouth.
True
Participating in trade shows and trade missions increase international contacts.
True
Payroll records ensure that employment taxes are kept current.
True
Sales leads who actually make some sort of effort to learn more about the product, service, or business in anticipation of a possible purchase are known as prospects.
True
Setting up a short-term lease initially is one of the ways to handle an early termination of business.
True
It is nearly impossible to design a message that will appeal universally or to find media that will reach all consumers.
True (T)
Sales leads who actually make some sort of effort to learn more about the product, service, or business in anticipation of a possible purchase are known as prospects.
True (T)
Your estimated number of prospective customers multiplied by your hit rate multiplied by the amount of each sale equals your sales forecast.
True (T)
Your hit rate is how many prospects or leads you need to approach in order to make one sale. Also called the conversion rate.
True (T)
A vending machine is a form of direct sales method.
True.
Accounting equation: The statement that assets equal liabilities plus owners' equity (assets = liabilities + owners' equity)
True.
Due to which of the following characteristics a news story is most likely to grab public interest? A. Cultural resonance B. Issue recognition C. Trendiness D. Proximity
A. Cultural resonance
_____ is a type of CRM report that segments by customer or customer group on purchases or dates of purchase. A. Customer vector B. Sales report C. Customer service D. Interim report
A. Customer vector
_____ refers to the contacts business owners periodically make with customers in order to remind them of their business, and their interest in customers' business. A. Follow-up B. Customer service C. Follow-through D. Mat release
A. Follow-up
_____ is a strategy whose goal is growth, based on selling more of the firm's product or service to the existing customer base. A. Market penetration B. Product expansion C. Market expansion D. Diversification
A. Market penetration
One technique to increase cash inflow is to offer discounts for delayed payments.
False. One of the five proven techniques to increase cash inflows includes offering discounts for prompt payment.
In which of the following stages of personal selling does an entrepreneur collect background information before selling the actual product or service? A. Prospect and evaluate B. Prepare C. Present D. Close
A. Prospect and evaluate
Doubt that occurs after a purchase has been made is called _____. A. cognitive dissonance B. customer vector C. segmentation D. trendiness
A. cognitive dissonance
A news release that is typeset and thus may be photographically reproduced for inclusion in a newspaper is known as a _____. A. mat release B. brochure C. sales packet D. press kit
A. mat release
Customer loyalty programs focus on developing a strategy that is based on: A. selling more of the firm's product or service to the existing customer base. B. selling in areas or to groups previously not served by the business. C. selling existing customers a product or service they have never bought before. D. adding new products or services to the firm's existing collection of offerings.
A. selling more of the firm's product or service to the existing customer base.
When it comes to promoting a small business that is just starting out, spreading the news by _____ is the surest way to build a client base. A. word-of-mouth B. full-scale advertising C. personal selling D. sales promotion
A. word-of-mouth
Diversification is a strategy whose goal is growth, based on:
Adding new products or services to the firm's existing collection of offerings.
Which of the following is true of follow-up? A. It increases cognitive dissonance in customers. B. It is typically done only once after a sale. C. Electronic approaches to follow-up dramatically lower the cost of marketing efforts. D. It refers to business owners doing what they said they would do.
C. Electronic approaches to follow-up dramatically lower the cost of marketing efforts.
Which of the following strategies is central to the process of upselling? A. Market penetration B. Market expansion C. Product expansion D. Diversification
C. Product expansion
Which of the following is the key to customer relationship management (CRM)? A. Displaying accurate financial records in annual reports B. Educating customers about a new product or service C. The data on current or prospective customers D. The press release and press kit
C. The data on current or prospective customers
If business owners track sales by purchase basis: A. they can minimize the cognitive dissonance experienced by their customers. B. they can predict the performance of their competitors. C. they can easily decide which marketing efforts to continue. D. they can find the defects in their products.
C. they can easily decide which marketing efforts to continue.
Business owners can figure how to better target ads or promotions to particular types of customers if: A. they track sales of their competitors. B. they identify the defects in their products. C. they use the diversification strategy rather than the product expansion strategy. D. they link sales and purchase basis to the type of customer.
D. they link sales and purchase basis to the type of customer.
what statement is true of low customer contact businesses?
