STR 581 Final Exam Set 4 Answers are HERE!1) Total customer satisfaction is the general feeling of pleasure or disappointment that results fromcomparing perceived performance to expectations. To achieve total customer satisfaction,organizations need to_____________. A. Lower prices B. Spend more money C. Lower expectations D. Develop marketing campaigns E. Manage customer experiences2) ________ consists of people, equipment, and procedures to gather, sort, analyze, evaluate, anddistribute needed, timely, and accurate information to marketing decision makers. A. A marketing database B. A marketing research system C. A promotional campaign D. A marketing information system E. A marketing intelligence system3) A company can take several steps to improve the quality of its marketing intelligence. If thecompany purchases competitive products for study, attends open houses and trade shows, and readscompetitors’ published reports and stockholder information, the company is using ________ toimprove the quality of its marketing intelligence. A. customer feedback systems B. intermediaries C. advisory panels D. sales force surrogates E. external networks4) A ________ is a set of procedures and sources managers use to obtain everyday information aboutdevelopments in the marketing environment. A. vertical system B. marketing information system C. marketing intelligence system D. marketing research system
E. product management system5) A(n) ________ is any good, service, or idea that is perceived by someone as new. A. creative product B. product C. new idea D. innovation6) Most established companies focus on ________ when it comes to innovation. A. competitive innovation B. continuous innovation C. demand innovation D. incremental innovation E. everyday innovation7) The value proposition consists of a cluster of benefits the company promises to deliver; it is A. business processes B. customer experience with the company C. customer expectations D. Customer loyalty to the company E. total customer satisfaction8) In ________ marketing, the seller engages in the mass production, mass distribution, and masspromotion of one product for all buyers. A. differentiated B. mass C. segmented D. group E. general9) A firm has to consider many factors in setting its pricing policy. We list these as a six-step process.Which of the following is NOT one of these steps? A. Selecting a pricing method. B. Selecting the final price. C. Selecting the pricing objective. D. Researching reference prices in the target market. E. Determining demand.
10) ________ is the result of a concentrated effort by designers, engineers, and purchasing agents toreduce the product’s overall costs. A. Experience curve B. Least cost producer C. Target costing D. Learning curve11) Which of the following types of marketing research firms would best be described as one thatgathers consumer and trade information which they sell for a fee (e.g., Nielsen Media Research)? A. Non-profit marketing research firms B. General-line marketing research firms C. Syndicated-service research firms D. Specialty-line marketing research firms E. Custom marketing research firms12) With respect to the sampling plan, three decisions must be made. The decisions are: the samplingunit—who is to be surveyed? Sample size—how many people should be surveyed? And ________. A. sample supervisor—who will lead the sampling effort? B. sampling procedure—how should the respondents be chosen? C. surveyor skill—who will do the surveying? D. sample security—how to protect the sample data? E. sample cost—how much does sampling cost?13) A marketing manager needs to know the cost of the research project before approving it. Duringwhich step in the marketing research process would such a consideration most likely take place? A. Step 3—information collection B. Step 2—develop the research plan. C. Step 1—creating decision alternatives. D. Step 1—drafting the research objectives. E. Step 1—defining the problem.14) 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 ofchances to win great Foo Fighters prizes, and become part of the Foo Fighters Family.” Which of thefollowing techniques for reaching Generation Y are the Foo Fighters using? A. Online buzz B. Computer games C. Unconventional sports D. Cool events E. Student ambassadors
15) A company can add new products through acquisition or development. The acquisition route cantake three forms. The company can buy other companies, it can acquire patents from othercompanies, or it can buy a ________ or _________ from another company. A. franchise/acquire rights B. franchise/co-brand C. license/receive permission D. license/franchise16) The chief disadvantage to a firm that decides to follow a product specialization strategy inselecting target markets is ________. A. e-commerce becomes difficult for the company B. competitors can easily copy any new product introductions C. logistics can become a nightmare D. the product may be supplanted by an entirely new technology E. no synergy exists17) “Power prices” use price as a key strategic tool. These “power prices” have discovered the highly________ effect of price on the bottom line. A. soothing B. direct C. abrasive D. leveraged E. dramatic18) Following the ________ approach to target market selection encompasses a strong knowledge ofthe segment’s needs, a strong market presence, and operating economies through specializing inproduction, distribution, and promotion. A. full market coverage B. product specialization C. selective specialization D. single-segment concentration E. market specialization19) Major retailer types include the following EXCEPT ________. A. superstore B. catalog showroom C. discount store D. specialty store
