DECA MCQ Master Set by alpha order

Why do many businesses use computer technology to manage marketing information? A. To develop software that fits a specific need B. To prepare informational questionnaires C. To send direct-mail pieces to customers D. To merge a variety of data into one database

D. To merge a variety of data into one database

Which of the following is a way that businesses often use database software programs: A. To prepare promotional material B. To calculate weekly payroll C. To diagram work schedules D. To organize vendor information

D. To organize vendor information. Spreadsheet software programs may be used to calculate weekly payroll. Graphics software programs may be used to diagram work schedules. Desktop publishing programs may be used to prepare promotional material.

Which of the following are elements that appear in the heading of a memorandum: A. Company, to, subject, and date B. Date, title, to, and company C. To, title, from, and date D. To, from, date, and subject

D. To, from, date, and subject. A memorandum is an informal message sent between two employees. The company's name and the employee's title do not always appear in the heading.

During which of the following steps do researchers transfer coded questionnaire data to the computer: A. Discarding C. Reviewing B. Analyzing D. Transcribing

D. Transcribing

When processing survey results, a marketing researcher may decide to discard the questionnaires that contain errors if the number of A. unsatisfactory responses is more than 25% B. satisfactory responses is low C. satisfactory responses is more than 40% D. unsatisfactory responses is low

D. Unsatisfactory responses is low. The researcher must review the raw data for errors, which occur when respondents do not answer all of the questions. If the number of error-filled questionnaires is low, the marketing researcher may decide to discard all questionnaires with errors. The number of or percentage of questionnaires that a researcher discards due to errors depends on many factors; however, a generally accepted figure is below 10 percent of all questionnaires that respondents fill out.

Reaching closure is the phase in the selling process when salespeople often need to A. Identify customer reactions. B. sell product benefits. C. determine buying needs. D. answer remaining objections.

D. answer remaining objections.

One way that a business might try to compensate for the limited number of qualified workers is to increase its use of A. conservation. B. specialization. C. production. D. automation.

D. automation. For example, the use of automatic telephone systems often eliminates the need for a business to hire experienced phone operators. Specialization is the process of making the best use of resources in the production of goods and services.

Levels of inflation and unemployment are factors that affect _______ in the world market. A. communication B. specialization C. satisfaction D. competition

D. competition. Levels of inflation and unemployment are factors that make the products of nations more or less competitive with each other.

A large discount chain announced plans to open a business in a new city whose businesses adjusted their sales forecasts because of the __________ change. A. market C. economic B. population D. competitive

D. competitive. Economic changes involve increases or decreases in consumers' disposable income. Market changes involve increases or decreases in the demand for a particular good or service.

To maximize the impact of a print advertisement, the headline, copy, graphics, and signature should be coordinated to A. include humor. C. communicate quality. B. convey subliminal messages. D. create visual appeal.

D. create visual appeal. The nature of the product and the advertiser's promotional objectives determine whether the ad should include humor or communicate quality.

Researchers assess the timeliness of marketing information to make sure that the information is A. unbiased. C. reliable. B. complete. D. credible.

D. credible. Researchers want the information they collect to be credible or believable because that increases the validity of the research. Reliability = reproducable results.

One way that the use of computer technology benefits human resources management is by A. developing valuable feedback. C. quickly organizing the work load. B. speeding up the interviewing process. D. electronically processing information.

D. electronically processing information. Human resources management involves gathering and maintaining an enormous amount of information related to employees and their jobs.

The owner of Bob's Bargains has prepared a one-page report to inform the staff about current sales volume. This is an example of a(n) __________ report. A. analytical C. activity B. complex D. informal

D. informal. A short report that presents facts without analysis is considered an informal report. A formal report is more complex, has several different parts, and provides an analysis of the facts in the report. An activity report is an account of sales calls or other business activities carried out by staff.

Purchasing can help manufacturing businesses to sharpen their competitive edge by A. promoting products to customers. B. maximizing inventory investment. C. limiting shipment of goods. D. keeping their prices down.

D. keeping their prices down. Purchased items, such as supplies, services, or raw materials, add to the final cost of a manufactured product. Limiting shipment of goods would cause customer complaints. Maximizing inventory investment would increase expenses and make the company less competitive.

A television commercial for Antonio's Pizza Shop makes the following statement: "Our pizza contains the freshest ingredients around." This is an example of A. ambush marketing. C. stealth marketing. B. collusion. D. puffery.

D. puffery.

When Elliot was tabulating marketing research data, he transposed some numbers as he was converting raw data into numerical values. What type of error occurred? A. response B. measurement C. sampling D. recording

D. recording error.

What type of information are businesses that sponsor sales promotion sweepstakes and contests required to make available to the customers who participate in those promotions? A. Odds of winning B. Amount of rebate C. Value of coupon D. Samples of product

A Odds of winning. In order to operate ethically, businesses that sponsor sweepstakes and contests are required to inform potential participants about the odds of winning. By providing this type of information, businesses are not misleading or deceiving customers about the possibility of winning.

What factor determines the choice of distribution channels for goods such as high-fashion items or fruits and vegetables? A. The product B. The producer C. The market D. The intermediary

A The product. The product is a direct consideration when items are perishable or fashionable. Such items require a direct channel because they will not be salable unless they are delivered within a certain amount of time.

When Cynthia, a credit analyst with Houghton Software, heard rumors of a company layoff, she asked her manager Todd if the rumors were true and if her job was in jeopardy. Although Todd knew that some lay-offs were coming, he told Cynthia not to worry about things. The following week, Cynthia's job was eliminated. In this situation, ethical issues regarding company information occurred because A. Todd misled Cynthia. B. Cynthia asked irrelevant questions. C. Todd was completely honest with Cynthia. D. Cynthia started the rumors.

A Todd misled Cynthia. Although Todd may have meant well when he told Cynthia not to worry, he misled her by making Cynthia think that her job was safe. A better response may have been that he didn't have all the facts about the layoffs and did not want to speculate about Cynthia's position.

This year a business spends $423,500 in salaries,$88,000 in rent, $15,250 to maintain a website, and gives employees $60,000 in bonuses. What are the fixed costs? A. $526,750 C. $571,500 B. $586,750 D. $511,500

A. $526,750; salaries + rent + website maintenance

What is the gross amount due on an invoice if the total cost of the items is $94.20, shipping charges are $6.75, and a discount of $4.70 applies? A. $94.20 C. $96.25 B. $89.50 D. $100.95

A. $94.20. The gross amount due on an invoice is the total due before shipping charges are added or discounts are deducted.

Which of the following is an advantage of using an online brokerage firm: A. 24-hour account access C. Additional financial products and services B. Personal guidance from a live broker D. High commissions

A. 24-hour account access. Online brokerages do not offer personal guidance from a live broker or many additional financial products and services. Online brokerages usually have low commissions rather than high ones.

Which of the following statements is true about the timeliness of research information: A. A company that uses out-of-date research data may make poor business decisions. B. Timely information is usually relevant to the problem or situation at hand. C. Timely information that is obtained from online sources is usually accurate. D. Older information that is obtained from secondary sources lacks credibility.

A. A company that uses out-of-date research data may make poor business decisions. Information may be timely or up-to-date, but it doesn't always relate to the business's problem or situation at hand. Information that a business obtains from online sources is not always accurate or correct. Older Information that is obtained from secondary sources may be credible, if circumstances have not changed.

Which of the following businesses is most likely to violate antitrust laws if it insists on an exclusive dealing agreement: A. A firm with dominant market power B. A small start-up C. Horizontal business partners D. The buyer

A. A firm with dominant market power. Dominant rms may be held to a higher standard under antitrust laws, due to their monopolistic potential. Exclusive dealing only pertains to vertical business partners.

What is a technique that often helps businesspeople to write effective business letters? A. Preparing outlines C. Developing charts B. Consulting references D. Asking questions

A. An outline is a general plan giving only the main points to be covered. Preparing an outline helps businesspeople to decide exactly what they want to say in the letter and to organize their thoughts.

The process of coding is part of which step of the marketing research process? A. Analysis B. Collection C. Presentation D. Preparation

A. Analysis. Preparation is the step where questions for the surveys are chosen, the sample size is chosen, and the method of data collection is decided upon.

a primary advantage to a businesses using direct marketing to promote their good and services is that the messages A. are sent to those who are most likely to buy B. enhance the business's credibility C. are relatively inexpensive to produce D. provide customers with direct access to knowledgeable salespeople

A. Are sent to those who are mostly likely to buy. Direct marketing is an effort to obtain business by sending promotional information via postal mail, telephone, and email. The advantage to direct marketing is that the business can send promotional messages to the people who are most likely to buy their goods and services. This saves time and money, which could be wasted on consumers who do not purchase the business's products. A business that sends too many direct marketing messages may reduce credibility. Direct marketing does not always provide customers with direct access to knowledgeable salespeople.

Selling policies not only benefit the company by providing guidelines for sales activities, employee actions, and services provided, they also help managers to A. assess sales staff performance. C. assist in determining regulations. B. direct salespersons' responses. D. explain policies to potential customers.

A. Assess sales staff performance. By assessing sales staff performance, managers can determine the success of the employees and the selling policies. Salespeople interact with potential customers and explain policies. Salespersons' responses are directed by the established selling policies.

The SBU Company developed a survey in which respondents are provided the same number of favorable and unfavorable rating options. What type of scale has this survey used? A. Balanced C. Spliced B. Continuous D. Sequential

A. Balanced. A balanced itemized scale provides an equal number of favorable responses as it does unfavorable responses. A continuous scale is a type of non-comparative scale that allows respondents to place a slash mark on a line that is bounded by two opposite variables (e.g., the worst; the best). Spliced and sequential are not types of survey rating scales

Which of the following is a primary reason why businesses keep payroll records: A. Because companies need to document wages paid B. Because some employees leave their jobs C. Because a governing agency will review the records D. Because employees want to know the amounts

A. Because companies need to document wages paid. Businesses typically keep payroll records so they can document what they've paid their employees—including wages earned and deductions made. They keep them for documentation purposes and, if the records happen to be useful in other situations, that's an added benefit.

When facing change, you should always try to see the __________ involved. A. benefits B. side effects C. drawbacks D. shortcomings

A. Benefits. Focus on good outcomes of change rather than on the change itself. The side effects of change cannot be accurately predicted.

Which of the following is an example of a direct-marketing channel that a business can use to send personalized promotional information to its customers in real time: A. Cell phone C. Scanner B. Catalog D. Television ad

A. Cell phone. With the customer's permission, a business can send promotional text messages directly to the customer's cell phone.

Which of the following is considered an external cause of business cycles: A. Climatic changes B. Aggregate demand C. Money supply D. Inventory levels

A. Climatic changes. Many jobs in agriculture and construction vary according to climatic conditions. Droughts, floods, and blizzards can negatively affect many economic activities. Other external factors are political changes, psychological changes, international relations, and discoveries and innovations. Aggregate demand, money supply, and inventory levels are considered internal causes of business cycles because they take place within the economic system.

What type of survey rating scale involves assigning a value to each option within a set of circumstances provided on a questionnaire? A. Constant sum C. Semantic differential B. Likert D. Frequency

A. Constant sum is a type of comparative rating scale that requires the respondent to assign a value (e.g., percentage or points) to the options provided on the questionnaire. Frequency is a type of category scale and provides respondents with options such as very often, often, sometimes, rarely, and never.

what type of survey rating scale involves assigning a value to each option within a set of circumstances provided on a questionnaire? A. constant sum B. Likert C. semantic differential D. frequency

A. Constant sum. Constant sum is a type of comparative rating scale that requires the respondent to assign a value (e.g., percentage or points) to the options provided on the questionnaire. For example, the survey may ask respondents to rate the importance of various factors in relation to one another, such as characteristics of delivery service including charges, timeliness, invoice accuracy. The respondents assign a percentage value to each factor on the basis of importance to the respondent in a way that the total of all of the values added together totals 100%. The semantic differential scale provides seven spaces, which are bounded by descriptive antonyms at each end, such as durable and fragile. The respondent places an "X" at the point or space on the continuum that best describes his/her feelings about the object or idea that s/he is rating. Frequency is a type of category scale and provides respondents with options such as very often, often, sometimes, rarely, and never.

Which of the following situations is most likely to result in long-term, increased sales for a business: A. Constantly providing new choices for consumers B. Raising the price of its current products C. Lowering the price of its current products D. Eliminating a slow-selling product line

A. Constantly providing new choices for consumers

McDonald's golden arches are an example of a brand A. cue B. personality C. preference D. value

A. Cue. Brand cues provide tangible evidence of a brand, creates a psychological signal that generates a desire for a product or prompt individuals to take action to purchase a product. The signals may involve colors, shapes, symbols, logos etc. The golden arches remind people instantaneously that McDonald's provides food, which satisfies hunger. Brand cues are elements of the brand personality.

Which of the following factors has the greatest effect on a consumer's buying behavior: A. Cultural influences C. Individual influences B. Situational influences D. Social influences

A. Cultural influences have the strongest effect on a consumer's buying behaviour, even stronger than social influences, individual influences, and situational influences.

Le'veon wants to create a marketing mix that includes both push and pull strategies. Which marketing mix should he choose? A. Customer relationship management and trade shows B. Mass media advertising and sales promotions C. Getting retailers to stock the product and creating a supply chain D. Referrals and sales promotions

A. Customer relationship management and trade shows

Which of the following is a characteristic of the organic organizational business structure: A. Delegation emphasis B. Specialization emphasis C. Centralized authority D. Inflexible procedures

A. Delegation emphasis. Primary characteristics of the organic organizational business structure include sharing (decentralized) authority; delegating responsibility among employees; and cultivating a broad range of job skills and knowledge (de-specialization) among workers. The advantage of the organic organizational business structure is that it provides the company with a great deal of flexibility.

the primary reason for analyzing budget variances is to A. determine where the business is on target is where it is not B. ensure that the business generates a sizeable profit C. understand the generally accepted accounting principles D. make adjustments to the business's operating procedures

A. Determine where the business is on target and where it is not. The budget lets the business know if it is achieving its goals. Correction might include finding ways to lower expenses or using strategies to increase sales to achieve the desired profit levels. Depending on the situation, the business might be able to change its operating procedures to improve performance.

Which of the following statements is true regarding the use of diaries as a marketing-research collection method: A. Diaries record repetitive behaviors that occur at frequent intervals. B. Diaries primarily provide quantitative information for researchers. C. The disadvantage to using diaries is that they do not provide in-depth information. D. The advantage to using diaries is that information can be easily tabulated.

A. Diaries record repetitive behaviors that occur at frequent intervals. Diaries, which participants often keep for an extended period of time, record information about commonly performed, repetitive activities such as eating, shopping, television viewing, radio listening, etc. By recording this type of information over time, researchers can obtain detailed information about customer buying habits, brand preferences, spending behavior, television- viewing habits, etc. Some of the information that the researchers collect from diaries is qualitative in nature.

Small businesses often decide to participate in trade shows because the shows provide an opportunity for businesses to contact more potential customers than through the use of A. direct selling. C. cause marketing. B. relationship building. D. local retailing.

A. Direct selling. Direct selling involves salespeople calling on customers or potential customers. Small businesses often do not have a large sales staff which makes it difficult to contact a lot of potential customers. Participating in trade shows provides an opportunity for small businesses to make contact with many prospects. Retailing often involves customers contacting the business.

What kind of customer would make the following statement: "Why are you always moving everything around? You really make it hard for me to find what I want." A. Disagreeable C. Slow/Methodical B. Suspicious D. Domineering/Superior

A. Disagreeable customers often complain.

making sure that the headline, illustrations and copy promote the same theme is an example of coordinating A. elements in advertisements B. principles of design C. channels of distribution D. arrangements in print

A. Elements in advertisements. The headline, illustrations, copy, and signature are the main elements in advertisements. One way to coordinate the elements is to make sure that they promote the same theme. The intent is for elements to reinforce each other and strengthen the message.

A primary responsibility of administrative law is to A. enforce agency regulations. B. establish congressional/parliamentary committees. C. interpret constitutional laws. D. overturn lower courts' decisions.

A. Enforce agency regulations. Administrative law deals with the rules and regulations that have been established by governmental agencies. The legislative branch of government establishes congressional/parliamentary committees. The judicial branch of government interprets constitutional law and in some instances may overturn a lower court's judicial decision.

What are the characteristics of dissonance-reducing buying behavior? A. Expensive, infrequent purchase with high buyer involvement and few perceived differences B. Inexpensive, frequent purchase with low buyer involvement and few perceived differences C. Expensive, infrequent purchase with high buyer involvement and strong brand recognition D. Inexpensive, frequent purchase with low buyer involvement and strong brand recognition

A. Expensive, infrequent purchase with high buyer involvement and few perceived differences. Some items, such as carpeting for your home or office, are expensive items that are not purchased frequently. These types of goods involve a lot of thought and consideration, but many buyers do not perceive great differences among brands. Buyers may be more concerned with appearance, feel, and durability rather than brand.

Manufacturers often provide special instructions on product labels that salespeople can use to A. explain care techniques to customers. B. show customers how to return products. C. promote products to competitors. D. develop visual merchandising displays.

A. Explain care techniques to customers. Label information often includes care and maintenance instructions for the product in an attempt to ensure its satisfactory use.

when a retailer follows up with a vendor to verify that an individual's order shipped on time, it is A. facilitating customer service B. evaluating sales quotas C. requesting special attention D. negotiating shipping terms

A. Facilitating customer service. By following up with a vendor to ensure that the products arrive when and where their customers need them, the business is facilitating customer service. There is not enough information to determine if the retailer is requesting that the vendor give the order special attention. The retailer is not evaluating sales quotas or negotiating shipping terms.

Most businesses consider managers' salaries as A. Fixed expenses B. Production expenses C. Financing expenses D. Personnel expenses

A. Fixed expenses are expenses that do not fluctuate in direct response to changes in sales volume. Salaries are usually set at a certain level and do not go up and down as sales rise and fall. Other fixed expenses include rent and insurance. Production expenses include all the costs of producing products. Financing expenses are the costs of obtaining funds with which to operate the business. Personnel costs are expenses incurred in hiring, firing, and managing the business's staff.

Which of the following skills will most likely help a person to obtain a better job in the field of marketing and advertising: A. Good interpersonal skills C. Management skills B. Ability to use technology D. Ability to negotiate

A. Good interpersonal skills. Most jobs in marketing and advertising involve extensive contact with people; therefore, the skill to effectively work with people is critical. Not all jobs in the field of marketing and advertising require the ability to use technology or to negotiate, although those skills might be useful in some positions.

One way that advances in technology are impacting the product/service management function is by making it possible for businesses to A. improve existing products. B. eliminate human errors. C. simplify production systems. D. control customer preferences.

A. Improve existing products. As a result of advances in technology, new materials and operating techniques have been developed. This impacts the product/service management function because it enables businesses to extend the life of existing products and keep them on the market. It is usually less expensive to update existing products than to develop entirely new products. Advances in technology often make production systems more complex because they rely on complicated computer systems.

During which stage of the product life cycle is the product failure rate the highest? A. Introduction C. Maturity B. Growth D. Decline

A. Introduction. It might be because the company neglected to complete its research, because the product is not quite ready, because the company does not have an effective launch plan, or because the company simply does not have the resources necessary to market the product successfully.

What type of question should be avoided when designing a questionnaire? A. leading B. structured C. unstructured D. qualitative

A. Leading, which tend to influence the respondents' answers. An example of a leading question is, Don't you agree that teachers should earn more money for all that they do? The way that the question is worded is likely to make the respondent feel like s/he is not a proponent of education and the teaching profession if s/he answers no. Structured questions provide options from which the respondent can chose. Unstructured questions are open-ended questions that allow respondents to provide qualitative information and in-depth responses.

