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WorksheetsSDC Business
Total questions: 76
Worksheet time: 38mins
Accessory equipment includes large capital purchases designed for an extended productive life.
True
False
Network television and gasoline-powered cars are both in the maturity stage of their product life cycles in the United States.
true
false
Customers directly contribute to the quality of a service.
true
false
Advertising is personal communication designed to influence consumer purchases.
true
false
The right brand name can save a bad business.
true
false
A management consulting firm offers a management training program that instructs students on tools for effective time management and conflict resolution and aims to improve their risk management skills. The firm offers pure goods.
true
false
Changing the marketing mix can help extend the profitable run of an individual brand.
true
false
Small businesses should not invest their limited resources in social media because they are just a fad.
true
false
Product augmentations help sharpen the competitive edge of products.
true
false
An advantage of consultative selling is that it involves less time and effort than more traditional personal selling methods.
true
false
Sponsorships typically have which of the following characteristics?
It is expected that sponsorships will thrive in the U.S. in the next few years at a much faster rate than in other countries.
It is expected they will experience healthy worldwide growth in the next few years.
It is one of the least effective promotional channels when it comes to reaching a specific target market.
It is the newest form of product promotion.
_____ are best described as items consumers receive free of charge in return for making a purchase
Rebates
Premiums
Samples
Coupons
The _____ stage of the new product life cycle leads to detailed descriptions of each concept with specific product features.
development
analysis
commercialization
testing
The primary idea behind integrated marketing communication is to:
channel every customer to the sales department.
make sure every advertising medium is used to the fullest possible extent.
hit each potential customer with a highly personalized “package” of advertising messages.
create a unified message across multiple channels of communication
Joe has recently started a unique music store that not only sells musical instruments and music CDs from all over the world, but also features regular performances by renowned artists. The store also has a karaoke section where customers can try their hand at singing. Which of the following promotion tools does Joe have direct control over?
A consumer's review of the store on her personal blog
An ad campaign managed by an advertising agency hired by the store
Word-of-mouth publicity through customers who visit the stores
Joe's customers informing their relatives and friends about the store
Most car dealers allow test-driving of the cars they sell to increase the _____ of their product.
compatibility
relative advantage
trialability
observability
Successful product differentiation requires that the:
difference be real rather than merely perceived.
marketers put most of their efforts into developing an appropriate brand name.
products have both higher quality and higher cost than those of the competition
product not only be different from those of competitors but also be better.
What kind of promotion does BOGO—Buy One, Get One free—at Payless Shoes exemplify ?
Coupons
Rebates
Premiums
Samples
_____ involves video games created as a marketing tool.
Buzz marketing
Advergaming
Sponsorship
product placement
Although technology can help marketers reach larger target markets, it also presents new challenges such as:
the emergence of more passive forms of entertainment, such as network television.
empowering store owners to design the promotional material of the brands they sell.
consumers wanting more information than is available.
empowering consumers to choose how and when they interact with media.
Crispiez is a brand of breakfast cereal. To expand its business, the company has recently decided to introduce new flavors of its most popular cereal and also offer different packet sizes to reach a wider customer base. This action of Crispiez is an example of _____.
line extension
cobranding
brand extension
licensing
_____ are commonly used in the car and electronics industries to entice consumers with cash-back offers.
Premiums
Rebates
Uno’s Pizzeria is a pizza place and Pure Magic is a luxury beauty salon that sells beauty products. What do Uno’s Pizzeria and Pure Magic have in common?
Their products are a mix of goods and services.
Their products are examples of convenience products
Andrew's parents want their son to get a good education and sends him to the best school in town. In this case, Andrew's education is the _____ his parents were looking for when they registered him to the best school.
core benefit
pure product
implicit benefit
HealthyBites produces six different flavors of sugar-free cookies for the diabetic population. The company also produces a large assortment of chocolates targeted at the same population. The collection of sugar-free cookies and chocolates that HealthyBites produces represent the _____ of the company.
product chains
product lines
A business segments a market in order to understand the similarities and differences in consumers’ needs
false
true
Attitudes are a person’s lasting evaluations of objects or ideas
true
false
Cognitive dissonance is the part of postpurchase behavior that occurs when buyers have second thoughts after purchasing a product and begin to worry that they made a bad decision.
