STR 581 Final Exam 3 / STR581 Final Exam 3: GRADED A | 100% CORRECT

STR 581 Final Exam 3 / STR581 Final Exam 3: GRADED A | 100% CORRECTSTR 581 Final Exam 3 1) ________ consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. A marketing database A promotional campaign A marketing intelligence system A marketing information system A marketing research system 2) A company can take several steps to improve the quality of its marketing intelligenc If the company purchases competitive products for study, attends open houses and trade shows, and reads competitors’ published reports and stockholder information, the company is using ________ to improve the quality of its marketing intelligenc customer feedback systems advisory panels external networks sales force surrogates intermediaries 3) ________ is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives. Competitors market share rate Customer perceived value Report rating Perceived usefulness Failure avoidance rate 4) A ________ is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment. vertical system product management system marketing intelligence system marketing research system marketing information system 5) The value proposition consists of a cluster of benefits the company promises to deliver; it is business processes total customer satisfaction customer expectations Customer loyalty to the company customer experience with the company 6) Most established companies focus on ________ when it comes to innovation. competitive innovation everyday innovation demand innovation incremental innovation continuous innovation 7) Total customer satisfaction is the general feeling of pleasure or disappointment that results from comparing perceived performance to expectations. To achieve total customer satisfaction, organizations need to_____________. Lower prices Manage customer experiences Lower expectations Develop marketing campaigns Spend more money 8) The first step in estimating demand is to understand what affects price sensitivity. Generally speaking, customers are most price sensitive to products that cost a lot or are ________. bought infrequently low-cost bought frequently priced low to begin with 9) In ________ marketing, the seller engages in the mass production, mass distribution, and mass promotion of one product for all buyers. differentiated general segmented group mass 10) Particularly when shopping for ego-sensitive products such as perfumes and expensive cars, many consumers use price as an indicator of ________. size quality capability ability status 11) A marketing manager needs to know the cost of the research project before approving it. During which step in the marketing research process would such a consideration most likely take place? Step 3—information collection Step 1—creating decision alternatives. Step 2—develop the research plan. Step 1—drafting the research objectives. Step 1—defining the problem. 12) Which of the following types of marketing research firms would best be described as one that gathers consumer and trade information which they sell for a fee ( g., Nielsen Media Research)? Non-profit marketing research firms Syndicated-service research firms General-line marketing research firms Specialty-line marketing research firms Custom marketing research firms 13) Companies normally budget marketing research at ________ percent of company sales. 10 to 12 2 to 3 6.5 4 1 to 2 14) Marketing communications can contribute to brand equity by establishing the brand in memory and to________ (in)a brand imag craft create interest create demand communicate 15) New-to-the- world products are ________. existing products that are targeted to new markets or market segments new products that allow a company to enter an established market for the first time new products that provide improved performance or greater perceived value and replace existing products new products that supplement established product lines (package sizes, flavors, and so on) new products that create an entirely new market 16) The marketing communications mix consists of six major modes of communications. Which of the following is NOT one of these modes? Advertising Packaging Direct marketing Personal selling Sales promotions 17) Major retailer types include the following EXCEPT ________. superstore the Internet discount store specialty store catalog showroom 18) “Power prices” use price as a key strategic tool. These “power prices” have discovered the highly ________ effect of price on the bottom lin soothing direct abrasive dramatic leveraged 19) ________ communicates a company’s intended value positioning of its product or brand to the market. Physical evidence Promotion Price Packaging Place 20) Some intermediarie use the following: strategic planning, advanced information systems, sophisticated marketing tools, measure performance on a return-on-investmet basis, segment their markets, improve their target marketing and poitioning, and ________. aggressively pursue mrket expansion and diversification strategies dominant the manufactuers they do business with aggressively “squeeze” mnufacturer margins contend with dwindling customer bases aggressively pursue take ver strategies 21) To reach GenerationY, rock band Foo Fighters created a digital street team that sends targete e-mail messages to members who “get the latest news, exclusive audio/video sneak previews, tons of chances to win great Foo Fighters prizes, andbecome