A benefit of using an electronic calendar to prepare schedules is that it allows employees to A. manage their time. B. communicate with coworkers. C. delegate tasks. D. prioritize a deadline.

A. Manage their time. Employees do not use an electronic calendar to communicate with coworkers or delegate tasks. Employees use electronic calendars to keep track of deadlines; however, managers usually determine the deadline based on the priority of the project.

Which of the following allows the Gateway Insurance Group to match its agents with policyholders by aligning its agents with market potential: A. Mapping software C. Database software B. Outbound telemarketing D. Inbound telemarketing

A. Mapping software. This software is used in territory management and enables managers to align territories and get an instant visual display of the effects. Database software is used to create records of customers and related information for future use by the business. Inbound telemarketing occurs when customers call a toll-free number.

What entertaining form of Internet promotion involves animations that float across the computer screen and move back to their original space? A. Media-rich advertising C. Interstitials B. Blogs D. Banner ads

A. Media-rich advertisements use animation, sound, and video to send interactive promotional messages. Blogs are online diaries. Interstitials are Internet ads that appear on the computer screen between web-site page changes. Banner ads are Internet ads that appear across the middle, top, side, or bottom of a web page.

what form of of internet promotion involves animations that float across the computer screen and move back to their original space? A. media-rich advertising B. blogs C. interstitials D. banner ads

A. Media-rich advertising. Media-rich advertisements use animation, sound, and video to send interactive promotional messages. Interstitials are Internet ads that appear on the computer screen between web-site page changes. Banner ads are Internet ads that appear across the middle, top, side, or bottom of a computer screen when the Internet user accesses a web page.

A plant manager or a department head would be an example of which level of management? A. Middle C. Top B. Operating D. Supervisory

A. Middle. This level of management is responsible for the daily functioning of the business. It also serves as a liaison between top-level and supervisory management. Top management develops broad company plans, while supervisory, or operating, management is the management level that implements management plans through direct supervision of workers.

A marketing survey revealed that four out of seven residents in the greater metro area prefer Lupi's Pizza to Morelli's Pizza and Renaldo's Pizza. What measure of central tendency does this example represent? A. Mode C. Range B. Mean D. Scope

A. Mode is the answer to a question that is given most often by respondents.

a marketing survey revealed that four out of seven residents in the GTA prefer Lupi's Pizza to Morelli's Pizza. What measure of central tendency does this example represent? A. mode B. mean C. range D. scope

A. Mode. The mode is the answer to a question that is given most often by respondents. Mean refers to the mathematical average of all responses. A median is the middle value of the established sample criteria; half of the data or responses are below the median value, and half are above the median value. Scope is not a measure of central tendency.

What is a type of company promotional material that can be used as a source of information for selling? A. Newspaper advertisements B. Professional publications C. Product labels D. Trade magazines

A. Newspaper advertisements. These advertisements are a good source of information for selling because they usually contain information about the business's goods and services. Professional publications, trade magazines, and product labels may be sources of selling information, but they are not types of company promotional materials.

Susan's father receives veterans' benefits, and her grandmother gets Social Security. Are these payments counted in GDP? A. No, these are transfer payments. B. Yes, these are government purchases. C. Yes, these funds are for personal consumption. D. No, the recipients produce goods and services.

A. No, these are transfer payments.

What do businesses create to help answer the research problem? A. objectives B. strategies C. procedures D. activities

A. Objectives. There is a strong relationship between the research purpose and the research objectives which are the goals of the research. Businesses create research objectives to help answer the research problem. For example, if the problem is service, one objective might be to determine customer satisfaction with delivery. Strategies are plans of action, or activities, for achieving goals and objectives. A procedure is the step-by-step process personnel follow in performing a specific task.

What does Pedro need to do before he includes someone else's journal article about portfolio diversification in the e-newsletter that he sends to his clients? A. Obtain written permission from the copyright owner B. Acknowledge the author in the republished article C. Request the trademark registration code from the originator D. Inform the patent agency that he wants to publish the article.

A. Obtain written permission from the copyright owner. To avoid copyright infringement, it is important to contact the owner of the copyrighted materials to obtain permission to reprint in other formats.

Which of the following is an oligopoly: A. Oil industry C. Food-service industry B. Apparel industry D. Computer industry

A. Oil industry. An oligopoly is a market structure in which there are relatively few sellers, and industry leaders usually determine prices. Because oil is a scarce, natural resource and is complex to process, there are fewer businesses in the oil industry than in apparel, food-service, and computer businesses.

Which of the following accurately reflects the relationship between traditional intelligence and emotional intelligence: A. Only traditional intelligence can be measured accurately with a written test. B. Emotional intelligence cannot be increased, but traditional intelligence can be. C. Neither traditional nor emotional intelligence promote a person's career success. D. A high level of traditional intelligence results in a high level of emotional intelligence.

A. Only traditional intelligence can be measured accurately with a written test. Tests for emotional intelligence involve self- assessment, and therefore are not so accurate. It is true that emotional intelligence can be learned, and that traditional intelligence is a characteristic at birth.

One of the strengths of internal sources to collect marketing research information is that the information A. pertains directly to the issue B. is available to outside sources C. relates to industry problems D. is organized by department

A. Pertains directly to the issue. Internal information is information located inside the company. If the issue is the popularity of a specific product, current sales and inventory data can provide information about how well that product is selling. Although the information might relate to industry problems, that is not one of its strengths. Internal information may, or may not, be organized by department.

Paul is responding to an inquiry he received in the mail. His response includes some good news and some bad news. How should he structure his response in light of the bad news? A. Place the good news at the beginning and the bad news in secondary position(s) B. Place the bad news at the beginning and the good news in secondary position(s) C. Place the bad news in the post-script (P.S.) section of the response D. Give more space to bad news than good news to clearly explain it

A. Place the good news at the beginning and the bad news in secondary position(s)

What strategy can make or break a business's product mix? A. Positioning B. Contracting C. Altering D. Expanding

A. Positioning. Positioning is a product-mix strategy in which a business creates a certain image or impression of a product in the minds of consumers. Contraction is a product-mix strategy in which a business removes, or deletes, product items or product lines from its product mix. Alteration is a product-mix strategy in which a business makes changes to its products or product lines. Expansion is a product-mix strategy in which a business expands its product mix by adding additional product items or product lines.

Operations management is demonstrated in which of the following phrases: A. Producing goods and services C. Planning for future success B. Keeping accurate financial records D. Hiring qualified employees

A. Producing goods and services is a primary aim of operations management. Keeping accurate financial records is part of financial analysis. Planning for future success is part of strategic management. And, hiring qualified employees is part of human resources management.

Which of the following is a way that marketers can use data to "follow up" on any problems or issues with a product: A. Providing salespeople with additional training B. Determining what new products to offer C. Deciding what wholesalers to use for distribution D. Budgeting for product development

A. Providing salespeople with additional training. Data may show that salespeople need additional training for a certain product. This is something marketers want to provide so sales and profits can be as high as possible. Determining what new products to offer, deciding which wholesalers to use for distribution, and budgeting for product development are all activities that should take place before a product hits the market.

what do many businesses often use to promote products and increase awareness? A. PR activities B. creative thinking C. marketing research D. Cause-related advertising

A. Public relations is a function of business designed to establish good relations between the business and the public. One of the uses of public relations is to promote products and increase awareness of the products and of the business via providing positive information. The purpose of cause-related advertising is to create awareness about social causes (e.g., poverty) rather than to promote products.

What type of promotional media might a chain of businesses use in order to reach a large number of potential customers in a particular state or province? A. Regional magazines C. National television B. Suburban radio stations D. Transit advertising

A. Regional magazines. Suburban radio stations and transit advertising serve only certain suburban and city areas and would not reach customers in the chain's entire area.

Which of the following individuals chooses goods for resale, surveys consumer trends, and rates past performance of products and vendors: A. Retail buyer B. Durable goods producer C. Receiving manager D. Industry researcher

A. Retail buyer. A retail buyer analyzes sales data, trends, and supplies when selecting products for the store to sell. Producers make the goods—they do not buy ready-made goods to resell to the end users. Industry researchers often conduct a variety of studies within a specific industry, which may ultimately aid the buyer in decision making. A receiving manager is responsible for supervising the acceptance, handling, and disbursement of orders.

What elements of the promotional mix are ideal to use when promoting products to large, personal consumer markets? A. Sales promotion and advertising C. Advertising and personal selling B. Personal selling and publicity D. Personal selling and sales promotion

A. Sales promotion and advertising. Advertising, sales promotion, and publicity are ideal ways to promote products such as shampoo and breakfast cereal to people who routinely buy and use these items. Businesses typically use personal selling to communicate with industrial markets or to promote complex products.

what elements of the promotional mix are ideal when promoting products to large, personal consumer markets? A. sales promotion and advertising B. personal selling and publicity C. advertising and personal selling D. personal selling and sales promotion

A. Sales promotion and advertising. Advertising, sales promotion, and publicity are ideal ways to promote products such as shampoo and breakfast cereal to people who routinely buy and use these items. Businesses typically use personal selling to communicate with industrial markets or to promote complex products.

Sweepstakes and contests are examples of communications channels often used in A. sales promotions. C. publicity programs. B. advertising campaigns. D. media commercials.

A. Sales promotions involves promotional activities other than advertising, personal selling, and publicity that stimulate customer purchases.

which of the following is a situation where horizontal conflict may occur among channel members A. scrambled merchandising B. chargebacks C. direct selling D. franchisor restrictions on franchisees

A. Scrambled merchandising is a situation in which intermediaries add products lines to their product mix that were traditionally sold by other businesses. A pharmacy adding perishable food items (milk, eggs) to their product lines will then compete with grocery and convenience stores for scarce customer dollars = horizontal conflict. Chargebacks, direct selling, and franchisor restrictions on franchisees often create vertical conflict.

Which of the following is a factor that often enables certain countries to trade successfully with each other: A. Similar business subcultures B. Same religious institutions C. Equal governmental systems D. Identical language traits

A. Similar business subcultures. Each country has its own ways of conducting business. Trading between the UK and US is successful because their businesspeople understand each other - similar ways of conducting business. Different countries have different language traits, religious institutions, and governmental systems which may make it difficult for them to trade with each other.

when using the systematic random sampling method, marketers must determine the A. skip interval B. stratum C. cluster D. quota gap

A. Skip interval. Systematic random sampling is a probability sampling method that involves placing sampling units into a random list and drawing a sample using a skip interval. Skip interval is the number of spaces between each sampling unit drawn. Stratum and cluster are types of probability sampling methods that involve dividing the target population into non-overlapping groups. Quota sampling is a non-probability sampling method, which ensures that specific groups within a population are represented within the sample.

Why would a business remove or delete product items or lines from its product mix? A. To avoid legal liabilities B. To offer customers complementary products C. To increase market risk D. To appeal to a new market

A. To avoid legal liabilities. Product liability has become a major problem for many companies. Rather than risk a lawsuit, a company will remove the product from its product mix. The use of an expansion strategy will enable companies to appeal to a new market and to offer customers complementary products. Increasing market risk is a disadvantage associated with the contraction strategy.

Which of the following is not a reason to participate in a discussion: A. To declare your opinion C. To organize your thoughts B. To gain confidence D. To think critically

A. To declare your opinion. It's important to participate in a group discussion for several reasons: to think critically, to organize your thoughts, to develop your understanding of a topic, to know when to change your mind, and to gain confidence in speaking to other people. Declaring your opinion, which may or may not take place during a discussion, is not a reason to participate.

When Brandon lost his job due to downsizing, the government send him an unemployment check. What is his source of income? A. transfer payment B. rebate C. refund D. wage garnishment

A. Transfer payments are monies paid by the government in which no goods or services are received in exchange, such as welfare benefits, veterans' benefits, disaster aid, and unemployment. To receive transfer payments, individuals, businesses, or jurisdictions must meet certain criteria. Wage garnishment is when a part of your pay (salary/wages) is confiscated by a court order or the government (unpaid taxes).

what is the first thing you need to do when you want to persuade others to take a certain course of action? A. understand your audience B. state your case C. express a need or want D. communicate clearly

A. Understand your audience. Before you can persuade people, you must first know what appeals to them. When you have a general idea about their likes, dislikes, opinions, and needs, you will be able to prepare a message that will appeal to them. Then, you can state your case using clear communication, which may include expressing a particular want or need.

Which of the following has a private enterprise economic system: A. United States B. Sweden C. Great Britain D. China

A. United States. Sweden and Great Britain have socialist command economic systems. China has a communist command economic system.

with of the following are characteristics of effective business information A. usable, accurate, retrievable B. current, simple, accessible C. applicable, historical, complete D. organized, complex, superficial

A. Usable, accurate, and retrievable. Effective information should be usable (applicable), accurate, and retrievable (accessible). Whether the information needs to be current, historical, organized, complete, simple, or complex depends on the type of information the company needs, and how the company intends to use the information.

a manufacturer advises its distributors that they must achieve an extremely high level of sales next year to continue as channel members. this action is most likely to create A. vertical conflict B. channel enlargement C. complex distribution patterns D. a comparative advantage

A. Vertical conflict. Distributors might feel that the manufacturer has set unreasonable sales goals, which may cause vertical conflict. If distributors are dropped, channel size decreases. Distribution patterns are the strategies (intensive, selective, or exclusive) that businesses use to move products through the distribution channel.

Which of the following is a product strategy marketers devise using available data: A. What level of customer service to provide B. Where to sell the product C. What advertisements to run D. How much to charge

A. What level of customer service to provide. There are many decisions that marketers must make about products, including choosing what products to offer, what new products to develop, and what level of customer service to provide with each product. Where to sell the product is a place decision. What advertisements to run is a promotional decision. How much to charge is a pricing decision.

In addition to the wording on a questionnaire being clear, the wording should be A. concise and objective. C. ambiguous and complex. B. complex and concise. D. objective and adaptable.

A. concise and objective.

The XYZ Company has a financial organization within the business that offers small loans, installment credit, and low interest rates to its members. This is an example of a A. credit union. C. commercial bank. B. sales-finance company. D. savings and loan.

A. credit union. Credit unions are formed by a business's employees or labor union members to meet the financial needs of members.

A law is established to ensure that businesses include pricing terms in their advertisements. The law is designed to discourage businesses from practicing __________ pricing strategies. A. deceptive C. elastic B. inequitable D. compliant

A. deceptive. For example, a retailer publishes a very low price in a newspaper advertisement for a specific product. A customer enters the store with the intention of purchasing the product at that price. However, the customer finds out that certain criteria must be met to receive the published price.

People are usually the most important resource because they are the ones who will A. do the work. B. use the tools. C. solve the problems. D. lead the project.

A. do the work. Some projects need the help of many people. It is important to identify the people who have the ability to help with a project. Without people, it will probably not be possible to complete the project. As part of working on a project, people often use tools, solve problems, and help lead the project.

One way that advances in technology are impacting the product/service management function is by making it possible for businesses to A. improve existing products. B. eliminate human errors. C. simplify production systems. D. control customer preferences.

A. improve existing products. Advances in technology often help to reduce human errors but cannot completely eliminate them. Advances in technology often make production systems more complex because they rely on complicated computer systems.

A summarization of the total income and expense of a business for a period of time is called A. the profit-and-loss statement. C. cost of goods sold. B. gross profit. D. balance sheet.

A. the profit-and-loss statement. A balance sheet identifies a business's assets, liabilities, and capital on a given date.

One of the ways that salespeople can use selling to create desire for products is A. using product demonstrations. B. emphasizing high cost of a product. C. making a good impression D. monitoring the competition

A. using product demonstrations.

Why will it benefit you to learn as much as possible about a prospective employer before you go for a job interview? A. It prepares you to ask good questions. B. It shows that you do a lot of reading. C. It ensures that you'll be considered for the job. D. It gives you something to discuss during the interview.

A. you should find out as much as possible about the business before a job interview so that you are prepared to ask intelligent questions about the company. It indicate your interest in the company and the job. It does not necessarily indicate that you have done a lot of reading, since you may have obtained information about the company from other sources such as current employees or television news. The interviewer decides what will be discussed.

One reason that the balance on your bank statement would be higher than your checkbook register would be that A. you've written checks after the covered period. B. a deposit has not been credited to your account yet. C. an automated payment was deducted from your account. D. you did not record a bank withdrawal.

A. you've written checks after the covered period.

Which of the following is an advantage of secondary research: A. It is specific to the research needs. C. It is up to date. B. It is quick. D. It gives marketers control of the study.

B It is quick. The data already exist—marketers just need to access them. However, secondary data can be out of date, and they are not specific to the needs of the particular research study. Also, conducting secondary research gives marketers less control over the study.

Why is it important for a business to conduct a situational analysis during the marketing planning process? A. To identify customers B. To forecast expenses C. To ward off problems D. To redesign products

B To ward off problems. Businesses conduct situational analyses to obtain information about changes or trends that are beginning to develop in the environment or marketplace. This procedure allows businesses to identify changes at an early stage and ward off potential problems. It is important for businesses to understand changes in their external environment in order to adapt and avoid problems.

Which of the following is an effective email subject line? A. New product information B. Mtg. rescheduled for 3 p.m. C. One more thing . . . D. Can we talk for a minute?

B. "Mtg. rescheduled for 3 p.m.", clearly communicates the focus of the email (the meeting) and provides enough information for the recipient to understand why the email was sent to him/her (to inform him/her that the new time for the meeting is 3 p.m.). "New product information" is not specific enough for the recipient to understand what product is the focus of the message.

when a government regulatory agency accuses a company of running a deceptive ad, the company voluntarily agrees to stop running the ad without admitting guilt. which remedy is used? A. cease-and-desist order B. consent order C. corrective advertising D. affirmative disclosure

B. A consent order, the company that is accused of deception voluntarily stops running an advertisement without admitting guilt. A cease-and-desist order requires a marketer to stop running a questionable advertisement until a hearing is held to determine if the advertisement is inappropriate or misleading. Affirmative disclosure, government orders the advertiser to include product information in future advertisements that it omitted in its previous advertisements.

Which of the following is an example of a capital good: A. A cashier B. A highway C. Coal D. A pine forest

B. A highway. Capital goods are manufactured or constructed items that are used in the production of goods and services. Highways enable distribution. A pine forest and coal are natural resources. A cashier is a human resource.

Which of the following is a true statement regarding how economic conditions may affect a business's sales forecast: A. Economic conditions have very little impact on sales forecasts. B. A poor economy will hurt sales for some businesses but will help others. C. A poor economy will decrease sales for all types of businesses. D. A strong economy will increase sales for all types of businesses.

B. A poor economy will hurt sales for some businesses but will help others.

Which of the following is a verbal technique for behaving in an assertive manner: A. Maintaining appropriate eye contact C. Planning exactly what you will say B. Beginning conversations with other people D. Asking questions about areas of confusion

B. Beginning conversations with other people. The topics of discussion are much less important than your assuming responsibility for initiating the exchanges. A more assertive manner may be fostered by speaking spontaneously, rather than planning what is to be said, and asking questions when confronted with things not fully understood. Maintaining appropriate eye contact is a nonverbal assertiveness technique.

Which is most effective way for an employee to communicate interest in providing good service to customers? A. Informal product demonstration B. Body language C. Social status D. Closing statements

B. Body language

Which of the following is an example of an employee-assistance program: A. Compensation B. Career and education planning C. Training on the use of dangerous power equipment D. Corrective action

B. Career and education planning. Employee-assistance programs are part of the HR management activity of employee relations. Training on the use of dangerous power equipment is a compliance issue.

Which of the following is a key component of managing working capital: A. Financing C. Capital budgeting B. Cash conversion cycle D. Capital structure

B. Cash conversion cycle refers to how long a business's money is "tied up" between purchasing raw materials and receiving cash from sales. Financing is funding a business activity or project through debt, equity, or venture capital. Capital budgeting is determining which projects a business should invest in. Capital structure refers to a business's mix of financing.

