1. STR 581 Final Exam
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1. Power prices use price as a key strategic tool. These power prices have
discovered the highly ________ effect of price on the bottom line.
A. direct
B. dramatic
C. soothing
D. Leveraged
E. abrasive
2. Some intermediaries use the following: strategic planning, advanced
information systems, sophisticated marketing tools, measure performance on a
return-on-investment basis, segment their markets, improve their target marketing
and positioning, and ________.
A. dominant the manufacturers they do business with
B. contend with dwindling customer bases
C. aggressively pursue market expansion and diversification strategies
D. aggressively pursue take over strategies
E. aggressively “squeeze” manufacturer margins
3. Price has operated as the major determinant of buyer choice among poorer
nations, among poorer groups, and with ________ products.
A. similar
B. identical
C. commodity-type
D. over the Internet
4. Major retailer types include the following EXCEPT ________.
A. the Internet

2. B. specialty store
C. superstore
D. catalog showroom
E. discount store
5. 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.
selective specialization
market specialization
full market coverage
product specialization
single-segment concentration
6. To reach Generation Y, rock band Foo Fighters created a digital street team
that sends targeted e-mail messages to members who “get the latest news,
exclusive audio/video sneak previews, tons of chances to win great Foo Fighters
prizes, and become part of the Foo Fighters Family.” Which of the following
techniques for reaching Generation Y are the Foo Fighters using?
Unconventional sports
Computer games
Online buzz
Cool events
Student ambassadors
7. A company can add new products through acquisition or development. The
acquisition route can take three forms. The company can buy other companies, it
can acquire patents from other companies, or it can buy a ________ or
_________ from another company.
license/receive permission
franchise/co-brand

3. franchise/acquire rights
license/franchise
8. New-to-the- world products are ________.
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
existing products that are targeted to new markets or market segments
new products that supplement established product lines (package sizes, flavors,
and so on)
new products that create an entirely new market
9. The chief disadvantage to a firm that decides to follow a product specialization
strategy in selecting target markets is ________.
1. logistics can become a nightmare
2. competitors can easily copy any new product introductions
3. e-commerce becomes difficult for the company
4. the product may be supplanted by an entirely new technology
5. no synergy exists
10. Which of the following statements best defines a work group?
A work group interacts primarily to share information, rather than to engage in
work that requires joint effort.
A work group consists of 3 or more people from across departmental or functional
lines.
A work group is a group comprised of 10 or more people
A work group consists of 3 or more people who take on self-supervising
responsibilities.
The performance of a work group is generally greater than the sum of its inputs
from individual members.

4. 11. The traditional view of conflict is the belief that conflict is _____.
natural
situationally-dependent
neutral
necessary
harmful
12. Which of the following is NOT included in the definition of conflict?
disruption of tasks
negative effects
incompatibility
something that is cared about
perceptio
13. Which of the following statements about leadership is true?
Formal rights enable managers to lead effectively.
leaders are hierarchically superior to followers.
Nonsanctioned leadership is as important as or more important than formal
influence.
managers are leaders.
leaders are managers
14. bargaining is negotiation that seeks to divide a fixed pie.
Integrative
Affective
Conjunctive
Reflective
Distributive

5. 15. Danielle wants to become a surgeon, not only because achieving this goal will
give her self-respect and autonomy, but also because she wants a job with high
status and recognition from others. Which of Maslow’s needs is Danielle trying to
fill?
social
psychological
safety
esteem
self-actualization
16. Which of the following qualities is NOT found in work groups?
security
energy
objectives
enthusiasm
synergy
17. A ________ is a set of procedures and sources managers use to obtain
everyday information about developments in the marketing environment.
marketing research system
marketing intelligence system
vertical system
product management system
marketing information system
18. Is the difference between the prospective customer’s evaluation of all the
benefits and all the costs of an offering and the perceived alternatives.
Perceived usefulness
Customer perceived value
Competitors market share rate

6. Report rating
Failure avoidance rate
19. is any good, service, or idea that is perceived by someone as new.
product
creative product
new idea
innovation
20. A company can take several steps to improve the quality of its marketing
intelligence. 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 intelligence.
sales force surrogates
advisory panels
customer feedback systems
external networks
intermediaries
21. Most established companies focus on ________ when it comes to innovation.
incremental innovation
demand innovation
competitive innovation
everyday innovation
continuous innovatio
22. consists of people, equipment, and procedures to gather, sort, analyze,
evaluate, and distribute needed, timely, and accurate information to marketing
decision makers.
A marketing information system

7. A promotional campaign
A marketing database
A marketing intelligence system
A marketing research system
23. The value proposition consists of a cluster of benefits the company promises
to deliver; it is
customer expectations
Customer loyalty to the company
business processes
total customer satisfaction
customer experience with the company
24. Purchase decisions are based on how consumers perceive prices and what
they consider to be the ________ price—not the marketer’s stated price.
current sale price
current actual
referent price
last purchased price
25. consists of a group of customers who share a similar set of needs and wants.
market segment
market target
market level
market slice
market group
26. Marketers usually identify niches by ________.
examining the demographics section of The Handbook of Marketing
dividing a segment into sub-segments

8. producing products that can be used in a variety of ways
allowing consumers to gravitate toward product brands
conducting VALS test
27. Which of the following is generally considered to be the last step in the
marketing research process?
Make the decision.
Present the findings.
Draft the report
Control the environment.
Analyze the information.
28. is the systematic design, collection, analysis, and reporting of data and
findings relevant to a specific marketing situation facing the company.
Demographics
Marketing intelligence
Marketing management
Marketing research
MIS (marketing information system)
29. With respect to the sampling plan, three decisions must be made. The
decisions are: the sampling unit—who is to be surveyed? Sample size—how
many people should be surveyed? And ________.
sampling procedure—how should the respondents be chosen?
sample cost—how much does sampling cost?
sample supervisor—who will lead the sampling effort?
sample security—how to protect the sample data?
surveyor skill—who will do the surveying?
30. communicates a company’s intended value positioning of its product or brand
to the market.

