Foundations In Business Final (Exam 3) TCU Ackall

In the context of consumer product categories, both producers and retailers are apt to promote _____ but to a highly targeted audience. a. accessory equipment b. convenience products c. installations d. specialty products

D specialty products

Merchant wholesalers can develop their own marketing strategies, including pricing strategies, because they: a. are the least common form of independent wholesalers. b. are the producers of the goods they distribute. c. facilitate transactions in exchange for commissions. d. take legal title to the goods they distribute.

D take legal title to the goods they distribute.

Selena, a school teacher, plans the activities for the sports day of her school. She prepares a chart of all the activities planned for the day. From her chart, she figures out that some activities can be conducted independently and others must be conducted in a certain order. She also identifies the sequence of activities that will take the longest to complete. From the given information, it can be inferred that Selena is using _____ to efficiently schedule the sports day activities. a. an inventory checklist b. the Six Sigma model c. a SWOT matrix d. the critical path method

D the critical path method

The goal of a knockoff is: a. to sell at a higher price than the competition. b. to create ideas that radically change how people live. c. to distinguish a product from the competition. d. to copy a competitor.

D to copy a competitor.

In the context of market segmentation, a well-chosen target market should have _____. a. an appropriate size b. limited accessibility c. intense competition d. a nonprofit motive

A an appropriate size

Which of the following is a key marketing strategy of the decline phase of a product life cycle? a. Targeting competitors b. Reducing spending c. Reinforcing brand positioning d. Building awareness

B Reducing spending

_____ for a product includes not only its distribution channels but also the string of suppliers who deliver products to the producers. a. The wheel of retailing b. The supply chain c. Direct-response retailing d. Multilevel marketing

B The supply chain

_____ first proposed the relationship between quality and business success in the early 1950s. a. Peter Drucker b. W. Edwards Deming c. Frederick Winslow Taylor d. Henry Mintzberg

B W. Edwards Deming

An advantage of licensing is: a. that it involves no significant risk. b. an established reputation. c. that it offers complete control to the licensor over the quality of licensed products. d. ease of finance from the parent company.

B an established reputation.

. 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 _____. a. composite good b. business product c. credence good d. consumer product

B business product

Enterprise resource planning (ERP) systems are: a. user-friendly. b. complex. c. cheap. d. easy to implement.

B complex

The _____ is a project-management tool that illustrates the relationships among all the activities involved in completing a project and identifies the sequence of activities likely to take the longest to complete. a. vertical integration technique b. critical path method c. program evaluation and review technique d. Six Sigma principle

B critical path method

In the context of major advertising media categories, which of the following is an advantage of radio? a. High flexibility b. Long life c. High impact d. Increasing number of listeners

A High flexibility

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? a. Idea marketing b. Place marketing c. Event marketing d. People marketing

A Idea marketing

In the context of operations management, for the first 25 years after World War II, which of the following was true of the United States? a. It had an increasingly well-educated labor force. b. It had a severely damaged infrastructure. c. It had a socialist economy. d. It lacked natural resources.

A It had an increasingly well-educated labor force.

Which of the following statements is true of public relations? a. It is used to create a favorable impression about a company or its products. b. It involves circulating stories in the media in exchange for a high fee. c. It is communication that is restricted to a company's external stakeholders. d. It refers to influencing the government toward making favorable policies.

A It is used to create a favorable impression about a company or its products.

_____ is an approach to manufacturing that emphasizes the elimination of waste in all aspects of manufacturing processes. a. Lean production b. Six Sigma c. Enterprise resource planning d. The critical path method

A Lean production

_____ is an approach to quality improvement characterized by very ambitious quality goals, extensive training of employees, and a long-term commitment to working on quality-related issues. a. Six Sigma b. Just-in-time production c. Lean production d. Pareto analysis

A Six Sigma

Identify the true statement about services. a.Their quality is based mainly on customer perceptions b.They are produced independently of the consumer c.Their quality can be determined objectively by measuring defects d.They are tangible

A Their quality is based mainly on customer perceptions

An example of a pure service is: a. an accountant providing financial consultation to a firm. b. a watch that also acts as an altimeter and a compass. c. a delivery truck delivering pizzas to customers. d. a car service center that sells automobile parts.