Which of the following occurs when a country can produce goods at a relatively more efficient rate than another country? A. absolute advantage B. comparative advantage C. trade deficit D. trade surplus

B. Comparative advantage. A country has a comparative advantage when it produces and sells those goods and services for which it will earn the most money, while trading for those which will earn relatively less money. A country has an absolute advantage when it can produce a product for less than another nation can.

One way that the use of technology benefits the operations process is by A. automating the work force. B. computerizing the purchasing function. C. developing a robotics plan. D. organizing a conveyor system.

B. Computerizing the purchasing function. Operations are the day-to-day activities required for continued business functioning. One aspect of operations is the purchasing function; businesses are able to place orders electronically, continually track the level of inventory so orders can be placed automatically, and pay invoices by transferring funds electronically.

What can a business do to determine why sales for its mid-priced product line have been steadily declining over the past year? A. Increase advertising efforts to reinforce brand awareness B. Conduct discovery-oriented marketing research C. Determine ways in which the business can reach new markets D. Monitor its customers' online shopping behavior

B. Conduct discovery-oriented marketing research The business has a problem—its sales are declining. So, the business needs to determine (discover) why sales have fallen by conducting marketing research. Simply monitoring its customers' online shopping behavior will not provide specific information about why customers are not purchasing the business's products.

When a business evaluates its business processes to make them more efficient and effective, it can improve its relationships with customers. This process is called: A. employee training. B. continuous improvement. C. organizational structuring D. business process management.

B. Continuous improvement. Organizational structuring refers to the way business functions relate within a company. Business process management focuses on aligning a company's objectives and activities with customer needs.

A sample indicates that the average income in the northwest region is $31,257. This is an example of __________ statistical information. A. multivariate B. descriptive C. unilateral D. sequential

B. Descriptive. Descriptive statistics are derived by summarizing information gathered from a sample of a population. Multivariate statistics are derived by analyzing two variables at the same time. Sequential and unilateral are not common terms used to define types of statistical information

Which of the following is a technological tool that connects businesses with their suppliers and customers: A. Firewall C. Filter B. Extranet D. Intranet

B. Extranet refers to a computer network that connects certain businesses, and allows them to collaborate and exchange information. Extranet technology allows the members of a distribution channel to efficiently communicate. Businesses often use extranet technologies to monitor inventory, place orders, and track shipments.

The primary purpose of quality-control measures is to evaluate employee efficiency levels. A. False—the primary purpose of quality-control measures is to evaluate the degree of excellence of goods and services. B. False—businesses also use quality-control measures to evaluate products, processes, and other business functions. C. True—businesses must evaluate their employees' performance to ensure that they are producing high-quality goods and services. D. True—employees perform the work, so they are responsible for developing and implementing product-quality measures.

B. False—businesses also use quality-control measures to evaluate products, processes, and other business functions. Quality control is ensuring the degree of excellence of a good, service, process, or activity.

What type of unethical advertising is being used when a television commercial convinces consumers that they can avoid serious illness by using a particular product? A. Stereotyping C. Gender bias B. Fear-based D. Puffery

B. Fear-based advertising involves communicating nonpersonal promotional messages in ways that scare buyers into thinking that they need to purchase a product to stay healthy or safe. Many consumers, businesses, and government agencies believe that this type of emotional appeal is unethical behavior. Puffery involves exaggerating a product's characteristics, benefits, or capabilities.

which of the following levels of managers spend most of their time staffing, directing, and controlling the day-to-day activities of the business A. mid-level B. first-line C. executive D. regional

B. First-line. First-line or supervisory managers work directly with the employees who carry out the business's routine work. First-line managers report to the mid-level managers. Mid-level managers are responsible for implementing the goals set by executive (top-level) managers, and are the link between supervisory and executive (top-level) managers. Executive managers set goals and conduct strategic planning. A regional manager (also mid-level) manages employees in a specific location or region.

What is true about personal vision? A. Realistic visions are based on mission statements. B. Good visions have permanent results. C. Specific goals are necessary to determine your vision. D. Achievable visions are time bound.

B. Good visions have permanent results. A vision is a desire for the future that is achieved over time with determination and hard work. Good visions create positive results and may involve the input of many people over a long period of time. Visions are not based on mission statements, nor do they start out with specific goals. Visions are timeless rather than time bound.

Which of the following is a characteristic of good visions? A. concrete situations B. permanent results C. complicated ideas D. expensive processes

B. Good visions have permanent results. They are something that other people can carry on for many years even if the person who had the vision is not around. Examples include the right to vote, equal rights, and vaccines for diseases. Visions are abstract rather than concrete. Visions should be simple enough that anyone can understand rather than overly complicated. Some visions are expensive to turn into reality but are worth the price; however, some visions may not justify the price.

One of the first steps a business takes in developing a promotional plan is to A. design the advertising message. B. identify the target market. C. prepare an expense budget. D. evaluate the feedback.

B. Identify the target market. Evaluating the feedback is the last step in the promotional planning process. Once a business identifies its target market, it will design the advertising message and prepare a promotional budget.

A primary reason that businesses expand their operations in foreign countries is to: A. eliminate tax obligations. C. condense their market shares. B. increase revenues. D. promote environmental issues.

B. Increase revenues. By expanding operations in foreign countries, businesses have the opportunity to sell to another market. If the market buys the business's products, the business increases both its market share and its revenues. Foreign expansion doesn't eliminate the business's tax responsibility.

What is the term for higher levels of output resulting from putting more workers on the job? A.Return on revenue B. Increasing returns C. Return on input D. Marginal returns

B. Increasing returns. When there are too few workers, they may not be able to handle resources well. So, companies choose to add workers which makes everyone more efficient and productive. This is called increasing returns. At some point, too many workers will again become inefficient, and although output may still rise, it will be at a diminishing rate. This is known as diminishing returns (law of diminishing marginal returns).

Which of the following is the component of a questionnaire that guides respondents through the survey process: A. Leading questions C. Flow chart B. Instructions D. Coding box

B. Instructions advise respondents on how to complete the questionnaire; the instructions guide them through the survey process. Instructions are especially important if the questionnaire is long and contains branching questions, which are questions that direct respondents to another section of the questionnaire, if they provide a certain answer. Instructions help ensure that all of the respondents complete the questionnaire in the same manner. Researchers do not place flow charts and coding boxes on questionnaires to guide the respondents through the survey process.

What technological advancement has had the greatest impact on travel, hospitality, recreation and insurance industries? A. Fax machine B. Internet C. Electronic key card D. Interactive TV

B. Internet. The Internet allows businesses in the travel, hospitality, recreation, and insurance industries to bypass intermediaries (agents and brokers). Consumers can easily go directly to the service business to make the purchase. This enables the businesses to reach more customers and sell at any time of the day or night. Fax machines are widely used as a means of sending information quickly rather than as a selling tool. Key card entry systems are used mainly in the hospitality industry. Interactive television is not as widely used by consumers as the Internet.

What type of business records would provide a company with information about the movement of its products? A. Credit C. Accounts payable B. Inventory D. Sales expense reports

B. Inventory. All the stock that a business has on hand is called inventory. Businesses keep records of their inventory to determine which items are moving quickly, which items are moving slowly, and when it is time to order additional items.

Which of the following is a disadvantage of weak currency: A. It reduces business profits. B. It makes acquiring foreign companies more expensive. C. It negatively affects the balance of trade. D. It makes buying imports less expensive.

B. It makes acquiring foreign companies more expensive. Reduction of business profits and a negative effect on the balance of trade are disadvantages of strong currency, not weak currency. Weak currency makes buying imports more expensive, not less expensive.

What is the benefit of shared vision to an organization? A. It ensures that the team's goals are achievable. B. It serves as a guide for decision making. C. It creates an ethnocentric environment. D. It supports a groupthink attitude.

B. It serves as a guide for decision making. When a shared vision exists, all members of the organization understand and support the organization's purpose. Successful organizations set goals and make decisions to fulfill the organization's purpose, which is based on the vision. In groupthink, individuality and independent thinking is discouraged. Ethnocentrism is the belief that your own culture is naturally better than other cultures.

Which of the following is a true statement regarding information management: A. It's used primarily for decision making. B. It's necessary for making even small business decisions. C. It's the same thing as MIS. D. It's the same thing as data processing.

B. It's necessary for making even small business decisions. Information management is important for business decision making, even for small decisions. It isn't used primarily for decision making, though— there are many other uses for information management. Information management is not the same thing as MIS or data processing.

what process might a business use to enter marketing data into a computer for analysis? A. editing B. keyboarding C. screening D. tabulating

B. Keyboarding. The most popular technique for entering marketing data into a computer for analysis is keyboarding. An individual types in the information via keyboard and then saves it to the computer for future use and analysis. Before the data are entered into a computer, they are edited for mistakes. Screening is a method of validating the accuracy of the data. After the data are entered into a computer, researchers are able to tabulate and analyze the information.

Which distribution method is commonly used for consumer shopping goods, such as high-end clothing: A. Intensive B. Selective C. Direct D. Exclusive

B. Marketers use selective distribution when they want to deal with the middlemen they feel will do the best job of promoting and selling their products. It is used with consumer shopping goods. Intensive distribution is used with convenience products. Exclusive is used with specialty products that are technical in nature or require specialized services such as installation or repair.

When a company's promotional activities focus on pointing out differences between its well-established product and competing products, the product is in the __________ stage of its life cycle. A. growth C. declining B. maturity D. introductory

B. Maturity The growth stage is when competition increases, but the product is not yet well established.

When a company's promotional activities focus on pointing out differences between its well-established product and competing products, the product is in the __________ stage of its life cycle. A. growth B. maturity C. declining D. introductory

B. Maturity. To reach the maturity stage, a product must be well established. Competition increases and focuses on promoting the differences of competing products. The growth stage is when competition increases, but the product is not yet well established. Once newer products start taking the place of existing ones, a company's product enters the declining stage and eventually stops production.

Which of the following is a type of simple written report that usually is distributed to employees within a business: A. Proposal B. Handbook C.Memorandum D. Newsletter

B. Memorandum. Memorandums often are distributed to employees within a business to update them on the progress of various projects, or inform them of changes in policies and procedures. They are informal and simple because they are intended only for the use of the business's employees. A proposal usually is a complex written report that is formal and may be distributed to those outside the business.

Which of the following should you do when preparing your letter of application? A. Write a letter that is at least one page long. B. Mention any mutual contacts you have. C. Repeat everything that is on your résumé. D. Proofread quickly so you can send the letter sooner.

B. Mention any mutual contacts you have. If you can, you should name someone you and the reader of your application letter both know. Of course, this isn't always possible, but it's a great way to get attention. Your letter should not be more than a page long.

Which of the following is an example of an occupationally specific trade association A. retail merchants association B. national restaurant association C. chamber of commerce D. sales and marketing executives international

B. National Restaurant Association. Members of the National Restaurant Association all have interests in the field of food service. Merchants' associations and chambers of commerce unite individuals who represent the same geographic region but different areas of marketing. SMEI is a professional organization for sales executives who work in a variety of industries.

Which of the following would not be considered sales promotion: A. Window display C. Fashion show B. Newspaper ad D. Demonstration

B. Newspaper ad. A newspaper ad is an example of advertising-any paid form of nonpersonal presentation of goods, services, or ideas. Window displays, fashion shows, and demonstrations are examples of sales promotion. Sales promotion consists of activities other than advertising, personal selling, and publicity that stimulate consumer purchases.

One of the purposes of the finance activity is to make sure that the business has enough money on hand to A. expand its operations. C. obtain start-up funds. B. pay its day-to-day expenses. D. reward its stockholders.

B. Pay its day-to-day expenses. All businesses need a certain amount of money on hand with which to pay such routine expenses as wages, taxes, and utilities in order to keep the business running. Businesses might consider expanding if they have sufficient funds left over after paying all expenses. Stockholders receive dividends only if the business makes a profit. Start-up funds are obtained before a business begins to operate.

Last year Ryan earned a salary of $32 500 and paid 15% in federal income taxes. This year, Ryan received a promotion and his salary is now $36 750. Due to the salary increase, Ryan must pay 25% in federal income taxes. This is an example of a ________ tax structure. A. regressive B. progressive C. proportional D. corporate

B. Progressive. A progressive tax structure is one in which those who earn more are required to pay a higher percentage of their income in taxes. If using a regressive tax structure, people who earn more income pay a lower percentage of income in taxes. A proportional tax structure is one in which everyone pays the same percentage of income in taxes.

What type of data do descriptive statistics summarize? A. Subjective B. Sample C. Synectic D. Solitary

B. Sample. Descriptive statistics are information that is presented in numerical form and is related to a specific issue, situation, or concern. Marketing researchers often collect this type of information by surveying a sample group—a representative group of the target market.

One aspect of coordinating channel management with pricing activities involves A. implementing accounting policies. B. setting appropriate prices. C. earning high profits. D. developing product standards.

B. Setting appropriate prices. If a product is not priced appropriately, customers usually will not buy even if the product is widely distributed.

Research and development speed up production by A. providing employees with adequate job training. B. simplifying existing products. C. limiting inflation. D. reviewing company goals with employees.

B. Simplifying existing products. Researchers can speed up production by simplifying existing products, developing new products, and determining better processes. Management should provide employees with adequate job training.

Which of the following is a characteristic of the machine bureaucracy organizational structure: A. Decentralized decision making C. Project-team orientation B. Specialization by work task D. Resource sharing

B. Specialization by work task. Bureaucracies have formal rules and a hierarchical management structure. Machine bureaucracies provide simple, stable work environments that involve standardized work processes/specialization. This organizational structure works well for mass-production companies (manufacturers) and organizations (insurance) that provide services to mass markets. An *adhocracy* organizational structure uses work-teams to create new processes. Technology-based businesses, such as Google, often operate as an adhocracy. Matrix organizational structures tend to share resources.

Which management function involves determining how many workers, and at what levels of knowledge and experience, are needed by a business? A. Recruiting C. Directing B. Staffing D. Organizing

B. Staffing. Staffing is the management function of finding workers for the business. It includes determining the workers needed, when they are needed, recruiting applicants, selecting new hires, and assigning them to jobs. Directing is the management function of providing guidance to workers and work projects. Organizing is the management function of setting up the way the business's work will be done.

Text that continues or clarifies the thought expressed in the print ad's headline is referred to as the A. tag line. B. subhead. C. identification. D. white space.

B. Subhead. A subhead, or subheadline, adds information to that expressed in the headline. It is usually positioned below the headline and set in slightly smaller size type. The tag line is a slogan used in an advertisement. It may be part of the identification element, the part of the ad that identifies the product's brand or advertiser.

What type of promotional media might a statewide chain of supermarkets use in order to reach a large number of potential customers in its geographic area? A. Regional magazines C. National television B. Suburban newspapers D. Transit advertising

B. Suburban newspapers

what activity is a researcher performing when s/he counts the responses to a survey? A. assigning values B. tabulating data C. interpreting primary research D. developing a sample plan

B. Tabulating data. Tabulation involves counting the number of respondents who answered each question with one of the possible answers that appear on a survey. For example, if 100 people answered a questionnaire, researchers need to know how many of them agreed, disagreed, or had no opinion about the questions. The tabulation process also helps marketing researchers identify non-response errors which result when respondents do not answer questions.

Which of the following is a common reason for horizontal conflict among distribution channel members: A. Transportation issues C. Direct distribution B. Territorial boundaries D. Shipping errors

B. Territorial boundaries. For example, suppose two retailers are located on the same block, and one store begins to sell the same line of specialty goods that the other store sells. Because both stores are competing for the same customers, conflict is likely to occur. If a producer decides to use a direct distribution strategy (bypass its distributors and sell directly to end users), vertical conflict is likely to occur. Transportation issues and shipping errors may cause occasional vertical conflict.

What is one of the main reasons for writing a letter of application? A. To organize thoughts B. To attract attention C. To give detailed data D. To describe activities

B. To attract attention. The letter of application should encourage the employer to invite the applicant in for an interview. The letter should contain a few interesting details that will attract attention but should not be lengthy or detailed

Which is a reason for a business to offer a deep product mix? A. To specialize in a product line B. To compete effectively C. To control costs D. To ensure similar methods of distribution

B. To compete effectively. The business with a deep product mix offers a great many items in the product line. This allows the business to meet the needs of a variety of consumers, use a range of prices, and compete effectively.A shallow product mix helps a business to control its costs. The use of a narrow product mix enables a business to specialize in a product line.

Why is it important to build in a safety net, or padding, when identifying resources? A. To try to cut corners B. To plan for the unexpected C. To find substitutes D. To obtain financial support

B. To plan for the unexpected. When identifying resources, it is important to be realistic. This often means planning for the unexpected because it's not a good idea to assume that everything will go correctly. It is not a good idea to try to cut corners and get by with less than you really need. Building in a safety net does not involve finding substitutes or obtaining financial support.

Which of the following are communication channels that businesses often use when engaging in the push promotion strategy: A. Mass advertising and trade shows C. Trade advertising and pricing B. Trade advertising and trade shows D. Mass advertising and coupons

B. Trade advertising and trade shows. When a business uses the "push" sales-promotion strategy, it is attempting to move or push the product through the distribution channel to the end user. To do this, businesses use sales-promotion techniques (e.g., discount coupons and rebates) to provide channel members with incentives to sell the products to their customers, which are often the end users. If a business uses a pull strategy, it is likely use mass advertising communication channels (e.g., national television commercials) to reach the target market.

which of the following are communication channels that businesses often use when engaging in the push promotion strategy: A. mass advertising and trade shows B. trade advertising and trade shows C. trade advertising and pricing D. mass advertising and coupons

B. Trade advertising and trade shows. When a business uses the push sales-promotion strategy, it is attempting to move or push the product through the distribution channel to the end user. To do this, businesses use sales-promotion techniques (e.g., discount coupons and rebates) to provide channel members with incentives to sell the products to their customers, which are often the end users. Businesses often use trade advertising and trade shows to inform channel members about their products and sales promotions. If a business uses a pull strategy, it is likely use mass advertising communication channels (e.g., national television commercials) to reach the target market.

Which of the following is a promotional method that enables businesses to introduce new products and generate new sales leads at the same time: A. Sales contests C. Cash rebates B. Trade shows D. Free samples

B. Trade shows. A trade show is a promotional method that many businesses use to introduce new products, generate new sales leads, and contact current customers at the same time.

What type of law prevents salespeople from one company from interfering with their competitions' activities? A. Product safety B. Unfair trade C. Consumer credit D. Warranty liability

B. Unfair trade

Licensing of some businesses protects consumers from A. government inquiries. B. unqualified business operators. C. product recalls. D. lawsuits.

B. Unqualified business operators. In some types of businesses, sellers of products must purchase a license to operate a business. The business must follow government regulations to retain its license and stay in business. Lawsuits, government inquiries, and product recalls can occur regardless of whether the business is licensed to operate.

what can a pharmaceutical manufacturer do to help ensure that its pain reliever and allergy medication are safe for consumer use? A. price products competitively B.use protective packaging C. include vague product details D. display a disclaimer on the package

B. Use protective packaging. To reduce the risk of product tampering, businesses package their products in ways that ensure that the products are safe for consumption. Consumers feel more confident about using the product when they open the package and the item is sealed and protected. a disclaimer on the package do not ensure a product's safety.

which of the following is an internal source of secondary marketing data? A. census reports B. warranty agreements C. consumer blogs D. business directories

B. Warranty agreements. Internal secondary data is data from within the business that has been collected for purposes other than the project at hand. Warranty agreements outline conditions under which the seller will repair or replace a product. Customers can often upgrade or extend the warranties for a fee. Businesses usually maintain their customers' warranty information in their computer systems. This information usually contains contact information, product information, purchase date, types of repairs made, etc. The business might gather the contact information on warranty agreements to send promotional information about a new product. Or, the business might want to determine a pattern for product defects by examining repair information. Census reports, consumer blogs, and business directories are external sources of information.

