BA 105 – Exam #3 – Burke

True or False: An organization is a group of people with complementary skills who work together to achieve a specific goal.
True
True or False: In the case of the team that created the RAZR cell phone, the common goal was to create and bring to market an ultra thin cell phone that would help Motorola regain its lofty position in the cell phone market.
True
True or False: Teams are essential to business organization because they have been found to increase workplace performance.
True
True or False: Members of a team work independently, but come together primarily to share information.
True
True or False: Team members function interdependently.
True
True or False: Members of a working group go about their jobs independently.
False
True or False: Team-based projects rarely fail.
False
True or False: Recently, major organizations have begun to rely less on teams and more on individuals to improve operations.
False
True or False: Most teams are unaccountable to those higher up in the organization.
False
True or False: Self-managing work teams are often allowed to schedule assignments, but they are rarely allowed to fire coworkers.
True
True or False: Miscommunications can easily occur with virtual teams and it’s difficult to establish trust.
False
True or False: The leader of a self-managing team may determine overall goals, but employees control the activities needed to meet them.
True
True or False: A virtual team should be limited to five to ten members.
False
A ____ is a group of people with complementary skills who can work together on a regular basis to accomplish a common goal.
A) group
B) team
C) department
D) unit
b. team
This type of team is designated to take advantage of the special expertise of members drawn from different functional areas of the company.
A) self-managing team
B) cross-functional team
C) virtual team
D) expert-based team
b. cross-functional team
This type of team consists of geographically dispersed workers who interact electronically for the purpose of achieving a common goal.
A) self-managing team
B) cross-functional team
C) virtual team
D) expert-based team
c. virtual team
Teams have key characteristics that include:
A) the lack of authority to make decisions that will help them pursue their goals
B) team members who are individually responsible for achieving team goals
C) team members that change constantly
D) team members that operate in a social context
c. team members that change constantly
Companies build and support teams because:
A) teams reduce the number of people needed to make decisions
B) teams increase overall work performance
C) teams are always effective
D) employees enjoy being on teams
b. teams increase overall work performance
Which of the following is true regarding manager-led teams?
A) team leaders are in charge of setting team goals, assigning tasks, and monitoring performance
B) team members are in charge of making all important decisions
C) team leaders have no authority to monitor team performance
D) team members are responsible for assigning tasks among themselves.
a. team leaders are in charge of setting team goals, assigning tasks, and monitoring performance
Which of the following is true about self-managing teams?
A) they are usually large in size
B) Team members are not involved in scheduling teams
C) Team members determine overall goals
D) Team members often perform activities that were once performed by subordinates
c. Team members determine overall goals
Committees and task forces, both of which are dedicated to specific issues or tasks, are often _____ teams.
A) virtual
B) manager-led
C) product design
D) cross-functional
b. manager-led
Bob and Megan have been placed on a team at work to find ways to improve product quality and reduce waste. What type of team are they likely to be on?
A) Virtual Team
B) Problem-Solving team
C) Product design team
D) Self-directed team
b. problem-solving team
Great Ideas Ltd. has put together a team to design a new product to meet competition. What type of team have they likely put together?
A) Problem-solving team
B) Product design team
C) Cross-functional team
D) Virtual Team
c. cross-functional team
A ____ consists of members from various parts of the organization or even from outside the organization.
A) manager-led team
B) product design team
C) cross-functional team
D) virtual team
d. virtual team
Gayle, Dan, Mary, and Peter are exceptional people in their attitudes toward work. They have been placed on a ____ made up of workers who perform shared tasks and make many of the decisions previously made by their supervisors.
A) self-managing team
B) virtual team
C) cross-functional team
D) manager-led team
a. self-managing team
Grainger Solutions has branch offices geographically dispersed in seven states. A ____ team has been formed to interact electronically for the purpose of achieving a common goal.
A) self-managing work team
B) virtual team
C) cross-functional team
D) manager-led
b. virtual team
The team that designed and brought the RAZR phone to market would be called a ____ team.
A) task force
B) product design
C) cross-functional
D) virtual
c. cross-functional
Virtual teams have all of the following advantages except:
A) members can participate from any location
B) time and money is saved through reduced travel
C) team size is limited
D) teams can meet for as long as needed to achieve a goal or solve a problem
c. team size is limited
The goal of Motorola’s RAZR team was to develop (and ultimately bring to market) an ultra thin cell phone that would help restore the company’s reputation as a designer of stylistically appealing, high function phones. One way in which the team achieved its goal was by:
A) building a team of individuals with similar backgrounds and training
B) not putting any one individual in charge of the team
C) limiting the number of team members to five
D) using the authority given to it to make its own decisions
a. building a team of individuals with similar backgrounds and training
In contrast to a team, members of a working group:
A) are responsible for achieving specific goals
B) are highly dependent on each other
C) meet primarily to share information
D) have more authority to make decisions than teams do
c. meet primarily to share information
True or False: Teams are more effective when team members depend on one another.
True
True or False: Generally, the more that team members derive satisfaction from being on the team, the more fun they have and the less committed they become to achieving goals.
False
True or False: Teams function more effectively when leadership responsibility is shared over time.
True
True or False: The idea of group cohesiveness refers to the interest level of a team to the project they are working on.
False
True or False: According to the idea of group cohesiveness, groups are most effective when their members like being part of the group.
True
True or False: The bigger the team, the more satisfied members tend to be.
False
True or False: When it comes to teams, there is no such thing as too much group cohesiveness.
False
True or False: When it comes to teams, there is no such thing as too much group cohesiveness.
True
True or False: When there is too much conformity within a group it can become ineffective.
True
True or False: For a team to succeed, team members must communicate with each other.
True
True or False: The tendency to conform to group pressure in making decisions is called group think.
True
True or False: In a team-based organization, teams are interdependent.
True
True or False: Difficulty in maintaining a high level of motivation is the chief cause of frustration among members of teams.
True
True or False: Employers today look for an individual’s ability to develop and sustain motivation when they are hiring new managers.
True
Which of the following factors is not important to team effectiveness?
A) members encourage other team members to do their best
B) members have known each other for a long time
C) members perform better as a group than alone
D) members can trust each other
b. members have known each other for a long time
In practice, which of the following tends to contribute to effective teamwork?
A) members depend on each other
B) members work better individually than as a team
C) team members resent being on a team
D) leadership rotates infrequently
a. members depend on each other
When each team member is encouraged by other team members to do his or her best, then:
A) collective results improve
B) individuals encouraging other members are rewarded
C) the team never fails
D) team members enjoy being on the team
a. collective results improve
Which of the following is true regarding group cohesiveness?
A) it is low when members in a group are happy
B) it refers to the attractiveness of a team to its members
C) it is low when group members have similar attitudes and experiences
D) it is low when the team is motivated to outperform other teams
b. it refers to the attractiveness of a team to its members
Which of the following is not one of the factors that make a team cohesive?
A) When the team is successful at achieving its goals.
B) When team members perceive other fellow members as people who share their own attitudes and experience.
C) When it is difficult to get on the team.
D) When the team is very large (has a lot of members).
d. when the team is very large (has lots of members)
_____ is often cited as a factor in the explosion of the space shuttle Challenger in January 1986.
A) Lack of collaboration among team members
B) Lack of an adequate budget
C) An engineering team that was too large
D) Groupthink
a. lack of collaboration among team members
Which of the following is true regarding groupthink?
A) Groupthink generates diverse ideas and conclusions.
B) With groupthink, it is common for a team member to take a stand that differs from the opinion of others in the group.
C) Groupthink results in team members spending considerable time weighing the pros and cons of a decision.
D) Groupthink results in a tendency for team members to conform to group pressure in making decisions.
d. groupthink results in a tendency for team members to conform to group pressure in making decisions
A major obstacle to team success in introducing teams into an organization is:
A) team members are willing to commit to a common goal.
