Exam 3

In the traditional channel, consumer goods pass from a producer to a wholesaler to a retailer to the ultimate consumer.

True

Production or operations management involves decisions made at the different stages: production planning, production control, and production and operations improvement.

True

The objective of purchasing is to ensure that required materials are available when they are needed to produce finished goods.

True

Hans Guten makes furniture according to the specifications of the customer who ordered it. Each piece of furniture he makes is unique to the customer's specifications, and he only makes one piece of furniture at a time. Guten is engaged in ________.

customization

_________ is the number of times an individual is exposed to a promotional message in a certain time period.

Frequency

_________ is the act of informing, persuading, and reminding the target market about a product.

Promotion

Reinforcement theory is based on the premise that

Behavior that is rewarded is likely to be repeated, whereas behavior that has been punished is less likely to occur again.

In the __________ channel, there are no marketing intermediaries; producers sell directly to consumers.

direct

Odell Beckham Jr. is a wide receiver for the Cleveland Browns in the National Football League. He has signed an endorsement deal with Nike to produce to his specifications and market a new shoe called Nike Air Max 720/OBJ. Nike hopes that Beckham will act as a _________ and influence consumers to buy the shoes.

opinion leader

A labor-intensive technology is one in which _________ must do most of the work.

people

A(n) _______ layout arranges work flow around the production process. All workers performing similar tasks are grouped together and work on small batches of different products.

process

Frederick W. Taylor's interest in improving the efficiency of individual workers led him to develop _________.

Scientific Management

In new-product development, ________ is the stage at which products that do not meet new-product goals are rejected.

Screening ideas and concepts

A relatively inexpensive item that requires very little shopping effort is called a ________ product.

convenience

An ad for Virgin airlines shows a traveler sleeping comfortably in the airline's new larger seats. This ad is using ________ segmentation to appeal to its market.

Benefit

The _________ is an important scheduling tool for large projects. The manager identifies all the activities required to complete the project, the relationships between these activities, and the order in which they need to be completed. Then the manager develops a diagram that uses arrows to show how the tasks are dependent on each other.

Critical path method

Which of the following is NOT an example of in-store retailing?

Direct selling

_________ is the efficient management of the acquisition of raw materials to the factory and the movement of products from the producer to industrial users and consumers.

Distribution

Nonstore retailers sell ________.

Door to door By sending catalogs to private homes From vending machines

Companies that follow Theory Z

Emphasize collective (participative) decision making.

Theory Y assumes that

Employees often seek out and willingly accept responsibility.

Thomas and Sandra are both salespeople for Pharmaceutical Supply Company. Thomas notices that although he works longer hours and makes more sales calls than Sandra, they both generate the same level of sales revenue. Thomas earns less than Sandra. In comparison to Sandra, Thomas feels that he is not being fairly rewarded for his effort. Thomas' dissatisfaction is best reflected in which of the following theories?

Equity Theory

A Jaguar automobile can be purchased at only select locations across the country; for example, our nearest location is a dealership in Shreveport, Louisiana. This company is using ________ distributions for its products.

Exclusive

Advertising, personal selling, sales promotion, and direct mail are the four major elements of the promotional mix.

False

In a flextime work system, the core time is the time when employees may choose whether to be at work or not.

False

The focus of primary-demand advertising is to sell a particular brand of product.

False

The father of scientific management was ________.

Frederick Taylor

Which of the following theories suggests that employees are motivated to achieve goals that they and their managers establish together?

Goal-setting theory

During which stage of a product's life cycle do sales increase rapidly as customers gain awareness of the product?

Growth

Batteries are often sold at a variety of stores including grocery stores, convenience stores, and general merchandise stores. Given this information, the type of market coverage for Energizer batteries would be __________.

Intensive distribution

A brand

Is a name, term, symbol, design, or any combination of these that identifies a seller's products and distinguishes them from a competitor's products.

________ focuses on smoothing transitions along the supply chain so that the firm can satisfy its customers with quality products and services while focusing on forging tighter bonds with its suppliers.

Supply chain management

After working for most of his 65 years, Carl Sanders found it difficult to completely retire from his hard-earned position as CEO. To avoid retirement, Carl invited his second-in-command, Don Koch, to assume half of his duties in return for the position of co-president. This arrangement allowed Carl to take some leisure time off while easing Don into the high pressure position. Carl and Don's arrangement where two employees split the tasks, responsibilities, and work hours of a job is called ________.

Job sharing

_________ is the process of getting the right goods or services or ideas to the right people (customers) at the right place, time, and price using the right promotion techniques.

Marketing

The Accent Modification Center helps upwardly mobile international professionals in Virginia's growing Asian population to smooth accents that may be holding them back from getting that next promotion. Since they serve a single segment of the market within a limited geographic area, the center has developed a(n) ______.

Niche competitive advantage

Maslow suggested that people work to satisfy their ________ needs first, then their safety needs, and so on up the "needs" ladder.