Which of the following allows customers to view video and hear audio about a product on a company's website: A. Broadband B. Webcast C. Opt-in email D. Media-byte

B. Webcast. Businesses often use Internet webcasts to communicate or demonstrate their products' attributes so they can stimulate sales. Broadband is a method of accessing the Internet via cable or DSL. Media-byte is a fictitious term.

Which of the following questions is worded appropriately to ensure the researcher obtains valid responses? A. Where did you buy your computer equipment and software? B. What, if anything, did you like best about the last computer you purchased? C. What did you like best about your last computer purchase? D. Would you buy a computer at a store surrounded by other stores and lots of traffic?

B. What, if anything, did you like best about the last computer you purchased? This question gives participants the option of indicating that they didn't like anything about their last computer rather than forcing them to identify something positive about the computer even if they didn't feel positive about it. Asking where participants bought their last computer equipment and software should be turned into two separate questions since the participants might have purchased the computer equipment and software at two different locations. By doing that, the researcher is addressing one issue at a time rather than asking a question with a multiple focus. Asking participants what they liked best about their last computer purchase is vague and needs to be rewritten.

Under what circumstances should a business obtain copyright protection for its intellectual property? A. If it develops a unique manufacturing process B. When it produces an original artistic work C. If it owns a distinctive mark or emblem D. When it maintains a comprehensive customer list

B. When it produces an original artistic work. Intellectual property is the business's intangible assets that result from thinking processes. A business can legally protect its intellectual property from unauthorized use by registering it with the appropriate government agency. A copyright legally protects artistic works such as books, music, paintings, etc. A patent protects manufacturing processes and inventions.

When a government regulatory agency accuses a company of running a deceptive advertisement, the company voluntarily agrees to stop running the ad without admitting guilt. In this situation, the remedy used is A. a cease-and-desist order. C. corrective advertising. B. a consent order. D. affirmative disclosure.

B. a consent order. If the company refuses to stop running the ad, a cease-and-desist order requires a marketer to stop running a questionable advertisement until a hearing is held to determine if the advertisement is inappropriate or misleading. Affirmative disclosure is a type of corrective action in which the government orders the advertiser to include product information in future advertisements that it omitted in its previous advertisements.

Marketers can use the element of price to help with positioning by A. allowing retailers to set prices. B. choosing a price the target market is willing to pay. C. pricing products as low as possible. D. pricing products too high to make them seem like luxury items.

B. choosing a price the target market is willing to pay.

One of the major functions of business maintenance is to A. keep the business spotlessly clean. C. protect products from damage. B. create a favorable impression. D. present products effectively.

B. create a favorable impression. The overall impression customers receive is a result of a business's appearance and the condition of its equipment. The business should be kept neat and clean, but that is a housekeeping function, not maintenance. Packaging protects products, and a good display presents them effectively.

When an agent legally acts in the best interests of his/her client, the agent is establishing a(n) __________ relationship. A. authoritative B. fiduciary C. principal D. legislative

B. fiduciary

In business, budgets are prepared for a specific time period, usually a A. calendar year. C. quarter at a time. B. fiscal year. D. month at a time.

B. fiscal year.

One advantage of using the Internet for promotional purposes is that A. consumer privacy is secure. B. information is available on demand. C. it can reach less affluent markets. D. businesses don't need to target markets.

B. information is available on demand. Internet surfers can access a business's website and obtain product information 24 hours a day, seven days a week—making it available anytime the Internet user wants to see it. The Internet serves as a promotional vehicle that is more likely to be available to affluent markets, or those who can afford Internet services, but it does not ensure that consumers' privacy is secure.

When a local athletic apparel store sells shoes, clothing, and accessories that are designed specifically for runners, it is using ____________ segmentation. A. geographic C. demographic B. psychographic D. rate of usage

B. psychographic, the market is divided on the basis of a lifestyle choice—running. Rate of usage is a type of behavioral segmentation, which involves dividing customers into groups according to their response to a product.

A retailer advertises discounted prices for certain items in a local newspaper and deliberately does not change the prices of the items in its computer system during the sale. As a result, customers were charged the original prices at the point of sale. This deceptive pricing practice is called A. price discrimination. C. collusion. B. scanner fraud. D. dumping.

B. scanner fraud.

Which of the following is the best approach to solving most problem situations: A. Act as quickly as possible. B. Wait until the problem solves itself. C. Take plenty of time to handle the problem. D. Get as much advice from others as you can.

C Take plenty of time to handle the problem. In most cases, it is best to be patient and to take plenty of time to resolve difficult situations, rather than acting too quickly.

Which of the following guidelines must be followed when using the relay brainstorming creative-thinking method: A. You cannot compete against others. B. You can only use relay brainstorming alone. C. You cannot help your teammates. D. You can respond in any order.

C You cannot help your teammates. Relay brainstorming resembles a relay race. It involves multiple individuals from competing teams responding in a certain order with no assistance from teammates.

Which of the following is an example of market segmentation on the basis of product usage: A. What a person's heritage is B. What activities a person enjoys C. How often a person attends the opera D. How old a person is

C How often a person attends the opera. This example is determining the frequency with which a product is being used. It is the only example of product usage. A person's heritage and age are demographic characteristics. The activities in which a person participates is an example of psychographic segmentation.

What is a spreadsheet soft ware program's calculation for next year's operating expenses based on the following information: an increase of 5% over current sales of $675,500 a year, and a 3% increase in operating expenses that are currently 40% of sales. A. $290,465.00 C. $283,710.00 B. $304,988.25 D. $312,326.25

C. $283,710.00 (1.05x675500) x 0.43 = 283,710.00

A large online seller partners with a credit card company to leverage each other's brand values, share marketing expertise and research, and exchange skills. The two companies are involved in A. cross-linking. B. affiliate marketing. C. affinity marketing. D. social media marketing.

C. Affinity marketing is a partnership between multiple businesses to provide goods in exchange for access to a new market. Affiliate marketing is the process of promoting and selling another business's products in exchange for a sales commission. Cross linking is promoting your company on another company's website and allowing them to promote their company on your website.

Statements about a present or desired strength are called A. images. C. affirmations. B. visualizations. D. roles.

C. Affirmations. Affirmations are positive statements about something you want to accept, incorporate, or develop. Visualization is the practice of imagining yourself in possession of a present or desired strength.

Which of the following types of behavior tries to improve the general quality of relationships: A. Aggressive C. Assertive B. Negative D. Independent

C. Assertive behavior is characterized by a willingness to stand up for one's own rights while showing respect for the rights of others. The goals of assertive behavior include improving the general quality of relationships, self-esteem, mutual respect and understanding, and cooperation.

which of the following is an example of a business that uses product class as a positioning strategy: A. focusing on the value of a line of cosmetics B. emphasizing a 100 000 -mile car warranty C. associating an artificial sweetener with sugar D. communicating a resort's luxury services

C. Associating an artificial sweetener with sugar. One strategy businesses might use to position their products is by associating the good or service with a particular product category. Emphasizing a warranty is using a product benefit to position the car. A business that focuses on value is using price to position its products. When a resort communicates information about its luxury services, it is using quality to position its product.

which of the following is an idea-generation technique that uses programmed thinking A. forced questioning B. mind mapping C. attribute listing D. synectics

C. Attribute listing. Programmed thinking is a process that involves generating ideas in logical, analytical, and organized ways. Attribute listing is an idea-generation technique that involves listing the characteristics or attributes of something and then finding ways to improve these attributes. Mind mapping, forced questioning, and synectics are idea-generation techniques that use lateral thinking, which is a process that involves generating ideas in purposely illogical ways.

One of smaller online retailers' biggest concerns about automated pricing systems is that these systems could cause A. a demand surplus. B. inflation of the retail price. C. the retailer's price to be undercut. D. higher marketing prices.

C. Automated pricing systems allow large retailers like Amazon to price products aggressively (constantly change prices according to other website's prices) and undercut smaller retailers.

Which of the following is a budgeting issue that a business considers when deciding whether to participate in a trade show: A. Venue's personal appeal C. Booth rental space B. Target audience size D. Competitors' attendance

C. Booth rental space. There are many costs associated with trade shows including employees' travel and lodging expenses, booth rental space, audio/visual rentals and Internet hookups, display shipping costs, etc. The target audience size, venue appeal, and competitors' attendance are considerations that do not relate to budgeting.

which of the following is a budgeting issue that a business considers when deciding whether to participate in a trade show A. venue's personal appeal B. target audience size C. booth rental space D. competitor's attendance

C. Booth rental space. There are many costs associated with trade shows including employees' travel and lodging expenses, booth rental space, audio/visual rentals and Internet hookups, display shipping costs, etc. The target audience size, venue appeal, and competitors' attendance are considerations that do not relate to budgeting.

Which of the following activities would normally be classified as "routine": A. Throwing a party C. Brushing teeth B. Paying rent D. Visiting relatives

C. Brushing teeth is a routine activity because it is done every day. Paying rent is a regular activity because it is done frequently but not daily. Visiting relatives and throwing a party are occasional activities.

What do advertising regulations usually require businesses to disclose about the products they advertise? A. Endorsements C. Limitations B. Personal benefits D. Hidden features

C. Certain products have limitations, such as producing side effects in some people or being potentially hazardous. When businesses advertise these products, they are usually required to disclose the limitations so consumers can make an informed decision about whether to buy.

persuasion is an important part of which of the following functions? A. education B. motivation C. communication D. self-control

C. Communication is an exchange of information in which the words and gestures are understood in the same way by both the speaker and the listener. Persuasion is an important part of communication and is something you do almost every time you talk to someone. You want others to agree with you and try to motivate others to take some kind of action.

Samples, premiums, advertising specialties are examples of ------ used in sales promotion A. Publicity strategies B. Marketing activities C. Communications channels D. Selling techniques

C. Communications channels. Giving away samples so customers can have firsthand experience with the product; giving away premiums which are free gifts that remind customers of the business; and giving away advertising specialties, such as key chains that include the name and phone number of the business. These communications channels is to encourage customers to buy.

What type of customer would say, "Your vegetables are never fresh"? A. Leave-me-alone C. Complaining B. Suspicious D. Slow/Methodical

C. Complaining. These customers believe that everything is going wrong for them and that everyone is either taking advantage of them or not really trying to help. Leave-me-alone customers prefer or pretend to prefer to be left alone to find what they want. Suspicious customers question everything and may want facts and proof. Slow/Methodical customers are those who require a lot of time.

Product bundling is an effective method to sell goods and services because it A. provides new products with better exposure than advertising. B. allows businesses to sell unrelated items at the same time. C. creates a sense of value for the customer. D. encourages customers to comparison shop.

C. Creates a sense of value for the customer. In some situations, the bundled product may not provide a great savings over individually purchased items, but just enough for the customer to feel that s/he is getting a deal or a good value. Product bundling is often used to get customers to try a new product; however, the business may also need to promote (e.g., advertise) the new product to let the masses know that the new product exists. Customers are less likely to comparison shop for less expensive goods when the items are bundled.

when a group reaches consensus, it means that all of the members agree but usually A. do not have equal power B. follow the leader C. do not vote D. accept majority rule

C. Do not vote. Consensus building is the group's process of coming to an agreement. However, the members do not vote because voting involves being for or against a decision. The side with the greater number of votes wins. In consensus building, no one wins because all of the members come to an agreement. Each group member's opinion is of value and each member contributes to reaching an agreement. Therefore, each member has equal power. Consensus building does not involve following the leader or accepting majority rule.

What are businesses responding to when they change their selling prices to correspond to changes in what customers can afford to buy? A. Product mix B. Market share C. Elastic demand D. Economic growth

C. Elastic demand. Elastic demand is a form of demand in which changes in price correspond to changes in demand. When customers can afford to spend money and buy products, businesses often respond by increasing prices because there is a demand. However, if customers stop buying because their incomes decrease, businesses usually respond by lowering prices. The goal of most businesses is to keep their prices at a level that is compatible with demand.

to reduce the risk of bribery in selling situations, it is a good idea for businesses to develop A. diversity training manuals B. promotional budgets C. entertainment guidelines D. product delivery policies

C. Entertainment guidelines. A "questionable" situations that salespeople might encounter involves entertaining customers. While some businesses view entertainment as a way to build positive customer relationships, others view it as bribery. A promotional budget is a forecast of the money that the business plans to spend on promoting its goods and services during a certain timeframe. Diversity training manuals target diversity issues in the workplace.

while facilitating a brainstorming session to generate product ideas, Gavin told Amy that her idea would be too expensive to implement. What did Gavin do wrong? A. asking for opinions B. ignoring a group member C.evaluating the idea D. exceeding the time limit

C. Evaluating the idea. Brainstorming is a creative-thinking activity that businesses often use to generate product ideas. Many businesses find that it is beneficial to have several employees involved in the process because that helps generate a lot of different ideas. The facilitator helps keep the members of the group brainstorming session on track. This person keeps order, encourages participation, fosters a creative environment, and documents the ideas for further review. The facilitator should not evaluate the ideas or initiate debate during a brainstorming session. These actions may hinder the creative-thinking process and discourage group members from participating.

What distribution method is best for a manufacturer to use when the product is complex and is difficult to install and repair? A. Selective C. Exclusive B. Intensive D. Invasive

C. Exclusive. Exclusive distribution involves selling a product through just one middleman to maintain tight control over the product. Intensive distribution involves selling a product through every available wholesaler and retailer where consumers might look for it. Selective distribution involves selling a product (e.g., designer handbags) through a limited number of wholesalers and retailers.

When the Silvers purchased their new car, the dealership representative sold their contract to another company in exchange for cash. To what type of business would the dealership have sold the Silvers' contract? A. Commercial bank B. Savings and loan association C. Finance company D. Credit union

C. Finance company

What production activity evaluates products to make sure that the products the business produces meet certain quality standards? A. Form utility B. Automation C. Follow-up D. Standardization

C. Follow-up. The last production activity is following up to make sure production was carried out according to plan and that the products produced met company standards for quality. This may include inspecting the materials used in making the products as well as examining the finished products.

What is one of a coach's most important tasks? A. Accepting change B. Caring for others C. Giving feedback D. Being honest

C. Giving feedback. Caring for others, accepting change, and being honest are characteristics of effective coaches rather than a coach's most important tasks.

The purpose of the first paragraph of the letter of application is to A. call attention to your qualifications and your résumé. B. express enthusiasm for the job and the company to which you are applying. C. identify the purpose of the letter and the job for which you are applying. D. identify your references and the experiences that qualify you for the job.

C. Identify the purpose of the letter and the job for which you are applying. The second and succeeding paragraphs should call attention to your qualifications and refer to information provided in your résumé. The last paragraph should express enthusiasm for the job and the company. Your references are cited in the résumé.

Which of the following is not an advantage of labor specialization: A. Increased worker efficiency B. Increased production rates C. Increased interdependency D. Simplified training of workers

C. Increased interdependency. Increased interdependency means workers need to rely on each other. It is a disadvantage of specialization. All of the other alternatives are advantages of specialization.

Why is the concept of price stability and effective measurement of the state of the economy? A. Matches the effects with the causes B. Reflects the rise in wages and benefits C. indicates positive and negative trends D. compares revenues with expenses

C. Indicates positive and negative trends. Price stability means that price levels remain fairly constant. When prices are stable, they do not drastically fluctuate up or down. Price stability is one way to measure the condition of a country's economy. If prices are stable (a positive trend), the economy is also stable. Large upswings or downswings in prices (negative trend) indicate that the economy is not stable. When the trend is negative, governments take steps to correct the problem. The concept of price stability does not reflect the rise in wages and benefits, does not match the effects with the causes, and does not compare revenues with expenses.

Why is the concept of price stability an effective measurement of the state of the economy? A. Matches the effects with the causes B. Indicates positive and negative trends C. Reflects the rise in wages and benefits D. Compares revenues with expenses

C. Indicates positive and negative trends. When prices are stable, they do not drastically fluctuate up or down. Price stability is one way to measure the condition of a country's economy. If prices are stable (a positive trend), the economy is also stable. Large upswings or downswings in prices (negative trend) indicate that the economy is not stable.

What type of software program do businesses use to monitor and order items they need for sale? A. project management B. production scheduling C. inventory management D. asset depreciation

C. Inventory management. Businesses use inventory management software to monitor and reorder stock when needed. Many of these software programs allow businesses to generate customized inventory reports that help them identify the business's top selling items, low selling items, and problems such as product backorders. Businesses use production scheduling software to schedule the production of their goods, and they use project management software to track and manage projects.

One of the advantages of discussing career opportunities with employees in specific fields is that you often obtain information about A. placement services. C. job requirements. B. referral programs. D. industry statistics.

C. Job requirements. Individuals currently employed in specific occupations are often good sources of information about those jobs and their requirements. These employees perform the required tasks on a daily basis and can explain the jobs to others. They can provide details about what the jobs actually entail and describe an average workday. Employees in specific fields might not have information about referral programs, placement services, or industry statistics.

One of the benefits of negative feedback is that it A. keeps you from making mistakes. B. tells you what you are doing right. C. lets you know what is expected of you. D. makes you feel good about yourself.

C. Lets you know what is expected of you. No one likes to get negative feedback, but it is valuable because it lets you know what you are doing wrong and what is expected of you. There is no way people can avoid making mistakes from time to time.

Matthew and Miranda are equal partners in a small consulting firm. They have allocated eight percent of last year's profits to make business improvements. Matthew wants to purchase a new copy machine, while Miranda would rather paint the building and make it look more inviting to their clients. What is the reason for Matthew and Miranda's conflict? A. Inconsistent behavior B. Unclear boundaries C. Limited resources D. Authority

C. Limited resources. In this situation, Matthew and Miranda were disagreeing about how to spend a set amount of money, which is a limited resource. Matthew and Miranda are equal partners in the firm, so the disagreement did not involve questioning or wanting authority. There is no indication of inconsistent or unclear boundaries.

Which of the following is the process that involves bringing together the resources that are needed in the production of goods or services: A. Research B. Economizing C. Management D. Marketing

C. Management. Management is the process of coordinating resources in order to accomplish an organization's goals. The functions of management include planning, organizing, staffing, directing, and controlling. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services. Economizing is deciding how scarce resources will be used.

When creating your business's web page, you make it possible for Internet browsers to identify and locate various elements of your page through the proper placement of A. HTML. C. meta tags. B. hyperlinks. D. ASCII.

C. Meta tags are HTML codes that display information about web pages. HTML uses tags placed in strategic places to help the browser identify and locate various elements of the web page.

a pharmaceutical company fails to warn the public about the possible side effects associated with a new medication. This is an example of a business violating selling regulations through A. branding B. exaggeration C. misrepresentation D. exclusivity

C. Misrepresentation. By omitting important facts about a product, the business is misrepresenting the product and misleading consumers, which is illegal in many countries. Businesses that misrepresent their products often face lawsuits and fines. When a business overstates the capabilities of a product, it is exaggeration. Branding is the process of creating certain images about a product or business in the minds of consumers. In a sponsorship agreement, exclusivity is the sponsor's privilege of being the only company in its particular category of goods or services.

One of the advantages to a business of using independent representatives to sell its products to intermediaries is that the representatives are A. not limited by selling regulations. B. more qualified than other salespeople. C. not on the business's payroll. D. allowed to call on many businesses.

C. Not on the business's payroll. Independent representatives are channel members who sell the products of several businesses or manufacturers. They often represent several businesses that sell related, but noncompeting, products. The advantage: saves the business money because it pays a commission only on actual sales and does not have the added expense of benefits or salaries.