B) management is willing to commit needed resources.
C) managers fail to delegate authority.
D) teams are willing to cooperate with other teams.
c. managers fail to delegate authority
True or False: More than two thirds of all students report having participated in some sort of group project.
TRUE
True or False: A survey of Fortune 1000 companies reveals that only about 20 percent rely on self managing teams.
TRUE
True or False: Typically a team performs well because its members possess some level of talent.
TRUE
True or False: Successful teams require that every member have some mixture of communication, financial and managerial skills.
TRUE
True or False: Effective teamwork develops over time as team members learn how to handle various team-based tasks.
TRUE
True or False: The business world is dominated by teams.
TRUE
True or False: Students who have worked in groups in college advise other students to avoid conflict by being more lenient with deadlines.
FALSE
True or False: As a college student and as a member of the workforce, most of us will be members of a team more often than leaders.
TRUE
True or False: Relationship-building roles address challenge number one—accomplishing the team goals.
FALSE
True or False: Task facilitators are especially valuable when assignments aren’t clear or when progress is too slow.
TRUE
True or False: When you challenge unmotivated behavior among team members you’re performing a task-facilitating role.
FALSE
True or False: Teams are most effective when there’s a good balance between task facilitation and relationship building among members.
TRUE
True or False: It is difficult for any one given member of a group to perform both the task-facilitating and the relationship-building roles because some people are better at focusing on tasks and others on relationships.
TRUE
True or False: Individuals who play blocking roles are generally good at building consensus among the group.
TRUE
True or False: When teams attempt to confront dysfunctional members, they usually end up destroying morale, creating conflict, and hindering progress instead.
FALSE
True or False: Team members who use the blocking tactic of overanalyzing tend to blow things out of proportion.
FALSE
As a team member, Beverly seems to split hairs and belabor every detail. She seems to be using which of the following blocking strategies?
A) Resisting
B) Pulling rank
C) Rejecting
D) Overanalyzing
d. overanalyzing
Mike will often talk too much and interrupt others. He is guilty of which blocking strategy?
A) Pulling rank
B) Dominating
C) Stalling
D) Finding fault
b. dominating
Advice on how to survive team projects in college includes_____.
A) Do whatever it takes to get the job done even if it means you do all the work yourself.
B) Don’t share your very best ideas with the group until they can be trusted.
C) Draw up a team charter.
D) Once a conflict comes up, meet with your team members and decide how it should be resolved.
d. once a conflict comes up, meet with your team members and decide how it should be resolved
Which of the following is not good advice on surviving team projects in college?
A) Draw up a team charter
B) Contribute your ideas
C) Use the strengths of each member
D) Getting the project done right and on time is more important than the experience gained from working on a team.
d. getting the project done right and on time is more important than the experience gained from working on a team
In order to be successful, a team leader must help members by:
A) giving commands.
B) arguing his or her case when the leader disagrees with a team member’s suggestion.
C) controlling what team members do.
D) adopting a sink-or-swim attitude; do not step in to rescue struggling team members.
a. giving commands
Team leaders are more effective when they can _____.
A) influence team members
B) always get team members to follow their suggestions
C) gain their trust
D) both a and c
d. both a and c
If you were asked to be a team leader, all of the following leadership skills and behaviors would help you influence your team except:
A) integrity and honesty in communicating with team members.
B) being clear and consistent; letting members know what’s expected of them.
C) being optimistic and generating positive energy.
D) willingness to let team members work on their own without asking them what they are doing and how the job is going.
Chapter 8 #78
A team charter generally includes all of the following except:
A) when and where your team will meet.
B) background information collected to date on the project.
C) ways to ensure that each member’s ideas are respected.
D) how conflicts will be resolved.
b. background information collected to date on the project
Jan is good at providing information when someone else needs it and also asking for it when she needs it. Jan would be considered _____.
A) someone who is using blocking strategies
B) a team leader
C) a task facilitator
D) a relationship builder
c. a task facilitator
Task facilitators are especially valuable when:
A) people on the team aren’t getting along.
B) group cohesiveness needs to be improved.
C) consensus needs to be built.
D) assignments are not clear or progress is slow.
d. assignments are not clear or progress is slow
Efforts made to help a team maintain or improve group cohesiveness are part of the _____ roles that team members play.
A) blocking
B) relationship-building
C) task-facilitating
D) problem solving
b. relationship-building
Every team requires some mixture of the following three skills:
A) time management/communication/research.
B) technical/decision making and problem solving/interpersonal.
C) presentation/technical/interpersonal.
D) conflict resolution/decision making and problem solving/technical.
d. technical/decision making and problem solving/interpersonal
True or False: In contributing to the new-product design and development process, industrial designers such as Chris Arnholt must effectively communicate both ideas and practical specifications.
True
True or False: The design and development process usually succeeds even without input from other areas of the organization.
False
True or False: Nonverbal communication is the exchange of information through behavior such as facial expressions and tone of voice.
False
True or False: Chris Arnholt’s responsibility as chief designer of the RAZR required him to communicate his ideas about the product’s visual and physical features but not about the production processes and manufacturing requirements for building it.
False
True or False: Chris Arnholt made recommendations for the design of the RAZR through drawings, models, and verbal communications.
True
True or False: New product design is an integrative process, meaning that contributions from other functional areas within an organization are not necessary.
False
True or False: Chris Arnholt’s drawings, specs, and recommendations for the RAZR reflected his collaboration with people from all functional areas at Motorola.
True
True or False: Chris Arnholt had a vision for the RAZR phone that he called “rich minimalism.”
True
True or False: Good communication skills can make decisions more convincing and certain and problem solving faster.
True
_____ is the exchange of information from a sender to a receiver.
A) Texting
B) Communication
C) Teamwork
D) Sales techniques
b. communication
Businesses benefit from _____ when they foster effective communication among employees.
A) stronger business relationships
B) more effective marketing messages
C) a lower turnover rate
D) all of the above
d. all of the above
A survey conducted by the College Board identified the following as the most frequently required business communication skill_________.
A) presentations with visuals
B) memos/correspondence
C) E-mail
D) formal reports
c. e-mail
The common denominator in the successful launching of the RAZR was _____.
A) effective communication
B) top-notch marketing
C) product design
D) good management skills
a. effective communication
Chris Arnholt used the term _____ to accurately communicate his idea for the RAZR to his team.
A) nouveau riche
B) slim and sleek
C) compact clam
D) rich minimalism
a. nouveau riche
Informational transfers take up _____ of your waking hours.
A) 10-20 percent
B) 30-40 percent
C) 50-60 percent
D) 70-80 percent
d. 70-80 percent
A College Board Survey of 120 major companies reports that those who cannot _____ will not be hired and are unlikely to be promoted.
A) write and communicate clearly
B) listen while others are speaking
C) understand the business
D) have technical expertise
a. write and communicate clearly
True or False: If you write a memo to a coworker you are using a lateral communication channel.
True
True or False: Communication may flow laterally in organizational settings, but more often it flows up or down.
False
True or False: Downward communication flows from higher organizational levels to lower organizational levels.
True
True or False: Lateral communication flows from lower to higher organizational levels.
False
True or False: Upward communication usually provides managers with information that they need for making decisions.
True
True or False: As information seeps downward, it tends to lose some of its original clarity and often becomes distorted or downright wrong.
True
True or False: Internal communication is shared by people at all levels within a company and parties outside the company.
False
True or False: An organization’s formal communication network consists of all communications that flow along its official lines of authority.
True
True or False: Every company also has an informal communication network known as the grapevine.
True
True or False: Information on the grapevine is usually very accurate.
False
True or False: Managers should make every attempt to eliminate the grapevine in an organization.
