intro to business mid term
________ is an agreement to produce and market another company's product in exchange for a royalty or fee.
A license
The shortest distribution channel is from the producer, to the retailer, to the consumer.
False
________ refers to a view of business that considers the many decisions that must be made and the potential problems that must be overcome before the organization can deliver its products or services.
Business mindset
________ refers to some aspect of a product or company that makes it more appealing to target customers.
Competitive advantage
________ are everyday individual goods and services that people buy frequently without much conscious planning.
Convenience products
Capital items are less expensive than expense items.
False
In a free-market economy, companies generally have limited autonomy in deciding which customers they want to focus on and how they want to compete.
False
Profit refers to the money the company brings in through the sale of goods and services.
False
________ systems can be used to promote communication and data usage through the company or to customers.
Information technology (IT)
Which of the following best describes the department where the company's products are made, or its service is performed?
Operations
________ is the term used to describe the difference between revenue and expenses.
Profit
________ activities are intended to identify new ideas that have the potential to result in new goods and services
Research and development
________ are particular brands that the buyer especially wants and will seek out.
Specialty products
Which of the following is a defining characteristic of distributors?
They sell products to organizational customers for internal operations or the production of other goods.
Channel conflict refers to disagreement over rights and responsibilities of the organizations in a distribution process.
True
Distribution strategy refers to a firm's overall plan for moving products through intermediaries and on to final customers.
True
Product life cycle refers to the four stages through which a product progresses.
True
Co-branding is ________.
a partnership to closely link brand names for a single product
A(n) ________ is a framework of how a business intends to generate revenue.
business model
How do wholesalers and retailers create time utility for the customer?
by eliminating the need for the customer to contact each manufacturer
Break-even analysis is a method of ________.
calculating the minimum sales needed to cover all costs
Businesses that need very large amounts of money, equipment, or other material resources in order to get started are ________ businesses.
capital-intensive
The number of layers between producers and their target customers is known as ________.
channel length
The ________ is a combination of intermediaries and channels that producers use to reach its target customers.
distribution mix
The conditions that affect the cost and availability of goods, services and labor, and the behavior of buyers and sellers are BEST described as the ________ environment.
economic
Using a brand name on a variety of related products is known as ________.
family branding
Which of the following helps an organization define product features and workability?
feasibility studies
The introductory stage will be followed by a(n) ________ stage for a successful product.
growth
The ________ function of a business involves the recruiting, hiring and support of its personnel.
human resources
Which of the following refers to a graphical representation of a brand?
logo
What is the term for the organized network of companies that work together to move goods and services from the manufacturer to consumers?
marketing channel
An organization that seeks to operate efficiently and effectively to achieve its goals without focusing on profit as a motive is a ________.
nonprofit organization
Exclusive distribution differs from intensive distribution in that exclusive distribution ________.
offers products in only one outlet in each market area
Retail stores that exist for only a short time and are designed more as attention-getting events than as ongoing retail operations are called ________.
pop-up stores
Prototypes are ________.
preproduction samples of products
Offering attractive discounts to some customers but not others is the prohibited behavior of ________.
price discrimination
When considering a brand extension, what is one of the risks that marketers need to consider carefully?
product cannibalization
Intermediaries that primarily sell goods and services to individuals for their own personal use are called ________.
retailers
During prototype development, a company identifies the resources required to conduct large-scale manufacturing in a process called ________.
scalability
Selling a good or service through a limited number of outlets that provide sales and service support is ________.
selective distribution
Wholesalers differ from retailers in that wholesalers ________.
sell products to organizational customers
What type of business tends to be labor intensive, relying more on human resources than material resources?
service
Stores that carry only a particular type of goods, often with deep selection in those specific categories, are called ________.
specialty stores
The term ________ refers to forces resulting from the practical application of science to innovations, products, and processes.
technological environment
Market coverage refers to ________.
the number of wholesalers or retailers that will carry a product