The use of electronically bar-coded price tags on goods has increased the A. transportation costs for customers. B. need for businesses to hire additional cashiers. C. number of customer self-checkout stations. D. efficiency levels of pricing software programs.

C. Number of customer self-checkout stations. Electronic bar codes contain product price information. At the point of sale, the item is scanned into the cash-register terminal where the price is read and recorded. Self-checkout stations allows customers to scan, bag, and pay for the items without a cashier. Supermarkets and some discount stores are using self-check-out processes.

Which of the following marketing strategies is appropriate for the maturity stage of the product life cycle: A. Increasing media advertising B. Finding non-traditional distribution channels C. Offering incentives to distributors D. Increasing prices

C. Offering incentives to distributors. During the maturity stage, intensive distribution is desirable but may be more difficult to achieve than in the growth stage. For this reason, marketers sometimes offer distribution incentives to encourage distributors to carry the product. Finding nontraditional distribution channels is an appropriate strategy for the decline stage. Marketers usually decrease media advertising during the maturity stage and focus more on in-store promotions. Prices during the maturity stage usually stabilize or decrease.

what is a consequence to price gouging? A. product life-cycle decline B. high sales C. poor image D. weak competition

C. Poor image. Price gouging is the act of raising prices above market value when demand is high and there is no alternative available to customers. A business that temporarily increases prices for goods (e.g., lumber, milk, medicine) during a crisis is behaving in an unethical and, in many jurisdictions, an illegal manner. Customers may buy from competitors if the business has a bad rep.

When developing persuasive business letters, it is most important for the writers to think about the readers' A. decision-making styles. B. personal images. C. possible objections. D. nonverbal cues.

C. Possible objections. An objection is a reason for not taking the course of action persuaded. Acknowledge the objections and provide a rationale that removes the objections. Because each reader has different personal images and decision-making styles, it is not feasible for the writer to consider these factors if the letter is going to a lot of people.

The owner of a real estate firm wants to increase housing sales next year by 15% over the current year. What element of marketing would be involved in attaining this goal? A. Place C. Price B. Promotion D. Product

C. Price. Sales will likely increase if customers are willing to pay the price; they must adjust prices to maximize return and meet customers' perceptions of value

Kwacky Kwackers needs a new package design for its crackers. What marketing professional would be responsible for creating the new package? A. Advertising C. Product management B. Marketing research D. Distribution/Warehousing

C. Product management. Product managers create, test, and decide how a product will be packaged. They direct and coordinate all aspects of the product.

What element of the marketing mix involves considerations such as the types of brands that the business carries and the types of support services the business offers? A. Place C. Product B. Price D. Promotion

C. Product. The business must first determine the products that it wants to sell, which may include specific brands and support services (e.g., warranties, maintenance).

When a local athletic apparel store sells shoes, clothing, and accessories that are designed specifically for runners, it is using ____________ segmentation. A. demographic B. geographic C. psychographic D. rate of usage

C. Psychographic. In the example, the athletic apparel store used psychographics to divide the market, which means that the market is divided on the basis of a lifestyle choice—running. A business that segments the market on the basis of demographics considers factors such as the age, gender, and ethnicity of the population. Rate of usage is a type of behavioral segmentation, which involves dividing customers into groups according to their response to a product.

Which of the following may result if products fail to meet government standards? A. Request for additional monies from consumers B. Deletion of labels from products C. Redesign of packaging D. Payments for advertisements to promote a product's problems

C. Redesign of packaging. The Fair Packaging and Labeling Act requires product labels which identify the product, provide the name and address of the producer or distributor, and describe the contents of the package. A business would not care to pay advertising expenses to make people aware of its product's problems. Problems with products appear in news articles. In addition, the Consumer Product Safety Commission distributes information to the public about hazardous products. It also publishes the names of manufacturers and brands of injurious products as a warning to consumers not to purchase these products.

Which of the following is NOT a concept related to the time value of money: A. Interest rates B. Opportunity cost C. Scarcity D. Future value

C. Scarcity. The time value of money is a measure of its opportunity cost, or what the spender is foregoing by spending now instead of saving. Interest rates are a measure of that opportunity cost. Future value is the value of money at some future point.

The details regarding quotas for each salesperson would be outlined in what type of selling policy? A. Service C. Selling-activity B. Terms-of-sale D. Qualifying the customer

C. Selling-activity. *Selling-activity* policies involve salespeople's interactions with customers. *Terms-of-sale* policies involve the parts of the sale that concern customers most (e.g., pricing, discounts, etc.). *Service* policies involve what happens after the sale.

Why is it important to define your project precisely? A. So you can involve other people B. So you can create something tangible C. So you can achieve your objectives D. So you can spend less money

C. So you can achieve your objectives. Knowing exactly what it is you want to do (precise project definition) helps you achieve your objectives. It does not help you involve other people. And, unfortunately, it does not help you spend less money because—by detailing what you want to do—you might discover that your project will be more expensive than you realize.

when identifying risks that a business faces, management should focus on the A. probability of risk occurrence B. impact of the risks C. sources of the risks D. ability to transfer the risks

C. Sources of the risks. The first step in risk management is identifying the various risks the businesses face. Probability and impact are two dimensions of measuring risk. Transferring risk is a risk-response strategy.

Shelley is a union member who has been having problem's with management. She should report her concerns to her union's: A. mediator. B. president. C. steward. D. arbitrator.

C. Steward. Union stewards are called shop stewards, and they are union members elected by their peers to handle any grievances or problems members might have with management. A union president's responsibilities involve leading the union as a whole rather than assisting individuals.

Marketers are in charge of: A. maintaining adequate stock levels throughout the year. B. manufacturing new products. C. studying and analyzing customer satisfaction. D. making sure that the finished product gets where it needs to be.

C. Studying and analyzing customer satisfaction. Manufacturing new products, maintaining adequate stock levels, and making sure that the finished product gets where it needs to be are completed by other departments.

What do you need to identify if there are complicated jobs that members of the group are unable to perform? A. Technical equipment C. Support services B. Alternative tasks D. Replacement items

C. Support services are the technical or complicated activities that project members cannot do themselves. After you decide what type of additional help you might need to complete the project, you should identify the other people, organizations, and businesses that need to be involved in the project.

Which of the following is one way for a person to identify a tentative career interest: A. Find out which majors are popular B. Ask guidance counselors for suggestions C. Take ability assessment tests D. Locate high-income occupations

C. Take ability assessment tests. Ability assessment tests help individuals to identify their skills and their capacity to perform certain tasks. These tests will help them to decide what type of career would be of interest to them based on their skills. Counselors may be able to suggest specific occupations based on the results of an ability assessment test.

which of the following is an ethical issue that affects many businesses' product/service management function: A. using bait-and-switch tactics B. engaging in collusion C. testing on animals D. setting unrealistic sales goals

C. Testing on animals. Because many people believe that animal testing is unethical, many companies are looking for alternative ways to test the safety of their products. Setting unrealistic sales goals is an ethical issue related to the selling function.

What type of accounting method would most likely be used by a large business that has a large number of outstanding loans and customer charge accounts? A. COD method B. Cash method C. Accrual method D. Check method

C. The accrual method records transactions at the time they occur even if no money changes hands at that time. A large business would be likely to use the accrual method to have an accurate report of the amount of sales.

Which of the following is an advantage of promotion: A. Promotions are sometimes deceptive. B. Promotion encourages a lower standard of living. C. Promotion supports mass media. D. Promotion can create and reinforce stereotypes.

C. The mass communication media—radio, television, newspapers, and magazines—are either partially or completely supported by promotional dollars. Without this money, financial support of the media would probably be passed along to customers. Promotion encourages a higher standard of living.

Which of the following affects the amount of data that will be collected in a marketing-research project: A. The reliability of the available data B. The preferences of the researcher C. The method of data analysis to be used D. The amount of objectivity desired by the business

C. The method of data analysis to be used. If the data will be analyzed by hand, the amount of data must be limited. If the data will be analyzed by computer, the business can collect much more data because computers can analyze large amounts of data very quickly. The data should always be collected objectively. The reliability of the data is determined by whether they give the same results each time, and that cannot be determined until the data have been analyzed.

Which of the following is a circumstance that is most likely to cause interest rates to increase: A. Economic recession C. Tight money supply B. Low inflation D. Consistent investment spending

C. Tight money supply. Many factors affect interest rates, including business cycles, consumer spending, inflation, and the money supply. If the money supply is low or tight, there is less money available to lend. This causes interest rates to increase. The government might implement policies to tighten the money supply when the rate of inflation rapidly increases. During a recession, the government may lower interest rates to stimulate the economy.

What is one way that businesses use the technology of electronic data interchange in the selling function? A. To identify potential accounts C. To communicate with customers B. To fax sales data to employees D. To access competitors' web sites

C. To communicate with customers. EDI allows a business's computers to communicate with customers' computers and share information. EDI keeps track of sales and inventory and automatically place orders when inventory reaches a certain level. The system facilitates the sales process.

Why is it necessary for a business to price its products very carefully? A. To create goodwill in the community B. To track competitors' activities C. To get a fair share of the market D. To attract employees to the business

C. To get a fair share of the market. Gaining market share is often an important pricing goal. Businesses may lower prices in order to attract new customers and increase their market share. This could create goodwill in the community, but that is not the purpose of the tactic.

What is one way businesses use computer technology to obtain information to improve their product/service mix? A. Compiling detailed databases C. Tracking visitors to their websites B. Mailing questionnaires to customers D. Preparing interactive software programs

C. Tracking visitors to their websites. As a result of computer technology, many businesses have developed websites that are accessible to customers. The technology that allows businesses to have websites also makes it possible for those businesses to track the visitors to their websites and obtain information about them such as name, address, type of purchase, amount of sale, etc. Businesses often use this information to improve their product/service mix. For example, if a business determines that customers are not buying a certain product, they might improve the product or replace it. Businesses often compile the information they obtain through their websites in databases.

purchasing insurance to cover business risk is an example of risks being handled through A. retention B. avoidance C. transfer D. prevention

C. Transfer. Purchasing insurance to cover a risk transfers the risk to the insurer. The risk is not retained, avoided, or prevented.

What process determines the equilibrium price? A. Market-clearing B. Excess demand C. Trial-and-error D. Free enterprise

C. Trial-and-error. The equilibrium price is the point at which the quantity of a good that buyers want to buy and the quantity that sellers are willing to sell at a certain price are exactly equal. The equilibrium price is determined by a trial-and-error process because the equilibrium price is seldom, if ever, the price that actually exists in the marketplace. Market-clearing is the equilibrium price.

what is an advantage to companies that use integrated software programs? A. they reduce the need for firewalls B. the software doesn't require companies to purchase licenses for multiple users C. users can combine info from different applications D. users need to exit one application to open another

C. Users can combine information from different applications. Integrated software applications consist of two or more related computer programs that work together. For example, Microsoft Office combines a variety of programs that perform word- processing, spreadsheet, slideshow presentation, desktop publishing, and database functions. The software allows users to import data, text, or graphics from one application to another and allows users to access multiple applications at one time.

The price of raw materials used in manufacturing a product was double what had been projected for the year. Which of the following could the business determine by analyzing its financial information: A. Supply and demand C. Variances B. Equipment costs D. Errors in forecasting

C. Variances. Forecasts are estimates based on information known at the time the forecast was made and will not be exactly what actually happens. In this scenario, therefore, the variances would not be considered forecasting errors.

One reason why it is important to coordinate the headline and illustrations in an advertisement is to make the reader A. understand the company name. C. want to read the message. B. appreciate the style of layout. D. aware of the cost involved.

C. Want to read the message. For example, the headline should attract attention and lead the reader to the illustration, which supports the headline. The coordinated headline and illustration create a desire in the reader to want to know more about the subject of the ad and, therefore, to read the copy.

A Japanese marketer wants to sell large quantities of DVD players in the United States. The channel of distribution this business would most likely use would be producer to A. agent to consumer. B. wholesaler to consumer. C. wholesaler to retailer to consumer. D. consumer.

C. Wholesaler to retailer to consumer. This channel would be the most efficient because of the distances and amount of product involved. The wholesaler can buy in large quantities from the producer and sell smaller quantities to the retailer, who will then sell consumers as few or as many DVD players as desired. By definition, wholesalers do not sell directly to consumers. Agents may be found in the channel but would not relate directly with a consumer.

which of the following situations is an example of SUGGING? A. a salesperson offers a customer to try an expensive product free of charge B. a telemarketer asks a customer if s/he knows anyone who would want to buy a certain product C. a marketer tells a customer that s/he is conducting research, and then begins a sales pitch D. a business promotes a product by sending samples to customers without authorization

C. a marketer tells a customer that s/he is conducting research, and then begins a sales pitch. When a telemarketer asks a customer if s/he knows anyone who would want a product, s/he is looking for a referral. SUGGING = selling under the guise of research. It is deceptive and defames marketing-research as customers will not want to answer future research phone calls after experiencing SUGGING once.

The reason businesses usually obtain information is to apply it so that they can A. recruit employees. B. develop a database. C. accomplish a task. D. evaluate a source.

C. accomplish a task. The reason they obtain information is to use it to accomplish a task, such as locating new customers, organizing inventory, or developing a new marketing strategy. Simply obtaining information is not useful unless the business applies it to accomplish a task.

When writing e-mail correspondence to customers and coworkers, it is important to remember that the messages A. should include graphics to hold the reader's interest. B. should be written in an entertaining, informal way. C. are often seen by people other than the recipients. D. are usually deleted as soon as they are read.

C. are often seen by people other than the recipients.

Quote newspaper article: "Although unemployment has dropped slightly over the past few months, many politicians have indicated that they believe the government has done enough to get our country out of this recession." This is an example of information that contains A. statistics. C. criticism. B. historical facts. D. poll data.

C. criticism. When assessing information, it is important to discern fact from opinion and criticism. The example is a statement of disapproval, which is criticism. It is based on opinion or beliefs rather than facts.

Slotting allowances are an ethical issue that businesses must consider because these types of fees can A. increase customers' choices. C. discourage innovation. B. encourage high tariffs. D. decrease channel reliability.

C. discourage innovation. A slotting allowance (fee) is a cash premium that manufacturers pay to businesses to cover the costs involved in carrying a new product. Because larger manufacturers tend to have more money than small manufacturers, they are often awarded shelf space for new products because they can afford to pay higher slotting allowances. Slotting allowances do not always decrease channel reliability

An effective way to create a desire for others to agree with your ideas is by A. identifying concerns. C. explaining benefits. B. stating your case. D. gathering information.

C. explaining benefits.

When businesses invest funds to expand, they are involved in the process of A. selling. C. finance. B. depreciation. D. capitalism.

C. finance. This is the process of obtaining funds and using them to achieve the goals of the business. If one of the goals of the business is to expand, then investing funds in expansion is part of the finance process. Capitalism is an economic system that depends on honest, healthy competition among businesses.

Nelson needs to find out the exact model number of a printer to order the correct ink cartridge for a customer. To obtain accurate information quickly, Nelson should access A. his company's contact directory. C. his company's intranet. B. the manufacturer's accounting department. D. the manufacturer's production manager.

C. his company's intranet. Intranet databases have information on operations—product specifications, inventory levels, vendor contact information, customer sales records, etc. The manufacturer's accounting department, its production manager, and the company's contact directory are unlikely to have the information needed.

Technology has helped improve the distribution process by utilizing __________ among channel members. A. automated scheduling C. integrated information sharing B. electronic receiving D. audiovisual programming

C. integrated information sharing allows near-instantaneous computer decisions related to market information, customer information, supply and inventory information, etc. Electronic receiving is not a thing. The receiving process involves having employees check deliveries, and deciding when deliveries are scheduled.

Which of the following statements would be the best way for a job applicant to end an interview: A. "Mr. Maxwell, what did you say is the reason that this job is open?" B. "Ms. Collins, if you have any more questions, please give me a call." C. "Ms. Martin, I know that I can do this job, and I would like to have it." D. "Mr. Murray, I'd be happy to have this job, if you can't find anyone else."

C. is a good ending pitch. Mrs. Collins should be able to ask all questions during the interview.

People with a positive attitude are open-minded, which helps them to A. develop patience. B. remain cheerful. C. learn new skills. D. be intolerant.

C. learn new skills.

Knowing your personal strengths and weaknesses helps you to A. ask others for input about your strengths and abilities. B. identify potential strengths and weaknesses in others. C. make informed decisions about your future. D. perform well on a skills assessment test.

C. make informed decisions about your future.

The Sweets Company sells sugar, which is a commodity product. Most likely, the company has A. moderate pricing flexibility. B. maximum pricing flexibility. C. minimal pricing flexibility. D. complete control over market pricing.

C. minimal pricing flexibility. In a commodity market, there are many competitors with non-unique products, which creates minimal pricing flexibility over pricing for any producer. An uncontrolled market would allow for maximum pricing flexibility.

A snack food manufacturer provides a grocery store with a computer-developed diagram that shows how all of the food products should be displayed in the store. The manufacturer is providing a A. product placement. B. product diagram. C. planogram. D. prototype.

C. planogram. A planogram is a computer-developed diagram that instructs retailers on how to display products.

Ideally, in business, feedback should be A. all positive. B. all negative. C. positive and negative. D. avoided if possible.

C. positive and negative. Too much positive feedback provides no guidance for improvement in job performance

The Skintastic Cosmetic Company implemented a challenging sales promotion in which its independent sales consultants could earn bonuses, prizes, and vacations. This is an example of a company using ___________ as a sales incentive. A. cooperative advertising C. push money B. sweepstakes D. loyalty programs

C. push money. To increase market visibility, manufacturers often use incentive programs to motivate their independent sales consultants or distributors. These incentives, which are often called push money, may include cash bonuses, prizes, gift cards, or vacations. Sweepstakes involve games of chance in which customers win prizes.

Your company wants to find out why sales are declining at one of its three locations. As a marketing specialist, you think the reason may be that some customers have moved out of the area. To support your idea, a popular source of information you use is A. primary data from a survey. C. secondary data from company records. B. secondary data maintained in libraries. D. primary data from a marketing-research firm.

C. secondary data from company records. Your company would have already gathered information about population trends before opening its three locations. A survey is time consuming, costly, and may not give relevant information. Primary data from a marketing firm is expensive and time consuming.

When identifying risks that a business faces, management should focus on the A. probability of risk occurrence. C. sources of the risks. B. impact of the risks. D. ability to transfer the risks.

C. sources of the risks. The first step in risk management is identifying risks. By understanding the circumstances that increase risk, the business can determine how to measure, respond, and manage it. Probability and impact are two dimensions of measuring risk. Transferring risk is a risk-response strategy.

Visualizing yourself as you would like to be is a technique A. is seldom rewarding. B. does not work well. C. takes time and practice. D. is quick and easy to learn.

C. takes time and practice.

One way to demonstrate active listening is by A. focusing your attention on distractions B. interrupting the speaker to ask questions C. taking steps to minimize barriers D. concentrating only on the points you want to hear

C. taking steps to minimize barriers -- this may include shutting a door to keep the noise out, turning your device to silent

A high level of ethics will compel you to behave in a __________ way. A. suspicious C. truthful B. law-abiding D. questionable

C. truthful. A high level of ethics will compel you to behave in a truthful way, whether or not legal issues are involved.

Which of the following parts of a print ad often creates an image that people come to associate with that business: A. Photograph B. Headline C. Illustration D. Logotype

D Logotype. The logotype is the name and/or symbol used by a business. Businesses believe that having a unique logotype creates an image that people will come to recognize and associate with that business.