True
True or False: The best way to minimize informal communication and its potential damage is to provide better formal communication.
True
Your supervisor has asked you to complete the sales report. This is an instance of _____. When you’ve finished and submitted it, you will have completed a task of _____.
A) downward communication / upward communication
B) interpersonal communication / routine maintenance
C) upward communication / downward communication
D) downward communication / lateral communication
a. downward communication / upward communication
The type of communication barrier that arises when a female manager communicates with a male manager is called _____.
A) functional barrier
B) gender barrier
C) cultural barrier
D) diversity barrier
b. gender barrier
About 80% of top executives say that learning to _____ is the most important skill in getting things done in the workplace.
A) speak clearly
B) listen
C) filter out distractions
D) answer e-mails promptly
a. speak clearly
The more ____ an organization becomes, the more likely it will be to encounter _____.
A) divisionalized / functional barriers
B) culturally diverse / functional barriers
C) functional / cultural barriers
D) team-driven / internal communication problems
c. functional / cultural barriers
Formal organizational communication flows through different _____.
A) work groups
B) channels of communication
C) grapevines
D) informal communication networks
b. channels of communication
True or False: The communication skill ranked highest in importance in business is the ability to create technical reports.
False
True or False: Good communicators are able to compose and send e-mails and have the ability to adapt messages to different receivers.
True
True or False: When writing to a coworker with whom you are friends, you can be less formal than when you are writing to your manager or a client.
True
True or False: It is common and appropriate to forward an email without permission from the sender.
False
True or False: Dale Carnegie created a four-step process for preparing and delivering presentations.
True
True or False: When using slides in a presentation it is important to detail all of the information you intend to cover on each slide.
True
True or False: It is perfectly acceptable to read the slides to your audience during a presentation so that nothing important is missed.
True
True or False: Memos are effective at conveying fairly detailed information.
True
True or False: There are multiple forms of standard memo format that vary from company to company and sometime even within the same company.
True
True or False: The RE in a memo stands for “reminder.”
False
True or False: Memos should be concise yet complete and summarize information effectively.
True
True or False: Tone of voice is considered nonverbal communication.
True
True or False: If a person yawns in a meeting he or she is demonstrating nonverbal communication.
True
True or False: Nonverbal cues often tell you what’s on a person’s mind more than words can do.
True
True or False: The best way to get over your fear of making a presentation is through preparation.
True
True or False: If your message is simple your best approach would likely be to talk by phone.
False
True or False: It would be inappropriate to send a formal e-mail to your manager.
False
True or False: Recipients of e-mails often use the subject line to decide whether to open or delete a message.
True
True or False: You should include multiple messages in your email, especially if you want responses to several items.
True
Joan Greer has noticed that many people at work participate in “nonword” communication using tones of voice, gestures, posture, and facial expressions. What are they doing?
A) Being secretive
B) Engaging in nonverbal communication
C) Offending other people
D) Engaging in formal communication
b. engaging in nonverbal communication
Which of these is not a good tip for writing emails?
A) Write a meaningful subject line and avoid attachments.
B) Keep the message focused and readable and be kind—don’t flame.
C) Identify yourself clearly in the first few lines and proofreaD)
D) Assume privacy but be careful in addressing your email so it reaches the right person.
d. assume privacy but be careful in addressing your email s it reaches the right person
Which of the following is a good tip for writing emails?
A) Write formal emails even when writing to a coworker with whom you are friends.
B) Instead of sending an attachment, extract relevant text for a large file and ask the recipient if he or she wants to see the full document.
C) Don’t feel the need to respond to emails promptly. Get back to the person emailing you when you find time.
D) If you get an email, it is OK to forward it to someone else in the organization without getting permission from its author.
a. write formal emails even when writing to a coworker with whom you are friends
What are the steps identified by Dale Carnegie that you should follow to create and deliver successful presentations?
A) Prepare, present
B) Prepare, practice, present
C) Plan, prepare, practice, present
D) Plan, prepare, practice, present, post-critique
c. plan, prepare, practice, present
Once you have planned your presentation it is time to prepare it. A good presentation should have a(n) _____.
A) body, and exciting close
B) introduction, body, close
C) pre-introduction, introduction, body, close
D) executive summary, presentation, close
b. introduction, body, close
It is very common to use visual aids in a business presentation. Which of the following is not a tip for using PowerPoints?
A) Avoid wordiness use key words and phrases only.
B) Include about 8 bullet items per slide.
C) Use graphs rather than just words.
D) Use a color font that contrasts with the background.
b. include about 8 bullet items per slide
The best way to get over your fear when making presentations is to _____.
A) practice in front of a mirror
B) go over it several times
C) get up and make a presentation
D) prepare for it well in advance
c. get up and make a presentation
Which of the following statements is not true about nonverbal communication?
A) While nonverbal cues are important, it’s what you say that always matters most.
B) To improve your body language you should become aware of any nonverbal cues and work to eliminate them.
C) If you fidget when a work-related problem is being discussed, your supervisor will assume you are disinterested.
D) Facial expressions can give you away- for example, a change in voice can indicate you are angry.
a. while nonverbal cues are important, it’s what you say that always matters most
About _____ of your time can be spent on the opening of a presentation.
A) 5-10 percent
B) 15-20 percent
C) 25-30 percent
D) 35-40 percent
a. 5-10 percent
The opening of a presentation should be _____.
A) shorter than the closing
B) the same length as the closing
C) longer than the closing
D) as long as the body
b. the same length as the closing
The body covers the bulk of the material and consumes about _____ of your time.
A) 40-50 percent
B) 60-70 percent
C) 80-85 percent
D) 20-30 percent
c. 80-85 percent
It has been found that an audience can absorb _____ points in any given presentation.
A) only 2
B) about 4 to 6
C) about 10
D) more than 10
b. about 4 to 6
True or False: The principle of satisfying customer needs while meeting organizational goals is called the strategic concept.
False
True or False: When we identify a specific group of consumers that have particular interests in our product and the means to buy it, we’ve identified our target market.
True
True or False: A consumer market consists of buyers who want a product for use in making other products.
False
True or False: Technology optimists are those who embrace new technology.
True
True or False: Marketing includes everything that organizations do to satisfy customer needs.
True
True or False: Psychographic segmentation classifies consumers on the basis of individual lifestyles as they’re reflected in people’s interests and values.
True
True or False: Between the two types of data, marketers generally begin by looking at primary data—previously collected information pertaining to the target market.
False
True or False: Demographic segmentation divides a market into groups based on such criteria as values, interests, opinions, and lifestyles.
False
True or False: Marketing is the business function that focuses on advertising and selling products.
True
Working in the field of _____, Juan Gonzales deals with processes for creating, communicating, and delivering value to customers and for improving customer relationships.
A) promotion
B) marketing
C) customer service
D) customer relations
b.marketing
Your _____ market consists of a specific group of consumers who are interested in your product, have access to it, and possess the means to buy it.
A) strategic
B) target
C) popular
D) local
b. target
Because its customers want its products for personal use and household consumption, Sunshine Cosmetics sells in a(n) _____ market.
A) consumer
B) retail
C) industrial
D) attractive
a. consumer
The _____ market includes buyers who want a product for use in making other products.
A) secondary
B) wholesale
C) consumer
D) industrial
d. industrial
In order to put a marketing concept into practice, you need a _____ for performing two tasks, including selecting a target market.
A) marketing scheme
B) marketing plan
C) marketing strategy
D) marketing mix
c. marketing strategy
_____ is not an aspect of marketing strategy.
A) Selecting a target market
B) Implementing strategies for promoting products
C) Distributing products
D) Performing sales related accounting tasks
d. performing sales-related accounting tasks
_____ would not be included in a demographic segmentation of consumers.
A) Marital status
B) Ethnic background
C) Lifestyle preferences
D) Educational background
lifestyle preferences
_____ segmentation classifies consumers on the basis of individual lifestyles as they’re reflected in personal values.
A) Geographic
B) Demographic
C) Behavioral
D) Psychographic
d. psychographic
McDonald’s sells tacos for breakfast in Arizona because its marketers have identified a _____ segment.
