Schuster- Business Ch.7-15 Review Questions

Why is accuracy important in advertising?

Errors, such as misrepresenting a product or misquoting a price, can cause negative public relations for a business. Grammatical errors, such as misspelling, improper capitalization, and punctuation errors, also negatively affect the public's perception of a business.

What is the difference between quality customer service and exceptional customer service?

Quality customer service meets customer needs, as well as the standards for customer service set by the company. Exceptional customer service is service that meets and exceeds customer needs.

Explain how an effective goal should be written.

SMART goals, specific, measurable, attainable, realistic, and timely

List the six steps of the sales process.

The six steps in the process are approach the customer, determine the customer needs, present the product or service, answer questions or objections, close the sale, and follow up after the sale.

What are two main types of financial institutions?

The two main types of financial institutions are depository and nondepository.

What are three ways to determine customer needs and wants?

There are three ways to determine customer needs and wants: observation, questioning, and listening.

Identify seven factors that influence the price of a product.

company goals, expenses, customer perception, competition, supply and demand, economic conditions, and product life cycle

How can a price floor cause a surplus?

consumers will not buy the higher priced products

Identify three types of customers that a business serves.

consumers, businesses, and governments & institutions

List the three basic categories of consumer products.

convenience goods, shopping goods, and speciality goods

What are five expectations of effective advertising copy?

create intrigue, appeal to the senses, sound newsworthy, use action words, and meet goals

What are the common elements in the promotional mix?

advertising, sales promotion, public relations, and personal selling

Identify examples of wholesalers.

aka distributers; merchant wholesalers, drop shippers, rack jobbers, and manufacturer's sales branches

What are the typical duties of first line managers?

assigning jobs and tasks, supervising and guiding, being the line of communication, training, and motivating employees.

Identify five federal agencies or offices that are involved in advertising laws and regulations.

better business bureau, federal trade commission, food and drug administration, federal communication commission, US patent and Trademark Office, and the library of Congress

Give examples of pricing strategies used for the B2B market.

cash discount, promotional discount, quantity discount, seasonal discount, and trade discount

List three ways in which authority within a business may be organized.

centralized organization, decentralized organization, or departmentalization

What are the seven functions of marketing?

channel management, marketing information management, market planning, pricing, product/service management, promotion, selling

How is marketing related to the other functions of business?

marketing involves packaging the product or service in a way that appeals to your buyer. Logos and packaging materials must all be designed with the customer in mind. Another function of marketing involves pricing your product at a rate where your business makes a profit.

What are common characteristics of an effective employer/employee relationship?

mutual respect, mutual reliance, openness, and gratitude

List three basic types of products that come from producers.

natural resources, agricultural products, and finished goods

What are the levels of buying decisions for business purchases?

new purchase, repeat purchase, and modified purchase

What are four influences that typically affect consumer buying behavior?

social, psychological, situational, and personal influences

What are the three functions of money?

The three functions of money are medium of exchange, unit of value, and store of value.

What is a parliamentary procedure?

a process for holding meetings so that they are orderly and democratic

What are the five functions of management?

planning, organizing, staffing, directing, controlling

List examples of unique selling propositions often included in advertising.

price, features, benefits, new items, store location, hours, and sale pricing

What is the formula for calculating a percentage markup?

product cost x markup percentage = dollar amount of markup product cost + dollar amount of markup = selling price

Why did labor unions begin to appear in the late 19th and early 20th century?

to fight for better wages, reasonable hours and safer working conditions.

What is the goal of distribution?

to provide the best distribution services for the lowest cost

Describe the three functions of intermediaries.

transactional (sales and marketing), logistical (physically moving product from manufacturers to distributors), and facilitating (final part of supply chain)

Identify the general principles that should be determined for an organization.

vision, structure of the business, chain of command, roles of employees, and accountability

According to the EEOC, when does harassment become unlawful?

when enduring offensive conduct becomes a condition of employment or conduct creates a work environment that a reasonable person would consider intimidating, hostile, or abusive.

Why do unions and union workers choose to strike?

when they are unhappy with the bargaining process, when bargaining reaches a stalemate, or to emphasize the importance of certain bargaining issues

What is the function of white space in the layout?

white space acts as a frame for the message. It can also separate the parts of an ad so they stand out, easy to read

What are some ergonomic accessories that may improve the comfort of reading on a computer screen?

wrist rests, specially designed chairs, and back supports

What activities are part of the product design process?

the detailing of producing the product are planned and product brand; name, image, logo, slogan, and packaging.

List some basic examples of financial exchange.

Basic examples of financial exchange include cash, credit cards, debit cards, and electronic funds transfer.

What are the behaviors expected from customer service reps when handling unhappy customers?

Be polite and friendly when greeting the customer. Listen to the customer's issue. Clarify the issue to be sure that it is clearly understood. Offer solutions to the customer.

What is business risk?

Business risk is the possibility of loss or injury that affects a business.

What is the difference between B2B selling and B2C selling?

Business-to-business selling (B2B) is a business selling to another business. Business-to-consumer (B2C) selling is selling to consumers.

Explain continuous process improvement (CPI)

CPI is an ongoing effort to improve production processes to meet goals and increase profit

List examples of online support that are commonly available through websites.

Common types of online support include FAQ pages, e-mail support, product tracking, and online chat.

What are some examples of pure risks?

Pure risks include personal risks, property risks, and liability risks.

List examples of customer services provided after a sale.

Examples of customer services include vehicle repair and maintenance services, clothing alterations, appliance delivery and installation, and efficient order processing.

List three examples of coverage provided by employers for employees.

Examples of employee insurance include worker's compensation, unemployment, and disability insurance.

Name the two types of federal regulators that almost every depository institution is a member.

Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA).

Identify four examples of general banking services.