What might businesses lose if their employees are injured on the job and are unable to work? A. Goods B. Benefits C. Assets D. Sales

D Sales. Businesses may lose the opportunity to make sales if injured employees cannot be present to carry out their duties. Lost sales usually result in less profit, which can be a serious problem for a business.

which of the following is an example of persuasive messages that businesses write? A. interoffice memo B. E-mail C. handwritten note D. collection letter

D. A collection letter is a type of persuasive message that many businesses write to customers who are delinquent in making payments on their accounts. The purpose of the collection letter is to persuade customers to send payment or to contact the business to make some type of arrangement. Collection letters should not offend customers but should convince them to respond immediately. Many businesses write electronic mail, handwritten notes, and interoffice memos, but these types of messages are not necessarily persuasive.

Which of the following is an example of causal research: A. A pet-supply company reviews invoices and receipts to determine which line of dog food is generating the most sales. B. A large publisher holds a series of focus groups with teachers to gather opinions about the mathematics textbooks. C. A hotel chain places suggestion cards in its sleeping rooms to solicit feedback about its guests' level of satisfaction with its services. D. A quick-serve restaurant introduces a breakfast burrito to a limited segment of the market to determine product acceptability.

D. A quick-serve restaurant introduces a breakfast burrito to a limited segment of the market to determine product acceptability. Causal research focuses on cause and effect and tests "what if" scenarios. The answer exemplifies the "what if" scenario because the quick-serve restaurant wants to know what the market's response will be if it adds a breakfast burrito to its menu options.

which of the following is an example of causal research A. a pet supply company reviews invoices and receipts to determine which line of dog food is generating the most sales B. a large publisher holds a series of focus groups with teachers to gather opinions about the month textbooks C. a hotel chain places suggestion cards in its sleeping rooms to solicit feedback about guest satisfaction D. a quick-serve restaurant introduces a breakfast burrito to a limited segment to determine product acceptability

D. A quick-serve restaurant introduces a breakfast burrito to a limited segment of the market to determine product acceptability. Test-marketing is a "what if" scenario, which is causal research. Businesses often use existing data such as sales invoices to conduct exploratory research. A focus group is one method that marketers use to conduct exploratory research. A suggestion card is a type of survey, which is a form of descriptive research.

Which of the following is the best example of negative horizontal conflict among members in a distribution channel: A. A new electronics manufacturer engages in direct distribution strategies. B. An automobile manufacturer provides its authorized dealers with rebate programs. C. A retail business awards a construction contract to the company with the lowest bid. D. A restaurant franchisee uses unauthorized food suppliers that compromise brand integrity.

D. A restaurant franchisee uses unauthorized food suppliers that compromise brand integrity.

which of the following promotional methods is used by many apparel retailers because it shows consumers the latest fashions at a minimum expense to the business A. radio commercial B. magazine advertising C. fashion show D. newspaper advertising

D. Apparel and accessories are regularly advertised in newspapers. The ads can be illustrated, they have a short lead time, they cost less than some other forms of promotion, and they are seen by great numbers of consumers. Magazine ads and fashions shows are expensive.

The three categories of membership in a craft/trade union are A. novice, journeyman, and owner. B. novice, laborer, and supervisor. C. apprentice, journeyman, and owner. D. apprentice, journeyman, and master

D. Apprentices are novice workers. Journeymen are skilled craftsmen who have taken courses in their occupational area, passed a state exam, and been licensed. Masters are experienced craftsmen or tradesmen who have worked as journeymen and who are team leaders. Owners and supervisors usually are not union members.

Which of the following is an example of gathering information before making a decision: A. Watching movies B. Writing letters C. Reading novels D. Asking questions

D. Asking questions. Before individuals can make decisions, they need to obtain information about the problem or situation. One way of gathering information is to ask questions of friends, family, coworkers, or supervisors.

Kendra 's financial goal is to build wealth over time by making diversified investments. Which of the following financial services providers is most likely to help Kendra achieve her goal: A. Financial-auditing firm B. Mortgage company C. Investment bank D. Asset-management firm

D. Asset-management firm. Asset-management firms typically manage mutual funds, hedge funds, and pension plans. An investment bank is a financial intermediary that underwrites securities and facilitates mergers.

One way that technology has enhanced a business's ability to administer telephone surveys in a time-efficient manner is by using A. digital presentation software B. interpersonal fax interviews C. mechanical database networks D. automated computer systems

D. Automated computer systems. Digital voice devices often expedite the survey process in a more time-efficient manner than staff interviewers. Interpersonal fax interviews and mechanical database networks are not terms that are commonly used to describe marketing-information research technological resources. Presentation software refers to computer applications that generate multimedia or slide shows.

Which of the following is an advantage of the tracking method of data collection: A. Ability to observe nonverbal cues B. Stimulation of in-depth discussion C. Privacy concerns D. Automation

D. Automation. Tracking allows researchers to obtain, record, and organize massive amounts of data without humans having to do all the work. Privacy concerns are a disadvantage of tracking.

Which of the following is a type of credit card that can be used to make purchases from a variety of participating businesses: A. Petroleum C. Hotel B. Retail D. Bank

D. Bank. Bank credit cards can be used at any business that is affiliated with the system. This gives cardholders a wide range of businesses from which to choose. Retail, hotel, and petroleum cards are issued by individual companies and may be used only at their facilities.

Jeremy's Nutrition Company brands its new J-Bar protein bar with a logo, tagline, and color scheme. What is the final stage of brand loyalty that new products like the J-Bar strive to reach? A. Brand recognition B. Brand awareness C. Brand preference D. Brand insistence

D. Brand insistence. Brand loyalty steps: brand recognition/awareness —> brand preference —> brand awareness

To make sure that their budgets are effective what should businesses do with budget information? A. send it to all stockholders B. provide it to all top managers C. post it on bulletin boards D. communicate it to all employees

D. Communicate it to all employees. A budget is ineffective if no one sees it. Effective budgets are those that have been clearly communicated to all employees, so that each person in the company is aware of his/her effect on the company's profits. All employees should receive this information, not just top managers. Businesses usually send annual financial statements rather than budget information to their stockholders.

The prices of services in a new business are about the same as those of similar businesses in the area. This is an example of pricing that is A. strategic. C. realistic. B. flexible. D. competitive.

D. Competitive. A business must be aware of the prices offered by other businesses and make sure that its prices are competitive, especially for products that are similar. Realistic pricing is often associated with the quality of the product. Flexible pricing allows the business to raise or lower its prices in response to economic changes. Strategic is not a type of pricing.

Which of the following is a characteristic of the growth stage of a product's life cycle: A. Promotional budgets are low. C. Fads are adopted. B. Prices are raised. D. Competitors enter the market.

D. Competitors enter the market. In growth: sales rise rapidly, so new competitors enter the market to take advantage of the opportunity for profit. Prices remain the same or are lowered slightly. Promotional budgets remain steady or increase a little to build product awareness.

The ultimate goal of all economic activity is A. distribution. C. exchange. B. production. D. consumption.

D. Consumption. For consumption to occur, goods and services must be produced, or made. Producers, consumers, and resource owners exchange money payments for the use of their goods, services, and resources. Distribution examines how money payments are divided between producers and resource owners.

Which of the following is a potential job position within banking services: A. Real estate developer B. Public relations specialist C. Insurance broker D. Credit analyst

D. Credit analyst

which of the following are examples of customer-related services that a business might consider when setting price A. research, credit, advertising B. delivery, credit, advertising C. installation, advertising, research D. credit, delivery, installation

D. Credit, delivery, and installation. Services are costs for the business and should be considered when setting a product's price. Credit, delivery, and installation are types of services that businesses often provide their customers. Although advertising is a consideration when pricing products, it is a form of promotion rather than a service that businesses provide for their customers. Research is a product consideration when setting prices.

What is an advantage of product bundling to a business? A. The business is less likely to experience cash-flow problems. B. Customers are usually satisfied with the quality of all the bundled items. C. The business usually increases its profit margins by offering deep discounts. D. Customers are less likely to buy the individual items from competitors later.

D. Customers are less likely to buy the individual items from competitors later. Product bundling does not always reduce a business's cash-flow problems.

Which of the following sources of information might provide salespeople with the most information about actual product performance? A. sales displays B. Merchandise labels and tags C. Manufacturer's pamphlets D. Customers

D. Customers. An excellent source of information about what a product can or cannot do is customers who have actually used the product. The other alternatives provide excellent information about other aspects of the product such as care, proper usage, construction, price, and size.

What is the relationship between data and information? A. Information cannot become data unless it is presented in a report. B. Information becomes data after being processed and organized. C. Data and information are the same thing. D. Data become information after being processed and organized.

D. Data become information after being processed and organized.

Java Coffee House, located in the trendy Olde Towne area, advertises that it is an upscale place for single, young professionals to meet. Java is targeting a market based on: A. geographic segmentation C. behavioral segmentation B. psychographic segmentation D. demographic segmentation

D. Demographic segmentation is the division of a market based on its physical and social characteristics. These characteristics include income, age, gender, educational level, and life stage. Java Coffee is marketing to single, young people who are presumably well educated and have money to spend on entertainment.

Which of the following is a primary advantage of conducting a focus group to obtain marketing information A. moderator objectivity D. cost effectiveness C. limited prep D. discussion relevance

D. Discussion relevance. A focus group is a group that gathers to discuss a specific topic. When a business holds a focus group, it is collecting marketing information about a specific topic, primary research data that is relevant! Weaknesses or disadvantages for businesses that hold focus groups are that they can be expensive and can take a lot of time to prepare for. And, sometimes, the focus-group moderator projects a bias, which hurts the objectivity of the research.

Which of the following is the best way to handle dishonest customers: A. Mirror their behavior. B. Explain and demonstrate good service as many times as you need to. C. Never press for sales or decisions. D. Don't jump to quick conclusions.

D. Don't jump to quick conclusions. Explaining and demonstrating good service as many times as you need to is the best way to deal with suspicious customers. Never pressing for sales or decisions is the best way to deal with leave-me-alone customers. Mirroring behavior is the best way to deal with slow/methodical customers.

A business might bundle products together to sell at a lower price for a limited time in order to A. eliminate cash shortages. C. monitor promotional activities. B. limit product returns. D. encourage future sales.

D. Encourage future sales. Businesses bundle products to get customers to try a product they would not normally purchase. If the customers try the product, and like it, they might purchase the product as an unbundled item at another time, which encourages future sales. Businesses do not bundle products so they can limit returns, monitor promotional activities, or eliminate cash shortages.

Which of the following is an example of a public-relations promotion: A. Smithson's Bank promotes that it has added Saturday banking hours. B. The American Beef Association encourages consumers to eat beef. C. LensCrafters offers free sunglasses with the purchase of contacts. D. Firestone promotes its efforts to exchange tires on Ford Explorers.

D. Firestone promotes its efforts to exchange tires on Ford Explorers. Public-relations promotions are created to deal with controversial issues that are in the public's best interest and are also somehow related to the company. In this case, Firestone was trying to overcome a negative image.

Which of the following would be done first in an environmental scan: A. Identifying and analyzing important trends and issues B. Carrying out scanning activities C. Selecting trends and issues to act on D. Identifying participants and responsibilities

D. Identifying participants and responsibilities. Every employee should participate, although some employees may have more formal duties than others. After this step has been completed, businesses can move on to carrying out scanning activities, identifying and analyzing important trends and issues, and selecting trends and issues to act on.

Corporate branding provides a variety of products and product lines with a common A. strategy B. ranking C. platform D. identity

D. Identity. Corporate branding refers to the combined impressions, images, or experiences associated with a company or parent entity. A corporate brand may include a variety of products, but the name or corporate brand provides all products with a common identity. For example, PepsiCo is a corporate brand under which its Pepsi, Quaker Oats, Tropicana, Gatorade, and Frito Lay products are sold. Corporate brands do not necessarily provide a common platform, ranking, or strategy for products.

Which of the following is a possible weakness associated with a secondary-data source: A. Internet accessibility B. Recent industry approval C. Reasonable purchase price D. Inconsistent collection method

D. Inconsistent collection method. Although secondary- data sources can be inexpensive and provide current information, researchers must be careful to examine the way in which the source collected information. If the source publishes statistical data it has collected in an inconsistent or subjective way, the data may be skewed or exhibit bias. Industry approval, reasonable prices, and Internet accessibility are advantages associated with secondary-data sources.

Which of the following types of credit requires a down payment: A. Revolving credit C. Credit card B. Open-account credit D. Installment credit

D. Installment credit is a type of credit account set up to handle one total amount of credit which is to be paid off in regular installments. The credit user makes a down payment and signs an agreement to pay monthly installments, including interest, until the total is paid. Revolving credit limits the total amount of money that may be owed and charges interest on outstanding balances. Open-account credit allows credit users to buy at any time during a set period, usually 30 days.

P&G donates thousands of bottles of Dawn to wildlife conservation programs to clean animals affected by oil spills and other ecological hazards. This is an example of what promotion type and purpose? A. product; reinforce the company's commitment to producing high quality products B. institutional; to show the company's support of learning and education initiatives C. product; to create a positive image of the company's employees D. institutional; to indicate the company's interest in environmental issues

D. Institutional; To indicate the company's interest in environmental issues. P&G is reinforcing an image that indicates its interest in and concern about the environment. The company would most likely demonstrate its support of learning and education by donating items to schools or offering college scholarships.

What is an advantage to businesses that use product bundling strategies? A. Businesses usually reduce their suggestion selling and advertising efforts. B. It usually reduces the need for the business to follow up with customers. C. Businesses tend to spend less time training their employees about the products. D. It often reduces customers' comparison-shopping activities.

D. It often reduces customers' comparison-shopping activities. Product bundling provides customers with a greater sense of value because they are getting more for less. When customers believe that they are getting a bargain, they are more likely to purchase the bundled package quickly rather than comparison shop for similar products.

What type of rating scale involves asking respondents to select on of a limited number of options listed on a questionnaire? A. paired comparison B. constant-sum C. percentage D. itemized

D. Itemized. Questions are often designed to require respondents to select one of a few options. The Likert scale is an example of an itemized rating scale because it rates response according to a numerical value. A constant-sum rating scale requires the respondent to assign a value (e.g., percentage) to the options provided on the questionnaire. A paired comparison scale asks respondents to make comparisons on the basis of specific circumstances or criterion.

Josh is a small business owner who hires a lawyer to represent him in court. In this situation, Josh is the A. representative. B. agent. C. judge. D. principal.

D. Josh is the principal, while his lawyer is the agent. In an agency relationship, the agent has authority to act on behalf of the principal.

When using mind mapping to generate product ideas, you begin by writing down the main problem or A. situational analysis. B. supporting facts. C. primary associations. D. market opportunity.

D. Market opportunity. When a situation exists to fulfill a market's unmet needs, there is a market opportunity. Entrepreneurs and businesses use creative-thinking techniques during the product- development process, which involves finding ways to take advantage of the market opportunity that presents itself.

A marketer uses a headline in an advertisement that says, "Cures athlete's foot in 2 hours". The advertisement also includes a disclosure that says, "This product has not been shown to cure athlete's foot in 2 hours." Would the FTC approve of this headline and disclosure? A. No, the disclosure and claim say the same thing. B. Yes, the disclosure validates the claim. C. Yes, as long as there is a disclosure, any claim is fine. D. No, the disclosure cannot contradict the claim.

D. No, the disclosure cannot contradict the claim. If the disclosure contradicts the claim, the claim must be modified because it is deceptive.

Mark has decided to hire a financial-services provider to help him plan his long-term financial goals. Which of the following should he do first: A. Contact his bank C. Interview potential candidates B. Search online D. Obtain referrals from trusted friends

D. Obtain referrals from trusted friends.

Which of the following areas of product/service management is important in attracting customers and in protecting products: A. Idea generation B. Concept testing C. Labeling D. Packaging

D. Packaging is an area of product management that has increased in importance as the number of items available to consumers has increased. The package must be eye-catching and protect the product, and identify the product brand and position it. Labeling provides information about the product and attracts customers but does not protect the product.

what marketing function directly affects how well a product will sell and the amount of money the business will make? A. channel management B. promotion C. product/service management D. pricing

D. Pricing. Pricing is the marketing function that involves determining and adjusting prices to maximize return and meet customers' perceptions of value. If customers believe that the product's value is worth the price, then the product is likely to sell well. If the product sells well, then the business earns revenue and a profit.

Loggins Forestry and Mill Company sells wood to Henderson Wood Products. Henderson sells the wood to Franklin Construction Company, who uses the wood to build homes and office buildings. What is the channel of distribution for the wood products? A. Agent to industrial user to retailer to consumer B. Producer to industrial user to consumer C. Agent to wholesaler to consumer D. Producer to industrial distributor to user

D. Producer to industrial distributor to user

A training test that measures the ability to perform a skilled operation is a(n) __________ test. A. aptitude C. knowledge B. personality D. proficiency

D. Proficiency. This type of test measures an individual's ability to perform on the job. An aptitude test measures the ability to learn a particular skill.

Participating in trade shows to communicate with target audiences often is an important part of a business's A. sponsorship strategy. C. direct sales effort. B. advertising campaign. D. promotional program.

D. Promotional program. A promotional program is a framework for the promotional activities of a business. Participating in trade shows is a promotional activity because it involves a business displaying and/or demonstrating its products to build sales leads and interest.

The results of exploratory research are often A. unusable B. specific C. quantitative D. qualitative

D. Qualitative. The results of exploratory research are often qualitative, or based on thoughts, opinions, or feelings. They are not necessarily specific. They are usually not quantitative, or measurable. They are usable for generating hypotheses or familiarizing marketers with the problem at hand.

Which of the following is a reason why many corporations locate their factories and businesses in foreign countries: A. Low labor costs in their home countries C. Lack of cooperative trade agreements B. Unfavorable monetary policies D. Reduced transportation costs

D. Reduced transportation costs. Many corporations locate their factories and businesses in foreign countries in order to be close to their market, and reduce transportation costs. Low labor costs in their home countries, lack of cooperative trade agreements, and unfavorable monetary policies are reasons why corporations operate domestically.

Legal avenues that manufacturers take to gain more control in product distribution channels to consumers include all of the following except A. establishing one or more vertical marketing systems. B. building strong consumer brand loyalty. C. arranging alternative retailers. D. refusing to sell to uncooperative retailers.

D. Refusing to sell to uncooperative retailers. This type of action may be considered a violation of antitrust acts.

Which of the following departments in many businesses is responsible for generating product ideas: A. Sales and marketing B. Information technology C. Executive management D. Research and development

D. Research and development

A business taking back its used products and recycling or properly disposing of those products is an example of the ethical practice of __________ distribution. A. closed C. joint B. internal D. reverse

D. Reverse distribution involves customers returning used products to the manufacturer, who reuse them, recycle them, or properly dispose of them.

Which of the following is an example of a situation in which a business might decide it needed to decrease expenses after comparing the categories in its profit-and-loss statement: A. Revenues are rising. C. Cash flow is steady. B. Salaries are lower. D. Sales are the same.

D. Sales are the same. Businesses compare the categories in their profit-and- loss statements in order to make decisions about spending. By analyzing the profit-and- loss statement, a business can find out if sales are keeping up with expenses or if it is spending more in order to make the same amount of money. If a business finds that its sales are the same and have not increased over a period of time, the business might decide to decrease expenses in order to increase profit.

The method for selecting sampling units out of the target population is the A. skip interval. B. stratum. C. sample size. D. sample design.

D. Sample design. The method for selecting sampling units out of the population is the sample design. A stratum is a group of sampling units within the population. Sample size is the number of sampling units that will be drawn from the population. Skip interval is the number of spaces between each sampling unit drawn in systematic random sampling.

Which stage of production involves diminishing returns? A. Third B. Fourth C. First D. Second

D. Second. first stage of production = increasing returns. second stage = total product is still increasing, but not as quickly. The company sees diminishing returns. During the third stage = negative returns. There is no fourth stage of production.

