MGMT 324 Practice Quiz

Which of the following companies has a product-oriented business definition? A luxury hotel, whose business definition is: "We sell out-of-the-world experiences to our guests." A cosmetic company, whose business definition is: "We offer hope and self-expression." A high-technology company, whose business definition is: "We sell inspirations." A real estate company, whose business definition is: "We sell dreams." A shoe manufacturer, whose business definition is: "We manufacture affordable and long-lasting shoes for all."

A shoe manufacturer, whose business definition is: "We manufacture affordable and long-lasting shoes for all."

Dropbox is an online file hosting service that is used for online collaboration. Dropbox charges its customers $150 per year for its standard service, and serving each customer usually costs $30. Currently, Dropbox has around 20 million users. With an annual interest rate of 10% and a customer churn rate (yearly) of 25%, how much is the customer equity of Dropbox? About $ 286M About $ 1.25B About $ 502M About $ 5.14 B About $ 705 M

About $ 5.14 B

What is the LEAST relevant statement about the root cause of Black and Decker's (BD) failure in the professional-tradesman segment? Buyers are price sensitive, and BD suffered from heavy discounts on Milwaukee and Makita products. Buyer behaviors of tradesmen were highly driven by "social factors," and BD's products didn't fulfill buyers' needs and wants. BD's quality was poorly perceived by the target customers. BD's relatively low price created some confusion about its perception as a professional tool. BD's color choice for professional grade created confusion in the market.

Buyer behaviors of tradesmen were highly driven by "social factors," and BD's products didn't fulfill buyers' needs and wants.

________ refers to gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses. Descriptive research Observational research Constructive research Experimental research Survey research

Experimental research

Which of the following is true about secondary data? Unlike primary data, it can be obtained by using direct surveys and questionnaires by the company. It can be obtained more quickly and at a lower cost than primary data. It cannot provide extra information a company is looking for. It is always current and, unlike primary data, it does not have to be updated. It requires more effort compared to gathering primary data.

It can be obtained more quickly and at a lower cost than primary data.

Which of the following is true with regard to strategic planning? At the corporate level, the company starts the strategic planning process by determining what portfolio of businesses and products is best for the company. The strategic plan is a statement of an organization's purpose. The focus of strategic planning is to define a game plan for long-run survival and growth. Strategic planning involves identifying segments of consumers with identical preferences. A strategic plan deals with a company's short-term goals.

The focus of strategic planning is to define a game plan for long-run survival and growth.

What is the LEAST relevant question to ask when assessing a firm's main competitor? What are the competitor's weaknesses? What are the competitor's locations? What are the competitor's strengths? What are the competitor's objectives? What are the competitor's strategy?

What are the competitor's locations?

When consumers are highly involved with the purchase of an expensive product and they perceive significant differences among brands, they most likely will exhibit ________. complex buying behavior consumer capitalism variety-seeking buying behavior consumer ethnocentrism dissonance-reducing buying behavior

complex buying behavior

An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of ________. market offerings value propositions marketing mixes marketing intermediaries market segments

market segments

Which of the following marketing orientations calls for aggressive promotional efforts and focuses on creating transactions rather than long-term customer relationships? the societal marketing concept the selling concept the production concept the product concept the marketing concept

the selling concept