BA-101 Finals Study Guide

In the context of the marketing mix, which of the following statements is true of a distribution strategy?

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

_____ includes all organizations, processes, and activities involved in the flow of goods from the raw materials to the final consumer.

Supply chain

Businesses adopt and identify target markets for their products to:

maximize the impact of the cost of marketing.

A(n) _____ cannot distribute dividends to its members.

not-for-profit corporation

In a business cycle, the _____ is the transition period between contraction and expansion.

recovery

Ethics refer to:

sets of beliefs about right and wrong.

Which of the following is a disadvantage of holding large inventories?

Additional holding costs

Fabotels is a hotel aggregator that buys budget hotels that succumb to financial losses and then refurbishes them under the company's brand name. Fabotels recently purchased Ravine Comforts, a small lodge that was running into huge debts. The business deal between Fabotels and Ravine Comforts exemplifies a(n) _____.

acquisition

For making an effective business presentation, one should:

use clear transitions as one moves from point to point.

Unlike total quality management (TQM) , Six Sigma:

uses advanced techniques that require a high level of expertise.

In the context of marketing strategies and tactics, _____ includes marketing—or sponsoring—athletic, cultural, or charitable functions.

event marketing

During the 1970s, which of the following statements was true of global competition?

Many Japanese and German firms began to take market share from American firms.

Keitras is a women's apparel store that specializes in winter clothing. It targets university students aged 20-25 with its trendy collection of sweaters, sweatshirts, stockings, and stoles. In the context of consumer market segmentation, which of the following types of market segmentation does Keitras most likely follow?

Demographic segmentation

Which of the following statements is true of total quality management (TQM)?

It recognizes that quality should be defined by the perceptions of customers.

Which of the following statements is true of a typical franchise agreement?

It requires the franchisee to pay an initial fee.

Where did the workers from the plant go to learn how to reopen the plant?

Japan

Which of the following statements is true of the formation of a partnership?

Partnerships can be established based on a simple verbal agreement.

Which of the following modes of transportation provides the highest on-time dependability?

Pipelines

Which of the following is a disadvantage of online retailing?

Product delivery takes at least a couple of days.

Which of the following statements is true of the members of a distribution channel?

Some distributors act as both wholesalers and retailers.

What are some of Toyota's guiding principals?

Teamwork, quality over quantity

_____ involves determining how a product will flow through a channel from the producer to the consumer.

The physical distribution strategy

_____ for a product includes not only its distribution channels but also the string of suppliers who deliver products to the producers.

The supply chain

Which of the following statements is true of online retailing?

There is a lack of security on the Web.

Which of the following statements is true of distributors in a channel of distribution?

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

Which of the following statements is true of loyal customers?

They forgive marketers' mistakes.

Which of the following statements is true of robots?

They often perform jobs that most human workers find dangerous.

In the context of supply chain, which of the following statements is true of modes of transportation?

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

GM hired it's original workers back after they closed the plant

True

In a business presentation, which of the following actions is likely to increase your credibility and persuasiveness?

Using expert quotations during the presentation

As a communication channel, _____ has the highest level of channel richness and is used when the message to be communicated is personal, emotional, or high-priority.

a face-to-face meeting

In the context of marketing research data, an example of primary data is _____.

a focus group

Which of the following is a disadvantage associated with sole proprietorships?

Raising money to finance growth can be tough for business owners.

Which of the following strategies can a company use to decrease its breakeven point?

Raising prices

Which of the following is a benefit of holding large inventories?

Reduced ordering costs

In the context of the various pricing strategies, loss-leader pricing means:

pricing a handful of items temporarily below cost to drive traffic.

In an effort to expand its business, music retailer Musow offers DVD rentals online. In order to understand the trends in consumer interest, Musow has decided to evaluate data of the hyperlinks that customers click when they visit its website. This is an example of how a company can obtain _____.

primary data

In the context of breakeven analysis, _____ remain constant regardless of how many products are sold.

fixed costs

A _____ refers to a partnership in which all partners can take an active role in managing the business and have unlimited liability for any claims against the firm.

general partnership

In the context of consumer pricing perceptions, odd pricing creates a perception of:

greater value.

Boncidio Inc., a cell phone manufacturer, introduced a new cell phone model. 85 percent of this phone is made from biodegradable materials. This product attracts customers who give importance to using environment-friendly products in their daily lives. In the context of social responsibility and technology, Boncidio best illustrates _____.

green marketing

Companies use marketing research to:

identify external opportunities and threats.

In response to inflation, the Fed is likely to:

increase the discount rate.

Yadira works for an organization whose earnings are exempt from federal and state income taxes. The organization is barred from funding any political campaign. Given this information, Yadira most likely works for a(n):

not-for-profit corporation.

A corporation is a separate entity from its owners where the:

owners are not personally responsible for the obligations of the company.

In today's highly competitive global markets, operations managers:

realize that a product that offers better features attracts more customers than one that has a lower price.

If you encounter a hostile questioner while giving a presentation, you should avoid:

reestablishing eye contact once you have answered the question.

Sending products by _____ is the least expensive option available to producers.

ship

Companies that step in with on-site day care programs for employees facing challenges such as caring for elderly parents are fulfilling their:

social responsibility.

An organization's _____ consists of the organizations, activities, and processes involved in the physical flow of goods, from the raw materials stage to the final consumer.

supply chain

Neone is an energy drink manufacturer. The marketing strategies of Neone are focused on males who are in the age group of 16 to 25 years and who enjoy sports and other outdoor activities. The company advertises its products at skateboard parks, basketball venues, and ski resorts. The customer group that Neone focuses on is called its _____.

target market

Foreign outsourcing exposes a firm to the possibility _____.