Which of the following marketing strategies is appropriate for the decline stage? A. Increasing promotion expenditures B. Marketing to early adopters C. Expanding the product line D. Selling the product online

D. Selling the product online. Expanding the product line is something that happens during the growth stage. Marketers usually decrease promotion expenditures during the decline stage.

A university is considering changes to its business administration degree. To obtain feedback on the idea from students, the university selects a sample of business majors who are seniors. What type of sampling did the university use? A. Cluster B. Proportionate C. Stratified random D. Simple

D. Simple. A simple sampling strategy is used when the researchers believe that the population is relatively homogeneous for the characteristic of interest. In this case, the researchers would feel that people sharing the same major, business, would have similar interests.

A university is considering changes to its business administration degree. To obtain feedback on the idea from students, the university selects a sample of business majors who are seniors. What type of sampling did the university use? A. Cluster C. Stratified random B. Proportionate D. Simple

D. Simple. A simple sampling strategy is used when the researchers believe that the population is relatively homogeneous for the characteristic of interest. Stratified random sampling is used when subgroups in the population differ a great deal in their responses or behavior. Marketers would choose cluster sampling when it would be impossible or impractical to identify every person in the sample.

Of the following investments, which can bring roller-coaster ups and downs: A. Savings accounts C. Money market accounts B. Bonds D. Stocks

D. Stocks. Savings accounts, money market accounts, and bonds are stable investments that do not go up and down frequently. However, stocks can go up and down often.

When customers complain, what is the general rule that business personnel follow in order to assure that customers receive fair and consistent treatment? A. Customer complaint plan C. Customer service plan B. Store procedure D. Store policy

D. Store policy. Procedures are the step-by-step processes that personnel follow in performing specific tasks. Customer service plan and customer complaint plan are fictitious.

what is a benefit of investing in mutual funds? A. investors' fees are waived because it is an ownership investment B. investors are guaranteed a minimal amount of return C. investors earn interest because it is a lending investment D. investors have access to a fund manager's expertise

D. The benefit to shareholders of placing money in mutual funds is that a well-trained fund manager has the expertise to make smart investment decisions on their behalf. Shareholders are not guaranteed a minimal amount of return. Disadvantages to investing in mutual funds are that shareholders pay fees for someone to manage their investments, and the mutual-fund earnings are taxable.

Which of the following is a true statement about secondary dimensions of diversity: A. They are mental aptitudes. B. They are physical traits. C. They are determined by a person's subculture. D. They can change over time.

D. They can change over time. Secondary dimensions of diversity are differences that may change throughout one's lifetime (i.e. language, religion, income, location, family status, work experience, communication style, and education level). Physical traits and mental aptitudes are primary dimensions of diversity, unchangeable inborn differences. A person's subculture may influence a person's secondary dimensions of diversity, but it does not determine these dimensions.

Which of the following situations is an example of a response error A. Ann developed a written survey containing open-ended questions B. Jenny coded a survey respondent's answer with the number two instead of three C. Ben found that the sample group was not representative of the target market D. Tim did not answer the last two questions on a written survey

D. Tim did not answer the last two questions on a written survey. Response errors occur when respondents do not correctly answer or complete a survey. These errors may affect the quality of the overall data and the analysis process. Because Tim didn't answer two questions on a survey, a response error occurred. Errors may be intentional or unintentional. Incorrect coding is an editing error. When a sample group is not representative of the target market, a procedural error occurs. Developing open-ended survey questions does not indicate a response error.

Which of the following is the most important reason for creating a written plan for a marketing-research project: A. To make it easy to analyze the data collected B. To implement the marketing concept C. To keep the project from going over budget D. To keep the project on track

D. To keep the project on track

During what phase of the product life cycle is a business most likely to reduce its prices because copycat products have entered the marketplace? A. Growth C. Trough B. Maturity D. Peak

A. Growth, competitors are entering the market with copycat products. When consumers have more products from which to choose, the business is likely to reduce the product's price to remain competitive in the marketplace. During the *maturity, businesses tend to focus on stabilizing the product's price to maintain a share of the market.*

In promotional communication the feedback that buyers give to senders/businesses is usually in the form of A. purchases B. complaints C. referrals D.suggestions

A. Purchases. By purchasing the goods or services, buyers let the senders know that they received the promotional message and respond by making purchases. A complaint is a customer's expression of a dissatisfaction. A suggestion is a recommendation. Referrals are individuals or businesses to whom salespeople are recommended.

If a business lowers the price of a product for the purpose of taking business away from competitors, the result of this action often is a(n) A. increase in profit. C. decrease in cost. B. gain in market share. D. reduction in staff.

B. gain in market share.

A decrease in the availability of raw materials is an economic risk that may result in __________ for a business. A. high interest rates B. increased regulation C. financial loss D. lower turnover

C. Financial loss. For example, a decrease in the availability of petroleum can cause business's transportation costs to skyrocket. High interest rates is a business condition that can create economic risks. The involvement of government in the regulation of business may cause financial loss for some businesses. High turnover, rather than low turnover, is an economic risk.

during which phase of a product's life cycle do its profit margins tend to narrow? A. introduction B. decline C. maturity D. growth

C. Maturity. During this stage, sales peak, and then increase at a slower rate or start to decline. To maintian market share, they reduce price -- the business's profit margins tend to narrow. If the business maintains the product's pricing, and sales start to slow or decline, the profit margins will also narrow. During the decline stage, profit margins are likely to start declining rapidly.

Ingrid is able to access information from her desktop publishing software, word-processing software, and spreadsheet software at the same time on her personal computer. This is an example of an operating system with _____________ capabilities. A. multiprocessing C. multitasking B. multi-user D. multithreading

C. Multitasking. When the OS allows the user to open and use more than one software program at a time, it has multitasking abilities. An OS that allows more than one user to access a particular program at one time has multi-user capabilities. An OS that allows several CPUs (computers) to access a single program has multiprocessing capabilities. Multithreading capabilities allow different components of one computer program to run at the same time.

Builderwebs is an online startup that builds websites for businesses for $100 per web page. For just $10 more, the company will also optimize the web page for search engines. Which tactic is Builderwebs using to cross-sell to its customers? A. Customer loyalty program B. Cross linking C. Product bundling D. Content marketing

C. Product bundling

Exit interviews can be conducted in each of the following ways except by A. interview. C. third-party. B. questionnaire. D. phone survey.

C. Third-party. Third-party is an ineffective way to conduct an interview because it relies on another person's interpretation of how an employee felt or the reasons why the employee has resigned. The most effective way to conduct exit interviews is in person, but they can also be conducted by questionnaire or telephone.

A group of workers who have joined together for a common purpose is called a(n) A. federation. C. labor union. B. union shop. D. agency shop.

C. labor union. A union shop and an agency shop are types of union security agreements.

A benefit to the seller of bundling products is that doing so A. reduces product-quality problems. B. eliminates the need to comparison shop. C. often lowers the marketing costs. D. usually decreases product-placement activities.

C. often lowers the marketing costs. Bundling products often lowers a business's marketing costs because the business is selling three items together as one unit rather than three individual items. Bundling products for one low price communicates value to consumers and may reduce their comparison shopping activities, but *comparison shopping cannot be eliminated*. Product bundling does not usually decrease a business's promotion goals in relation to product placement.

an advantage of forming collaborative partnerships with coworkers is that A. decision making tends to take less time B. conflict among various departments usually decreases C. discussions usually stay focused and on topic D. different perspectives often facilitate creativity

D. An advantage to collaboration is that individuals have different perspectives, which can help generate different types of creative ideas. Disadvantages to collaboration is that conflict may occur when others do not agree with an idea, discussions may go off topic and waste company time and money, and decision making may take longer to achieve.

Ben and Tasha are coworkers who are applying for the same supervisory position in the company and now they are not speaking to each other. The reason for the conflict is A. unclear expectations. C. exclusion. B. unclear boundaries. D. authority.

D. Authority. Conflicts occur for many reasons. Power struggles can arise when people want to control, or be in charge of, the same situation. In the example, Ben and Tasha want the same job, so the reason for their disagreement is authority.

a company's computer network allows many users to access the same programs on different computer units throughout the company. what type of OS is the company using? A. hosted B. multithreading C. augmented D. multiprocessing

D. Multiprocessing. The computer's operating system consists of the components needed to run all of the computer applications and programs. An operating system that allows several central processing units (computers) to access a single program has multiprocessing capabilities. *Multithreading capabilities allow different components of one computer program to run at the same time.* Augmented and hosted are not types of operating systems.

Determine which of the following is a true statement: A. The steps in marketing research must follow a certain order, and none can be eliminated. B. The order of the steps in marketing research can be changed to suit the business. C. The business can leave out some of the steps in marketing research in certain situations. D. The amount of data being gathered determines the order of the steps in marketing research.

A. The steps in marketing research must follow a certain order, and none can be eliminated. This is a primary characteristic of marketing research. The business must follow a step-by-step research process that includes gathering, recording, and analyzing information—in that order.

Allison is attending a business seminar. Because the seminar presenter is speaking very quickly, Allison is having a difficult time taking accurate notes. What technique would help Allison take notes quickly? A. Use abbreviations and symbols C. Focus on the subtopics B. Write notes on index cards D. Ask the speaker to provide handouts

A. Use abbreviations and symbols

Businesses try to maintain their operating equipment in good condition because major breakdowns could cause a business to A. close. C. expand. B. relocate. D. remodel.

A. close. Businesses try to maintain their operating equipment in good condition because if it breaks down, the business might be forced to close until the equipment can be repaired or replaced.

Advertising that a product works so well that it never needs to be repaired is an example of using guarantees as a A. promotional tool. B. way to point out features. C. competitive tool. D. way to protect the business.

A. promotional tool.

"How can we alter our existing product so it will appeal to another market?" is an example of a A. strategy-oriented decision problem. C. market-research analysis. B. discovery-oriented decision problem. D. market-situation analysis.

A. strategy-oriented decision problem. A decision problem states the purpose of or need for the marketing research. Strategy-oriented decision problems involve answering the questions "how?" or "which?". Discovery-oriented decision problems involve answering the questions "what? or "why?".

Decision making can be a difficult process, especially as the_______ rises. A. lack of competence B. number of participants C. amount of money D. level of uncertainty

D. Level of uncertainty. The difficulty of a decision increases with the level of uncertainty. Amount of money, number of participants, and lack of competence may themselves increase the uncertainty, but it is the uncertainty itself that causes increased difficulty.

A company hangs a poster with its brand promise in its customer service department to make sure employees have the brand in mind. This is an example of a A. touch point. B. distributor brand. C. logo. D. brand cue.

D. brand cue.

A company's managers ask themselves, "Why is our market share dropping?" This is an example of a __________-oriented decision problem. A. situation B. strategy C. research D. discovery

D. discovery. Discovery-oriented decision problems are aimed at answering the questions "what?" or "why?" Strategy-oriented questions are aimed at answering the questions "how?" or "which?"

An important step in the process of purchasing equipment and supplies for the business is A. selecting vendors. C. monitoring competitors. B. reviewing revenues. D. visiting trade shows.

A Selecting vendors. Businesses often buy from several vendors, or ask several vendors to submit bids. Therefore, an important step in the process of purchasing equipment and supplies for the business involves selecting the vendors. Businesses often establish criteria for selecting vendors such as reputation, quality of goods, delivery time, price, discounts, etc.

How should the business employee handle a situation in which the customer has little to say? A. Ask questions that can't be answered "yes" or "no" B. Wait until the customer is ready to open up C. Put the customer at ease by doing all the talking D. Try to close as soon as possible

A. Ask questions that can't be answered "yes" or "no". Silent customers are a type of slow/methodical customer. The salesperson should be patient, try to draw the customer out, and try to determine the customer's needs through appropriate questions.

A great way to demonstrate the viability of a good or service is to show that it worked in a real-world application. Which of the following public relations tactics would be the best way to do this? A. Case studies B. Whitepapers C. Newsletters D. Press releases

A. Case studies allow a company to showcase a real-world application of its product or brand with proven results and statistics. White papers showcase a company's expertise on a subject. Newsletters and press releases are great for awareness, but rarely contain the information to show the results of implementing a good or service for a client/company/consumer.

At work, Bob is assigned to be on a team of five people that will create a new product. Which action can Bob take to participate in the team in a useful way? A. Find out what other people in the group know about the product B. Encourage the team to avoid setting ground rules C. Keep the group on track by stopping others from offering unusual ideas D. Walk around the room during discussions to keep energy in the group

A. Find out what other people in the group know about the product. Unusual ideas should not be avoided.

A downturn in the economy has forced a home builder to lower its prices. This company has__________ prices. A. flexible C. inflexible B. realistic D. competitive

A. Flexible. Competitive pricing occurs when you try to meet or beat your nearest competitor's prices. Inflexible pricing occurs when a company refuses to change its prices to meet customer demand.

During which stage of the product life cycle should a business focus on the points of difference between its product and its competitors' products? A. Growth C. Declining B. Maturity D. Introductory

A. Growth. During the growth stage, there are typically more competing products on the market. During this time, the business is likely to use promotional activities to differentiate its product from those of its competitors. During the introductory stage, promotion efforts are designed to inform the target market that the new product exists. Because the product is well established on the market during its maturity stage, a business's promotional efforts tend to focus on reminding customers of the product's benefits.

A clothing manufacturer checks one pair of pants out of every shipment to ensure the quality of its product. This process is known as quality A. inspection. B. guarantee. C. delivery. D. assurance.

A. Inspection. Checking a sample item for defects after it has already been produced is part of a process known as quality inspection. Quality assurance is a process businesses use to prevent defective products from being created, not just to eliminate or correct them after they've already been produced. Quality guarantee and quality delivery are not traditional terms used in operations or quality control.

How does having a customer-service mindset benefit a business's employees? A. It helps employees advance in their careers. B. It helps the business achieve its profit goals. C. It creates a competitive work environment. D. It increases the employees' efficiency levels.

A. It helps employees advance in their careers. Employees who are customer-oriented often receive compliments from customers, positive performance evaluations, and raises and/or promotions. Efficiency levels and the level of competitiveness vary from person to person. Achieving the business's profit goals benefits the employer.

FairLawn Manufacturing will replace or repair the motor of its Cut-rite riding lawnmower for one year after the purchase date. This is an example of a A. limited warranty B. full warranty C. unconventional guarantee D. service guarantee

A. Limited warranty. The manufacturer states that it will replace a specific part (motor) of the lawnmower if it does not work properly. A full warranty covers the entire product. A guarantee is a promise made to the consumer that a product's purchase price will be refunded if the product is not satisfactory.

Costs and available resources are especially important factors for product/service managers to examine during which phase of product/service management? A. New-product development B. Elimination of weak products C. Idea generation D. Monitoring of existing products

A. New-product development. Costs and available resources are especially important factors for product/service managers to examine during the new-product development phase of product/service management. A company may have a great idea for a new product, but it may not be cost-effective if it is too expensive to develop and produce, or if the needed materials are too scarce to obtain affordably. It is too late by the time the product is already on the market (in the monitoring or elimination phases). Idea generation is just one stage in the new-product development process.

a business sends a survey to ask its customers about their buying intentions for the next year and will use the data to develop the annual sales forecast. What type of sales forecast is the business using? A. qualitative B. cooperative C. exploratory D. predatory

A. Qualitative. A sales forecast is a prediction of future sales over a specific period of time. Businesses use many tools to forecast sales. *Qualitative methods are based on expert opinions and feedback, as well as personal experience.* The information gathered from this type of survey usually does not provide specific numerical data that the business can obtain from previous sales reports; however, it does help the business identify and consider customer trends when it develops its sales forecast. Cooperative, predatory, and exploratory are not types of sales forecasts.

In sales ethics, when salespeople answer questions they don't really know the answers to, they are A. simply guessing. C. acting aloof. B. displaying arrogance. D. plainly deceiving.

A. Simply guessing. Whether or not they are displaying arrogance or acting aloof is not within the main focus of sales ethics. Plainly deceiving a customer is a legal issue. Guessing may or may not be considered outright deception.

Businesses may price goods with a higher-than-average markup when A. the risk of markdown is great. B. customers are given little service. C. handling expenses are low. D. stock turnover is high.

A. The risk of markdown is great. This would include fads and seasonal items that might need to be marked down significantly in order to sell. A lower-than-average markup is generally used when handling expenses are low, customers are given minimum service, and stock turnover is high.

Is the following statement true or false: Features and benefits, price, availability, construction, and warranties are all components of product knowledge? A. True, salespeople use this information to answer questions. B. True, these are the only components of product knowledge. C. False, product knowledge focuses only on the product. D. False, product information only explains features and benefits.

A. True, salespeople use this information to answer questions. Knowing product characteristics such as features and benefits, price, availability, construction, and warranties will help salespeople answer customer questions. These characteristics, however, are not the only aspects of product knowledge. Knowing as much as possible about the product, from its source to post-sales information (such as warranties), will give a salesperson an advantage in making the sale.

If you used a query in your database, you would most likely want to: A. view your requested data in one datasheet. B. close the database. C. create a new row in a table. D. input new information into the database.

A. View your requested data in one datasheet. Queries allow you to retrieve specific data and view it in one datasheet. This is helpful if you need to view certain data that are spread out throughout your database.

Chandra is in charge of data security in a large corporation. To make sure the data security is effective, Chandra should hire a third party to conduct a yearly A. audit. B. encryption standard. C. backup. D. employee background check.

A. audit. A yearly audit by a third party is good practice to make sure business rules are being implemented properly by all team members. Encryption standards should be implemented, but it isn't necessary to have a third party inspect the encryption tools unless there is a known breach. Backups of secure information should be done daily or as often as possible.

An advantage of newspaper advertising over television and radio promotion is more A. consumer interest in the ads. B. effective use of color. C. sensory appeal. D. prestige from being local.

A. consumer interest in the ads. Many people read newspapers as much for the advertisements as for the news content. In radio and television, large numbers of consumers "tune out" the commercials because they have little or no interest in the advertisements.

A business might use product bundling strategies when it wants to A. deplete slow-moving items from its inventory. B. lower its advertising expenses and publicity efforts. C. build ongoing relationships with its customers. D. substitute brand products with generic items.

A. deplete slow-moving items from its inventory. A business that wants to deplete slow-moving stock might package the items with items that sell well, in order to eliminate the slow-moving items from its inventory. Businesses generally want to deplete slow-moving inventory because it costs them money to store the products for long periods of time.

Consumers may be hesitant to believe information in ads for a good or service because advertising A. is necessarily biased. C. raises the price of the product. B. is intended to be misleading. D. is directed toward a mass audience.

A. is necessarily biased. Consumers know that the advertiser must present the product in the best possible light, while product weaknesses are not mentioned. Advertising does not necessarily raise the price of a product.

An example of a lead that a salesperson might obtain from sources within his/her own company is a lead A. obtained from an industry trade show. B. obtained at a service club meeting. C. from a personal friend. D. found through cold canvassing.

A. obtained from an industry trade show.

A business has extended its inexpensive product line to include larger, more expensive models. This is an example of the product-mix strategy known as A. trading up. B. trading down. C. alteration. D. positioning.

A. trading up. A product-mix strategy in which a business adds a higher priced product or product line to its product mix is trading up. Trading down is a product-mix strategy in which a business adds a lower priced product or product line to its product mix.

Because product quality and price can easily be matched, customer service becomes a key component in business A. careers. B. communications. C. competition. D. forecasts.

B Competition. Because product quality and price can easily be matched, customer service becomes a key component in business competition. In selling, customer service is where the real competition among businesses begins. As a salesperson, you must have the ability to show your prospects that your company meets (and hopefully exceeds) customer service expectations.