E. the Internet20) ________ communicates a company’s intended value positioning of its product or brand to themarket. A. Physical evidence B. Place C. Price D. Packaging E. Promotion21) Price has operated as the major determinant of buyer choice among poorer nations, amongpoorer groups, and with ________ products. A. commodity-type B. over the Internet C. similar D. identical22) The marketing communications mix consists of six major modes of communications. Which of thefollowing is NOT one of these modes? A. Advertising B. Sales promotions C. Direct marketing D. Personal selling E. Packaging23) Some intermediaries use the following: strategic planning, advanced information systems,sophisticated marketing tools, measure performance on a return-on-investment basis, segment theirmarkets, improve their target marketing and positioning, and ________. A. aggressively pursue market expansion and diversification strategies B. aggressively pursue take over strategies C. aggressively “squeeze” manufacturer margins D. contend with dwindling customer bases E. dominant the manufacturers they do business with24) Which of the following statements about leadership is true? A. Nonsanctioned leadership is as important as or more important than formal influence. B. managers are leaders. C. Formal rights enable managers to lead effectively. D. leaders are managers.
E. leaders are hierarchically superior to followers.25) The traditional view of conflict is the belief that conflict is _____. A. neutral B. necessary C. natural D. harmful E. situationally-dependent26) Negotiation can be defined as a process in which two or more parties exchange goods or servicesand attempt to agree upon _____. A. effective arbitrators for disputes B. the exchange rate for those goods and services C. a model of the negotiation process for resolving differences D. the monetary value of the exchanged items E. acceptable bargaining strategies for obtaining the goods and services27) Which of the following statements best defines a work group? A. A work group consists of 3 or more people from across departmental or functional lines. B. The performance of a work group is generally greater than the sum of its inputs fromindividual members. C. A work group consists of 3 or more people who take on self-supervising responsibilities. D. A work group is a group comprised of 10 or more people E. A work group interacts primarily to share information, rather than to engage in work thatrequires joint effort.28) John Kotter’s view argues that management focuses on coping with complexity, whereasleadership focuses on coping with _____. A. morale B. conflict C. defeat D. change E. success29) Which level of Maslow’s hierarchy of needs deals with satisfying one’s hunger, thirst, and need forsex? A. esteem B. safety
C. social D. psychological E. physiological30) _____ bargaining is negotiation that seeks to divide a “fixed pie.” A. Affective B. Distributive C. Reflective D. Conjunctive E. Integrative31) _____ can be used to increase the perception that employees are treated fairly. A. Documenting with a journal B. Selective evaluation C. Multiple raters D. Focusing on subjective evaluations E. Due process32) Which of the following has proven to be a particularly good predictor for jobs that requirecognitive complexity? A. aptitude tests B. intelligence tests C. work sampling D. behavioral assessment E. integrity evaluations33) Which type of skill training has become increasingly important in organizations? A. interpersonal B. financial C. problem solving D. social E. technical34) Between the late 1960s and the mid-1980s, the use of written tests declined because they werecharacterized as _____. A. invalid B. unprofessional C. unreliable D. mathematically flawed