9. Promotion
Packaging
Physical evidence
Place
Price
31. A company has total fixed costs of $120,000 and a contribution margin ratio of
20%. The total sales necessary to break even are
$150,000.
$600,000.
$144,000.
$480,000.
32. A company requires $1,020,000 in sales to meet its net income target. Its
contribution margin is 30%, and fixed costs are $180,000. What is the target net
income?
$420,000.
$234,000.
$126,000.
$306,000
33. 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?
$16.00.
$11.50.
Not enough information
$43.50
34. The last step in activity-based costing is to
identify and classify the major activities involved in the manufacture of specific
products.

10. compute the activity-based overhead rate per cost driver.
identify the cost driver that has a strong correlation to the activity cost pool.
assign manufacturing overhead costs for each activity cost pool to products.
35. A well-designed activity-based costing system starts with
assigning manufacturing overhead costs for each activity cost pool to products.
computing the activity-based overhead rate.
analyzing the activities performed to manufacture a product.
identifying the activity-cost pools.
36. Identify which of the following statements about perfection standards is true.
They usually result in unfavorable variances.
They are expressions of the most efficient performance possible.
It is generally believed that they have a negative influence on employee morale.
All of these answers are correct
37. In a process cost system
a Work in Process account is maintained for each process.
a materials requisition must identify the job on which the materials will be used.
one Work in Process account is maintained for all the processes, similar to a job
order cost system.
a Work in Process account is maintained for each product.
38. are profitability ratios.
Earnings per share and dividend yield
Dividend payout and rate of return in invested capital
Price earnings and current ratio
Gross profit rate and return on sale
39. The _____ is not one of the three major financial statements.

11. balance
income statement
statement of equity position
statement of cash flows
40. Financial statements are helpful to predict the future performance of a
company for all of the following reasons except _____.
financial statements are required to give formal projections of management's
assessment of the next period's financial results
the assets and liabilities of a company provide clues to a company's future
prospects
past performance is often a good indicator of future performance
the evaluation of management's past performance gives clues to its ability to
generate future return
41. A local retail shop has been operating as a sole proprietorship. The business
is growing and now the owner wants to incorporate. Which of the following is not
a reason for this owner to incorporate?
ability to raise capital for expansion
the ease in transferring shares of the corporation’s stock
the prestige of operating as a corporation
desire to limit the owner’s personal liability
42. Which country does the text describe as becoming the largest producer and
consumer of many of the world's goods?
Japan
Ecuador
China
Mexico
Canada

12. 43. Which of the following might a company consider to help employees address
work-life conflicts?
keeping work-related travel reasonable
relocation assistance
tie manager pay to customer satisfaction
offering off-site quality child-care
reducing workloads
44. Which of the following is not one of the Caux Round Table Principles for
International Business?
Avoidance of Illicit Operations.
Responsibility of Business Beyond Shareholders Toward Stakeholders.
Respect for the Environment.
Promotion of Multiculturalism.
Support for Multilateral Trade.
45. One study found that manufacturing labor costs about ___ an hour in China,
compared to ____ dollars in the United States
Less than $1; about 15
Less than $1; about 40
$2; about 25
Less than $1; about 25
About $2; about 15
46. Diversity training programs are generally intended to provide a vehicle for
_____.
increasing awareness and examining stereotypes
socializing otherwise unmanageable employees
balancing work/life conflicts
eliminating group learning

13. focusing on individual difference
47. Which of the following is correct about litigating commercial disputes?
Nearly all states have specialized trial courts that hear commercial disputes.
In all states, commercial disputes must be heard in a limited-jurisdiction court.
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.
A few states have established specialized trial courts for commercial disputes.
Commercial disputes, because of their specialized nature, are first heard at the
appellate court level
48. Which article of the United States Constitution deals with the judicial power of
the federal government?
Article I.
Article V.
Article IV.
Article III.
Article II.
49. When an economist says that the demand for a product has increased, this
means that:
quantity demanded is greater at each possible price.
the demand curve becomes steeper.
consumers respond to a lower price by buying more.
firms make less of the product available for sale.
50. When movie ticket prices increase, families tend to spend less time watching
movies and more time at home watching videos instead. This best reflects:
diminishing marginal utility.
the substitution effect.

14. the rationing function of markets.
the income effect.
51. Which of the following is NOT a function of functional area information
systems?
provides information to managers in the functional areas
provides analysis capabilities to middle level managers and staff
provides data from business events to the corporate database
provides information mainly in the form of reports
supports the managerial tasks of planning, organizing, and controlling operation
52. The costs of delivering products in the _____ channel are much higher than
delivering products in the _____ channel.
physical, financial
digital, e-commerce
physical, digital
digital, physical
e-commerce, digital
53. is the integration of economic, social, cultural, and ecological facets of life,
enabled by
information technologies.
globalization
regionalization
business environment
nationalizatio
54. A _____ scale is a scale that scores an object or property without making a
direct comparison to another object or property.
Sorting
Rating

15. Recording
Categorization
Ranking
55. The quartile deviation is:
In squared units of the original data.
The square root of the variance.
Appropriate only for symmetric distributions.
Based on the middle 50 percent of the observations.
56. Marketing research is now about a ________ billion industry globally.
$10
$21.5
$7.5
$16.5
$5