BA-10 EXAM 3 STUDY
CH7 When Giant Soda needed to develop a new mission statement and list of brand values after a merger with Bubbly Drinks Corp., a temporary, cross-functional team was created to accomplish the task. After three months, the team made suggestions and initiated necessary changes. Such a team is referred to as a
task force. Explanation: Such a team is referred to as a task force. A task force is a temporary group of employees responsible for bringing about a particular change. They typically come from across all departments and levels of an organization. Task force membership is usually based on expertise rather than organizational position.
CH9 Managers who adopt McGregor's Theory X assume that
the average worker wants security. Explanation: According to McGregor, managers adopting Theory X assume that the average worker prefers to be directed and to avoid responsibility, has relatively little ambition, and wants security. They also believe that workers generally dislike work and must be forced to do their jobs.
CH10 In human resources management, ________ is the process of teaching employees to do specific job tasks through either classroom development or on-the-job experience.
training Explanation: In human resources management, training is the process of teaching employees to do specific job tasks through either classroom development or on-the-job experience. On-the-job training allows workers to learn by actually performing the tasks of the job, while classroom training teaches employees with lectures, conferences, videos, case studies, and web-based training.
CH10 Which of the following organizations is implementing an affirmative action program?
Honeysmith Worldwide institutes policies to increase the promotion of minorities into senior positions. Explanation: Honeysmith Worldwide, which institutes policies to increase the promotion of minorities into senior positions, is implementing an affirmative action program. Affirmative action programs are legally mandated plans that try to increase job opportunities for minority groups.
CH7 What is an advantage of specialization?
It saves time when workers do not have to shift from one job to another. Explanation: One of the advantages of specialization is that workers do not waste time shifting from one job to another, and training is easier. The rationale of specialization is that people can work more efficiently if they master just one task rather than all tasks.
CH10 ________ is an example of a soft benefit provided by a company to its employees.
Onsite child care Explanation: Onsite child care is an example of a soft benefit provided by a company to its employees. Soft benefits include perks that help balance life and work.
CH7 Alexa is interviewing with Google. During her interview, she asks the hiring manager about the firm's shared values, beliefs, traditions, philosophies, rules, and role models for behavior. Alexa is inquiring about Google's
Organizational culture. Explanation: One of the most important aspects of organizing a business is determining its organizational culture, a firm's shared values, beliefs, traditions, philosophies, rules, and role models for behavior. Also called corporate culture, an organizational culture exists in every organization, regardless of size, organizational type, product, or profit objective.
CH11 ________ is best described as a value placed on an object exchanged between a buyer and a seller.
Price Explanation: Price is best described as a value placed on an object exchanged between a buyer and a seller. Although the seller usually establishes the price, it may be negotiated between buyer and seller.
CH12 ________ is the practice of charging the highest possible price that buyers who want a product are willing to pay.
Price skimming Explanation: In the context of pricing strategies, price skimming is charging the highest possible price that buyers who want a product will pay. Price skimming is often used to allow a company to generate much needed revenue to help offset the costs of research and development.
CH12 In the context of promotional strategies, which of the following indicates a pull strategy?
Sprout Nut e-mails its customers directing them to contact grocery stores to demand they stock Sprout Nut's limited-edition holiday nut mixes. Explanation: A pull strategy uses promotion to create consumer demand for a product so that consumers exert pressure on marketing channel members to make it available.
CH7 How do work teams differ from working groups?
Teams have shared leadership roles. Explanation: Work teams share leadership roles, have individual and group accountability, create collective work products, measure performance directly by assessing collective work products, and discuss, decide, and do real work together. Table 7-1 lists the differences between a working group and a team in organizations.
CH7 Which of the following statements is TRUE of project teams?
Their membership is likely to be composed of people from different functional areas. Explanation: Like task forces, project teams' membership is likely to cut across a firm's hierarchy and be composed of people from different functional areas. Project teams normally run their operation and have total control of a specific work project.
CH10 Axel finds a job listing for a public relations coordinator position. He's interested in the listing until he sees that the job description specifies that the candidate must be a woman. Axel emails the hiring manager to inquire about the job description and remind them that ________ prohibits discrimination in employment.
Title VII of the Civil Rights Act Explanation: Title VII of the Civil Rights Act of 1964 prohibits discrimination in employment. It also created the Equal Employment Opportunity Commission, a federal agency dedicated to increasing job opportunities for women and minorities and eliminating job discrimination based on race, religion, color, sex, national origin, or handicap.