E. discriminatory35) Examples of off-the-job training include all of the following except _____. A. public seminars B. videotapes C. classroom lectures D. apprenticeship programs E. Internet courses36) Whenever Jane is successful she takes full credit for what has happened, but whenever she isunsuccessful she attributes her failure to bad luck or blames one of her fellow employees. She is guiltyof _____. A. distinctiveness B. self-serving bias C. fundamental attribution error D. attribution bias E. the halo effect37) The “realistic” personality from Holland’s typology of personality and congruent occupationswould be well suited for which of the following jobs? A. lawyer B. biologist C. painter D. accountant E. mechanic38) Each of the six personality types developed in Holland’s personality-job fit theory has a ________. A. supplemental occupational environment B. supplemental skill set C. supplemental personality style D. congruent personality style E. congruent occupational environment39) Phrases such as “more cultural diversity,” “many new entrants with inadequate skills,” and“increase in aging workers” are all examples of what force for change? A. social trends B. competition C. technology D. world politics
E. nature of the work force40) Investors bragged about their investing expertise during the stock market rally between 1996 andearly 2000, then blamed analysts, brokers, and the Federal Reserve when the market imploded in2000. These investors were most probably guilty of what? A. distinctiveness B. selective perception C. fundamental attribution error D. self-serving bias E. the halo effect41) Which of the following product promotional activities would probably help make the supply chainmore efficient? A. A 2 for 1 price promotion B. Special packaging for a specific event that occurs one time each year C. Price promotions that expire on a specific date D. An "everyday" low price strategy where prices are not dependent on quantity deliveredwith a specific order42) Which of the following would NOT be classified as a time-series technique? A. regression model B. trend projections C. simple moving average D. exponential smoothing E. box Jenkins technique43) The phenomenon of magnification of demand variability as we move from the customer to theproducer in the supply-chain is referred to as the: A. price deflator B. bullwhip effect C. postponement effect D. Elasticity of demand E. Just-in-time approach44) 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. A. greater, greater B. lesser, greater C. greater, lesser
D. none of these answers45) Under exponential smoothing, if we want our forecast to be responsive to recent demand, thevalue of alpha should be: A. moderate B. small C. large D. zero46) __________ says to look for opportunities to invest in positive-NPV projects in foreign markets orto develop derivatives or design arrangements that enable firms to cope better with the risks theyface in their foreign operations. A. The Principle of Capital Market Efficiency B. The Principle of Diversification C. The Principle of Risk-Return Trade-off D. The Principle of Valuable Ideas47) An investors risky portfolio is made up of individual stocks. Which of the following statementsabout this portfolio is true? A. An investor cannot change the risk of this portfolio by her choice about personal leverage(lending or borrowing). B. Selling any stock in this portfolio will lower the beta of the portfolio. C. Each stock in the portfolio has its own beta. D. Each stock in the portfolio will have a beta greater than one.48) Under capital rationing, given the choice among several equally attractive investments, the besttool to use is the __________. A. Profitability Index method B. Payback method C. Internal Rate of Return method D. Net Present Value method49) Due to asymmetric information, the market fears that a firm issuing securities will do so when thestock is _________. A. caught up in a bear market B. overvalued C. undervalued D. being sold by insiders
50) “Hard” capital rationing refers to the rationing __________. A. always imposed by competitors B. imposed internally by the shareholders C. imposed by external factors D. always imposed by debt holders51) __________ says to seek out investments that offer the greatest expected risk-adjusted realreturn. A. The Principle of Self-Interested Behavior B. The Signaling Principle C. The Principle of Incremental Benefits D. The Principle of Valuable Ideas52) A checking account is __________. A. a place to “collect” money between inflows and outflows B. an account that acts like a reservoir C. useful because you can add money in any amount D. all of these53) Which of the following statements is true? A. The Principle of Incremental Benefits says to consider the possible ways to minimize thevalue lost to capital market imperfections, such as asymmetric taxes, asymmetric information, andtransaction costs. B. The Principle of Valuable Ideas suggests to look for opportunities to create value by issuingsecurities that are in short supply, perhaps resulting from changes in tax law. C. The Time Value of Money Principle advises to include any time-value-of-money taxbenefits from capital structure choices. D. all of these54) __________ says to recognize the value of hidden options in a situation, such as the foreignexchange options in some derivative instruments. A. The Principle of Two-Sided Transactions B. The Options Principle C. The Principle of Comparative Advantage D. The Time Value of Money Principle55) An all-equity-financed firm would __________.