A an accountant providing financial consultation to a firm.

Perizaad orders a pair of spectacles from an online store. On delivery, she receives a 50 ml bottle of lens cleaning solution along with the spectacles. In this scenario, the bottle of lens cleaning solution is a(n) _____. a. augmented product b. core product c. customized product d. cross product

A augmented product

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 _____. a. cobranding b. peer-to-peer marketing c. licensing d. sponsorship

A cobranding

Odd pricing refers to the practice of: a. ending prices in numbers below even dollars and cents. b. charging different prices at odd intervals rather than maintaining stable and predictable pricing. c. setting prices based on a statistical analysis of the amount consumers are willing to pay. d. charging prices that differ significantly from competitors' prices.

A ending prices in numbers below even dollars and cents.

The purpose of the _____ stage of the new product development process of a company is to weed out proposals that do not fit with the company's objectives. a. idea screening b. idea generation c. testing d. analysis

A idea screening

METS Pens, a pen manufacturing company, sometimes gives away some of its gel pens practically for free but reaps handsome profits as customers buy pen refills. In the context of pricing strategies, it is evident that METS Pens has adopted the strategy of _____. a. loss-leader pricing b. penetration pricing c. skimming pricing d. everyday-low pricing

A loss-leader pricing

Arranging for other organizations to perform supply chain functions that were previously performed internally is known as _____. a. outsourcing b. vertical integration c. enterprise resource planning d. amortization

A outsourcing

In the context of modes of transportation, _____ have the most limited availability a. pipelines b. railroads c. trucks d. planes

A pipelines

In the context of the marketing mix, the _____ of a product includes all of the ways that marketers communicate about the product. a. promotion strategy b. distribution strategy c. pricing strategy d. product strategy

A promotion strategy

Foreign outsourcing exposes a firm to the possibility _____. a. that the firm's intellectual property will be pirated or counterfeited b. of an unexpected cash crunch c. that the firm will not be able to utilize its resources in profitable ways d. of losses due to depreciation and obsolescence

A that the firm's intellectual property will be pirated or counterfeited

Consumers tend to view sponsorships in a positive light because: a. they are clearly connected to events that matter to the target audience. b. only the premium brands opt for sponsorship. c. they do not involve any form of transaction in either cash or kind. d. they allow the consumers to get a first-hand experience of a product.

A they are clearly connected to events that matter to the target audience.

In the context of marketing strategies and tactics, sports, politics, and art dominate the category of _____. a. place marketing b. idea marketing c. event marketing d. people marketing

D people marketing

Which of the following can be achieved by marketers by acquiring customer loyalty? a. A decrease in the actual value of products b. Acquisition of new customers c. The ability to function without feedback d. Automatic market segmentation

B Acquisition of new customers

Which of the following statements is true of customer relationship management (CRM)? a. CRM can be done without collecting, managing, and applying data. b. CRM works best when marketers combine marketing communication with one-on-one personalization. c. CRM increases seller-customer relationship by decreasing the value of the seller's product against that of its competitors'. d. CRM removes the possibility of having a limited relationship with one's customers.

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

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? a. Market penetration b. Cannibalization c. Market segmentation d. Augmentation

B Cannibalization

Samantha, a programmer working for GameZone Inc., uses a software program that enables her to create drawings quickly and easily. The software also allows her to create 3-D drawings. In this scenario, which of the following types of software does Samantha use? a. Computer-aided engineering software b. Computer-aided design software c. Computer-aided processing software d. Computer-aided manufacturing software

B Computer-aided design software

In the context of customer satisfaction, which of the following will happen if a marketer falls into the trap of underpromising? a. Competitors will start manufacturing similar products. b. Fewer customers will try the product. c. The product's price will reduce drastically. d. The product will lose its importance.