CH10 Which of the following is a legally mandated plan that tries to increase job opportunities for minority groups by analyzing the current pool of workers, identifying areas where women and minorities are underrepresented, and establishing specific hiring and promotion goals for addressing the discrepancy?
affirmative action Explanation: Affirmative action programs legally mandate job opportunities for minority groups by analyzing the current pool of workers, identifying areas where women and minorities are underrepresented, and establishing specific hiring and promotion goals, with target dates, for addressing the discrepancy. Legislation passed in 1991 reinforces affirmative action but prohibits organizations from setting hiring quotas that might result in reverse discrimination.
CH12 Which of the following activities is associated with the risk-taking function of wholesaling?
assuming responsibility for theft, product obsolescence, and excess inventories Explanation: Assuming responsibility for theft, product obsolescence, and excess inventories is associated with the risk-taking function of wholesaling.
CH9 Carlisle, a manager at an app developer, notices two employees are late to a mandatory meeting. He reprimands the employees and tells them they can no longer attend the company's annual cookout. What strategy is Carlisle relying on to address this issue?
behavior modification Explanation: This manager is using a behavior modification strategy to change his subordinates' behavior of coming to work late. Behavior modification involves changing behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itself.
CH12 McDonald's golden arches logo is an example of a
brand mark. Explanation: A brand mark is the part of the brand that is a distinctive design, such as the silver star on the hood of a Mercedes or McDonald's golden arches logo
CH10 Huang works at Pure Athletics, a sporting goods store. The company uses an incentive system that pays him 20 percent of the sales he makes in a month. Which form of financial compensation does Huang receive?
commission Explanation: Huang receives financial compensation based on the incentive system called commission. It is an incentive system that pays a fixed amount or a percentage of an employee's sales.
CH12 Laurel, a college student, is hired part-time by Fine Design, a jewelry company. Laurel engages in face-to-face sales presentations in people's homes in an attempt to sell jewelry to the ultimate consumer. Laurel is engaging in
direct selling. Explanation: Direct selling is a form of nonstore retailing and involves the marketing of products to ultimate consumers through face-to-face sales presentations at home or in the workplace
CH11 urprise & Delight, a company that makes custom party favors, is considering different transportation and warehousing options for its products. Which of the following activities of the marketing mix is Surprise & Delight primarily focusing on in this scenario?
distribution Explanation: Distribution (sometimes referred to as "place") is making products available to customers in the quantities desired. Transporting, warehousing, materials handling, and inventory control, as well as packaging and communication are all components of distribution.
CH7 At a fulfillment warehouse, the senior supply chain manager assigns a task to a lower level manager. The pattern of formal communication illustrated in this scenario is ________ communication.
downward Explanation: Downward communication is the traditional flow of communication from upper organizational levels to lower organizational levels.
CH9 High morale contributes to high levels of
employee loyalty. Explanation: Morale is an employee's attitude toward his or her job, employer, and colleagues. High morale contributes to high levels of productivity, high returns to stakeholders, and employee loyalty.
CH9 Chase and Song are business analysts at a multinational consumer packaged goods firm. Chase feels there is a sense of competition with Song, which motivates him to increase his productivity. According to Maslow's hierarchy of needs, Chase is attempting to fulfill his ________ needs.
esteem Explanation: Esteem needs relate to respect—both self-respect and respect from others. One aspect of esteem needs is competition—the need to feel that you can do something better than anyone else. Competition often motivates people to increase their productivity.
CH11 Avery and Cameron wanted to throw a party. They paid $750 to a company to coordinate and plan the event. After, Avery and Cameron were satisfied with the company's services. In the context of marketing, this scenario best illustrates a(n)
exchange. Explanation: This scenario best illustrates an exchange. An exchange is the act of giving up one thing (money, credit, labor, goods) in return for something else (goods, services, or ideas).
CH9 Mihály, a sales assistant, wants to be promoted to a sales manager. She's been with the company for five years, longer than any other sales assistant at the firm, and recently completed an online course to improve her business skills. Because she's optimistic that she will get the promotion, she's highly motivated. This exemplifies
expectancy theory. Explanation: expectancy theory.
CH10 In the first stage of the selection process, an individual
fills out an application form. Explanation: In the first stage of the selection process, an individual fills out an application form and perhaps has a brief interview. The application form asks for the applicant's name, address, telephone number, education, and previous work experience.
