chapter 11 sb

In the context of traditional layouts for retail operations, which of the following are true of the free-form layout? (Check all that apply.)

It lays out a store in sections with aisles meandering through the store. It has visual impact.

Which of the following statements about direct mail are correct? (Check all that apply.)

It takes many forms including postcards, catalogs, and videos. One advantage of using the direct mail approach is the ability to sell on a business' schedule. Businesses don't have to make major inventory investments, thus there are low costs for getting started.

Traffic generators are

other businesses that bring customers to the area.

______ is setting a price at the highest level the market will bear.

Price skimming

Which of the following statements about optimum price are correct? (Check all that apply.)

If sales are too high, the owner might ask whether a price is too low. If sales are too low, the owner might ask whether the price is too high. It is the highest price that will generate the most income for a good or service.

Which of the following objectives do small business look at to achieve to ensure their survival in the early years? (Check all that apply.)

Increasing market share Maximizing profits

A consumer's mental image of what a product's price should be based on experience and the consumer's estimate of what the comparative value might be is called a(n) Blank______ reference price.

internal

______ are the people and firms who connect producers of goods and services with customers.

Channels

A promotion is a form of communication that encourages the customer to act immediately.

sales

A(n) ______ is a nonprofit organization or institution that provides business services by using workers who have disabilities or who are rehabilitated.

sheltered workshop

______ are other businesses that bring customers to a shopping area.

Traffic generators

Direct exporting is

exporting without using intermediaries.

______ is an existing firm with the correct manufacturing capabilities that makes products for other businesses.

Contract manufacturer

______ exporting is exporting without using intermediaries.

Direct

______ is a method of selling in which catalogs, brochures, and other pieces of marketing materials are mailed directly to customers.

Direct mail

Which of the following describe a sales promotion that is likely to be used by businesses? (Check all that apply.)

Discounting using coupons, rebates, and other promotions. Contests like sweepstakes and games that introduce the new product. Introductory techniques like giveaways, samples, and tastings.

Which of the following issues is a firm owner working out of a leased workspace likely to face in the context of day-to-day operations? (Check all that apply.)

Hidden charges that have not been added to a property's lease papers Lack of specifications about operating hours

______ is a price-setting method where an amount is added to the cost of a product to set the retail price and provide a profit.

Markup pricing

Match the ways in which small businesses ensure their survival (in the left column) with their descriptions (in the right column).

Maximizing profits- The price of a firm's product or service should be above the average price as this adds to financial gains. Increasing market share- A firm's product or service should be priced lower than that of the competition to take the competitor's percentage of total sales amount.

Which of the following layout formats are used for manufacturing operations? (Check all that apply.)

The production line layout The process layout

Which of the following statements about price skimming are correct? (Check all that apply.)

This strategy is used to recoup R&D and other costs. It is usually a brand new product, for example when 4K televisions first were introduced. It is usually possible to do this only if the business is the only one to produce the product or service.

Markup pricing is a price-setting method where

an amount is added to the cost of a product to set the retail price and provide a profit.

A wholesaler is an intermediary business that

buys and sells to businesses rather than consumers.

An estimation of what a price should be based on information external to a consumer is called an Blank______ reference price.

external

In the context of concessions associated with subletting properties, Blank______ refer to the permanent modifications made to a location to fit a business's needs.

leasehold improvements

______ is an intermediary business that buys and sells to businesses rather than consumers.

wholesaler

Match the typical locations for services (in the left column) with their characteristics (in the right column).

At a client's location- Organizing of services into a rotating schedule At a mutually accessible location-Specialized equipment that cannot be readily transported At a mutually accessible location- Infrequent face-to-face meetings with a client

True or false: An internal reference price is founded on a consumer's expectation of what the price should be based on their own knowledge.

True

Match the typical locations for services (in the left column) with their examples (in the right column).

At a client's location-Pest control At a mutually accessible location- Choice Restaurants At a remote location- Fulfillment centers

Which of the following are examples of an external reference price? (Check all that apply.)

Comparison shopping. Advice from friends. Newspaper advertisements

The Blank______ is the highest price that will produce a desired level of sales in an intended market.

optimum price