B Fewer customers will try the product

In the context of product adoption and diffusion, which of the following questions relates to the product characteristic of trialability? a. Can potential consumers easily understand what your product is and how it works? b. How easily can potential consumers sample the new product? c. How visible is the product to other potential consumers? d. How consistent is your product with the existing way of doing things?

B How easily can potential consumers sample the new product?

Which of the following is an impediment to the acceptance of sustainability initiatives? a. Reduced productivity b. Increased costs c. Advertising challenges d. Frequent breakdown of machinery

B Increased costs

Which of the following statements is true of ownership utility? a. It satisfies customer needs by providing the right products in the right place. b. It adds value by making it easier for customers to possess the goods that they purchase. c. It adds value by making products available at a convenient time for consumers. d. It boosts customer satisfaction by providing helpful information.

B It adds value by making it easier for customers to possess the goods that they purchase.

Which of the following statements is true of service utility? a. It satisfies customer needs by providing the right products in the right place. b. It adds value by providing fast, friendly, personalized assistance. c. It provides customer satisfaction by converting inputs into finished products. d. It adds value by making it easier for customers to possess the goods that they purchase.

B It adds value by providing fast, friendly, personalized assistance.

Which of the following is the biggest downside of observation research? a. It is expensive and ineffective. b. It does not yield any information on consumer motivation. c. It is influenced by the thoughts and feelings of its research subjects. d. It does not show what people actually do.

B It does not yield any information on consumer motivation.

Which of the following is a key benefit of penetration pricing? a. Profitability is not dependent on the volume of sales. b. It tends to discourage competitors. c. Each individual sale typically yields a high profit. d. It increases traffic in retail stores by special sales on a limited number of products.

B It tends to discourage competitors.

In the context of the marketing mix, which of the following statements is true of a distribution strategy? a. It includes all of the ways that marketers communicate about their products. b. Its key decisions include shipping, warehousing, and selling outlets. c. Its key factors include competition, regulation, and public opinion. d. It aims to deliver customer value relative to the benefits of a product.

B Its key decisions include shipping, warehousing, and selling outlets.

Which of the following statements is true of customer loyalty? a. Customer loyalty helps in delivering value to a product. b. Loyal customers provide valuable feedback. c. Customer loyalty generates customer satisfaction. d. Loyal customers do not require service.

B Loyal customers provide valuable feedback.

Which of the following is the key downside of survey research? a. It does not provide information about what people are feeling. b. Many people are not honest or accurate about their experiences and opinions. c. It does not yield any information on consumer decisions. d. Many surveyors are not able to directly interact with their research subjects.

B Many people are not honest or accurate about their experiences and opinions.

_____ refers to moving production or support processes to foreign countries. a. Horizontal merger b. Offshoring c. Vertical integration d. Amortization

B Offshoring

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? a. Event marketing b. Place marketing c. Idea marketing d. People marketing

B Place marketing

Dazzling Inc., a cosmetics manufacturing company, introduces a moisturizer that is more expensive than similar products available in the market. The customers love its anti-ageing and anti-tanning features and do not mind spending more as they believe that the product is worth its price. As a result, the company makes a large profit from the sale of the new product. In this scenario, Dazzling has incorporated _____ in its business. a. vertical integration b. effectiveness c. undifferentiated marketing d. efficiency

B effectiveness

In operations management, quality is defined in terms of: a. the ratio of cost to output. b. how well a product satisfies customer preferences. c. additional tangible features that come with a product. d. the time taken to inspect one unit of a product.

B how well a product satisfies customer preferences

Team selling works best for: a. newly acquired accounts. b. large and complex accounts. c. medium-sized existing accounts. d. small accounts.

B large and complex accounts.

In the context of business product categories, marketing of raw materials primarily emphasizes: a. quantity and brand. b. price and service. c. product differentiation. d. customization.

B price and service

In the context of business product categories, the marketing of component parts and processed materials emphasizes: a. quantity and brand. b. product quality, price, and service. c. product shelf life, customization, and quantity. d. personal selling and efficiency.