Empowerment zones offer businesses low-cost space and tax advantages. Generally low customer contact businesses are manufacturing businesses, the headquarters of client location-based services, or remote location services. Customer access is relatively unimportant. Empowerment zones offer businesses low-cost space and tax advantages for locating there. In addition to relatively low cost space, business incubators offer a multitude of small business support services.
The process of dividing the market into smaller portions of people that have certain common characteristics is called stereotyping.
F (False)
When the fear appeal used by a marketing message is a too strong, it always causes the audience to react positively. true/false
False
Advertising costs are usually based on cost per hundred thousand.
False (F)
Brochures and flyers are types of promotional novelties.
False (F)
Press relations are a form of communication that encourage the customer to take immediate action.
False. Press relations are those activities that business owners do to influence or increase media coverage of their business. Media include newspapers, magazines, websites, blogs, radio, and television.
The process of dividing the market into smaller portions of people that have certain common characteristics is called stereotyping.
False. Segmentation is the process of dividing the market into smaller portions of people who have certain common characteristics.
Among surveys, in-personsurvey tends to be the least expensive method, with telephone coming in second, and mail the most expensive.
False. Survey questions may be written, asked in person or asked on the telephone. In person tends to be the most expensive method, with telephone coming in second, and mail the least expensive
In person survey has the lowest return rate and does not allow for much flexibility when compared to mail or telephone surveys.
False. Survey questions may be written, asked in person or asked on the telephone. In person tends to be the most expensive method, with telephone coming in second, and mail the least expensive. On the other hand, mail has the lowest return rate and does not allow for much flexibility.
A marketing plan is not required if a person plans to use his or her own personal savings and direct marketing.
False. To convince a bank or private investor to loan money or a store or distributor to carry your product, as an entrepreneur, you need more than just "gut instinct." Even if people plan to use their own personal savings and direct marketing, they're going to need some way to determine whether they are accomplishing their goals, something to make sure they're on the right path.
The close of a sale is the end of the sale.
False. the close is not the end of the sale. The important objective of follow-up is to make customers feel at ease.
Which of the following accounting functions focuses the most on automatically calculating and accumulating depreciation?
Fixed asset accounting
_____ refers to business owners doing what they said they would do.
Follow-through
Succinct messages make a business clear to potential clients and customers.
True
An "as is" property is one which has problems and the landlord tries to push you to accept the property "as is." A compliant property is one which is in compliance with all applicable laws, rules, and regulations.
True.
Creating and distributing a catalog online saves the cost of printing and mailing.
True.
Expendables are often variable costs. Expendables (also called indirect materials) are products used in the sales, manufacturing, or delivery that are not part of the finished product.
True.
Factoring is a method of borrowing against receivables.
True.
Follow-up refers to the contacts you periodically make with customers in order to remind them of your business, and your interest in their business.
True.
If a businessis able to create a prestige image in its customer's mind, it can charge much higher prices than the going rate.
True.
It is customary for a small business to concentrate its efforts on one target market at the beginning and consider secondary ones later.
True.
It is good to opt for distributors when a whole line of products need to be bought or warehoused but you cannot afford to do so yourself.
True.
It is much easier to compare groups and to statistically analyze data with close-ended questions than it is with open-ended questions.
True.
_____ offer the flexibility of having a product available around the clock and at convenient locations.
Vending machines. Vending machines aren't appropriate for every product, but they do offer the flexibility of having your product available around the clock and at convenient locations for your customers.
A _____ is a concession which covers the time while you prepare your location prior to opening.
rent-free use period.
It costs five times as much to get a purchase from a new customer compared to an existing one. true/false
true
Personal selling decreases business owners' flexibility in their presentation.
False (F)
Press relations are a form of communication that encourage the customer to take immediate action.
False (F)
Short-term debts are not transferable to other investors.
False.
Managerial accounting is both a source of information that is used in decision making and a methodology to reduce the complexity of the information used to make a decision. By definition, managerial accounting deals with only financial information. By limiting the information being considered to financial concerns, the complexity of the alternatives is reduced.
True.
Market segmentation is the process of dividing the market into groups that have somewhat homogeneous needs for a product or service.
True.
One of the difficulties in understanding and interpreting the income statements is the dispute over when one should recognize revenues.
True.
