Intro To Business Exam 3

A CAD/CAM system is a(n): -inventory system -tax service -depreciation schedule -production design and control system -production database management system

production design and control system

The idea behind bundling is to reach a segment of the market that would not be reached as effectively if the product were sold separately. (T/F)

true

The just-in-time (JIT) system schedules arrival of inventory so that it can be used almost immediately and will not need to be stored on site. (T/F)

true

Agents are sales representatives for manufacturers or wholesalers and usually are hired on a commission basis. (T/F)

true

The goal of all promotion is to stimulate action. (T/F)

true

Based on the expectancy theory, managers who want to motivate their employees should:

-determine the rewards valued by each employee -link rewards to performance -determine what factors might counteract the effectiveness of a reward -make sure the rewards are adequate for the level of performance

In Herzberg's model, which of the following would be an example of a hygiene factor? - promotion - responsibility - recognition - supervision - the work itself

supervision Hygiene Factors (job dissatisfiers): -Company Policy -Supervision -working conditions -interpersonal relationships at work -salary and benefits -job security

Synergy Oil and Gas builds oil-well drilling platforms to customer and government specifications. These platforms can cost as much as $1 billion. Synergy works on one platform at a time, and when it is finished, moves its crew to a new project. Synergy engages in: -individualized production -mass production -customization -niche manufacturing -specialization

customization

Leon Georges works in the warehouse for a manufacturer of air-purification systems. He is responsible for the transportation of metal components, preformed plastic, etc. used to manufacture the systems as well as the efficient movement of the finished systems from the manufacturing facility to the warehouse to distribution trucks. Georges is involved in: distribution intermediation countertrading component logistics centralized transportation

distribution

Which of the following is NOT an element of the promotional mix? advertising personal selling sales promotion distribution public relations

distribution

An example of a provider of exceptional customer service is L.L. Bean, Inc. One of its employees actually drove 500 miles from Maine to New York to deliver a canoe to a customer who was leaving on a trip. The employee was able to perform this task with the support of L.L. Bean because the catalog retailer believes strongly in: job rotation empowerment flextime telecommuting task expansion

empowerment

What is the final step in the selling process? closing the sale handling objections writing up orders following up on sales congratulating your new customer

following up on sales

A manufacturer that uses the intermittent process to produce special customer orders is called a: -modular shop -central shop -job shop -localized processor -centralized processor

job shop Intermittent process- short production, low-volume, high-variety products (customization) Job shop- A manufacturing firm that produces goods in response to customer orders.

Crown Holdings Inc. manufactures a high-resolution, full color digital inkjet printed cans that allows smaller beverage producers to label the cans as they are needed to be filled rather than keeping a stock of preprinted cans. This is an example of how a beverage company could use: -lean production control -controlled production -just-in-time -materials requirement controls -Sigma Six

just-in-time

Which of the following is the BEST example of process manufacturing? -swimming pool -Whirlpool washer/dryer -lamb's wool -computer monitors -home storage buildings

lamb's wool

Which of the following is NOT an example of a convenience product? flashlight batteries milk lawn furniture newspaper chewing gum

lawn furniture Convenience products: are relatively inexpensive items that require little shopping effort

Mazda once included a solar powered ventilation system on its cars. A solar panel on the roof powered a pair of fans near the trunk, which automatically turned on when the temperature in the car reached 90 degrees. Because customers were not willing to pay for this benefit and did not complain when it was no longer available, Mazda discontinued it. This is an example of: -lean manufacturing -removing the fat -manufacturing consolidation -manufacturing compression -concentrated manufacturing

lean manufacturing

After product specifications are set, a company must decide whether to purchase or manufacture the parts that it needs. This is called a(n) _____ decision. -purchase-or-manufacture -buy-or-manufacture -make-or-buy -order-and-deliver -make-or-store

make-or-buy

The _____ is based on the five P's. marketing mix target market production mix advertising mix competitive advantage

marketing mix

A (n) _____ is any good or service that satisfies wants, along with its perceived attributes and benefits. market product brand exchange transaction

product

Channels of distribution make distribution easier by performing all of the following functions EXCEPT: sorting out production accumulation storage allocation

production

The _____ is the combination of advertising, personal selling, sales promotion, and public relations used to promote a product. marketing mix distribution strategy promotional mix product strategy sales mix

promotional mix

According to Maslow's hierarchy of need, the most basic needs are the social needs. (T/F)