Physiological

The equity theory of motivation is based on the

Premise that people are motivated to obtain and preserve equitable treatment for themselves.

3M Consumer Healthcare has introduced a "Home 'n Go Pack" packaging concept that organizes each of its bandage offerings into a separate plastic pouch within the bandage box. The pouch is visible through a window in the external packaging. The decision to offer this new packaging was made as part of the _______ strategy of the marketing mix.

Product

A news release about a company's sponsorship of a 5K run for charity would be an example of _________.

Publicity

_________ is the number of different target consumers who are exposed to a commercial at least once during a specific period.

Reach

A middleman that buys from producers or other middlemen and sells directly to consumers is called a _________.

Retailer

The first step in controlling production that sets the sequence of machines and operations through which a product or service progresses from start to finish is called ________.

Routing

Frequent-user programs developed to reward customers who engage in repeat (frequent) purchases and build customer loyalty is a type of __________.

Sales promotion

Samples, coupons, and premiums are examples of __________.

Sales promotion

________ is the aspect of production control that involves specifying and controlling the time required for each step in the production process.

Scheduling

Eric Farthmore writes for a large weekly magazine. He has the option of going to the office to write but he prefers writing at home and emailing his work to his boss. If his boss, Warren, wants corrections made, he simply emails Eric with recommendations. The magazine utilizes the motivational technique referred to as ________.

Telecommuting

A manager who believes employees naturally dislike work and try to avoid accepting responsibility believes _________.

Theory X

_________ emphasizes the use of quality principles in all aspects of a company's operations.

Total quality management

According to the expectancy theory, motivation depends on how much we want something and on how likely we think we are to get it.

True

Capacity is the amount of products or services that an organization can produce in a given period of time.

True

Comparative advertising is when a company compares specific characteristics of its product to its competition's product.

True

Distribution channels make distribution simpler for manufacturers by reducing the number of transactions required to get the product from the manufacturer to the consumer.

True

Frederick Taylor's research at Midvale Steel Company found that employees soldiered or worked slowly in order to preserve their jobs.

True

In the Hawthorne studies, researchers concluded that human factors (such as attention, involvement, acceptance by the group) were responsible for the results of the experiments.

True

In the Introduction stage of the product life cycle, production and marketing costs are high and sales volume is low; therefore, profits are usually small or negative.

True

Lumber mills are generally located near the forests where the trees are harvested in order to save transportation costs and to be near their raw material.

True

MBO increases motivation by allowing employees to participate in goal setting and in performance evaluations.

True

Maslow suggested that people work up the hierarchy of needs satisfying their physiological needs before safety needs, for example. However, needs at one level do not have to be completely satisfied before moving up to the next level of the hierarchy.

True

Production converts inputs (natural resources, raw materials, human resources, and capital) into outputs (products and services).

True

Robotics is the technology involved in designing, constructing, and operating computer-controlled machines that can perform tasks independently.

True

The Hawthorne studies were conducted by Elton Mayo at the Western Electric Company in Chicago.

True

The availability of skilled labor in various geographic areas can be a factor in determining plant location.

True

The job factors that Herzberg found most frequently associated with satisfaction are achievement, recognition, responsibility, advancement, growth, and the work itself.

True

A middleman that helps in the transfer of products but does not take title to them is called a ________.

agent or broker

A product that is bought by a company for use in making another product is called a(n) ________ product.

business or industrial

__________ is the actions that people take in buying and using goods and services.

buyer behavoir

A system that utilizes long production runs resulting in high-volume, standardized products is called a(n) ________ process.

continuous

If a construction company is building a commercial building downtown, they would use a ________ layout.

fixed-position

_________ segmentation is being used when a market is segmented by region of the country, city or county size, market density, or climate.

geographic

Which of the following is NOT an example of a convenience product?

lawn furniture

The pricing strategy of marking products below normal markup or even at cost to attract customers to a store where they might also purchase a companion product is called ________ pricing.

leader

In _______, goods are produced using mass production techniques up to a point. Then production is custom tailored to the needs or desires of individual customers.

mass customization

Pricing a product at $399.99 instead of $400 to make the customer view the price as in the $300 range instead of the $400 range is an example of ________.

odd-even pricing

A(n) ________ is a retail store that sells at prices 25 percent or more below traditional department store prices in spartan environments.

off-price retailer

A common planning horizon for production plans is __________.

one year

When people with common activities, interests, and opinions are grouped together and given a "lifestyle name," __________ segmentation is being u

psychographic

The process of creating quality standards and measuring finished goods and services against standards is called ________.

quality control

_________ is a strategy that focuses on forging long-term partnerships with customers by offering value and providing customer satisfaction.

relationship marketing

A strategy of charging a high introductory price for a new product that invites eventual competition is called price _________.

skimming

A _________ product is a product for which consumers may search long and hard and for which they refuse to accept substitutes.

speciality