B product quality, price, and service.

A deep association between a marketer and a partner (usually a cultural or sporting event), which involves promotion of the marketer in exchange for either payment or the provision of goods, is known as _____. a. cross-selling b. sponsorship c. partnership d. lobbying

B sponsorship

The responsibilities of _____ often include checking the stock, suggesting reorder quantities, and removing out-of-date goods. a. legal brokers b. truck jobbers c. drop shippers d. statutory auditors

B truck jobbers

In the context of inventories, which of the following is a similarity between a manufacturing firm and a retail firm? a. Both hold small inventories, thereby reducing the risk of stock-outs. b. Both typically hold inventories of work in process. c. Both hold inventories of finished goods. d. Both typically hold inventories of raw materials.

C Both hold inventories of finished goods

Which of the following is a key marketing strategy of the introduction phase of a product life cycle? a. Reinforcing brand positioning b. Reducing spending c. Building awareness d. Targeting competitors

C Building awareness

_____ refers to how people act when they're purchasing products to use either directly or indirectly to produce other products. a. Environmental scanning b. Consumer behavior c. Business buyer behavior d. Behavioral segmentation

C Business buyer behavior

_____ is the description of how people act when they are buying, using, and discarding goods and services for their own personal consumption. a. Observation research b. Cognitive dissonance c. Consumer behavior d. Survey research

C Consumer behavior

Cadilengy, a nonprofit organization, is conducting a food fair in the month of October. The proceeds of this fair will go to charity. The restaurants and food product companies participating in the fair start distributing pamphlets about the fair in their outlets two months before the event. As a result, the fair gained popularity among the public. Which of the following marketing strategies does this scenario best illustrate? a. Place marketing b. Idea marketing c. Event marketing d. People marketing

C Event Marketing

In the context of the various pricing strategies, which of the following statements is true of high/low pricing? a. It can encourage consumers to pay a premium on the purchased products. b. It can entice price-insensitive consumers to buy high when a product first enters the market. c. It can train consumers to buy only when products are on sale. d. It tries to increase traffic in retail stores by special sales on all products.

C It can train consumers to buy only when products are on sale.

Which of the following statements is true of loss-leader pricing? a. It is legally accepted worldwide. b. Its goal is to send consumers a message about the exclusivity of a product. c. It is closely related to high/low pricing. d. It is applicable to all products sold in a department store.

C It is closely related to high/low pricing

Julian Colton is an athlete who has won Olympic medals in various track events. He endorses the health drinks of Kaylao, a company that manufactures and sells organic food products. Kaylao shows Colton in its television advertisements and hoardings to gain public's attention. Which of the following marketing strategies does this scenario best illustrate? a. Place marketing b. Event marketing c. People marketing d. Idea marketing

C People marketing

In the context of marketing a product, which of the following statements is true of underpromising? a. Products will gain steady exposure through positive "word-of-mouth." b. Customers will forgive the mistakes made by marketers. c. Products will have only a tiny base of highly satisfied customers. d. Customers will be disappointed if the product falls short of high expectations.

C Products will have only a tiny base of highly satisfied customers.

Walt owns an auto repair shop in Northern Rottasa. He goes an extra mile to please his customers by providing comfortable and attractive waiting rooms, friendly service, and long-term warranty on all repair work. Which of the following philosophies has Walt employed to make his customers highly satisfied? a. The hard sell concept b. The production concept c. The marketing concept d. The socially responsible marketing concept

C The marketing concept

_____ involves determining how a product will flow through a channel from the producer to the consumer. a. Multilevel marketing b. Breakeven analysis c. The physical distribution strategy d. The wheel of retailing

C The physical distribution strategy

Which of the following statements is true of enterprise resource planning (ERP) systems? a. They are the software version of the critical path method. b. They require users to enter and access data in traditional ways. c. They help manage activities along an entire value chain. d. They are inexpensive and easy to implement.

C They help manage activities along an entire value chain.