A. not pay corporate income taxes because it would have no interest expense. B. not pay any income taxes because interest would exactly offset its taxable income. C. pay corporate income taxes because it would have interest expense. D. pay corporate income taxes if its taxable income is positive62) You work for ABC, Inc. in the finance department. You own shares in ABC, Inc. that are selling at$20 per share on the NYSE. You just found out they will have a new stock offering. You just found outthey will publicly announce a new stock offering. The costs from the offering will be 10% of the newoffering. The new offering will increase the number of outstanding share by 30%. There are currently20,000,000 shares of ABC outstanding. Once the announcement is made public, what might be theexpected impact from transaction (or issuance) costs on each share you own? A. You will lose 2% of the value of the shares you own. B. There will be no costs because markets are perfect when it comes to new stock offerings. C. There will be no costs because there is no information asymmetry present. D. You will lose 3% of the value of the share you own.63) Which (if any) statement is false? A. The Principle of Self-Interested Behavior suggests that self-interested capital markettransactions force market prices toward being fair prices. B. The Principle of Two-Sided Transactions states that intense capital market competition toget and use information to take advantage of arbitrage opportunities eliminates such opportunities. C. The Principle of Signaling states that information in the transactions of others can bevaluable, such as providing an accurate measure of current market value, or information aboutexpected future value. D. none of these answers are correct.64) 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 MagicTape’s stock has announced that insiders have sold 10% of their holdings. You are concerned becauseyou own 1,000 shares of Magic Tape and it had closed the day before unchanged at $30 per share. Ifmarkets are at least semi-strong form efficient, what would you expect? A. You would lose $1,800. B. You would expect Magic Tape to close at $28 the day of the announcement. C. You would lose $4,000. D. You would lose $2.00 per share65) Incremental analysis would be appropriate for A. acceptance of an order at a special price. B. a retain or replace equipment decision. C. a sell or process further decision. D. all of the answers are correct.
66) Which decision will involve no incremental revenues? A. Accept a special order B. Make or buy decision C. Drop a product line D. Additional processing decision67) Transfer-pricing systems exist to _____. A. encourage managers to purchase goods and services internally B. maximize worldwide taxes, duties, and tariffs C. evaluate segment performance D. all of these answers are correct68) Undertaker Corporation has a joint process that produces three products: P, G, and A. Eachproduct may be sold at split-off or processed further and then sold. Joint processing costs for a yearamount to $25,000. Other relevant data are as follows: ProductSales Value at Split-off Processing Costs after Split-off Sales Value at CompletionP $62,000 $5,000 $88,000G 12,500 6,500 19,000A 9,400 5,000 12,000Product G _____. A. should be processed further to increase profits by $19,000. B. an be processed further or sold at split off; there is no difference in profit. C. should be sold at split off since processing further would only reduce profits by $6,500. D. should be processed further to increase profits by $6,500.69) It costs Garner Company $12 of variable and $5 of fixed costs to produce one bathroom scalewhich normally sells for $35. A foreign wholesaler offers to purchase 2,000 scales at $15 each. Garnerwould incur special shipping costs of $1 per scale if the order were accepted. Garner has sufficientunused capacity to produce the 2,000 scales. If the special order is accepted, what will be the effect onnet income? A. $6,000 decrease B. $30,000 increase C. $4,000 decrease D. $4,000 increase70) A _____ gives the expected sales under a given set of conditions.
A. budget forecast B. sales forecast C. sales budget D. sales prediction71) The financing section of a cash budget is needed if there is a cash deficiency or if the ending cashbalance is less than: A. the amount needed to avoid a service charge at the bank. B. the industry average. C. managements minimum required balance. D. the prior years.72) Beginning cash balance plus total receipts A. equals total available cash. B. is the excess of available cash over disbursements. C. must equal total disbursements. D. equals ending cash balance.73) Which of the following does not appear as a separate section on the cash budget? A. Capital expenditures B. Financing C. Cash disbursements D. Cash receipts74) A variable cost is a cost that A. varies in total in proportion to changes in the level of activity. B. may or may not be incurred, depending on managements discretion. C. occurs at various times during the year. D. varies per unit at every level of activity.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? A. $16.00. B. Not enough information C. $11.50. D. $43.50.