False - The most basic human needs are physiological needs

The reason that Castle and Cooke processes and packages Dole pineapple products in Hawaii is more than likely because of low energy costs. (T/F)

False- Benefits of foreign location: low labor costs, fewer gov regulations, reduced shipping costs

There are no significant differences between the consumer market and the business-to-business market. (T/F)

False- The main differences between consumer markets and business markets include higher volume, far fewer customers, geographically concentrated, larger volume means fewer "middle men"

_____ is the redesign of a job to provide workers with more authority, responsibility, challenge, and the opportunity for more personal achievement is called: -Job integration -Task generalization -Task enlargement -Job enrichment -Job rotation

Job enrichment

Which of the following is NOT an example of a job satisfier? - recognition - responsibility - salary and fringe benefits - advancement - the work itself

salary and fringe benefits Motivating Factors (Job satisfiers): Achievement Recognition work itself responsibility advancement growth

According to expectancy theory, the probability of an individual acting a particular way depends on the strength of the individual's belief that: -the act will have a particular outcome and on whether the individual values that outcome -job responsibility is adequate -salary and fringe benefits matter -the job is challenging -supervisors treat their employees with equity

the act will have a particular outcome and on whether the individual values that outcome

A distribution channel is a series of marketing entities through which goods and services pass on their way from producers to end users. (T/F)

true

A target market is a specific group of consumers toward whom a firm directs its marketing effort. (T/F)

true

Computer-aided manufacturing (CAM) uses computers to develop and control the production process. (T/F)

true

Distribution strategy is another term for place strategy. (T/F)

true

For most corporations, physical-distribution activities are usually the responsibility of the marketing department. (T/F)

true

Human resources managers have yet to find any use for Maslow's hierarchy of needs. (T/F)

False

_____ is the act of informing, persuading, and reminding the target market about a product. Marketing Distribution Promotion Operations Motivations

Promotion

An example of a convenience product is a bridal bouquet vacuum cleaner picnic table bar of soap skateboard

bar of soap

Price is: -always expressed in the United States in dollars and cents -based on the expected value you will receive from your purchase -based on the actual perception you will receive from your product -also called revenue -accurately described by none of the above

based on the expected value you will receive from your purchase

The belief behind employee ownership is the idea that it will: - cause employees to act more like partners than clock watchers - force employees to determine which motivating factors are most important - act as a nurturing tool for knowledge workers - promote education and training - remove resistance to change

cause employees to act more like partners than clock watchers

Rap star Xzibit has signed an endorsement deal with athletic footwear manufacturer Dada to produce shoes. The line named "Pimp Your Kicks," alluding to Xzibit's role as host of the MTV show Pimp My Ride, became available in late 2005. Dada hopes Xzibit will act as a(n) _____ and influence consumers to buy the shoes. opinion leader innovator service provider target recipient referential mentor

opinion leader

A pharmaceutical company with headquarters in India sells fluconazole, the generic version of Pfizer's anti-fungal drug Diflucan internationally for significantly less money than many U.S. generic drug manufacturers. The generic drugs industry in this country needs to rethink its _____ strategy to stay competitive. place promotion pricing possession production

pricing

Which of the following statements describes an advantage that personal selling has over other forms of promotion?

-The sales message can be varied according to the motivations and interests of each prospect. -Personal selling can be directed only to qualified prospects. -Personal selling costs can be adjusted by controlling the size of the sales force. -Personal selling is considerably more effective at creating a satisfied customer than other forms of promotion.

Low volume, short production runs, and high-variety production are characteristic of the continuous process. (T/F)

False- Continuous process uses long production runs that may last days, weeks, or months w/o equipment shutdowns. This is best for high-volume, low-variety products Intermittent process- short production runs are used to make batches of different products. This process is best for low-volume, high-variety products such as those produced by mass customization

Equity theory is a theory of motivation that focuses on the link between motivation and organizational culture. (T/F)

False- Equity Theory is based on individuals' perceptions about how fairly they are treated compared with their coworkers. Equity means justice and fairness, and refers to employees' perceived fairness of the way they are treated and the rewards they earn