CH11 According to the marketing concept, while customer satisfaction is the main goal, it is also important that a business achieve its own objectives. Which of the following is one way a business can achieve its own objectives?
find out what consumers desire Explanation: According to the marketing concept, a business must find out what consumers desire and then develop the good, service, or idea that fulfills their needs or wants. The business must then get the product to the customer.
CH7 A cleaning supply company that manufactures and markets eco-friendly cleaning solutions has two divisions—one in North America and one in Europe. Both divisions cater to the same type of clientele. However, this method of organizing jobs has helped the company be more efficient and responsive to local competition. Which of the following types of departmentalization is the company using?
geographical Explanation: The company is using geographical departmentalization. Geographical departmentalization groups jobs according to geographic location, such as a state, region, country, or continent.
CH11 Peak Citrus, an agricultural company, divides and labels fruits on the basis of size and quality. Then, they are sold to supermarkets. When Peak Citrus does this, it is primarily engaging in the marketing function of
grading. Explanation: The function of marketing best illustrated in this scenario is grading. Grading refers to standardizing products by dividing them into subgroups then displaying and labeling them so that consumers clearly understand their nature and quality.
CH11 In the context of market research, which of the following is an example of primary data?
information collected from a survey about a product Explanation: Information collected from a telephone survey about a product is an example of primary data. Primary data are observed, recorded, or collected directly from respondents.
CH9 Bohai, a senior manager at an aerospace firm, moves employees from one job to another to relieve them from boredom caused by job specialization. Which of the following strategies is Bohai using to motivate his employees?
job rotation Explanation: Job rotation allows employees to move from one job to another in an effort to relieve the boredom that is often associated with job specialization. Job rotation reduces this boredom by allowing workers to undertake a greater variety of tasks and by giving them the opportunity to learn new skills.
CH9 To improve productivity of employees, Frederick Taylor suggested that
managers should break down each job into its component tasks Explanation: To improve productivity, Taylor thought that managers should break down each job into its component tasks (specialization), determine the best way to perform each task, and specify the output to be achieved by a worker performing the task.
CH11 A car manufacturer focuses on the customer when deciding what types of vehicles to produce by gathering information about customer needs. The car company has a ________ orientation.
market Explanation: A market orientation requires an organization to gather information about customer needs, share that information with the company, and use it to build customer relationships. The business first determines what a customer wants and then proceeds to make a product.
CH9 The classical theory of motivation suggests that ________ is the sole motivator for workers.
money Explanation: According to the classical theory of motivation, money is the sole motivator for workers. Frederick W. Taylor suggested that workers who were paid more would produce more, an idea that would benefit both companies and workers.
CH11 Mei decides to buy the Sharpen X Pro tablet because of its ease of use, ability to communicate with her other devices, and its price. What psychological variable is in play as Mei makes her decision to buy the tablet?
motivation Explanation: Motivation is the inner drive that directs a person's behavior toward a goal. In this scenario, Mei is motivated by ease of use, ability to communicate with other devices, and price.
CH11 Sunrise Banking is a multinational financial services company that customizes its marketing strategies to meet the needs of different customer groups. For its soon-to-be-retired customers, it advertises reverse mortgages. For customers in their 20s, it promotes savings accounts. For customers in their 30s, it promotes home loans. For customers in their 50s, it advertises its wealth management services. Which of the following market segment approaches is best illustrated in this scenario?
multisegmented approach Explanation: A multisegment approach is best illustrated in this scenario. In this approach, the marketer aims its marketing efforts at two or more segments, developing a marketing strategy for each. Many firms use a multisegment approach that includes different advertising messages for different segments.
CH11 A leather goods company makes durable bags specifically for delivery drivers who own Vespa scooters. In this scenario, which of the following market segmentation approaches is the company using?
niche marketing Explanation: Niche marketing is a narrow market segment focus when efforts are on one small, well-defined group that has a unique, specific set of needs.
CH7 When Sole & Soul, a multinational footwear company, decided to adjust its management structure, the shoe company developed a visual display of the chain of command, so it would be easier for employees to understand. This visual display is called a(n)
organizational chart. Explanation: Organizational charts are visual displays of organizational structure, chain of command, and other relationships.