In the context of limited-service merchant wholesalers, which of the following statements is true of cash and carry wholesalers? a. They do not take legal title of the merchandise they distribute, but they can physically process it. b. They simply organize and facilitate product shipments directly from the producer to their customers. c. They require customers to make the trip to the wholesaler themselves and cart their own products back to their stores. d. They provide a complete array of services to the retailers or business users who typically purchase their goods.

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

The _____ stage of the new product development process entails introducing the product to the general market. a. idea screening b. testing c. commercialization d. development

C commercialization

Donton Inc., a public relations firm, buys doughnuts for an office party. In this case, Donton has purchased a _____. a. composite good b. credence good c. consumer product d. business product

C consumer product

A product has three product layers. They are: a. transient layer, overt benefit, and virtual product. b. implied benefit, explicit benefit, and combined benefit. c. core benefit, actual product, and augmented product. d. physical form, intangible form, and perceived form.

C core benefit, actual product, and augmented product.

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) _____. a. agent b. broker c. drop shipper d. full-service merchant wholesaler

C drop shipper

In operations management, _____ means using resources to create value by providing customers with goods and services that offer a better relationship between price and perceived benefits. a. efficiency b. productivity c. effectiveness d. throughput

C effectiveness

Unlike goods, services are _____. a. palpable b. consumed c. experienced d. tangible

C experienced

Gregory works for Ocan Foods, a food supplier. His main responsibility is to make tactical decisions involving the actual movement of goods along his company's supply chain. Gregory is involved in _____. a. vending b. direct selling c. logistics d. direct response retailing

C logistics

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) _____. a. broker b. store retailer c. merchant wholesaler d. agent

C merchant wholesaler

In the context of customer relationship management (CRM), a firm selling a high-ticket product to a small customer base is most likely to: a. exclude its customers from the key aspects of the product development process. b. develop a limited relationship with its customers. c. pursue a full partnership with each of its key clients. d. focus less on customer service.

C pursue a full partnership with each of its key clients.

Aubosh Body Works is a retailer that exclusively sells a wide selection of personal care products, such as deodorants, lip balms, eye masks, perfumes, moisturizers, and wet wipes. It is evident that Aubosh Body Works is a(n) _____. a. outlet store b. discount store c. specialty store d. convenience store

C specialty store

Which of the following is a disadvantage of holding large inventories? a. Lack of protection against stock-outs b. Irregular production schedules c. Increased ordering costs d. Additional holding costs

D Additional holding costs

Gearjazz, a company that manufactures and sells musical instruments, aims to increase its popularity among music artists and enthusiasts by sponsoring the audio system for the music and arts festival being held in the town of Flavempia. Which of the following marketing strategies does this scenario best illustrate? a.Place marketing b. Idea marketing c. People marketing d. Event marketing

D Event marketing

In the context of major advertising media categories, which of the following is an advantage of broadcast TV? a. Targeted programming b. Increasing number of viewers c. Low cost d. High impact

D High impact

In the context of physical distribution, which of the following is a key management decision regarding materials handling? a. How can we serve our customers most effectively? b. How should we manage incoming and outgoing orders? c. How can we reduce waiting times and facilitate interactions? d. How can we best balance efficiency with effectiveness?

D How can we best balance efficiency with effectiveness?

Firms often use a _____ when they manufacture goods that are relatively standardized and manufactured in large volumes. a. fixed position layout b. functional layout c. process layout d. product layout

D product layout

In the context of product adoption and diffusion, which of the following questions relates to the product characteristic of observability? a. How easily can potential consumers sample the new product? b. Can potential consumers easily understand what your product is and how it works? c. How consistent is your product with the existing way of doing things? d. How visible is the product to other potential consumers?

D How visible is the product to other potential consumers?