Due to which of the following characteristics a news story is most likely to get public recognition? A. Trendiness B. Cultural resonance C. Power D. Currency
A. Trendiness
_____ is an electronic equivalent of word-of-mouth advertising. A. Viral marketing B. Ambush marketing C. Sales promotion D. Trendiness
A. Viral marketing
Harry Howard, a successful real estate broker, has established his own real estate company in western Pennsylvania. He has on-the-job experience working at a real estate company where he had a whole staff supporting brokers' work. Now on his own, with two secretaries, Harry is building his dream of owning and growing his own business. He wants to mainly focus on middle-to-upper-income homeowners and is exploring what type of promotional material he needs to have. Which of the following would be the fastest way for Harry to build his client base? A. Word-of-mouth B. Full-scale advertising C. Personal selling D. Sales promotion
A. Word-of-mouth
Trendiness refers to: A. a concept in public interest which alludes to events with a broad appeal within the market or population. B. a concept in public recognition which alludes to the impact level of the issue being discussed. C. a concept in public interest which alludes to the graphic interest held by an event. D. a concept in public recognition which alludes to the fit of the topic to current fashion or public interest.
D. a concept in public recognition which alludes to the fit of the topic to current fashion or public interest.
When the fear appeal used by a marketing message is a too strong, it always causes the audience to react positively.
False (F)
The difference between revenue and expense is called sales.
False.
An undifferentiated marketing strategy is used when a firm targets one particular segment on which to focus all its efforts.
False. A concentrated strategy is used when a firm chooses one particular segment on which to focus all its efforts. Entrepreneurs often are able to locate a particular niche that the larger companies ignore, and by focusing their efforts on them, are able to do extremely well.
Exporting is usually expensive, difficult to start, and more risky than licensing, franchising, or joint ventures.
False. Entrepreneurs have available to them the same options as large companies including wholly owned subsidiaries, joint ventures, licensing, franchising, and exporting. Exporting is usually inexpensive, quick to start, easy to change, and less risky than other ventures.
Formal summaries of the content of an accounting system's records of transactions are called financial instruments.
False. Formal summaries of the content of an accounting system's records of transactions are called financial statements.
Direct competition refers to a strategy where companies provide alternatives that are dissimilar to a firm's product/service that consumers might choose to meet a similar need.
False. Indirect competition refers to a strategy where companies provide alternatives that are dissimilar to a firm's product/service that consumers might choose to meet a similar need.
Financial accounting is forward-looking and attempts to predict the results of management decisions.
False. Managerial accounting is forward-looking and attempts to predict the results of management decisions.
Identify the layout that is very efficient and organized but lacks some visual impact.
Grid layout
Serial entrepreneurs Steve Blank and Bob Dorf came up with a more inclusive approach than the standard marketing funnel. Which of the following is not one of the major goals of their new approach?
Identify customers
What is a Multi-channel marketer?
If you include in your classified ad your phone number, your Web site, and your e-mail address, then you are a multi-channel marketer. One customer may pick up the phone. Others will e-mail or browse your Web site. This simply allows your customers to contact you in the way they feel most comfortable.
Keeping in mind the budget constraints of a small business and the need to cover customers all over the world, which of the following is the most appropriate way to conduct a survey?
Internet. Internet surveys are gaining in popularity and have the advantage of being able to collect data from a large geographic area inexpensively.
_____ activities include the acquisition and disposal of property, plant, equipment, and investment securities of other firms.
Investing
What is an advantage of personal selling?
It allows business owners to find out the buyers' main concerns and address them.
what is an advantage of personal selling?
It allows business owners to find out the buyers' main concerns and address them.
Which of the following is true of theories based on the bounded rationality models?
It assumes that people are inefficient processors of information.
Sales leads who actually make some sort of effort to learn more about the product, service, or business in anticipation of a possible purchase are known as prospects.
True.
The easiest payment procedure for a company is to require up-front cash payment prior to shipment or credit card. This eliminates the company's risk, but puts the customer at risk. Providing credit to your customers reverses the risk, and puts it all on the company.
True.
The easiest way to find selling prices for products these days is on the Internet.
True.
The first step in budgeting is to make a forecast of your future sales.
True. From the sales forecast, and from your knowledge of cost behaviors, collections, payments, and expenses, a complete business plan will be developed.
_____ is an electronic equivalent of word-of-mouth advertising.
Viral marketing
The question "On a range of 1 to 10, how would you rate the service in this restaurant?" is an example of a(n) _____.
scalar question