Ebony is creating her résumé to send to potential employers. Which of the following should Ebony do when describing her work experience: A. List the technical training that she has received B. Briefly describe her previous job responsibilities C. Clearly explain her work interests and career goals D. Provide her complete address and telephone information

B. Briefly describe her previous job responsibilities. Work interests and career goals, technical training, and the applicant's address and telephone information are found in other sections of the résumé.

The C Corp, an airplane parts producer, is expanding its operations to achieve efficiency through mass production. What technology would best help the company expand and streamline its operations? A. Technical data management system (TDMS) B. Computer-aided manufacturing (CAM) C. Electronic data interchange (EDI) D. Material requirements planning (MRP)

B. CAM is a process in which computers are used to collect and store data and to instruct automated manufacturing equipment in the production process. A *technical data management system* (TDMS) is a document management system dealing with technical/ engineering documents. An electronic data interchange (EDI) is used to send information from one company to another electronically. *Material requirements planning* (MRP) is a production planning and inventory control system.

Jamie is an accountant at a furniture store. As soon as customers pay cash for their purchases, he records the sales in the accounting books but not if they charge their purchases. What type of accounting method is Jamie using? A. systematic B. cash C. accrual D. automatic

B. Cash. With the cash accounting method, income and expenditures are recorded at the time the money changes hands. Because Jamie is recording the sale of purchases as the customers pay cash for them, he is using the cash accounting method. The accrual method of accounting records transactions at the time they occur even if no money changes hands at that time. Systematic and automatic methods are not types of accounting methods.

A business might use advertising database to A. create new advertising materials B. create interactive, online services and promotions C. catalog specifications of products D. maintain employee records

B. Create interactive, online services and promotions. Businesses often use advertising databases to create interactive, online services and promotions. A good advertising database allows a business to collect, store, and use information from its web site just as it would offline. For example, information a business collects with an online survey form might allow the business to provide a list of personalized goods and services to customers when they return to the site. While database records might suggest the timing of new advertising materials, it will not generate them.

Accounting computer software programs increase the efficiency of accounting activities because they are used to A. track payroll activities and develop annual reports. B. create invoices and record customer payments. C. monitor market share and summarize accounts payable data. D. organize tax records and produce presentations.

B. Create invoices and record customer payments. Accounting software allows businesses to create invoices, record customer payments, track payroll activities, summarize accounts payable, and organize tax records. Businesses use word-processing software to produce annual reports and presentation software to produce visual aids for presentations. Businesses do not use accounting software to monitor market share.

advertisements may be deemed unfair if they cause substantial injury to customers. regulators have determined that substantial injury involves A. cognitive harm B. monetary harm C. emotional harm D. behavioural harm

B. Monetary. Is harmful if it coerces consumers to purchase products that they do not want. Even if an advertisement causes cognitive harm (reinforcing stereotypes), emotional harm (invoking fear), or behavioral harm (causing aggressive behavior), regulators usually don't consider it to be unfair unless it causes consumers to spend money on items that they don't want.

A business can enhance its customer-service levels after the sales transaction has occurred by A. arranging financing and suggestion selling. B. offering training programs and providing technical support. C. providing product information and generating referrals. D. checking inventory status and advertising product specials.

B. Offering training programs and providing technical support are two ways in which a business can provide customer service after the sale. Arranging financing, suggestion selling, providing product information, checking inventory, and advertising are actions that businesses take before the sales transaction occurs.

a business's finance function may be compromised by groupthink because the practice is likely to A. provoke conflict because it encourages others to express their opinions B. pressure employees to conform under questionable circumstances C. hinder consensus building in favour of individuality D. take a lot of time to evaluate problems to make ethical business decisions

B. Pressure employees to conform under questionable circumstances. *Groupthink is a psychological phenomenon that evolves when conformity and the cohesiveness of the group become more important than the group's objective, purpose, or problem.* Members sacrifice their individuality, opinions, and personal ethics so they are not ostracized from the group. In its extreme form, groupthink practices may result in unethical practices such covering up financial mistakes, using company money inappropriately or carelessly, lying to the business's shareholders about the financial health of the company, embezzling activities, etc.

Businesses often maintain records about vendors' pricing, delivery terms, and credit policies and use the information in the records to A. negotiate higher discounts. C. monitor inventory levels. B. award purchasing contracts. D. follow safe shipping procedures.

B. award purchasing contracts. When selecting a vendor, a business usually wants to buy from the vendor that offers the best price for the value, has reasonable delivery terms, and favorable credit policies. By comparing the information about each vendor, a business can make an informed decision about the best vendor.

How food products can be used generally is determined by their A. traits. B. grades. C. labels. D. brands

B. grades. The U.S. Department of Agriculture has identified different grades for about 300 food products. These grades determine how the products can be used. Some lower grades indicate that the foods must be used as ingredients in other food products rather than for straight human consumption.

Distribution examines how income is divided between A. consumers and resource owners. B. producers and resource owners. C. consumers and producers. D. producers and economizers.

B. producers and resource owners. Distribution examines how producers and resource owners divide the income that they receive from consumers. Resource owners are individuals and organizations who provide human resources, natural resources, or capital goods for use in production.

A customer buying a certain vehicle because it is equipped with various types of safety devices is motivated to buy because of __________ reasons. A. logical B. rational C. emotional D. patronage

C. Emotional. One *emotional motivator is fear, which influences customers to buy certain products to be safe and protected against injury*. An example is buying a certain vehicle because it is equipped with various types of safety devices. Rational motives appeal to the sense of logic or judgment. Patronage motives are based on loyalty to a particular business.

"If this item does not perform to your satisfaction, we will give you your money back." This statement is an example of a(n) A. warranty. B. express warranty. C. guarantee. D. special guarantee.

C. Guarantee. A guarantee is a promise made to the consumer that a product's purchase price will be refunded if the product is not satisfactory. A warranty is a promise made by the seller to the consumer that the seller will repair or replace a product that does not perform as expected. An express warranty is a warranty that is written or expressed verbally. A special guarantee is a fictitious term.

As an employee, Kevin performs a variety of activities each day, set his own work pace, and has the authority to make many business decisions. Kevin's job involves ______ scope and ______ depth. A. low, high B. high, low C. high, high D. low, low

C. High, high. *Scope* is the number of tasks involved in a job and the frequency with which they occur. If Kevin were to repeat the same tasks, his job scope would be low. *Depth* refers to the amount of control and decision-making an employee has in a job. If Kevin had little control over his work and did not have the authority to make major decisions about his work, his job depth would be low.

According to the Keynesian theory of unemployment, the best solution for unemployment is to A. keep prices the same. B. cut wages. C. increase demand. D. increase inflation.

C. Increase demand. The best solution for unemployment is to increase demand and encourage spending. This will increase businesses' production and allow them to retain and hire more workers. For Keynesian economists, keeping prices the same, increasing inflation, and cutting wages are not preferred solutions for unemployment.

Before J&J Inc., an international firm, designs a new product, the engineers must become familiar with ISO 9000, which are: A. local government standards. B. international grades for safety. C. international standards for quality. D. engineering associations' standards.

C. International standards for quality. ISO 9000 are international standards for quality for manufacturers who trade internationally. Grades for safety indicate how well a product meets the safety standards.

Advertisers that use concept testing to obtain feedback from potential customers are conducting A. target readership evaluation B. focus group analysis C. primary market research D. pretest idea measurement

C. Primary market research. Concept testing involves exploring the concept, or idea, for a product in order to obtain feedback. Concept testing is one way to conduct primary market research, which results in obtaining new information specifically for the project at hand. The benefit of conducting primary market research is that it provides information that is relevant to the concept being tested. Other ways to conduct primary market research include analyzing focus groups, evaluating readership, and pretesting.

Abbra-Kadabra Company examined its expenses for electricity for the past six months and found the average electric bill to be $2,300 per month, with a high of $2,375 and a low of $2,250 during that period. This type of an expense would be classified as a __________ cost. A. variable B. fixed C. semivariable D. nonoperating

C. Semivariable costs are expenses that change very little and are not affected by sales volume as much as variable costs. Fixed costs are going to remain the same no matter how many units of a product are produced or marketed. Variable costs vary according to changes in sales volume or sales revenue and can also change in proportion to the number of items produced. Nonoperating costs are costs to the company for goods for which they resell or raw materials that are used to produce goods or services to be sold.

The first step in developing a valid contract involves A. negotiating a price. B. selling a product. C. making an offer. D. setting a deadline.

C. The first step in developing a valid contract involves one party making an offer to do something for a second party in exchange for something provided by the second party. The first party must make known its offer before the second party can review it and decide whether to accept.

A good way to prioritize your financial goals is to A. rank every goal in numerical order. B. rank goals according to what needs to be done first. C. assign each goal to a general category. D. recognize that all the goals are equally important.

C. assign each goal to a general category. A good way to prioritize your financial goals is to assign each goal to a general category, such as "must do," "important but not critical," or "not so important." Ranking according to what needs to be done first and ranking every goal in numerical order are two common pitfalls.

The best way for salespeople to obtain detailed information about a complex product is by A. asking a customer who uses the product. C. attending a training session. B. reading a product brochure. D. conducting a product demonstration.

C. attending a training session. Salespeople often attend training sessions to acquire product knowledge so that they can clearly explain complex products to their customers. Often, manufacturing representatives will train salespeople to ensure that they thoroughly understand the product, which will help them provide customers with accurate product information.

Before developing a product feature-benefit chart, a salesperson must first A. explain the product's apparent benefits. C. obtain the necessary facts. B. evaluate the competition's reactions. D. list the product's most important features.

C. obtain the necessary facts. A salesperson can get information about product features from many sources. These sources include manufacturers, coworkers, promotional materials, repeat customers, and the product itself. Once the salesperson obtains the necessary product information, s/he can develop a feature-benefit chart.

Jackie is interested in predicting what special events result in higher demand for chocolate candy. She should conduct behavioral segmentation based on A. benefits derived. B. rate of use. C. occasion response. D. loyalty response.

C. occasion response. Dividing customers into groups based on their responses to a product is behavioral segmentation. Customers are grouped into categories according to what they are looking for in a product and why they buy the product. By studying the occasion responses of customers (when they purchase a product, especially for an event such as a wedding, birthday, graduation, etc.), marketers can predict what special events result in demand for products. Segmentation on the basis of usage rate classifies customers as heavy, moderate, light, or nonusers of a product.

The effect that selling should have on customer purchase decisions is to __________ those decisions. A. personalize B. determine C. compel D. influence

D Influence. The salesperson's role is to guide customers in making effective buying decisions that will lead to customer satisfaction. Salespeople do not determine what the customer will buy—the customer does. A salesperson should never try to compel a customer to purchase a product.

A business is planning a sale and needs to know what sales were for a particular weekend in the previous year. Which of the following accounting records would provide this information: A. Income statement C. Bank statement B. Disbursement journal D. Sales journal

D. *Sales journal* records daily receipts and would provide the daily sales figures the business needs. A *disbursement journal* records daily expenditures. Income statements and bank statements would show total revenues but not accurate figures for specific days.

A business plans to launch a new product in the next year. When developing its promotional plan, the business should A. wait to promote the new product until the research and development costs are recovered. B. redirect most of its promotional activities to the new product. C. delay setting an advertising budget until it determines how well the new product performs. D. allocate a portion of its budget to promote the new product.

D. Allocate a portion of its budget to promote the new product. If the business does not communicate information about its new product, the target market will not know that the item is available for purchase. It is not in the business's best interest to delay setting a budget or to hold off promoting the new product. Depending on the stage of the existing products' life cycles, it may not be wise for the business to focus most of its promotion on the new product.

Erika, a manager, is wondering why sales are lower in a particular market segment. This is her A. research problem. B. research objective. C. situation analysis. D. decision problem.

D. Decision problem. Erika wants to know why sales are lower in a particular market segment—this is her decision problem (the problem from the manager's perspective). Research objectives are formal statements about what the marketing-research study will achieve—they are formulated later. A situation analysis is exploratory research that uncovers more information about the problem and the business environment. Research problems are the problem from the researchers' perspective.

for the long-term success of the busines, Stacey's Steamer has decided to add a self-serve laundromat. Which of the following describes the business activity it is involved in A. organizing itself for meeting its objectives B. establishing a systems for retrieving info C. promoting its new service to potential customers D. determining what will put it in reach of its goals

D. Determining what will put it in reach of its goals. Since Stacey's Steamers is acting with its *long-term success in mind, deciding to add a self-serve laundromat should put the business in reach of its goals*. This decision is part of *strategic management*. Establishing a system for retrieving information is part of information management. Promoting a new service to potential customers is part of marketing. While organizing the business to meet business objectives is part of strategic management, it is not what Stacey's Steamers demonstrated in this example. *Organizing would involve setting up the business to be successful in providing the new laundromat service.*

In some cultures, creating relationships during business negotiations is key; in other cultures, negotiators want a signed contract. This illustrates cultural differences in negotiating A. styles. B. attitudes. C. schedules. D. goals.

D. Goals. Different cultures also have different attitudes (win-win v. win-lose), schedules (open-ended v. time-sensitive), and styles (informal v. formal); however, achieving a contract v. achieving a relationship pertains to negotiation goals.

Jane wants to find out the estimated growth potential for marketing professionals over the next 10 years. Which of the following sources will provide Jane with the most relevant and up-to-date statistics: A. Social media webinar C. News magazine B. Career textbook D. Government web site

D. Government web site. Governments at all levels publish current career statistical information on their web sites. The U.S. government posts the Occupational Outlook Handbook online, which provides information about employment trends in the United States. The Canadian government also posts employment trends in Canada (Job Futures). Career textbooks, news magazines, and social media webinars may not have the most current or relevant information that Jane is looking for.

A common problem of first-level supervisors is that they A. are unfamiliar with the work they supervise. C. want to move up to mid-level. B. are unable to do long-range planning. D. lack training in management techniques.

D. Lack training in management techniques. Businesses often promote workers to supervisory jobs as a reward for good performance (are familiar with the work they supervise). *Long-range planning involves planning for the entire company and is a responsibility of top management*, not the first-level supervisor. Wanting to move up to mid-level management is a legitimate career goal.

An author's new book is an example of a A. derivative project. B. breakthrough project. C. R&D project. D. platform project.

D. Platform project. An author's new book is an example of a *platform project*, one that creates something entirely new. A *derivative project* enhances, adds to, or extends an existing project. A *breakthrough project* relies on the use of new technology. An R&D project takes on new visions or pursuits for the business. (project management topic)

A business manager who is calculating the costs of products is performing the marketing function of A. accounting. C. pricing. B. financing. D. product/service management.

D. Product/Service management. The product/service management activities of a business involve obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities. Successful product/service management activities include calculating the costs of products.

Businesses often make decisions regarding changes in their product lines by analyzing data from their A. utilization summaries. B. accounting reports. C. freight bills. D. sales invoices.

D. Sales invoices. Researchers often use this data to analyze information, such as product movement and account activity. Accounting reports summarize financial data as it relates to business activities. *Freight bills are invoices that relate to the transportation of goods. Although freight bills might be used in marketing research, freight information is often included on the sales invoice.* Utilization summary is not a marketing term that is commonly used.

Colors, logos, and images are all elements that make up a company's A. distributor brand. B. brand values. C. brand promise. D. brand identity.

D. brand identity. A *brand identity consists of those elements that are instantly recognized* as representing a particular business or product, including logos, colors, names, images/graphics, and design. Brand values are beliefs or qualities that a corporate brand stands for and is built around. A brand promise is a business's spoken or unspoken agreement with customers that it will consistently meet their expectations and deliver on its brand characteristics and values.

An athletic facility purchases a sports equipment distributor's directory for direct advertising purposes. The purchased information is often called a(n) ___________ list. A. internal-brokerage B. compiled C. house D. mail-response

D. mail-response. *Mail-response* lists are purchased from other businesses' house lists. A *house list* is developed from a company's own database consisting of past and current customers. A *compiled list* is one that a company purchases from a seller who originally used the information for other purposes. Compiled lists often consist of several lists from several sources. Internal indicates that the list is generated within the company, making it a house list. A brokerage firm is a list seller. Therefore, internal-brokerage lists are nonexistent.

Slander vs Libel

Slander = Saying something untrue that damages a person's or business's reputation Libel = writing something untrue that damages a person's or business's reputation

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If total cost is $3,000 with zero quantity produced and $6,500 with 1,000 items produced, what is the marginal cost of producing each item? A. $3.50 B. $3.00 C. $6.50 D. $1.00

A. $3.50. Marginal cost is the change in cost involved in increasing or decreasing production by one unit.

Which of the following is an area at a business that must be maintained on a regular basis: A. Sidewalks B. Furniture C. Shelving D. Fixtures

A. Sidewalks

Salespeople write activity reports to: Salespeople write call reports to:

An activity report describes a sales representative's intended sales calls and routes and is submitted to management a week or month in advance. A call report is a write-up of completed sales activities.

Your company is marketing a new chocolate bar. Which touchpoint do you think would be most important for your brand? A. Packaging B. Taste C. Online advertising D. Email campaign

B. For many consumables, such as chocolate bars, taste is typically the most important touchpoint.

During lunch in the company's cafeteria, McKenzie overheard her coworker, Abby tell Kyle that she has a job interview with another firm next week. To respect Abby's privacy, McKenzie should A. drop vague hints to her supervisor that Abby is unhappy and looking for another job. B. keep the information to herself and not say anything to anyone. C. promise Kyle that she will not tell anyone about his conversation with Abby. D. tell Abby that she overheard the conversation, and assure Abby that her secret is safe.

B. keep the information to herself and not say anything to anyone.An important aspect of respecting a person's privacy is not to talk to about things that do not affect or concern you. If McKenzie tells other people—including her supervisor, Abby, and Kyle—about a confidential conversation that she overheard, she may gain the reputation of being a gossip, which can greatly reduce her trustworthiness and credibility in the workplace.

Getting a good recommendation as an honest employee is most likely to help a worker to A. learn technical skills. C. select career goals. B. make a job change. D. work without supervision.

B. make a job change.

Simon wants to know how well his company did last quarter in relation to other companies in its industry. He needs to conduct a A. sales volume analysis. B. market share analysis. C. SWOT analysis. D. customer analysis.

B. market share analysis. This tool uses sales data to measure a company's sales performance against that of its competitors. Sales volume analysis uses sales data to measure actual sales against any number of different criteria.

Businesses should view negotiation as away to A. get the action they want. B. get something done. C. build strong relationships. D. keep negative people quiet.

C. build strong relationships.

A primary reason that employers often consider hiring a person with internship experience is because it implies that the applicant possesses A. a well-rounded educational background. C. traits such as initiative and commitment. B. the ability to work with financial data. D. a network of prospective sales contacts.

C. traits such as initiative and commitment. Employers often feel that applicants who have participated in internship programs exhibit initiative (motivation) and commitment to carry out objectives and gain experience to help further their careers.

Chapter 7 Bankruptcy vs Chapter 11

Chapter 7 bankruptcy = liquidation to pay off debts Chapter 11 bankruptcy = reorganize, which may involve obtaining additional financing

When you look for supporting evidence in published materials, you are evaluating the A. timeliness of the content. B. readability of the text. C. margin of error. D. credibility of the sources.

D. credibility of the sources.

The Six Sigma model involves continuously implementing activities that A. influence regulation and decrease outputs. B. promote consistency and eliminate resources. C. stimulate revenue and lessen decision making. D. improve quality and reduce inefficiencies.

D. improve quality and reduce inefficiencies.

What is stock turnover?

Inventory turnover is a measure of the number of times inventory is sold or used in a time period such as a year. The equation for inventory turnover equals the cost of goods sold or net sales divided by the average inventory

indictment

legal process of formally accusing a person of a crime and putting that person on trial

affirmative disclosure

legal remedy in which the government orders the advertiser to include product information in future advertisements that it omitted in its previous advertisements

A manager's span of control =

the range of employees who report to the manager (#)