Which of the following has incited leading-edge marketers to set higher standards in key areas such as environmentalism, abolishment of sweatshops, and involvement in the local community? a. Planned obsolescence b. Consumer behavior c. Cognitive dissonance d. Social responsibility

D Social responsibility

Which of the following identifies how reliably a product delivers its promised level of quality? a. The augmented benefit that the product offers b. The life cycle of the product c. The primary features of the product d. The product consistency

D The product consistency

Which of the following statements is true of online retailing? a. All the people visiting a typical website convert into paying customers. b. Online retailing will attract less customers than on-ground retailing. c. Online retailers cannot provide efficient customer service like their on-ground counterparts. d. There is a lack of security on the Web.

D There is a lack of security on the Web.

Which of the following statements is true of distributors in a channel of distribution? a. They make distribution channels more complex. b. They increase the number of transactions for goods to flow from producers to consumers. c. They are always owned by producers. d. They add value in a number of different ways to products.

D They add value in a number of different ways to products.

In the context of supply chain, which of the following statements is true of modes of transportation? a. Marketers usually rely on a single mode of transportation. b. Pipelines offer the lowest on-time dependability and the lowest frequency of shipments. c. Ships offer the least flexibility in handling but the highest on-time dependability. d. Transportation by planes is the fastest mode but has low flexibility in handling.

D Transportation by planes is the fastest mode but has low flexibility in handling.

In the context of the location of facilities, the operations manager of a _____ is likely to choose a location based on the proximity to customers. a. coal mine b. publishing house c. food packaging plant d. bank

D bank

In the context of business product categories, _____ include finished products used in producing other products. a. specialty products b. accessory equipment c. installations d. component parts

D component parts

LightZone Inc., a manufacturer of LED lamps, uses a software to create programmed instructions for its automated equipment to ensure that its products are made as efficiently as possible. In this scenario, LightZone most likely uses _____ to program the automated equipment a. computer-aided engineering software b. computer-aided processing software c. computer-aided design software d. computer-aided manufacturing software

D computer-aided manufacturing software

A slight modification of an existing product is called a _____. a. radical innovation b. disruptive innovation c. dynamically continuous innovation d. continuous innovation

D continuous innovation

Employing lean principles in the service sector can be challenging because: a. waiting time in services cannot be reduced. b. servicescapes are beyond the control of the company. c. services have complex and inflexible supply chains. d. customers often participate in providing services.

D customers often participate in providing services

To receive ISO 14001 certification, a firm must: a. establish a detailed documentation procedure and maintain records as proof of conformity to that procedure. b. demonstrate the ability to satisfy customer preferences and to implement procedures for continuous quality improvement. c. meet the specific environmental performance goals established by ISO 14000 standards. d. demonstrate the ability to identify and control the environmental impact of its activities.

D demonstrate the ability to identify and control the environmental impact of its activities.

Kiddiecon is a company that makes stationery products for children. The company relies on door-to-door sales strategy to sell its products. It is evident that Kiddiecon is engaged in _____. a. vending b. direct response retailing c. e-tailing d. direct selling

D direct selling

Idea marketing is often combined with _____ to market ideas that are meant to change how people think or act. a. relationship marketing b. people marketing c. place marketing d. event marketing

D event marketing

Baylaine is a company that sells affordable, low-end cell phones. Baylaine's customers can register product or service complaints with the company through emails; the company's customer support team replies to customer queries and complaints within five hours of the receipt of an email. In the context of customer relationship management, Baylaine most likely establishes _____ with its customers. a. distinct relationships b. full partnerships c. partial partnerships d. limited relationships

D limited relationships

Calidasth is a company that sells cosmetic products. Its retail outlets offer discount sales at the end of every season. In the context of customer relationship management, Calidasth most likely establishes _____ with its customers. a. partial partnerships b. full partnerships c. distinct relationships d. limited relationships

D limited relationships

Parchova is a multinational company that manufactures and sells stationery products. Customers who buy five or more products at a time from its retail outlets are given a notepad and a pen for free. In the context of customer relationship management, Parchova most likely establishes _____ with its customers. a. partial partnerships b. distinct relationships c. full partnerships d. limited relationships

D limited relationships

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) _____. a. broker b. agent c. full-service merchant wholesaler d. limited-service merchant wholesaler

D limited-service merchant wholesaler