part of the Foo Fighters Family.” Which of the following techniques for reaching Generation Y are the Foo Fighters using? Online buzz Computer games Unconventional sports Student ambassadors Cool events 22) Following the ________ approach to target market selection encompasses a strong knowledge of the segment’s needs, a strong market presence, and operating economies through specializing in production, distribution, and promotion. full market coverage product specialization selective specialization market specialization single-segment concentration 23) Price has operated as the major determinant of buyer choice among poorer nations, among poorer groups, and with ________ products. commodity-type over the Internet identical similar 24) Which of the following is NOT included in the definition of conflict? negative effects disruption of tasks perception something that is cared about 25) John Kotter’s view argues that management focuses on coping with complexity, whereas leadership focuses on coping with _____. change defeat success morale conflict 26) Negotiation can be defined as a process in which two or more parties exchange goods or services and attempt to agree upon _____. the monetary value of the exchanged items a model of the negotiation process for resolving differences acceptable bargaining strategies for obtaining the goods and services effective arbitrators for disputes the exchange rate for those goods and services 27) Which level of Maslow’s hierarchy of needs deals with satisfying one’s hunger, thirst, and need for sex? psychological social physiological esteem safety 28) If no one is aware of conflict, it is generally agreed that _____. conflict is inevitable employee-employer relations will be good no conflict exists conflict is subversive conflict is psyhologically driven as opposed to physically manifest 29) Leadershp is best defined as _____. coordinating nd staffing the organization and handling day-to-day problems the ability t influence a group in goal achievement implementing the vision and strategy provided by management keeping orde and consistency in the midst of change not a relevan variable in modern organizations 30) Which of he following statements best defines a work group? A work group onsists of 3 or more people from across departmental or functional lines. The performance of a work group is generally greater than the sum of its inputs from individual members. A wok group consists of 3 or more people who take on self-supervising responsibilities. A work group interacts primarily to share information, rather than to engage in work that requires joint effort. A work group is a group comprised of 10 or more people 31) _____ can be used to increase the perception that employees are treated fairly. Documenting with a journal Selective evaluation Multiple raters Due process Focusing on subjective evaluations 32) Between the late 1960s and the mid-1980s, the use of written tests declined because they were characterized as _____. invalid unprofessional unreliable discriminatory mathematically flawed 33) Which of the following has proven to be a particularly good predictor for jobs that require cognitive complexity? aptitude tests intelligence tests work sampling integrity evaluations behavioral assessment 34) Training employees how to be better listeners falls under which of the following training categories? interpersonal skills cultural skills ethicl skills problem-solving skills technical skills 35) Examples of off-the-job training include all of the following except _____. publi seminars videtapes clasroom lectures Internet courses appenticeship programs 36) Atask that is subdivided into many separate jobs is considered to have ____. a lo degree of structure a high degree of matrix structuring a hih degree of departmentalization a high degree of work specialization a lo degree of decentralization 37) hich of the following is not a primary force for change in orgaizations? social trends the nature of the workforce technology decreasing skill sets economic socks 38) What term is used for the tendency of an individual to attribute his own successes to internal factors while putting the blame for failures on external factors? selective perception stereotyping fundamental attribution error consistency self-serving bias 39) _____ developed a Vocational Preference Inventory questionnaire that contains 160 occupational titles. Herzberg Surber Maslow Hofstede Holland 40) Each of the six personality types developed in Holland’s personality-job fit theory has a ________. supplemental occupational environment congruent occupational environment supplemental personality style congruent personality style supplemental skill set 41) Which of the following would NOT be classified as a time-series technique? regression model box Jenkins technique simple moving average exponential smoothing trend projections 42) The ______ the percentage of contact time between the service system and the customer, the ________ the degree of interaction between the two during the production process. greater, greater lesser, greater greater, lesser none of these answers 43) Which of the following statements are true about time-series forecasting? Under time-series methods, demand is divided into the time-based components such as daily, weekly, et Time series analysis tries to understand the system underlying and surrounding the item being forecast. Time series analysis