A) demographic
B) behavioral
C) geographic
D) psychographic
c. geographic
Using _____ segmentation, Pierre Trudeau has divided his market according to a variable called usage rate.
A) behavioral
B) demographic
C) geographic
D) psychographic
a. behavioral
Marketers generally begin the research process by gathering _____ datA)
A) secondary
B) primary
C) electronic
D) free
a. secondary
_____ is the most productive way to conduct surveys.
A) Asking customers face to face in stores
B) Mailing out questionnaires
C) Phoning people
D) Using the Internet
d. using the Internet
Which two segmenting variables would be most important for a company that sells children’s hiking boots?
A) Geographic and behavioral
B) Demographic and geographic
C) Behavioral and psychographic
D) Demographic and psychographic
d. demographic and psychographic
When a travel agency wanted to predict sales for a new travel adventure they wanted to begin marketing, they looked at sales figures and customer feedback of similar types of vacation packages they had offered in the past. This is an example of _____.
A) primary data gathering
B) secondary data gathering
C) scientific research
D) intermediate data gathering
b. secondary date gathering
True or False: When consumers prefer and insist upon buying Dell products, they’re demonstrating brand loyalty.
True
True or False: To prevent a competitor from introducing a product with the same name as its own product, a company must take out a patent by registering the name with the U.S. Patent and Trademark Office.
True
True or False: Your trademark consists of what you say about the product on your packaging, not only identifying the product but providing information about the contents of the package.
True or False: Setting a price for a product is a tool of the marketing mix.
True or False: The marketing mix is often regarded as the least important ingredient of marketing
True or False: Online surveys are easier to answer but get poorer response rates than telephone surveys.
A _____ is a letter, sound, or symbol that differentiates a product from similar products on the market.
A) title
B) tag
C) name
D) brand
d. brand
A firm that markets a product with no branding information attached to the packaging except a description of its contents is using _____ branding.
A) generic
B) private
C) proprietary
D) tag
a. generic
Over time, your company hopes to develop brand ____ among customers who prefer or even insist upon its product.
A) awareness
B) monopoly
C) constancy
D) loyalty
d. loyalty
A company seeks a(n) _____ by registering the name of a product with the U.S. Patent Trade Office.
A) brand name
B) trademark
C) copyright
D) endorsement
b. trademark
Using _____ branding, a company makes a product and sells it to a retailer who resells it under its own name.
A) generic
B) primary
C) private
D) tag
c. private
Brand _____, like that enjoyed by Coca-Cola, results from favorable consumer experience with a product.
A) loyalty
B) equity
C) primacy
D) status
b. equity
Typically, all of the following information is included on a packaging label except _____.
A) where the product was made
B) what risks are associated with the product
C) who made the product
D) what color the product is
d. what color the product is
The marketing mix consists of all of the following except _____.
A) price
B) product
C) positioning
D) place
c. positioning
When Toyota offers a premium car under the brand name Lexus, it is using which of the following branding approaches?
A) Private branding
B) Multiproduct branding approach
C) Generic branding
D) Multibranding approach
a. private branding
_____ is the process of collecting and analyzing data that’s relevant to a specific marketing situation.
A) Advertising research
B) Sample selling
C) Marketing research
D) Target scanning
c. marketing research
Developing a marketing mix may involve all of the following activities except:
A) developing a marketing budget.
B) developing a product aimed at the needs of the target market.
C) setting a price for a product.
D) informing potential buyers about a product.
a. developing a marketing budget
True or False: With skimming pricing, a company starts off with the highest price that keenly interested customers will pay.
True
True or False: Prestige pricing sets prices artificially high to foster the impression of a high-quality product.
True
46. With odd-even pricing, marketers price a product according to its cost to the manufacturer plus a reasonable profit.–False
True or False: With penetrating pricing, a company would initially charge a low price on a product to “get its foot in the door.”
True
True or False: Using demand-based pricing, you work backwards, figuring out how much consumers are willing to pay for a product and then subtracting an amount to cover your profit.
True
_____ pricing, a company tries to cover its initial costs by setting the highest price that keenly interested customers will pay.
A) skimming
B) penetration
C) flexible
D) bidding
a. skimming
Using _____ pricing, a company initially charges a low price, both to discourage competition and to grab a sizeable share of the market.
A) skimming
B) flexible
C) penetration
D) bidding
c. penetration
_____ pricing bases the selling price of a product on its cost plus a reasonable profit.
A) Rational
B) Prestige
C) Target
D) Cost-based
d. cost-based
If a customer pays $40 for a shirt that’s been marked up 100 percent over cost, what price did the retailer pay for it?
A) $15
B) $20
C) $22.50
D) $25
A few years ago, when Nike was charging $140 for a pair of jogging shoes, the company was using a strategy of _____ pricing.
A) cost-based
B) prestige
C) over the top
D) target
b. prestige
When a manufacturer sells a product to a retailer, the retailer’s cost is _____ what the consumer pays for it.
A) much less than
B) a little less than
C) insignificant compared to
D) unrelated to
a. much less than
If you stood outside an NBA championship game and sold your ticket for double the original price, you’d be engaged in _____ pricing.
A) prestige
B) cost-based
C) unsportsmanlike
D) demand-based
a. prestige
When a manufacturer of DVD recorders initially charged a high price but later dropped the price after others entered the market, it was practicing which pricing method?
A) Cost-based pricing
B) Target costing
C) Skimming pricing
D) Penetration pricing
c. skimming pricing
You manufacture covers for barbeque grills at a cost of $5 each and make a profit of $2 per cover. The barbeque grill covers are sold to consumers by a national outdoor furniture retailer for $18, and you know the selling price includes a markup of $9 each. What is true about this situation?
A) The covers are priced using cost-based pricing
B) You sold the covers directly to the outdoor furniture retailer
C) You need a new accountant because the numbers don’t add up
D) You sold the covers through a distributor
True or False: Distribution entails all activities involved in getting the right quantity of your product to your customers at the right time and at reasonable cost.
True
True or False: Wholesalers are sometimes called “distributors.”
True
True or False: A profit margin is the amount that a company earns on each unit sold.
True
True or False: Automation is the process of physically moving or carrying goods during production, warehousing, and distribution.
False
True or False: The supply chain is the flow that begins with a company’s purchase of raw materials and ends in the sale of its finished product to an end user.
True
True or False: Supply chain management is the process of integrating all the activities entailed by the supply chain.
True
True or False: To deliver high customer value, a company must monitor and improve its value chain.
True
True or False: If a company has to store a large volume of its product over an extended period, it will probably store the product in a distribution center.
False
True or False: According to the U.S. Department of Transportation, trains are the transportation of choice for most goods.
False
True or False: The customer value triad consists of three factors: quality, service, and availability.
False
True or False: The process of physically moving or carrying goods during production, warehousing, and distribution is called just-in-time automation.
False
True or False: A company’s supply chain includes more activities than does its value chain.
Using a strategy of _____, a company orders only what it needs, thus cutting the time and cost required to move raw materials into and out of storage.
A) right-now/right-here
B) materials precision
C) just-in-time production
D) not-now/not-here
c. just-in-time production
When she focuses on the flow that begins with the purchase of raw materials and culminates in the sale of a product to end users, Bridgett Hammerschmidt is managing her company’s _____.
A) demand chain
B) supply chain
C) materials chain
D) value chain
b. supply chain
The process of integrating all the activities in a firm’s supply chain is called _____.