Four examples of general banking products are checking accounts, savings accounts, electronic banking, and bank cards.

Define general banking services as offered by financial institutions.

General banking services are those services are offered by financial institutions to all types of customers.

Explain the importance of a business storefront as an element of visual merchandising.

It is often the first image or impression a customer has of a business.

Why are laws and regulations necessary regarding financial exchange?

Laws and regulations are necessary to help facilitate financial exchanges and protect buyers and sellers from fraud and other illegal behavior.

Once risks have been identified, how can they be managed?

Many potential risks identified can be avoided, reduced, transferred, or assumed.

List types of common insurance coverage for businesses.

Most business have coverage for liability, property, auto, and employees of the business.

Why are speculative risks not insurable?

Most speculative risks are not insurable because they are taken willingly in hopes of making a gain.

Give examples of print media advertising.

Newspapers, magazines, directories, direct mailings, and outdoor signage are print media. Print also includes transit promotion

What are two tasks that are a part of preapproach in preparing to sell

Preapproach tasks include product training and identifying potential customers

What is the difference between producers and manufacturers?

Producers are businesses that create goods and services. Manufacturers are producers that use raw materials from other producers and convert them into finished goods.

Explain the purpose of following up after a sale.

The purpose of following up after a sale is to ensure customer satisfaction. One of the ways to keep customers is to follow up with them after a sale and make sure they are satisfied.

How does the Small Business Administration (SBA) categorize some types of insurance needs?

The Small Business Administration (SBA) categorizes some types of insurance needs as general liability, product liability, professional liability, and commercial insurance.

What kind of feedback might a customer support person receive from a customer?

The customer may be asked how he or she learned about the product that is being ordered. Customers may be asked about their likes and dislikes or what could be improved about the product.

List five properties of money.

The five properties of money are stable, easily recognized, divisible, portable, and durable.

List four basic types of risk.

The four basic types of risk are natural risk, economic risk, market risk, and human risk.

List the four core functions of the Federal Reserve.

The four core functions of the Federal Reserve are to establish monetary policy, supervise and regulate financial institutions, maintain the stability of the nation's financial system, and provide financial services.

Explain the most well-known service provided by insurance companies.

The most well-known service provided by insurance companies is financial protection through insurance policies. The insurance company, the insurer, protects the insured, the policyholder. For a fee, the insurer provides the insured with protection against economic loss.

List three examples of depository institutions.

Three examples of depository institutions are commercial banks, credit unions, and savings and loan institutions.

What is the purpose of loss-leader pricing?

To lure customers in with cheap prices to get them to buy more expensive products; hopes that once in the store, consumers will buy enough other products to make up for the lost profit

Name two types of insurance agents.

Two types of insurance agents are independent and contract.

What three options does a business have when choosing a product planning strategy?

a business can create new product, reposition current product, or repackage current product to appeal to consumers.

What are the three elements of the marketing concept?

customer satisfaction, total company approach, and profit. Customer satisfaction is the degree to which customers are pleased with the company's goods or services. The total company approach is all functions of a company working together to achieve goals. Profit is money that a business has left over after all the expenses and costs of running the business are paid.

What are the stages of the decision-making process?

define the problem, research, choose the best option, implement the decision, evaluate the purchase

List three common leadership styles.

democratic, autocratic, and laissez-faire

List the four variables used to identify market segments.

demographic, segmentation, geographic, and psychographic

List three types of inventory usually used by manufacturers.

direct materials, work in process, and finished goods

What is brainstorming?

discussion within a group where individuals generate as many ideas as possible within a set amount of time

How is the workplace diversity achieved?

employing people without regard to gender, age, ethnicity, or racial background

What is the purpose of a performance appraisal?

evaluate how well an employee performs her job duties and tasks, her supervisory and leadership capabilities and other soft skills, and how well she manages workplace relationships and conflict resolution.

List the three categories of product elements.

features, usage, and protection

How does a company use feedback from test marketing?

helps a business solve unexpected problems, it can help determine whether or not to mass produce the product

How is the success of a product evaluated?

how well it meets the sales and other goals set for the product during the business analysis. The evaluation process typically involves reviewing financial records and marketing data.

What is organizational structure?

identifies the hierarchy of the employees within the business

List the three influences that affect the buying decisions of organizations.

internal, external, and situational influences

Explain the concept of market identification.

it is the first step in developing a marketing strategy, involves identifying the target market

What are the two phases of new employee training?

orientation and job-specific training

List three behaviors that can arise from team conflict

passive, aggressive, or assertive behaviors

List three primary types of inventory control systems.

perpetual, periodic, and just-in-time

List five examples of methods businesses can use to promote a healthy work-life balance.

personal leave, family leave, flextime, job sharing, and telecommuting

Explain the three general quality levels of products.

premium, moderate, and value

What are the six categories of business products?

raw materials, process materials, component parts, major equipment and supplies, and business ethics

List the five basic functions of human resources management

recruiting and hiring, training and development, compensation, performance evaluation, and legal compliance

Explain the role of participation as a key element of marketing.

requires the strategy of communicating with customers rather than at them. contests, free samples, and an opportunity to voice an opinion are examples of ways customers can participate in marketing activities

When developing new products, what four activities usually result in product ideas?

result of observation, trend research, customer feedback, and brainstorming

What are the six main methods for the transportation of goods?

road, rail, air, water, pipeline, and digital

Explain the meaning of scheduling in the production process. What does it ensure?

scheduling personnel, material deliveries, shipments. It ensures that businesses have enough raw materials and labor on hand to meet the demand.

What are the six elements of the communication process?

sender, message, channel, receiver, translation, and feedback,

In what four ways are services different from goods?

services are considered products, but they are different because they are intangible, inseparable, variable, and perishable