is based on the idea that the history of occurrences over time can be used to predict the futur Time series methods are useful for long-range forecasts when the demand pattern is erratic 44) The phenomenon of magnification of demand variability as we move from the customer to the producer in the supply-chain is referred to as the: price deflator bullwhip effect postponement effect Elasticity of demand Just-in-time approach 45) Which of the following according to Goldratt is not a component of production cycle time? queue time wait time setup time process time maintenance time 46) Due to asymmetric information, the market fears that a firm issuing securities will do so when the stock is _________. caught up in a bear market undervalued being sold by insiders overvalued 47) Which of the following statements is true? The Principle of Incremental Benefits says to consider the possible ways to minimize the value lost to capital market imperfections, such as asymmetric taxes, asymmetric information, and transaction costs. The Principle of Valuable Ideas suggests to look for opportunities to create value by issuing securities that are in short supply, perhaps resulting from changes in tax law. The Time Value of Money Principle advises to include any time-value-of-money tax benefits from capital structure choices. all of these 48) __________ says to look for opportunities to invest in positive-NPV projects in foreign markets or to develop derivatives or design arrangements that enable firms to cope better with the risks they face in their foreign operations. The Principle of Capital Market Efficiency The Principle of Risk-Return Trade-off The Principle of Valuable Ideas The Principle of Diversification 49) An all-equity-financed firm would __________. not pay corporate income taxes because it would have no interest expens not pay any income taxes because interest would exactly offset its taxable incom pay corporate income taxes if its taxable income is positive pay corporate income taxes because it would have interest expens 50) “Hard” capital rationing refers to the rationing __________. always imposed by competitors imposed by external factors always imposed by debt holders imposed internally by the shareholders 51) A checking account is __________. a place to “collect” money between inflows and outflows an account that acts like a reservoir useful because you can add money in any amount all of these 52) __________ says to seek out investments that offer the greatest expected risk-adjusted real return. The Principle of Self-Interested Behavior The Principle of Incremental Benefits The Principle of Valuable Ideas The Signaling Principle 53) An investor's risky portfolio is made up of individual stocks. Which of the following statements about this portfolio is true? An investor cannot change the risk of this portfolio by her choice about personal leverage (lending or borrowing). Each stock in the portfolio has its own bet Each stock in the portfolio will have a beta greater than on Selling any stock in this portfolio will lower the beta of the portfolio. 54) Under capital rationing, given the choice among several equally attractive investments, the best tool to use is the __________. Profitability Index method Internal Rate of Return method Net Present Value method Payback method 55) Which of the following statements is true? The Principle of Capital Market Efficiency says to consider the possible ways to minimize the value lost to capital market imperfections, such as asymmetric taxes, asymmetric information, and transaction costs. The Behavioral Principle suggests to look for opportunities to create value by issuing securities that are in short supply, perhaps resulting from changes in tax law. The Signaling Principle says to consider any possible change in capital structure carefully, because financing transactions and capital structure changes convey information to outsiders and can be misunderstoo all of these 56) The managerial decision best addresses which of the following questions? How fast should we grow? What size of firm do we want? How should we compensate our managers? all of these 57) The investment decision best addresses which of the following questions? Should we borrow in a foreign currency? Should we increase our advertising budget? Should debt be short-term? Should we buy new equipment? 58) __________ says to recognize the value of options contained in derivatives. The Options Principle The Principle of Comparative Advantage The Capital Market Efficiency Principle The Principle of Valuable Ideas 59) The conversion price (for a convertible security) is usually adjusted __________. for a new debt offering. for stock splits. for cash dividends. all of these 60) According to the Principle of Risk-Return Trade-Off, investors require a higher return to compensate for __________. less risk greater risk diversification lack of diversification 61) __________ says to use derivatives to pay others to take risks. The Principle of the Time Value of Money The Principle of Self-Interested Behavior The Signaling Principle The Principle of Two-Sided Transactions 62) You do a study and find out that, on average, stock prices for firms decrease 3% for every 5% decrease in inside ownership. You are watching the nightly business report and find out that Magic Tape’s stock has announced that insiders have sold 10% of their holdings. You are concerned because you own 1,000 shares of Magic Tape and it had closed the day before unchanged at $30 per shar If markets are at least semi-strong form efficient, what would you expect? You would lose $1,800. You would lose $2.00 per share You would lose $4,000. You would expect Magic Tape to close at $28 the day of the announcement. 