A) supply chain management
B) value management
C) pulling the company’s chain
D) top-bottom management
a. supply chain management
The key to persuading customers to buy your products is delivering _____.
A) value
B) the goods
C) customer satisfaction
D) on time
c. customer satisfaction
A(n) _____ is a wholesaler or retailer who helps move products from their original sources to end users.
A) middleman
B) intermediary
C) fence
D) distributor
b. intermediary
The presence of an intermediary substantially reduces the number of ____ faced by both consumers and businesses.
A) risks
B) expenditures
C) unpleasantries
D) contacts
d. contacts
_____ is the process whereby a firm gets its products to customers.
A) Materials planning
B) Logistics
C) Physical distribution
D) The supply chain
c. physical distribution
To deliver high customer value, a company must monitor and improve its _____—the entire range of activities involved in delivering value to its customers.
A) promotion chain
B) promotion mix
C) value mix
D) value chain
d. value chain
Your _____ is the amount that you earn on each product that you sell.
A) profit margin
B) turnover
C) yield
D) bottom line
a. profit margin
A good example of _____ is the process whereby cars are built on moving assembly lines made of skillets large enough to hold workers who move along with the cars while they’re being assembled.
A) automation
B) materials handling
C) product cooking
D) transportation
a. automation
According the U.S. Department of Transportation, the _____ is the transportation mode of choice for most goods.
A) airplane
B) cargo ship
C) train
D) truck
d. trucks
_____ is a major source of difficulty in managing a supply chain.
A) A large number of employees
B) A tall organizational structure
C) An undependable phone system
D) Seasonal fluctuation
d. seasonal fluctuation
Domino’s relies on a software system that uses historical data to perform all of the following tasks except _____.
A) facilitating the smooth flow of accurate information
B) adjusting supply levels
C) controlling facility climate
D) filling HR needs
d. filling HR needs
The customer value triad is based on all of the following except _____.
A) quality
B) service
C) availability
D) price
c. availability
Which of the following is not involved in a company’s supply chain?
A) Its suppliers
B) Its distributors
C) Its retailers
D) All of the above are involved
d. all of the above are involved
True or False: Sales promotions encourage customers to buy something quickly.
True
True or False: Getting your product mentioned in the newspaper is free promotion.
False
True or False: The purpose of customer-relationship management is retaining customers.
True
True or False: When a company does something negative, such as selling a prescription drug with unexpected side effects, the public relations department can do little to rectify the damage to the firm’s image.
False
True or False: Although repeat customers tend to spend less, they’re much more likely to recommend a company to other people.
False
A little ____—say, getting a product mentioned in a newspaper or on TV—can often generate more customer interest than a costly ad.
A) sales promotion
B) word of mouth
C) publicity
D) promotional luck
c. publicity
The following is a good example of _____: “Congratulations! You’ve just won a month’s free membership! All you have to do is sign up for one of our credit cards.”
A) sales promotion
B) personal selling
C) hype
D) promotional luck
a. sales promotion
During the 1996 holiday season, there was a buying frenzy surrounding a fuzzy red doll named _____ after Rosie O’Donnell mentioned the product on TV
A) Cabbage Patch Kids
B) Christmas Barbie
C) Dunkin’ Donuts
D) Tickle Me Elmo
d. Tickle Me Elmo
It is estimated that it costs about _____ times more money to attract and sell to a new customer than to an existing customer.
A) 3
B) 6
C) 9
D) 12
b. 6
Retaining customers is the purpose of _____, a marketing strategy that focuses on nurturing and maintaining strong relationships with current customers.
A) goodwill hunting
B) consumer cultivation
C) prospecting
D) customer-relationship management
d. customer-relationship management
When you make your first purchase on Amazon.com, you’ve enlisted a lifelong acquisitions advisor—someone who will constantly suggest other things that you might like to buy. Amazon.com is applying the concept of _____.
A) consumer management
B) goodwill management
C) customer-relationship management
D) interruption marketing
c. customer-relationship management
Companies that ask for a customer’s cooperation are engaging in _____.
A) interruption marketing
B) permission marketing
C) back patting
D) external marketing
b. permission marketing
As marketing director of Broadway Hospital, Kim Hartig uses a typical industry-wide promotion mix that does not include _____.
A) advertising
B) sales coupons
C) personal selling
D) sales promotion
b. sales coupons
_____ is the most prevalent form of promotion.
A) Personal selling
B) Advertising
C) Publicity
D) Sales publicity
b. advertising
Many companies manage _____ in an effort to garner favorable publicity for themselves and their products.
A) public relations
B) advertising
C) personal selling
D) coupon distribution
a. public relations
When a company does something negative, such as selling a prescription drug with unexpected side effects, its _____ department will probably go to work to control the damage to its reputation.
A) advertising
B) face saving
C) public relations
D) defense
c. public relations
Which promotional tool would be most appropriate for each of these businesses: RE/MAX home sales; joint give-away of iTunes products by Apple and Starbucks; manufacturer of Tickle Me Elmo doll, which was played with on Rosie O’Donnell’s TV talk show; manufacturer of Campbell’s Soup.
A) Publicity, advertising, personal selling, promotion
B) Personal selling, advertising, publicity, promotion
C) Personal selling, promotion, publicity, advertising
D) Publicity, promotion, advertising, personal selling
c. personal selling, advertising, publicity, promotion
Which of the following is not true about customer-relationship management?
A) It is a marketing strategy that focuses on maintaining strong relationships with current customers.
B) Repeat customers are more profitable than new customers.
C) The cost to sell an existing customer is about the same as the cost to attract and sell to a new customer.
D) Repeat customers spend more than new customers.
c. the cost to sell an existing customer is about the same as the cost to attract and sell to a new customer
True or False: The LEGO brand is moving through the product stage that marketers call the death stage.
False
True of False: Marketers must keep abreast of technological advances to ward off threats to product profitability.
False
True of False: If a product survives the growth stage, it will probably remain in the maturity stage for a long time.
True
True of False: Brand managers can control the competitiveness of a product.
False
In a report about the stages of the product life cycle, brand manager Erica Shannon would not include _____.
A) growth
B) maturity
C) development
D) decline
c. development
In the _____ stage of the product life cycle, price competition becomes more intense and profits harder to come by.
A) growth
B) decline
C) maturity
D) development
b. decline
In addition to making old products obsolete, technological advances:
A) actually destroy existing products.
B) weaken the ability of companies to make competitive products.
C) create gaps in product development.
D) make new products possible.
d. make new products possible
When the market for it stabilizes, a product has entered the _____ stage of the product life cycle.
A) convenience
B) growth
C) marginal utility
D) maturity
d. maturity
During the _____ stage of the product life cycle, advertising costs will go up.
A) maturity
B) decline
C) constancy
D) growth
d. growth
Prior to making a comeback in the last few years, the LEGO brand progressed through the _____ stage of the product life cycle.
A) decline
B) mature
C) introduction
D) growth
a. decline
Technology is a factor in the _____ marketing environment of most companies.
A) internal
B) external
C) material
D) capital
b. external
The following is true for the product you manufacture and sell: Sales are growing, but at a decreasing rate. You’re spending a lot on advertising to differentiate yourself from the competition. Prices are dropping although your profits are still good because of high sales volume. Which life-cycle stage is your product in?
A) Decline
B) Introduction
C) Maturity
D) Growth
c. maturity
Starbucks has a number of effective social media campaigns except:
A) An offer by Starbucks to receive free coffee on Tax Day
B) Mickey Mouse campaign to celebrate the introduction of Disney character fruit drinks
C) Free pastry day
D) Discount for “Foursquare” mayors of Starbucks
b. Mickey Mouse campaign to celebrate the introduction of Disney character fruit drinks
Social media marketing presents companies with a number of challenges including:
A) Reaching their target market
B) Building brand loyalty
C) Creating brand awareness
D) Being overwhelmed by the large volume of customer data available on social sites.
d. being overwhelmed by the large volume of customer data available on social sites
True or False: Psychological and social influences affect buying behavior. Examples of psychological influences are attitudes and personality. Examples of social influences are family and culture.
