FINANCE AO1 week 4 Quiz with Answers

FINANCE AO1 week 4 Quiz with Answers 1. The width of a product mix refers to the: 2. extent to which one product line differs from another. number of product lines handled by the organization. total number of items or products in the company's product mix. average number of products in each line. QUESTION 2 1. Which of the following scenarios shows a person purchasing convenience goods? 2. Aliyah and her husband finally pick a car after examining many models. Joshua buys a loaf of bread while shopping for provisions in a grocery store. After a lot of consideration, Jenna orders a solitaire ring from an exclusive jeweler. Alice purchases four kilograms of white sand for her Zen garden. QUESTION 3 1. Which of the following is a variation of cost-oriented pricing? 2. Rate-of-return pricing Bundle pricing Prestige pricing Odd-even pricing QUESTION 4 1. can be defined as the degree of excellence or superiority that an organization's product possesses. 2. Reach Depth Qualit y Width QUESTION 5 1. Which of the following statements regarding organizational goods is true? 2. Buyers of organizational goods are generally ill informed. Organizational goods are not purchased as means to an end but rather as an end in themselves. Organizational goods are often purchased directly from the original source with few middlemen. The primary purchasing motive for organizational goods is convenience, even if the costs are high. QUESTION 6 1. is an organization wide commitment to satisfying customers by continuously improving every business process involved in delivering products or services. 2. Total quality management (TQM) program Capability Maturity Model Integration (CMMI) Just-in-case (JIC) manufacturing Toyota Production System (TPS) QUESTION 7 1. In the context of types of marketing intermediaries, which of the following best describes a retailer? 2. A wholesale middleman especially in lines where selective distribution is common A business unit that negotiates purchases, sales, or both but does not take title to the goods in which it deals A merchant middleman who is engaged primarily in selling to ultimate consumers A middleman who serves as a go-between for a buyer or seller without assuming title risks QUESTION 8 1. A fad can be best described as a(n): 2. product that has a lengthy period of popularity, which gives competitors the chance to capitalize on the product. accepted and popular product that goes through repetitive cycles of popularity. specialty product that has retained its popularity for a long time. product that experiences an intense but brief period of popularity. QUESTION 9 1. The generalist viewpoint about the contribution of advertising to the economic health of a firm is primarily concerned with: 2. measuring competitor strengths and weaknesses to devise strategic ideas. sales, profits, return on investment, and so forth. measuring the effects of specific ads or campaigns. emphasizing the strategic aspects of the advertising function. QUESTION 10 1. A manufacturer utilizing an intensive form of distribution coverage: 2. usually produces products that require certain specialized selling effort or investment in unique facilities. limits the use of intermediaries to the ones believed to be the best available in the geographic area. manufactures products that are characterized by a low unit value and a high frequency of purchase. severely limits distribution and provides intermediaries with exclusive rights within a territory. QUESTION 11 1. Which of the following is true of franchises? 2. They involve a wholesaler contracting with a number of retailers performing channel functions for them. They involve a parent company and an independent firm entering into a contractual relationship to set up and operate a business in a particular way. They involve a retailer assuming ownership of a primary manufacturer through the presence of a channel leader. They involve a group of independent retailers uniting and agreeing to pool buying and managerial resources to improve competitive position. QUESTION 12 1. Matrixautos, an automobile rental unit, rents its cars at $499 rather than $500 to encourage its consumers to think of its services as less expensive. This is an example of . 2. prestige pricing bundle pricing markup pricing odd-even pricing QUESTION 13 1. In terms of the advertising communication process, translating a product idea or marketing message into an effective ad is called: 2. positioning. allocating. encoding. disseminati ng. QUESTION 14 1. The reinforcement of unfavorable ethnic or racial stereotypes is a legal concern directly associated with: 2. public relations. personal selling. advertising. sales promotion. QUESTION 15 1. Which of the following is defined as an approach to pricing in which a seller charges a relatively high price on a new product initially in order to recover costs and make profits rapidly and then lowers the price at a later date to make sales to more price-sensitive buyers? 2. Sealed-bid pricing Rate-of-return pricing Penetration pricing policy Skimming pricing policy QUESTION 16 1. Kenny and Tessa are planning to go on vacation. They learn that Dreamz Travel, a travel agency, is offering a special package that includes travel, lodging, and entertainment at a much lower price than the couple would have to pay for all of them separately. Which of the following pricing strategies is Dreamz Travel using in this scenario? 2. Price skimming Reference rate pricing Odd-even pricing Bundle pricing QUESTION 17 1. One of the major objectives of trade promotions is to: 2. reward a consumer for brand loyalty. increase a manufacturer's inventories. increase a distributor's or retailer's inventories. discourage advertising and consumer sales promotions. QUESTION 18 1. With regard to the objectives of advertising, identify the most accurate statement. 2. Advertising is not subject to the law of diminishing returns. Advertising is not justified on the basis of the revenue it generates. The ultimate goal of the business advertiser is to make sales and profits. The advertising outlays should be increased in every market and medium up to the point where the additional cost of gaining more business exceeds the incremental profits. QUESTION 19 1. is a nonpaid form of nonpersonal communication about an organization and its products that is transmitted through a mass medium in the form of a news story. 2. Sales promotion Direct marketing Publicity Advertising QUESTION 20 1. A shoe manufacturer sells high-end designer shoes to wholesalers who, in turn, sell a variety of shoes and other leather accessories to various retail outlets. Which of the following channels of distribution is the shoe manufacturer using? 2. A matrix channel An indirect channel A maker to user channel A peer-to-peer channel QUESTION 21 1. The demand for organizational goods is a(n) . 2. derived demand low-value demand direct demand end-user demand QUESTION 22