63) Which of the following is not an advantage of going public? Going public generally brings a lower price in the public market than in the venture capital or private placement markets. Going public achieves liquidity and diversification for current shareholders Going public gives existing shareholders a chance to sell portions of their shares as part of the IPO giving them a cash return on their investment and allows them to diversify their investment portfolios. Going public enables a firm to raise additional capital. 64) Which (if any) statement is false? The Principle of Self-Interested Behavior suggests that self-interested capital market transactions force market prices toward being fair prices. The Principle of Two-Sided Transactions states that intense capital market competition to get and use information to take advantage of arbitrage opportunities eliminates such opportunities. The Principle of Signaling states that information in the transactions of others can be valuable, such as providing an accurate measure of current market value, or information about expected future valu none of these answers are correct. 65) Transfer-pricing systems exist to _____. encourage managers to purchase goods and services internally maximize worldwide taxes, duties, and tariffs evaluate segment performance all of these answers are correct 66) It costs Garner Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 2,000 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepte Garner has sufficient unused capacity to produce the 2,000 scales. If the special order is accepted, what will be the effect on net income? $6,000 decrease $4,000 decrease $30,000 increase $4,000 increase 67) Baden Company manufactures a product with a unit variable cost of $50 and a unit sales price of $88. Fixed manufacturing costs were $240,000 when 10,000 units were produced and sol The company has a one-time opportunity to sell an additional 1,000 units at $70 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows: Income would increase by $70,000. Income would increase by $4,000. Income would increase by $20,000 Income would decrease by $4,000. 68) A transfer price exists when two segments of the same organization sell _____. a product in a foreign country a service to each other the same service to competitors a product to the same customer 69) Which one of the following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion? Activity-based costing. Just-in-time inventory. Total-quality management Theory of constraints. 70) Effectiveness is indicated by _____. flexible-budget variances static-budget variances all of these answers are correct sales-activity variances 71) Efficiency is indicated by _____. flexible-budget variances static-budget variances all of these answers are correct sales-activity variances 72) _____ is an important factor considered by sales forecasters. Estimates made by the sales force Past patterns of sales All of these answers are correct General economic conditions 73) Which of the following does not appear as a separate section on the cash budget? Cash disbursements Cash receipts Financing Capital expenditures 74) How much sales are required to earn a target net income of $128,000 if total fixed costs are $160,000 and the contribution margin ratio is 40%? $648,000. $400,000. $320,000. $720,000. 75) At the break-even point of 2,000 units, variable costs are $55,000, and fixed costs are $32,000. How much is the selling price per unit? $11.50. $43.50. Not enough information $16.00. 76) How much sales are required to earn a target income of $80,000 if total fixed costs are $100,000 and the contribution margin ratio is 40%? $200,000. $300,000. $330,000. $450,000. 77) At the break-even point of 2,500 units, variable costs are $55,000, and fixed costs are $32,000. How much is the selling price per unit? $9.20. $34.80. $22.00. $12.80. 78) Differences between a job order cost system and a process cost system include all of the following except the point at which costs are totale flow of costs. documents used to track costs. unit cost computations. 79) There is no difference between variable-costing and absorption-costing income if there is no_____. ending inventory variable overhead cost beginning inventory change in inventory level 80) Identify which statement about "currently attainable standards" is NOT tru Because they allow for waste, they usually result in favorable variances. Employees usually view these goals as reasonabl They allow for normal spoilage and nonproductive tim They represent projections of what will probably be attaine 81) Identify which of the following statements about "perfection standards" is tru They are expressions of the most efficient performance possibl All of these answers are correct It is generally believed that they have a negative influence on employee moral They usually result in unfavorable variances. 82) Which statements describe the principal reason(s) why investors and creditors use financial statement analysis? 