1. STR 581 Final Exam 5
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1) 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_____________.
2) ________ consists of people, equipment, and procedures to gather, sort, analyze,
evaluate, and distribute needed, timely, and accurate information to marketing
decision makers.
3) 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.
4) A ________ is a set of procedures and sources managers use to obtain everyday
information about developments in the marketing environment.
5) A(n) ________ is any good, service, or idea that is perceived by someone as new.
6) Most established companies focus on ________ when it comes to innovation.
7) The value proposition consists of a cluster of benefits the company promises to
deliver; it is
8) In ________ marketing, the seller engages in the mass production, mass
distribution, and mass promotion of one product for all buyers.
9) 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?
10) ________ is the result of a concentrated effort by designers, engineers, and
purchasing agents to reduce the product’s overall costs.
11) 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 (e.g., Nielsen Media Research)?
12) 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 ________.

2. 13) 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?
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 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?
15) 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.
16) The chief disadvantage to a firm that decides to follow a product specialization
strategy in selecting target markets is ________.
17) “Power prices” use price as a key strategic tool. These “power prices” have
discovered the highly ________ effect of price on the bottom line.
18) 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.
19) Major retailer types include the following EXCEPT ________.
20) ________ communicates a company’s intended value positioning of its product
or brand to the market.
21) Price has operated as the major determinant of buyer choice among poorer
nations, among poorer groups, and with ________ products.
22) The marketing communications mix consists of six major modes of
communications. Which of the following is NOT one of these modes?
23) 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 ________.
24) Which of the following statements about leadership is true?
25) The traditional view of conflict is the belief that conflict is _____.

3. 26) Negotiation can be defined as a process in which two or more parties exchange
goods or services and attempt to agree upon _____.
27) Which of the following statements best defines a work group?
28) John Kotter’s view argues that management focuses on coping with complexity,
whereas leadership focuses on coping with _____.
29) Which level of Maslow’s hierarchy of needs deals with satisfying one’s hunger,
thirst, and need for sex?
30) _____ bargaining is negotiation that seeks to divide a “fixed pie.”
31) _____ can be used to increase the perception that employees are treated fairly.
32) Which of the following has proven to be a particularly good predictor for jobs
that require cognitive complexity?
33) Which type of skill training has become increasingly important in organizations?
34) Between the late 1960s and the mid-1980s, the use of written tests declined
because they were characterized as _____.
35) Examples of off-the-job training include all of the following except _____.
36) Whenever Jane is successful she takes full credit for what has happened, but
whenever she is unsuccessful she attributes her failure to bad luck or blames one of
her fellow employees. She is guilty of _____.
37) The “realistic” personality from Holland’s typology of personality and congruent
occupations would be well suited for which of the following jobs?
38) Each of the six personality types developed in Holland’s personality-job fit
theory has a ________.
39) 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?
40) Investors bragged about their investing expertise during the stock market rally
between 1996 and early 2000, then blamed analysts, brokers, and the Federal
Reserve when the market imploded in 2000. These investors were most probably
guilty of what?
41) Which of the following product promotional activities would probably help make
the supply chain more efficient?

4. 42) Which of the following would NOT be classified as a time-series technique?
43) 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:
44) 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.
45) Under exponential smoothing, if we want our forecast to be responsive to recent
demand, the value of alpha should be:
46) __________ 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.
47) An investor's risky portfolio is made up of individual stocks. Which of the
following statements about this portfolio is true?
48) Under capital rationing, given the choice among several equally attractive
investments, the best tool to use is the __________.
49) Due to asymmetric information, the market fears that a firm issuing securities
will do so when the stock is _________.
50) “Hard” capital rationing refers to the rationing __________.
51) __________ says to seek out investments that offer the greatest expected risk-
adjusted real return.
52) A checking account is __________.
53) Which of the following statements is true?
54) __________ says to recognize the value of hidden options in a situation, such as
the foreign exchange options in some derivative instruments.
55) An all-equity-financed firm would __________.
62) 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 out they will publicly announce a new stock
offering. The costs from the offering will be 10% of the new offering. The new
offering will increase the number of outstanding share by 30%. There are currently
20,000,000 shares of ABC outstanding. Once the announcement is made public,

5. what might be the expected impact from transaction (or issuance) costs on each
share you own?
63) Which (if any) statement is false?
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 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 share. If markets are at
least semi-strong form efficient, what would you expect?
65) Incremental analysis would be appropriate for
66) Which decision will involve no incremental revenues?
67) Transfer-pricing systems exist to _____.
68) Undertaker Corporation has a joint process that produces three products: P, G,
and A. Each product may be sold at split-off or processed further and then sold.
Joint processing costs for a year amount to $25,000. Other relevant data are as
follows:
Product Sales Value at Split-off Processing Costs after Split-off Sales Value at
Completion
P $62,000 $5,000 $88,000
G 12,500 6,500 19,000
A 9,400 5,000 12,000
Product G _____.
69) 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 accepted. 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?
70) A _____ gives the expected sales under a given set of conditions.
71) The financing section of a cash budget is needed if there is a cash deficiency or if
the ending cash balance is less than:
72) Beginning cash balance plus total receipts

6. 73) Which of the following does not appear as a separate section on the cash
budget?
74) A variable cost is a cost that
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?
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?
77) 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%?
78) There is no difference between variable-costing and absorption-costing income
if there is no_____.
79) Identify which of the following statements about "perfection standards" is true.
80) The first step in activity-based costing is to
81) _____ costs relate to more than one product and cannot be separately identified
with an individual product
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
83) The _____ is also called the statement of financial position.
84) _____ are profitability ratios.
85) The _____ is not one of the three major financial statements.
86) Which country does the text describe as becoming the largest producer and
consumer of many of the world's goods?
87) The theory of business social responsibility that holds that a business owes
duties solely to produce the highest return for its shareholders is:
88) Diversity training programs are generally intended to provide a vehicle for
_____.
89) One study found that manufacturing labor costs about ___ an hour in China,
compared to ____ dollars in the United States.

7. 90) Although the U.S. has had a longstanding agreement with ___________, after
the passage of NAFTA, _________ became the United States' second largest trading
partner.
91) Which of the following statements is generally NOT true about state
intermediate appellate courts?
92) Which article of the United States Constitution deals with the judicial power of
the federal government?
93) If consumer incomes increase, the demand for product Y will _____________.
94) When an economist says that the demand for a product has increased, this
means that:
95) The costs of delivering products in the _____ channel are much higher than
delivering products in the _____ channel.
96) _____ is the integration of economic, social, cultural, and ecological facets of
life, enabled by information technologies.
97) Which of the following is NOT a function of functional area information systems?
98) The use of a(n) _____ serves as a comparison to assess the existence and
potency of the manipulation.
99) Which source of evidence to support experimental results is most threatened by
the use of a field experiment?
100) A ________ has been defined as being a coordinated collection of data,
systems, tools, and techniques with supporting software and hardware by which an
organization gathers and interprets relevant information from business and
environment and turns it into a basis for marketing action.
STR 581 Final Exam 5
PLEASE DOWNLOAD THE ANSWERS HERE!!!