CH7 The team members at a car factory are each given a single task. For instance, one person attaches the tires, one person installs the brake lights, and one person shines the interior. The team has expressed to management that they are bored and unsatisfied with their work. Their complaints go ignored, and over time their unhappiness leads to poor quality work. What issue is at play in this scenario?
overspecialization Explanation: Overspecialization can have negative consequences. Employees may become bored and dissatisfied with their jobs, and the result of their unhappiness is likely to be poor quality work, more injuries, and high employee turnover.
CH12 Modern Glass is releasing a first of its kind augmented reality mirror that allows people to virtually try on clothes and makeup. To enter the market and gain market share rapidly, Modern Glass is slashing the prices of its products because the company suspects competitors might enter the market shortly after the mirror is introduced. In this scenario, which of the following pricing strategies is Modern Glass using?
penetration pricing Explanation: Penetration price is a low price designed to help a product enter the market and gain market share rapidly. Penetration pricing is used most often when marketers suspect that competitors will enter the market shortly after the product has been introduced.
CH12 Lloyd is a sales representative for a medical tools and devices company. He visits doctor's offices to assist the physicians in discussing the benefits of the company's products, financing arrangements, and any warranties or guarantees. The communication that takes place between Lloyd and his customers is an example of
personal selling. Explanation: In the context of the elements of the promotion mix, personal selling is direct, two-way communication with buyers and potential buyers. For many products—especially large, expensive ones with specialized uses, such as cars, appliances, and houses—interaction between a salesperson and the customer is probably the most important promotional tool. Personal selling is important with high-risk items such as medical tools and devices.
CH9 Frederick W. Taylor developed the ________ system, under which employees were paid a certain amount for each unit they produced.
piece-rate Explanation: As a motivational tool, Taylor suggested that managers link workers' pay directly to their output. Based on his idea, he developed the piece-rate system where workers were paid a certain amount for each unit they produced.
CH12 A ________ is a group of closely related products that are treated as a unit because of a similar marketing strategy.
product line Explanation: In the context of product relationships, a product line is a group of closely related products that are treated as a unit because of a similar marketing strategy. Product relationships within an organization are of key importance
CH10 Titus and Stephanie applied for a field training specialist position at a nationwide restaurant chain. Stephanie, a female candidate, was selected for the job. Titus later discovered that his qualifications and experience were better than Stephanie's, but she was hired as a part of the company's affirmative action efforts. In this case, Titus may have experienced
reverse discrimination. Explanation: Reverse discrimination occurs when a company's policies force it to consider only minorities or women instead of concentrating on hiring the person who is best qualified.
CH9 Lola is a chef in Los Angeles. She fought to win the respect of restaurant critics by introducing innovative dishes at her restaurant. Now that Lola feels she has achieved some measure of respect, ________ has become her major goal of life.
self-actualization Explanation: Until esteem needs are met, people focus their attention on achieving respect. When they feel they have achieved some measure of respect, self-actualization becomes the major goal of life.
CH12 Consumer products, such as designer clothing and shoes, are examples of ________ products.
specialty Explanation: Consumer products such as designer clothing and shoes are classified as specialty products. Consumers know what they want and go out of their way to find it; they are not willing to accept a substitute.
CH7 An organization's ________ develops when managers assign work tasks and activities to specific individuals or work groups and coordinate the activities required to reach objectives.
structure Explanation: Structure is the arrangement or relationship of positions within an organization. An organization's structure develops when managers assign work tasks and activities to specific individuals or work groups and coordinate the diverse activities required to reach the firm's objectives.
CH12 Milan Spritz, a perfume company, introduced a range of fragrances with a high price point. Even though the perfumes do not cost much to make, Milan Spritz prices them artificially high to give the impression of superior quality. In this case, which of the following pricing strategies is Milan Spritz implementing?
symbolic/prestige pricing Explanation: The assumption behind symbolic/prestige pricing is that high prices connote high quality.
CH10 After working in the marketing department for three years, Silas learns that his position will be eliminated due to downsizing. Silas applies for a job at his company in the sales department. The job is at the same level and has the same pay rate he was making in the marketing department. What type of turnover is Silas involved in?
transfer Explanation: A transfer is a move to another job within a company at essentially the same level and wage. Transfers allow workers to obtain new skills or to find a new position within the company when their old position has been eliminated because of automation or downsizing.
CH10 Carson is paid for the number of hours he works. Which of the following forms of compensation does Carson receive?
wages Explanation: Carson receives financial compensation in the form of wages. Wages are financial rewards based on the number of hours an employee works or the level of output achieved