True
True or False: Within the last ten years, the workforce has become more diverse.
True
True or False: Although current research shows the concept to be unfounded, members of Generation X were once thought of as “slackers.”
True
True or False: When you’re studying the information that you’ve gathered about a product, you’re said to be in the evaluation step of the five-step consumer buying process.
True
True or False: Psychological influences affect the way we select, organize, and interpret information when buying a product.
False
True or False: The requirement that food labels reveal the trans-fat levels of foods reflects the influence of the political and regulatory environment.
True
True or False: Inflation pushes interest rates downward.
False
True or False: When you buy something as a reflection of your economic status, you’re acting under social influences.
True
True or False: “Culture” refers to a set of accepted values.
False
True or False: Though once extremely important, the Baby Boomer generation is now declining as a major marketing force.
False
True or False: The first step in the five step consumer buying process is searching for information about a product.
False
Your uncle has been selling eyeglasses and contact lenses for more than 30 years. The introduction of LASIK surgery as an alternative to eyeglasses and contacts poses a threat to your uncle’s business. Which of the following external environmental factors is your uncle concerned with?
A) Economic
B) Social and cultural
C) Competitive
D) Technological
b. Social and Cultural
If you’re a high school student who’s attending college fairs and talking with your guidance counselor about colleges, you can be said to be in the _____ stage of the consumer buying process.
A) evaluation
B) preparation
C) information search
D) postpurchase evaluation
c. information search
If you’re using a product and aren’t sure if you’re happy with it, you’re engaged in _____ evaluation.
A) post-purchase
B) possession
C) purchase need
D) utility
a. post-purchase
When it comes to regulations, businesses actually favor _____.
A) restrictions on advertising
B) food content labeling
C) patent protection
D) standards of decency
c. patent protection
The effect of inflation on interest rates is usually to _____
A) push them upward
B) force them downward significantly
C) force them downward slightly
D) stabilize them
a. push them upward
In the last few decades, all of the following changes have occurred in the U.S. workforce except:
A) more people are willing to sacrifice health and happiness to the demands of hectic work schedules and the opportunity to earn more money.
B) the number of women has increased significantly.
C) it has become more diverse.
D) people place more importance on balancing work lives with the rest of their lives.
a. more people are willing to sacrifice health and happiness to the demands of hectic work schedules and the opportunity to earn more money
_____ is not one of the steps in the consumer buying process.
A) Need recognition
B) Evaluation
C) Post-purchase evaluation
D) Post-purchase recrimination
d. post-purchase recrimination
When deciding to purchase or use a product, you may go through the _____ process.
A) customer indecision
B) buyer behavior
C) consumer behavior
D) product screening
c. consumer behavior
Historically, the loudest opposition to business related regulation came from:
A) the tobacco industry when TV and radio advertising was banned.
B) telemarketers in response to the establishment of “do not call registries”.
C) the food industry when processors were forced to reveal trans-fat levels.
D) the broadcasting industry when the FCC stepped up fines for offenses against “standards of decency”.
b. telemarketers in response to the establishment of “do not call registries”
_____ is not among the groups into which marketers divide most Americans born in the last 60 years.
A) Baby boomers
B) Generation X
C) Generation Y
D) Generation Z
d. generation Z
Among Americans born in the last 60 years, marketers ascribe such characteristics as “individuality, tolerance, and self-absorption” to _____.
A) Generation X
B) Generation Y
C) baby boomers
D) libertarians
c. baby boomers
Among Americans born in the last 60 years, according to marketers, _____ is diverse, savvy, and pragmatic.
A) Generation Y
B) Generation X
C) the Wall Street generation
D) the baby boom generation
b. generation X
Among Americans born in the last 60 years, according to marketers, _____ “echoes” a previous group and stands for integrity and honesty.
A) the family values generation
B) Generation Y
C) the baby boom generation
D) Generation X
b. generation Y
All of the following are psychological influences except _____.
A) reference groups
B) perception
C) attitudes
D) personality
a. reference groups
_____ is not a social influence on buying behavior.
A) Economic status
B) Education
C) Culture
D) Social status
b. education
True or False: A product is something that can be marketed to customers because it provides them with a benefit and satisfies a need.
True
True or False: Products are either physical goods or services and can’t be both.
False
True or False: Launching a “new-to-the-market” product is very risky and only about 25% of products created fall into this category.
False
True or False: When Just Born came out with its Peeps marshmallow Easter decorating kits the company was releasing a “new-to-the-market” product.
False
True or False: When Just Born reduced the piece size, added some new ingredients, and put its Mike & Ike’s in pouches, this was an extension to an existing product.
True
True or False: When Just Born extended its product line to include “Peeps in a chocolate egg,” this was considered an extension to an existing product line.
True
True or False: The goals of an entrepreneurial start-up include profitability and growth.
True
True or False: Woody Allen once said, “If you’re not failing every now and again, it’s a sign you’re not going to be very profitable.”
False
True or False: Most entrepreneurial decision making can be improved by using knowledge gained from personal experience.
True
The PowerSki Jetboard is best characterized as a _____.
A) consumer product
B) a good
C) a component
D) merchandise item
a. consumer product
A _____ business offers such products as haircuts or taxi rides.
A) goods producing
B) soft goods
C) service producing
D) low tech
c. service-producing
If no product existed prior to its invention, then the product is a(n) _____.
A) improvement in an existing product
B) new-to-the-company product
C) extension to an existing product line
D) “new-to-the-market” product
d. “new-to-the-market” product
An example of a “new-to-the-company” product sold by Just Born is _____.
A) Marshmallow Peeps
B) Peers marshmallow Easter decorating kits
C) change in ingredients and packaging for Mike & Ike’s
D) Peeps chocolate eggs
a. marshmallow peeps
In an effort to make its food healthier, McDonald changed the way it made its french fries. This is an example of a:
A) new-to-the-company product.
B) extension to an existing product line.
C) “new-to-the-market” health conscious product.
D) improvement in an existing product.
d. improvement in an existing product
All of the following are characteristics of a typical entrepreneurial start-up except:
A) the start-up focuses on new opportunities.
B) its owners are willing to take risks.
C) it creates innovative products and/or practices.
D) it focus on growth rather than profits.
d. it focuses on growth rather than profits
Which of the following venture is riskiest?
A) Starting up a store to sell improved versions of existing surfboards.
B) Starting a business to sell the first motorized surfboard.
C) Setting up a store to sell fireworks.
D) Buying an existing skydiving school.
b. starting a business to sell the first motorized surfboard
Which of the following statement(s) about entrepreneurs is true?
A) they take carefully calculated risks
B) They take unnecessary risks
C) They can minimize their risk by drawing on personal experience and conducting research
D) Both a and c
d. both a and c
True or False: His job, according to Doug Hall, head of a Cincinnati based idea factory, is to turn old goods into new services.
False
True or False: The key to coming up with a great product idea is finding a product you are passionate about.
True
True or False: In coming up with a product idea, you should ask “what do I want to sell.”
False
True or False: Seth Gordon, marketing consultant and author, refers to truly remarkable products as “jackpots.”
False
True or False: According to the Small Business Administration, 10% of all new product innovations come from small businesses.
False
True or False: Large companies seek all of their product ideas from those outside the organization, including current customers.
True
True or False: A novel approach to generating new-to-the-world product ideas is hiring “creativity” consultants.
True
Entrepreneur and marketing consultant Seth Goodin refers to truly remarkable products as _____.