True
false
Flip Floppy, a shoe-manufacturing company, created a marketing initiative in several countries called “free run” to increase the market for sneakers among adolescents. The company's marketing approach paid off with sales in the first half of 2013 growing nearly 20 percent. The “free run” marketing approach is an example of the consumer market segmentation known as demographic segmentation.
true
false
An advantage of primary data is that it can be customized to meet a marketer's needs.
true
false
To avoid ambushes and to uncover opportunities, a marketer must continuously monitor how only the dominant competitors handle each element of their marketing mix.
true
false
Ownership utility satisfies wants by providing goods and services at a convenient place for customers.
true
false
Ellie wants to conduct market research to uncover the attitudes and motivations that shape consumer choices. The best way to obtain this information would be to use observation research to obtain primary data
true
false
Customer relationship management is the ongoing process of acquiring, maintaining, and growing profitable relationships by delivering unmatched value.
true
false
During this stage, sales rate starts to slow, perhaps a competitor has launched something similar or customers just want something new.
Introduction
Growth
Maturity
Decline
Market research involves gathering, interpreting, and applying information to uncover opportunities and challenges for business.
true
false
Analysis of market share is a key to understanding the firm’s:
competitive environment.
social and cultural environment.
Jason builds and sells cars at a reasonable price. He invented a four-wheel automobile that meets all federal regulations for safety and while he has installed several advanced features in the automobile, it is also reasonable. These particular features allow customers to walk in, sign a one-page agreement to pay $2,000, and drive home in their new automobile. Which of the following kinds of utility is he providing?
Form utility and ownership utility
Place utility and ownership utility
As a marketing manager for Danny and associates Inc., your research suggests that the spending habits of female college students age 18 to 25 differ from most other consumers. For this reason your team has developed marketing strategies for this specific group. This scenario exemplifies the:
geographic segmentation in the B2B market.
demographic segmentation in the B2C market
When data is gathered using _____, the researcher does not directly interact with the research subject.
observation research
survey research
Sigma Nutcrackersz Inc. enjoys a monopoly in a large region of a European country for their electric nutcracker gizmo that the company manufactures. Market share for this machine is near 90 percent, and the firm is seldom worried about competition. The firm has considered branching out internationally to sell the “Powercracker” in other countries. Which of the following should the firm specifically consider as it formulates its marketing plan?
It needs to know about the global marketing mix, including social/cultural segments
It needs to consider the political/legal interests of the consumers.
It should investigate behavioral segmentation.
As a marketing executive, Angelina is responsible for _____; the goal of this process is to continually collect information from a wide range of sources in an effort to understand market conditions.
implementing the distribution strategy
reviewing consumer behavior
environmental scanning
_____ is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
Marketing
Production
Intrapreneurship
The last few decades have brought about an increased emphasis on customer service due to growing consumer choice and purchasing power. Which of the following emphasizes that customer satisfaction is the central focus of a business?
Behavioral segmentation
Marketing concept
Blue ocean strategy
Which of the following statements is most consistent with the marketing view of the relationship era?
In this era of surging demand, the main focus should be on producing as much as possible.
The customer could purchase the product only in the color or size that the manufacturer made available.
It is much less expensive to keep existing customers, than it is to develop new customers.
Decisions about advertising, publicity, and product placement are all part of a firm’s:
product strategy in its marketing matrix.
promotion strategy in its marketing mix.
demographic strategy in its marketing matrix.
CDz 4U wants to build a new store in your community but needs to research the opportunity. Which of the following is likely to represent the most cost-effective way to gather the needed data?
survey research used to obtain primary data.
unobtrusive research used to obtain secondary data.
observation research used to obtain secondary data.
_____ is a vital starting point for most marketers
Demographics
Analyticals
Psychographics
Psychographic segmentation is the:
division of the market based on consumer characteristics such as age, ethnicity, and gender.
category that includes the benefits that consumers seek from products and how consumers use the product.
Jim works in the marketing department of a large firm. He recently spent much of his time working on new packaging ideas for one of his company’s products. His work would contribute to the _____ strategy of the company's marketing mix.
pricing
product
distribution
Focus groups and mail-in questionnaires are examples of
survey research used to obtain primary data.
observation research used to obtain secondary data.
A securities exchange provides an organized venue for stockbrokers and securities dealers to trade listed stocks and other securities.
true
false
_____ is the practice of holding many different securities in many different sectors.
Financial diversification
Financial correlation
Investors who want to generate a steady, predictable income are likely to hold all of the following securities EXCEPT:
common stocks in companies with the potential for rapid growth.
common stocks of companies with well-established histories of paying dividends.
Suri owns 100 shares in OPQ Oil Company. After looking at the firm’s latest annual report, she feels good about the performance of the company, so she tells her broker to buy 100 more shares but to pay no more than $33 a share. Suri just issued a _____.
limit order
market order
_____ are securities dealers that make a commitment to continuously offer to buy and sell specific NASDAQ-listed stocks.
Accredited investors
Market makers
Venture capitalists
A(n) _____ is a financial intermediary that assists corporations when they issue new securities.
accredited investor
securities dealer
investment bank
The three basic types of securities corporations issue to raise long-term financial capital are:
dividends, interest, and capital gains.
common stock, preferred stock, and bonds
Dominic works for an investment bank that helps young firms go public. The client firm he is currently helping shows great promise due to the fact that the firm owns several patents on marketable innovations. Dominic’s investment bank has agreed to underwrite the stock issue, meaning that it will:
arrange for a single major venture capital firm to buy all of the stock at an agreed upon price.
purchase all the shares of stock itself at an agreed upon price, so that the client will receive a known amount of funds.
set the stock price relatively high at the beginning of the IPO and gradually lower it until all shares are sold.