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

Which of the following is a form of nonstore retailing?

Direct selling

A sole proprietorship is a form of business ownership in which

a single owner actively manages the company.

The benefits of a general partnership include its _____.

ability to pool financial resources

Penetration pricing is a strategy where:

each individual sale typically yields a tiny profit.

A(n) _____ is a structure for allocating limited resources.

economic system

Unlike goods, services are _____.

experienced

Less savvy marketers frequently fall into one of two traps—overpromising or underpromising—when trying to _____.

achieve customer satisfaction

What company did Toyota partner with to make cars?

General Motors

Which of the following statements is true of a supermarket?

It offers a wide range of food products, plus limited nonfood items.

Which of the following is a key item that is most likely covered in a franchise agreement?

Conflict resolution

_____ is the description of how people act when they are buying, using, and discarding goods and services for their own personal consumption.

Consumer behavior

_____ involves placing a producer's products in as many stores as possible.

Intensive distribution

Which of the following statements is true of computer-integrated manufacturing (CIM)?

It allows firms to produce custom-designed products for individual customers quickly at low costs.

In the context of the various pricing strategies, which of the following statements is true of high/low pricing?

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

Which of the following is the biggest downside of observation research?

It does not yield any information on consumer motivation.

In the context of operations management, for the first 25 years after World War II, which of the following was true of the United States?

It had an increasingly well-educated labor force.

Which of the following statements is true of a breakeven analysis?

It helps marketers get a sense of the hurdles they need to clear before actually introducing a product.

Identify a true statement about foreign licensing.

It is especially common in the food and beverage industry.

Which of the following statements best defines a channel of distribution?

It is the network of organizations and processes that links producers to consumers.

The basic rules governing how a corporation is organized and how it conducts its business are known as _____.

corporate bylaws

A _____ is a form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners.

corporation

Many states have passed anti-price gouging laws to:

discourage both businesses and individuals from raising prices after an emergency.

The goal of the _____ of a product is to deliver the product to the right people, in the right quantities, at the right time, in the right place.

distribution strategy

Why did GM workers at the Freemont plant mess up cars and work against management

Because they were protected by the Unions and they were unhappy.

When people use the term "corporation" without specifying which type, they are generally referring to a(n) _____.

C corporation

Which of the following are the elements of distribution strategy ?

Channels of distribution and physical distribution

Dustin loves dining at Jolenney, a continental restaurant. Whenever he has friends or family visiting him, he takes them to Jolenney for dinner. He personally gives feedback about the food to the restaurant manager and the chef every time he dines there. In the context of marketing, which of the following concepts does this scenario best illustrate?

Customer loyalty

Which of the following elements is a personal influence on the consumer decision-making process?

Demographics

Which of the following pricing strategies is also known as sustained discount pricing?

Everyday-low pricing

_____ means establishing only one retail outlet in a given area.

Exclusive distribution

Why did the workers at the plant feel stuck?

They could not find anything close to that level of job, and pay, and benefits, at their level of education and skill in the area.

Which of the following statements is true of franchises in the United States?

They offer access to a proven business system and product.

As globalization gains speed, intercultural communication will:

become increasingly pivotal to long-term business success.

As a listener, you are most likely to interpret the maximum meaning from a speaker's:

facial expressions.

The Internet has opened the door for _____, which is creating products tailored for individual consumers on a large scale.

mass customization

In its role as the government's bank , the Fed:

keeps the U.S. currency supply in good condition.

Three brothers of a family own a furniture showroom. Each of them is actively involved in handling the day-to-day business activities. However, when the business suffered huge losses at the end of the last fiscal year, the personal wealth and assets of the brothers did not get affected. This is most likely because the brothers have a:

limited liability partnership.

A _____ is a partnership arrangement that includes at least one general partner and at least one limited partner.

limited partnership

Dividing potential customers into groups of similar people is known as _____.

market segmentation

Monitoring and predicting consumer behavior is an objective of _____.

marketing research

Mauve Inc. purchased a global data collection and management system that provides detailed information about each of its customers. Using this information, Mauve is able to identify the individual needs of all its customers and provide tailored products and services. This scenario illustrates the concept of:

mass customization.

In the context of the marketing mix, _____ decisions range from brand name, to product image, to package design, to customer service, to guarantees, to new product development, and more.

product strategy

In the context of the marketing mix, the _____ of a product includes all of the ways that marketers communicate about the product.

promotion strategy

An owner of a C corporation is called a _____.

stockholder

Pagpartet is a supermarket that sells good quality products and renders excellent client service. Pagpartet's membership program for regular clients offers good discounts on perishable products. Its popularity and business generally increase through word-of-mouth. Consumers who shop at Pagpartet rarely switch to another supermarket for their monthly grocery shopping. In the context of marketing, which of the following concepts does this scenario best illustrate?

Customer loyalty

Identify a true statement about the Federal Reserve.

It manages the monetary policy of the United States.

In the context of retail stores, which of the following statements is true of a convenience store?

It sells a small range of everyday and impulse products at easy-to-access locations with long hours and quick checkout.

Gregory works for Ocan Foods, a food supplier. His main responsibility is to make tactical decisions involving the actual movement of goods along his company's supply chain. Gregory is involved in _____.

logistics