MGT-MKT 350 Spring 2014 McKendree University Quiz #2 on Chapters 11 - 14 amp; 16 - 18 March 12, 2014 Name:...

Marketing strategies should state what should be accomplished and the process to be used to achieve that goal. The final step in the consumer purchase decision-making process is the actual purchase. One of the major advantages that large businesses have over small businesses is close customer contact. 6. Peter Drucker stated that businesses have __________ basic functions. a) Two b) Three c) Four d) Five 7. The philosophy of a business in which the wants and needs of customers are determined before goods and services are produced is referred to as the a) Marketing concept b) Production concept c) Relationship concept d) Demand concept 8. The number of products a business plans to sell during a future time period is known as the a) Product projections b) Sales predictions c) Sales forecast d) Sales estimates 2 9. The five steps of the marketing research process, in order, are which of the following? a) Develop plan, identify problem, collect data, analyze data, draw conclusions b) Identify problem, develop plan, collect data, analyze data, draw conclusions c) Identify problem, collect data, develop plan, analyze data, draw conclusions d) Draw conclusions, identify problem, develop plan, analyze data, collect data Under a licensing agreement, an inventor generally receives a royalty of about 50 percent of the sale of the product. Maintaining inventory has two aspects—the business does not want to run out of supplies or products for the customers, but inventory represents money sitting idly on a shelf. The Pareto rule states that 80 percent of the firm's revenue will come from 20 percent of the firm's inventory. Inventory, like cash flow, can make or break a business. 16. Changing the perception that customers have of a product is called a) Repositioning b) Repackaging c) Reneging d) Reprising 17. A small business entering into a contractual agreement to manufacture a product under another company's name is called a) Private label manufacturing b) Private placement manufacturing c) Selective placement manufacturing d) Generic label manufacturing 3 18. The first step in the purchasing process is which of the following? a) Investigate suppliers b) Select suppliers c) Place an order d) Recognize the need 19. Maintaining a balance between _________ and ___________ is part of the difficult job of controlling inventory. a) Ordering costs, holding costs b) Storage costs, holding costs c) Inventory costs, ordering costs d) Shrinkage costs, spoilage costs The type of traffic passing a business is just as important as the volume of traffic that is passing the business. If a small business owner chooses a stand-alone location, the competitive advantage of the business must be very clear. Lease payments are deductible business expenses, while if a building is owned, only depreciation is deductible for tax purposes. 26. Sandra visits the local farmer’s market every Friday during the summer, where she picks up fresh produce that was grown by the same farmers who are there to sell the goods. The farmer’s market where Sandra likes to shop illustrates what type of distribution channel? 4 a) Direct b) Closed system c) Indirect d) Non-linear 27. Comparative information on ___________ can be found in the annual Metro Report by Inc. and the Sales and Marketing Management Survey of Buying Power. a) Products b) Advertising c) Economic performance d) Competitors 28. Types of sites, accessibility, legal considerations, and economic factors are all issues to address when choosing a) A potential product b) A potential advertising campaign c) A potential management team d) A potential business location 29. A large retail store that attracts people to shop at malls is known as a) Wal-Mart b) An anchor store c) The main attraction d) The primary store The right price is a range of possible prices. The breakeven point is that point where total revenues are greater than total costs. 5 The longer a credit account goes uncollected, the less likely the small business owner will receive the money owed to him/her. Public relations involves promotional activities designed to build and sustain goodwill between a business and its customers, employees, suppliers, investors, government agencies, and the general public. 36. Consumers typically do not want the cheapest product available, they want the a) Best product for the highest price b) Most reasonable product at the highest price c) Most reasonable product at the lowest price d) Best product for the most reasonable price 37. Which of the following is not a recommendation for small business owners trying to compete with major retail chains? a) Compete directly b) Emphasize customer service c) Advertise more d) Extend the hours the business is open 38. Products for which customers are price sensitive are said to be a) Price elastic b) Price inelastic c) Price volatile d) Price subjective 39. To accomplish the goals of increasing sales, increasing store traffic, and discouraging competition, which of the following is an appropriate strategy? a) Penetration pricing b) Price skimming c) Psychological pricing d) Price lining Chapter 16 6 More time will be spent by the business owner performing the basic tasks of running the business, such as cleaning machinery, as the business is beginning than will occur later in the life cycle of the business. The distinguishing characteristic of the second stage of growth is that the key problem shifts to cash flow. When transitioning a small business to professional management, it is important to avoid delegation. Money always motivates people. 46. According to the Chapter 16 opener, the best skill for managers to possess is to be a) Tech savvy b) A jack-of-all-trades c) Strong negotiators d) Flexible 47. Within the __________ role of management, the manager needs to determine the direction of the company. a) Entrepreneur b) Resource allocator c) Monitor d) Leader a) Take the company public b) Sell to a strategic buyer c) Sell to a financial buyer d) Sell to a key employee or group of employees 49. What is often the result when small business managers do not delegate authority and responsibility? a) Productivity increases b) Employees stop trying or leave c) Motivation goes up d) Employees want to negotiate 7 An inexpensive source that can generate qualified and highly motivated employees is current employee referrals. It is suggested that every employee handbook include a disclaimer specifying that the handbook is not a contract of employment. 56. According to the Chapter 17 opener, which group of individuals has the lowest small business failure rate? a) The Amish b) First-generation Americans c) Southerners d) Naturalized citizens 57. The recruitment source that can be useful for small businesses needing one or two key people is which of the following? a) Employment agencies b) Advertisements c) Executive recruiters d) Employee referrals 8 58. Family-managed businesses, except the smallest businesses, need to staff key positions with a) The eldest members of the family b) The youngest adult members of the family c) Company employees d) Nonfamily professionals 59. According to the ADA, when is it admissible to give physical examinations to determine if there are physical or medical limitations to performing the duties of the job? a) During the applicant review stage b) Only after a conditional offer of employment has been made c) Only during the initial interview d) Only after the initial interview has ended Service providers need and use operations management just as much as product manufacturers do. Mass customization is a process where products are produced on a mass basis and then sold to a variety of customers interested in that product. There is no concept more important to business today than quality. Inspecting and testing products after they are produced is called feedback quality control. 66. The processes and procedures of converting labor, materials, money, and other resources into finished products or services available for consumer consumption are referred to as 9 a) The supply chain function b) The operations function c) The marketing function d) The input function 67. The primary reason small businesses can now compete with larger businesses in the area of manufacturing is a) Today's lower costs b) Today's more skilled worker c) Easy availability of financing d) Automation that makes flexible production possible 68. Small business owners can increase the productivity of their business by a) Increasing outputs b) Decreasing inputs c) Increasing outputs and decreasing inputs d) Decreasing outputs and increasing inputs 69. Which of the following types of dispatching would a taxi company use? a) First-come, first-served rule b) Earliest due date rule c) Longest processing time rule d) Shortest processing time rule 70. Six sigma is the tolerance range in which only ______ defects per ______ are allowed. a) 2.5, thousand b) 3.4, million c) 3.4, thousand d) 2.5, million