A) outstanding products
B) cash cows
C) winners
D) purple cows
c. winners
In addition to being creative people, entrepreneurs are generally also _____.
A) only moderately intelligent
B) willing to take risks
C) from poor backgrounds
D) from large families
b. willing to take risks
If a footwear maker’s latest jogging shoe is considered a “purple cow,” the line has _____.
A) incremental appeal
B) marginal value
C) modest potential
D) great potential
c. modest potential
Which of the following is not an approach commonly used by medium and large organizations to identify product development opportunities?
A) Establish entrepreneurial units in their organizations
B) Hire “creativity” consultants
C) Talk with potential customers
D) All of the above are approaches used to identify product opportunities
d. all of the above are approaches used to identify product opportunities
The majority of product ideas come from _____.
A) medium-size organizations
B) large organizations
C) marketing consultants
D) small businesses and entrepreneurs
a. medium-side organizations
To come up with good businesses ideas you should do all of the following except _____.
A) have lots of ideas
B) ask yourself what you want to sell
C) be creative
D) seek product ideas from people inside your organization
b. ask yourself what you want to sell
Entrepreneurs and small businesspeople come up with many good product ideas because they are:
A) willing to devote an exorbitant amount of time thinking up ideas.
B) highly motivated people.
C) often creative people.
D) young with fresh ideas.
c. often creative people
True or False: An idea turns into business success when it has commercial potential.
False
True or False: By making liquid refreshment available when it’s needed, a concessionaire selling bottled water at a summer concert is creating place utility.
False
True or False: A street vendor selling hotdogs outside an office building is creating place utility.
True
True or False: If you ordered french fries with your hamburger and were given a raw potato instead, the restaurant failed to provide you with form utility.
True
True or False: When you buy a product and get a receipt, you are receiving a form of ownership utility.
True
By making Christmas decorations available the day after Thanksgiving, Holly’s Holiday Shop is offering customers what kind of utility?
A) Time utility
B) Place utility
C) Ownership utility
D) Form utility
a. time utility
An idea turns into a business opportunity when:
A) people like the product.
B) it is a quality product.
C) it can be made cheaply.
D) it has commercial potential.
d. it has commercial potential
All of the following are types of utility that customers value except _____.
A) product
B) time
C) place
D) form
a. product
___________is an example of ownership utility.
A) A real estate agent helping you buy a home
B) Buying a gift for yourself rather than for a friend
C) Building a home
D) Buying insurance on your car
a. a real estate agent helping you buy a home
When a Domino’s delivery person brings a pepperoni pizza to your dorm room, this is an example of _____.
A) Time utility
B) Ownership utility
C) Form utility
D) Place utility
d. place utility
Taking an online course gives you which type of utility?
A) Time utility
B) Ownership utility
C) Form utility
D) Place utility
d. place utility
When a soap manufacturer adds liquid soap to its product line, the manufacturer is providing which type of utility?
A) Time utility
B) Ownership utility
C) Form utility
D) Place utility
c. form utility
An example of place utility would be:
A) car rental company at a busy airport
B) document delivery service
C) a banner maker able to install banners at the place of business within 24 hours
D) commercial real estate agent
a. car rental company at a busy airport
True or False: An industry is a group of related businesses.
True
True or False: Businesses in the same industry don’t generally compete with each other.
False
True or False: Market segments can be a group of potential customers in a geographic location.
True
True or False: To research an industry, you begin by looking at smaller sectors of the industry.
False
True or False: You might want to subdivide a segment further to isolate a market.
True
True or False: A niche is a widely defined group of potential customers with a fairly broad set of needs.
False
True or False: Its market share is a whole industry’s portion of its target market.
True
Peggy Deardon’s DVDs classifies its rental movies according to categories such as “Action,” “Comedy,” “Foreign,” “Children’s,” and so on. Which of the following is Peggy Deardon’s primary standard for segmenting its market?
A) Psychographic
B) Geographic
C) Income
D) Demographic
a. psychographic
Within the footwear industry there are several groups of customers, each of which is called a(n) _____.
A) market segment
B) niche
C) market
D) sub-industry
b. niche
Which of the following is the smallest division of customers?
A) Niche
B) Segment
C) Market
D) Industry
a. niche
Customers buy products to satisfy _____ needs and expect to derive some value or _____ from them.
A) unmet / benefit
B) material / profit
C) unmet / pleasure
D) logical / satisfaction
a. unmet/benefit
Which of the following is a market segment?
A) People who live in the same climate
B) Individuals who have adopted the same lifestyle
C) Age groups
D) All of these
d. all of these
A _____ is a narrowly defined group of potential customers with a fairly specific set of needs.
A) market segment
B) niche
C) market share
D) concentrated market
b. niche
If you’ve concluded that you have a potential product for which people will pay money, your next step is to _____.
A) segment your market
B) identify your competitors
C) analyze your market
D) hire the right employees
A market segment is best characterized as a group of _____.
A) stores that sell similar products
B) manufacturers who produce similar products
C) potential customers with common characteristics
D) consumers with comparable incomes
c. potential customers with common characteristics
Which of the following questions is not helpful to ask when researching an industry?
A) Is the industry growing or contracting?
B) How important is technology to the industry?
C) Do companies in the industry make reasonable profits?
D) Do other small business owners that I know find the industry interesting?
d. do other small business owners that I know find the industry interesting?
True or False: Psychographics is an essential part of sales forecasting.
True
True or False: Dan the Dog Groomer estimates that 600 poodle owners in Decatur will bring their dogs to his shop during his first year of business. Dan probably arrived at this number by trying to calculate his market share.
True
True or False: Talking to people in your prospective industry can be especially helpful if your proposed product is a service.
True
True or False: If your proposed business was a frozen yogurt store in Michigan, you could get an estimate of the number of customers you might have if you asked those leaving a bakery in California if they’d buy frozen yogurt in the winter.
True
True or False: On the surface, data published by industry associations seems helpful in estimating sales for your proposed business. But the data is often old and not very helpful.
False
True or False: To estimate sales of jogging shoes to joggers over age 65 living in Florida, you would determine your share of the athletic shoes sold in the U.S.
True
To get some idea of the total market for products like the one you want to launch, you could begin by _____.
A) looking at styles advertised in magazines
B) going to a busy store and seeing what people are buying
C) asking your friends what they think is popular
D) examining pertinent industry research
d. examining pertinent industry research
Which of the following is/are approaches used to forecast demand for a product?
A) reviewing industry data on the internet
B) speaking with competitors
C) speaking with potential customers
D) all of these approaches.
d. all of these approaches
A company plans to forecast its sales for high-end kitchen appliances sold wholesale to home remodeler contractors in the Lehigh Valley. What would their expected annual sales be based on the following information: 150,000 existing households and 20,000 new construction average remolded home spends $3000 in appliances company expects 10% of the households to perform a kitchen remodel project in the next 12 months with 50% using a contractor and 50% doing it themselves. The company hopes to capture a 10% market share their first year.
A) $2,550,000
B) $4,500,000
C) $9,000,000
D) $2,250,000
After identifying a group of potential customers, your next step is to _____.
A) find out what they think of your product idea
B) find funding for your product
C) manufacture a prototype
D) collate the industry data that you’ve collected
d. collate the industry data that you’ve collected
____ is one of the hardest tasks in business.
A) forecasting demand for a proposed product
B) selecting employees to manufacture a product
C) choosing capable managers to oversee operations
D) getting capital to fund operations
a. forecasting demand for a proposed product
Of the following, _____ is the best example of a company’s proprietary information.
A) store location
B) sales volume
C) advertising strategy
D) production equipment
b. sales volume
True or False: Breakeven analysis is an approach used to determine the level of sales at which a company will have no profit or loss.