1. To assess the risks associated with expected returns 2. To establish recommended dividend and interest payments 3. To evaluate top and middle level management 4. To predict the amount of expected returns 1 and 4 3 and 4 1 and 2 1, 2, and 3 83) Which of the following statements is incorrect with respect to creditors and equity investors? Creditors are concerned with assessing the short term liquidity of a company. Creditors are concerned with assessing the long term solvency of a company. Both creditors and equity investors are concerned about security prices. Equity investors are concerned about dividend payments. 84) _____ are profitability ratios. Dividend payout and rate of return in invested capital Earnings per share and dividend yield Gross profit rate and return on sales Price earnings and current ratio 85) A local retail shop has been operating as a sole proprietorship. The business is growing and now the owner wants to incorporat Which of the following is not a reason for this owner to incorporate? desire to limit the owner’s personal liability the prestige of operating as a corporation ability to raise capital for expansion the ease in transferring shares of the corporation’s stock 86) Although the U.S. has had a longstanding agreement with ___________, after the passage of NAFTA, _________ became the United States' second largest trading partner. Canada, Venezuela Canada, Mexico Mexico, Canada Mexico, Venezuela Great Britain, Paraguay 87) The centerpiece of most diversity programs is _____. employee commitment human resource personnel top management commitment employee satisfaction training 88) Which of the following is not one of the Caux Round Table Principles for International Business? Support for Multilateral Trad Respect for the Environment. Avoidance of Illicit Operations. Responsibility of Business Beyond Shareholders Toward Stakeholders. Promotion of Multiculturalism. 89) Diversity training programs are generally intended to provide a vehicle for _____. focusing on individual differences increasing awareness and examining stereotypes eliminating group learning balancing work/life conflicts socializing otherwise unmanageable employees 90) One study found that manufacturing labor costs about ___ an hour in China, compared to ____ dollars in the United States. About $2; about 15 Less than $1; about 15 Less than $1; about 25 $2; about 25 Less than $1; about 40 91) Which of the following is correct about litigating commercial disputes? Commercial disputes, because of their specialized nature, are first heard at the appellate court level. Nearly all states have specialized trial courts that hear commercial disputes. A few states have established specialized trial courts for commercial disputes. Businesses generally dislike the concept of specialized trail courts for commercial disputes because the large numbers of consumers who sue businesses in these courts have led the judges to become generally biased against business. In all states, commercial disputes must be heard in a limited-jurisdiction court. 92) Which of the following statements is generally NOT true about state intermediate appellate courts? The appellate court usually allows the parties to file briefs outlining support for their positions. The appellate court reviews the record of the trial court. The appellate court allows the parties to make oral arguments outlining their position. The appellate court allows the parties to introduce new evidence so long as it was not previously introduced at the original trial. 93) When an economist says that the demand for a product has increased, this means that: firms make less of the product available for sal quantity demanded is greater at each possible pric consumers respond to a lower price by buying mor the demand curve becomes steeper. 94) If consumer incomes increase, the demand for product Y will _____________. necessarily remain unchanged shift to the right if Y is a normal good shift to the right if Y is a complementary good 95) The force behind globalization in _____ was the amount of muscle, horsepower, wind power, or steam power that a country could deploy. Globalization 2.0 None of these Globalization 1.0 Globalization 3.0 96) Which of the following is NOT a function of functional area information systems? supports the managerial tasks of planning, organizing, and controlling operations provides analysis capabilities to middle level managers and staff provides information to managers in the functional areas provides data from business events to the corporate database provides information mainly in the form of reports 97) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information technologies. nationalization business environment regionalization globalization 98) Which research design listed below is most appropriate for establishing causality? Individual depth interview Behavioral observation Focus group Survey Experiment 99) Which of the following statements is true concerning the applicability of attitudes in understanding behavior? Behavior is affected equally by those attitudes formed via social learning and those formed via behavioral learning A single, global measure of attitude is necessary to predict behavior General attitudes are the best predictors of behavior Cognitive attitudes influence behavior better than affective-based attitudes 100) The quartile deviation is: Based on the middle 50 percent of the observations. Appropriate only for symmetric distributions. The square root of the varianc In squared units of the original dat