Jasmine is an investment broker for a large firm. Understanding overall market conditions helps her advise her clients who invest in stocks. Which of the following are indices that are commonly used to describe the price movement of securities in the U.S. market?
Fortune 500 and the Turbo 900
The DJIA and the S&P 500
Rose is a member of the California Teachers' Association. She has just inherited a large sum of money and is trying to decide where she should deposit her money in order to earn the highest interest rate. In which depository institution should she deposit her money?
A savings and loan association
The credit union run by the teachers' association
An investment bank
A drawback of purchasing mutual funds is the:
fees charged by professional management to manage the fund.
uncertainty of recovering at least a portion of the initial investment.
low level of diversification
On a financial website such as Yahoo! Finance, you may find all of the following information on a company’s stock EXCEPT the:
price-to-earnings ratio.
number of stock owners by state.
stock symbol
A(n) _____ is a type of mutual fund that doesn't have a fixed number of shares, nor are its shares traded like stocks.
unitized insurance fund
open-end fund
closed-end fund
Investors who favor value investing
look for companies that have the potential to grow much faster than average for a sustained time, which they believe will lead to a steady rise in the stock’s price.
try to find stocks that are underpriced in the market believing that the market price will rise over time to reflect its true worth, thus generating a capital gain.
put their faith in the ability of the overall market to continue the long-run upward trend it has exhibited throughout its history.
In order to determine market cap, the total market value of all shares outstanding for one company, you:
divide the number of shares outstanding by the par value per share.
look at the total assets on the balance sheet of the firm.
multiply the number of shares outstanding by the price per share.
Investors who want to achieve a _____ tend to invest mainly in bonds and _____.
large capital gain over the long run; preferred stocks
voting right in the company of investment; preferred stocks
steady income; preferred stocks
Historically, the most widely accepted goal of financial management is to:
maximize the value of the firm to its owners.
avoid investing in anything risky.
The debt-to-asset ratio is classified under _____ ratios.
leverage
pro forma
turnover
Capital _____ is the process a firm uses to evaluate long-term investment proposals.
budgeting
forecasting
accounting
Dan inherited $1,000 from his grandmother’s estate. He has found an investment opportunity that will earn 7 percent interest compounded annually each year for the next two years. If he puts his money into this investment, in the first year he will earn $70 in interest, while in the second year he will earn _____ in interest.
$74.90
$77
$107.77
At her company’s annual party, Sally overheard one of the executives mention that the company is highly leveraged. Sally, who recently bought 300 shares of the company’s stock, is very interested in this bit of information because she knows that leverage:
is a time-proven way to both improve the expected return on equity and reduce the financial risk to stockholders because reliance on debt means creditors assume most of the risk while stockholders are entitled to most of the profits.
means that the firm is financed with a sizeable amount of debt, which can increase the return on her equity investment in good times, but can lead to lower returns when times are bad.
All of the following would be included in the cash equivalents a firm might hold EXCEPT:
T-bills.
trade credits
money market mutual funds
Violet Shades and Raindew are two companies that are identical in every area except that Violet Shades uses only equity financing while Raindew relies heavily on debt financing. Over the past year, the firms had identical earnings before interest and taxes. If the firms faced a rough year with very low earnings:
Raindew would be able to skip its interest payments if paying them would cause its net income to be negative.
Violet Shades would report a higher return on equity than Raindew.
Violet Shades would be required to pay a higher dividend than Raindew, thus reducing retained earnings.
_____ are short-term unsecured, promissory notes issued by financial institutions and other major corporations.
Commercial papers
Corporate bonds
Revolving trade agreements
Kyle is the credit manager for Timber Trails, Inc., a local landscaping company. Just recently, his supplier noted the terms on his invoice: 3/15 net 30. Which of the following statements best reflects the meaning of those terms?
Timber Trails has to pay the invoice within 30 days; late payment penalties are 3 percent if the bill is paid in less than 60 days, but they rise to 15 percent if payment is not made within 60 days.
Timber Trails will get a 3 percent cash discount if the balance owed to the supplier is paid within 15 days; otherwise the entire balance is due in 30 days.
The entire amount is due in 30 days, but the 3 percent late penalty will only be imposed if payment is more than 15 days late.
