Small Business Management Test 2

an assumptive close

While closing a sales call, when a sales person says "I'll just need your credit card for payment," he is using the sales closing technique of

prototypes

While developing a new product, in the product development stage, the first versions of products are used in further consumer testing. These first versions of products are called

me-too products

ZestOne Technologies has launched a series of tablet computers that are similar to a competitor's product that already exists in the market. Such products are typically termed as

strategy

________ is the idea and actions that explain how a firm will make its profits.

earned media

________ occurs when other organizations talk about you, your firm, or your products or services and you do not pay them directly for the mentions.

Permanence

________ refers to the impression of a long-term continuity a business gives others

experience of the founders

Research into the indicators of successful start-ups shows that one of the best predictors of success is the level of

government

When examining the exchange aspect of the BRIE model, there are two key groups outside your business with whom even part-time businesses must deal—customers and

purchase

Which of the following answer options is one of the four steps in the "Get Customers" portion of the customer development funnel for physical products?

technology

Which of the following is a value benefit?

a spin-off

Which of the following is a way to start business with established customers?

trade name franchising

Which of the following is an agreement that provides only the rights to use the franchisor's trade name and/or trademarks?

purchasing a sewing machine with a warranty

Which of the following is most likely to be an example of a good-dominated product?

franchising

Which of the following is one of the ways to get into small business ownership?

B2B e-commerce is larger than B2C e-commerce

Which of the following is true about business-to-business (B2B) transactions?

pure services are heterogeneous

Which of the following statements is true about pure services?

false

During the introduction stage of a product's life cycle and from a marketing standpoint, the more innovative the product, the quicker the sales.

benefit segmentation

One customer may buy a pair of jeans because of the brand name, while another may buy the jeans for the fit. If you market to both of these customers, you would be marketing to them based on the

true

Sales leads who actually make some sort of effort to learn more about the product, service, or business in anticipation of a possible purchase are known as prospects

brand ambassador

Shaquille O'Neal is in every commercial for The General auto insurer. Shaq is the ________ for The General.

the consideration step

Some hotels offer beds made by specific manufacturers, such as Sleep Number beds or Tempur-Pedic beds. The bed manufacturers benefit because it has the potential to move a prospective customer (anyone who recently comparison shopped for a new mattress) to which step of the customer development funnel?

Innovation only happens during the introduction phase of the life cycle

When looking at the typical start-up strategy of a classic innovator, which of the following statements is not true?

psychographic

When segmenting your market, ________ segmentation looks at what drives the person, for example hobbies, cultural interests, or health concerns.

organizational practice

Which of the following is a cost benefit?

a "clean slate"

Which of the following is most likely to be an advantage of a brand new start-up?

personal selling

________ allows you to find out the buyers' main concerns and address them; in advertising you can only guess

offering incentives, discounts, and rebates

________ is a strategic action.

shake-out

________ is a type of life cycle stage following a boom in which there is a rapid decrease in the number of firms in an industry.

replacement value

________ is an estimate of what an identical asset would cost to be acquired and readied for service

net profit

________ is the amount of money left after deducting the operating expenses of the business.

industry

________ is the general name for the line of product or service being sold, or the firms in that line of business.

conversion franchising

________ provides an organization through which independent businesses may combine resources.

Charge-back

________ refers to a fee the service levels on a person or a firm for any variety of problems related to the sale.

Poisoning the well

________ refers to creating a negative impression among one's employers' customers

Part-time employment

________ refers to working for 35 or fewer hours a week

new product introductions

which of the following is a strategic action?

Variance

A ________ is a permission from a government organization to act differently than what the laws state.

synergy

A combination in which the whole is greater than the sum of its component parts refers to

mass market

A customer group that involves large portions of the population is referred to as a

a workout

A form of business termination in which the firm's legal or financial obligations are not fully met at closing describes which of the following?

a blog

A web page in which entries are posted in reverse chronological order is a known as

augmented product

A(n) ________ typically means the core product plus features that tend to differentiate the product from competition

false

Advertising costs are usually based on cost per hundred thousand

volatility

All of the following are major concerns of moonlighting except

Set up your stand in places where there is less foot or vehicle traffic.

All of the following are success factors to "stand retail" except that

tangibility

An item's capability of being touched, seen, tasted, or felt is called

false

At the very center of the PESO model is where your promotional mix lies.

OOH ad placements

Billboards are a tradition form of ________, and the online equivalent would be the placement in search engine results and portal ads

Moonlighting

Cannibalizing is one of the major concerns when

Outsourcing

Contracting with people or companies outside one's business to get work done for the business is known as

true

Follow-up refers to the contacts you periodically make with customers in order to remind them of your business, and your interest in their business

Licensing

For part-time businesses, ________ refers to the documented permission from the government to run a business and may be required for certain professions such as beauticians or home-based day-care providers.

what is left after deducting the cost of goods sold.

Gross profit is defined as

Internet

Home-based business and ________ business are the two core methods of getting started for part-time entrepreneurs, covering a wide variety of retail, wholesale, service, and even simple manufacturing situations.

does more or less what others are already doing

In an imitative strategy, an entrepreneur

Closing

In door-to-door selling, ________ refers to getting the customer to agree to buy

effectuation

In many ways, bricolage resembles the strategy of ________ in that it means carefully considering the resources available, and then making something from them.

media partnerships

In the PESO model, the overlap of the circles Shared and Earned is where your ________ reside

true

It costs five times as much to get a purchase from a new customer compared to an existing one.

customers; competition

Marketing focuses on the ________, while strategy focuses on the ________.

their succinct message

Nike's "Just Do It" best exemplifies which of the following answer options?

heterogeneity

The first time Jena visited Blue Corals Inn, a restaurant in her neighborhood, she was delighted with the food and service quality. However, the next time she dined at the same place, the restaurant's food and service seemed to have lost its quality. This scenario best illustrates the ________ characteristic of services

introduction stage

The life cycle stage in which a product or service is being invented is known as the

conversion rate

The number of prospects or leads you need to approach in order to make one sale if your

the point of indifference

The price at which a buyer is unconcerned about buying or not buying the business is called

its simplicity

The primary advantage to a buyout is

true

The purchasing process is the term applied to the schedule and the process for setting the schedule for making purchases by an individual or an organization.

false

The relation of product or company capabilities to customer pains and gains is the augmented product you offer your customers

feasibility study

The research and development team of Leonide Inc. has generated five different product ideas. All five ideas are being rated against each other on their characteristics such as product uniqueness, idea profitability, protectable intellectual property, and product team quality. Based on their ranking in this stage, only three ideas will make it to the immediate next step which will be the stage of

false

There are only three ways to divide a market: geographic segmentation, demographic segmentation, and psychographic segmentation.

an incubator

This privately owned organization provides financial, technical, and managerial help to start-up businesses, and take an equity stake in your business in return for a small amount of your stock

professional managers are hired to share the management load

What would happen when a small business that is growing becomes too great to be handled alone by an individual owner?

true

"Save the Whales," an environmental message, is a product that lacks tangibility.

single-mindedness

Developing and demonstrating exceptional expertise in one product or service (versus competitors with broad approaches or product line) describes which supra-strategy?

to be received in the future

Discounted cash flows have been reduced in value because they are