True
True or False: To break even means that total sales revenue must exactly equal all of your expenses.
True
True or False: A fixed cost varies, in total, as the quantity of goods sold changes but stays constant on a per-unit basis.
False
True or False: Variable costs don’t change when the amount of goods sold changes.
False
True or False: Breakeven point in units is the excess of revenue per unit over variable cost per unit.
False
True or False: Contribution margin per unit is the excess of revenue per unit over fixed cost per unit.
False
True or False: The breakeven point in units is calculated using this formula: fixed costs divided by contribution margin per unit.
True
The approach used to determine when your total sales revenues exactly equal your expenses is called _____.
A) the equilibrium point
B) flatline analysis
C) breakeven analysis
D) odd-even analysis
c. breakeven analysis
_____ costs are those that vary when the quantity of goods sold remains constant on a per unit basis.
A) Breakeven
B) Fixed
C) Variable
D) Flat
c. variable
Those costs that don’t vary with quantity of goods sold are called ______.
A) flat
B) variable
C) breakeven
D) fixed
d. fixed
Using _____ analysis allows you to determine the level of sales that you must reach in order to avoid losing money.
A) receivership
B) breakeven
C) equity
D) revenue
b. breakeven
The selling price per unit minus the variable cost per unit is called _____.
A) contribution margin per unit
B) the breakeven point in units
C) survival price
D) fixed price
a. contribution margin per unit
True or False: The product development process results in the generation of new business ideas.
False
True or False: The product design specifies how a product is to be made and what it’s supposed to look like.
True
True or False: Individuals from different functional areas who are assigned to work together throughout the product development process are known as the operations team.
False
True or False: Computers provide great assistance in designing products.
True
True or False: The final product concept describes the look of a product and explains how it might work.
False
True or False: The product development team will rely on feedback to decide what a product will look like.
True
True or False: A physical model of a product is called a ramp-up.
False
True or False: During the ramp-up stage of the product development process is used to identify any needed design changes.
True
During the product development process of _____, a product development team focuses its attention on making a high-quality product at the lowest possible cost.
A) building and testing prototypes
B) making sure that the product performs and appeals to customers
C) getting feedback to refine the product concept
D) designing with manufacturing in mind
d. designing with manufacturing in mind
Individuals from various functional areas who work together to design a product are called _____.
A) functional representatives
B) a project team
C) a design team
D) a work group
b. a project team
A _____ is a physical model of a product.
A) ramp up
B) CAD scan
C) prototype
D) product type
c. prototype
Getting feedback to refine the product concept is one of the seven steps in the _____ process.
A) product development
B) manufacturing
C) design loop
D) procurement
a. product development
A(n) _____ team consists of individuals from different functional areas assigned to work together throughout the product development process.
A) operations
B) project
C) product
D) functional
b. project
All of the following can make product development a risky proposition except _____.
A) trade-offs
B) time pressure
C) economics
D) positive market test results
d. positive market test results
During the product development process of _____, a product development team is involved in design work to ensure that the product will be safe.
A) designing with manufacturing in mind
B) making sure that the product performs and appeals to customers
C) building and testing prototypes
D) getting feedback to refine product concept
b. making sure that the product performs and appeals to customers
For every successful product, a company has _____failures.
A) 25
B) 4
C) 12
D) 35
c. 12
All of the following are reasons why product development is a risky proposition except:
A) product development costs a lot of money and a lot of time.
B) developing a product requires hundreds of decision that must be made quickly.
C) product development involves numerous trade-offs, such as high quality vs. low cost.
D) individuals in charge of developing products are often unaware of the needs to consumers.
d. individuals in charge of developing products are often unaware of the needs to consumers
Which of the following can cost a company developing a new product a great deal of money?
A) Making decisions under extreme time pressure.
B) Failure to be first to market with a promising new product.
C) Guessing what the customer needs.
D) Determining whether the new product will sell at a profit.
b. failure to be first to market with a promising new product
To decide what new products to come out with or what old products to improve, businesses rely on:
A) marketing consultants.
B) a team of individuals from inside the company that reviews and evaluates the potential ideas.
C) the opinion of the company’s CEO.
D) the heads of the marketing and accounting departments.
b. a team of individuals from inside the company that reviews and evaluates the potential ideas
To select the most promising product ideas, teams from inside the company will ask all of the following questions except:
A) Does the proposed product fill an unmet need of our customers?
B) Will we be the first company to come out with this product?
C) Will enough people buy our product to make it commercially successful?
D) Do we have the resources and expertise to make it?
d. do we have the resources and expertise to make it
The first step in the product development process is to evaluate opportunities and select the best product ideas. What is the second step?
A) Make sure the product performs and appeals to consumers
B) Get feedback to refine the product concept
C) Design with manufacturing in mind
D) Build and test prototypes
b. get feedback to refine the product concept
A product concept:
A) is a physical model of the product.
B) is never changed.
C) describes what the product looks like and how it might work.
D) is completed during the ramp-up stage of the project.
c. describes what the product looks like and how it might work
The goal of the “design with manufacturing in mind” step in the product development process is to:
A) consider the workload of those in production.
B) build both quality and efficiency into the manufacturing process.
C) be sure any proposed products can be made easily.
D) eliminate any product ideas that will require new manufacturing equipment.
b. build both quality and efficiency into the manufacturing process
During the _____ stage, employees are trained in manufacturing and products are carefully inspected for residual flaws.
A) prototype
B) launch
C) testing
D) ramp-up
d. ramp-up
True or False: You can protect your rights to your idea with a patent.
True
True or False: To be granted a patent, a product must have marginal utility.
False
True or False: Applications for patents usually move very quickly through the U.S. Patent and Trademark Office.
False
True or False: Once you receive your patent from the U.S. Patent and Trademark Office, it is good around the world.
False
True or False: A patent grants you “the right to exclude others from making, using, offering for sale, or selling” the invention in the United States for 50 years.
False
True or False: You should document your idea as soon as you think of it. This can be done by filling out a form, stating the purpose of your invention and the current date, and then sign it and have someone else witness it.
True
True or False: To get a patent your idea must be new, not obvious and have utility.
True
True or False: You can even get a patent on something that is useless.
False
True or False: To be protected from patent infringement outside the U.S., you have to apply for a U.S. patent as well as an international patent.
False
You can protect the rights to your idea with a _____.
A) copyright
B) patent
C) trademark
D) brand name
b. patent
A(n) _____ protects an idea from being stolen by someone else.
A) copyright
B) patent
C) injunction
D) trademark
a. copyright
Document your idea:
A) after you have discussed it with your lawyer.
B) after you have completed a prototype of the product.
C) as soon as possible.
D) after you have test marketed it.
c. as soon as possible
Courtney Kennedy has just secured a new U.S. patent for her company. Research has shown that the product has appeal in four other countries. To be properly protected in foreign markets, Courtney must:
A) do nothing her U.S. patent will protect her rights outside the U.S.
B) apply for an international patent which will protect her anywhere in the world.
C) apply for a patent in every country in which the product will be sold.
D) apply for a patent in only one foreign country her rights will then be protected in the other three countries.
b. apply for an international patent which will protect her anywhere in the world
All of the following are necessary criteria for obtaining a patent except:
A) the product idea has profit potential.
B) the product idea is new.
C) the product idea is not obvious.
D) the product idea has utility.
a. the product idea has profit potential
To apply for a patent, you send an application to:
A) the Library of Congress.
B) the U.S. Patent and Trademark Office.
C) the U.S. Copyright Office.
D) your state patent office.
b. the U.S. Patent and Trademark Office
You have a better chance of getting your idea patented if the invention:
A) has received enthusiastic applaud by others.
B) is similar to other products.
C) has been mentioned in magazines and newspapers.
D) is not useless – has some utility.
d. is not useless – has some utility