76) 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? A. $12.80. B. $22.00. C. $9.20. D. $34.80.77) How much sales are required to earn a target income of $80,000 if total fixed costs are $100,000and the contribution margin ratio is 40%? A. $450,000. B. $200,000. C. $330,000. D. $300,000.78) There is no difference between variable-costing and absorption-costing income if there isno_____. A. change in inventory level B. ending inventory C. variable overhead cost D. beginning inventory79) Identify which of the following statements about "perfection standards" is true. A. They usually result in unfavorable variances. B. They are expressions of the most efficient performance possible. C. All of these answers are correct D. It is generally believed that they have a negative influence on employee morale.80) The first step in activity-based costing is to A. assign manufacturing overhead costs for each activity cost pool to products. B. compute the activity-based overhead rate per cost driver. C. identify and classify the major activities involved in the manufacture of specific products. D. identify the cost driver that has a strong correlation to the activity cost pool.81) _____ costs relate to more than one product and cannot be separately identified with anindividual product A. Joint B. Bundle C. Allocable
D. Common82) Which statements describe the principal reason(s) why investors and creditors use financialstatement analysis? 1. To assess the risks associated with expected returns 2. To establishrecommended dividend and interest payments 3. To evaluate top and middle level management 4. Topredict the amount of expected returns A. 3 and 4 B. 1 and 4 C. 1, 2, and 3 D. 1 and 283) The _____ is also called the statement of financial position. A. statement of retained earnings B. balance sheet C. statement of cash flow D. income statement84) _____ are profitability ratios. A. Earnings per share and dividend yield B. Dividend payout and rate of return in invested capital C. Price earnings and current ratio D. Gross profit rate and return on sales85) The _____ is not one of the three major financial statements. A. balance B. income statement C. statement of equity position D. statement of cash flows86) Which country does the text describe as becoming the largest producer and consumer of many ofthe worlds goods? A. Mexico B. China C. Ecuador D. Canada E. Japan87) The theory of business social responsibility that holds that a business owes duties solely toproduce the highest return for its shareholders is:
A. The stakeholder interest theory. B. The moral minimum theory. C. The corporate citizenship theory. D. The maximizing profits theory. E. The social audit theory.88) Diversity training programs are generally intended to provide a vehicle for _____. A. eliminating group learning B. increasing awareness and examining stereotypes C. balancing work/life conflicts D. focusing on individual differences E. socializing otherwise unmanageable employees89) One study found that manufacturing labor costs about ___ an hour in China, compared to ____dollars in the United States. A. Less than $1; about 25 B. Less than $1; about 15 C. $2; about 25 D. About $2; about 15 E. Less than $1; about 4090) Although the U.S. has had a longstanding agreement with ___________, after the passage ofNAFTA, _________ became the United States second largest trading partner. A. Canada, Venezuela B. Canada, Mexico C. Mexico, Canada D. Mexico, Venezuela E. Great Britain, Paraguay91) Which of the following statements is generally NOT true about state intermediate appellatecourts? A. The appellate court allows the parties to make oral arguments outlining their position. B. The appellate court reviews the record of the trial court. C. The appellate court allows the parties to introduce new evidence so long as it was notpreviously introduced at the original trial. D. The appellate court usually allows the parties to file briefs outlining support for theirpositions.
92) Which article of the United States Constitution deals with the judicial power of the federalgovernment? A. Article III. B. Article I. C. Article IV. D. Article II. E. Article V.93) If consumer incomes increase, the demand for product Y will _____________. A. shift to the right if Y is a complementary good B. necessarily remain unchanged C. shift to the right if Y is a normal good94) When an economist says that the demand for a product has increased, this means that: A. consumers respond to a lower price by buying more. B. quantity demanded is greater at each possible price. C. the demand curve becomes steeper. D. firms make less of the product available for sale.95) The costs of delivering products in the _____ channel are much higher than delivering products inthe _____ channel. A. digital, physical B. e-commerce, digital C. physical, financial D. digital, e-commerce E. physical, digital96) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled byinformation technologies. A. globalization B. regionalization C. business environment D. nationalization97) Which of the following is NOT a function of functional area information systems? A. provides information mainly in the form of reports B. provides analysis capabilities to middle level managers and staff
C. supports the managerial tasks of planning, organizing, and controlling operations D. provides data from business events to the corporate database E. provides information to managers in the functional areas98) The use of a(n) _____ serves as a comparison to assess the existence and potency of themanipulation. A. Criterion variable B. Field experiment C. Control group D. Explanatory variable E. Experimental group99) Which source of evidence to support experimental results is most threatened by the use of a fieldexperiment? A. Control of contamination from extraneous variables B. Manipulation of the IV C. Time order of the occurrence of the variables D. Use of a control group E. Agreement between the IV and DV100) A ________ has been defined as being a coordinated collection of data, systems, tools, andtechniques with supporting software and hardware by which an organization gathers and interpretsrelevant information from business and environment and turns it into a basis for marketing action. A. marketing decision support system B. database management system C. marketing intelligence system D. marketing research system E. marketing information system