With the goal-setting theory, managers have learned that easier goals motivate more effectively than challenging ones. (T/F)

False- More difficult goals lead to better performance than do easy goals

_____ are incentive programs based on group productivity. Employees share in the financial gains attributed to the increased productivity of their group. - Stock options - Profit-sharing plans - ROI programs - Gain-sharing plans - Profit empowerment programs

Gain-sharing plans

_____ management emphasizes the use of quality principles in all aspects of a company's operations. -Quality teamwork -Cultural quality -Total quality -Critical quality -Total commitment

Total quality

PERT charts differ from critical path method (CPM) in one important way. PERT charts _____, and the CPM does not. -assign one time to finish each task -are based on the use of quality principles -assign three time estimates for each activity -can be used in service organizations; and CPM cannot -do not help managers locate possible production delays

assign three time estimates for each activity

In 2006, The Home Depot launched its first consumer and business rewards credit cards. The Home Depot Rewards MasterCard and The Home Depot Business Rewards MasterCard allows consumers and business owners earn rewards for everyday purchases. The Home Depot is engaged in: convenience selling relationship marketing transactional marketing exchange targeting mass customization

relationship marketing

Many rock and roll fans believe that Jimi Hendrix was the best guitarist ever and that he stretched his ability to the utmost. According to Maslow's theory of need, Hendrix more than likely satisfied his _____ need. -physiological -psychological -esteem -self-actualization -recognition

self-actualization

A knowledge-based work force is qualitatively different from a skills-based work force. (T/F)

true- A knowledge-based workforce is qualitatively different from a less-skilled workforce. Increasingly, the success—indeed, the survival—of every business will depend on the performance of its knowledge workforce.

What do the United Way, the Sierra Club, the Girl Scouts of America, and the American Red Cross have in common? They all engage in environmental scanning. They all have a target market. They all have created a marketing mix They all engage in not-for-profit marketing. All of the above statements describe ways in which the organizations are similar.

-They all engage in environmental scanning. -They all have a target market. -They all have created a marketing mix -They all engage in not-for-profit marketing.

Which of the following factors will be important in the selection of a site for a production facility? -labor costs -proximity to raw materials -nearness to customers -access to transportation -all of the above

-labor costs -proximity to raw materials -nearness to customers -access to transportation

In August 2006, the manufacturer of Cross pens introduced the golden toned Verve pen as featured in the Stormbreaker film. In James Bond fashion, the Cross pen serves as one of the key gadgets in the film. The use of the Cross pen is an example of: advocacy marketing co-marketing supportive advertising collateral marketing product placement

product placement

One-to-one marketing is synonymous with database marketing. (T/F)

False- One-to-one marketing is creating a unique marketing mix for every consumer. The key to creating one-to-one marketing is a good marketing database.

Which goal are airlines trying to achieve when they use frequent flyer programs, which give customers points that can be redeemed for free travel, rental cars, and other merchandise? increase the amount and frequency of use provide information create product awareness get consumers to try their product identify target market(s)

increase the amount and frequency of use

Maria Manow is planning to sell handmade quilts over the Internet. As she decides what to charge for a full-sized quilt, Manow will calculate her fixed and variable costs. At this point, Manow will be developing her _____ strategy. possession place pricing promotion product

pricing

Some of the quickest emergency assistance to victims of Hurricane Katrina did not come from the American Red Cross or FEMA. It came from Wal-Mart. Millions of people were displaced or otherwise affected by the Gulf Coast calamity. Many waited for days as agencies struggled to provide assistance. Wal-Mart moved faster than traditional emergency aid groups because the retail giant has mastered: -channel power management -distribution smoothing -participative channel management -supply chain management -strategic allying

supply chain management

Types of promotional goals include creating awareness, increasing the use of products, and identifying potential customers. (T/F)

true

Wes Johnston overheard his manager say, "Work is as natural as play, and workers seek more job responsibility." This statement supports: -the Hawthorne effect -Theory X assumptions -Theory Y assumptions -Theory Z assumptions -the hierarchy of needs

Theory Y assumptions

Roy Petrie is a flower wholesaler. He buys fresh flowers from countries in South America, divides the large batches into small bunches, and delivers them to independent florists. This process is called: breaking bulk lot dispersal inventory separation product diffusion inventory diffusion

breaking bulk