STR 581 Final Exam SET 1 Answers are HERE1) ________ consists of people, equipment, and procedures to gather, sort, analyze, evaluate, anddistribute needed, timely, and accurate information to marketing decision makers.A. A promotional campaignB. A marketing research systemC. A marketing information systemD. A marketing intelligence systemE. A marketing database2) 3M, Hewlett-Packard, Lego, and other companies use the ________ to manage the innovationprocess.A. venture teamB. joint- venture systemC. stage-gate systemD. new product “team”E. skunk works3) ________ is the difference between the prospective customer’s evaluation of all the benefits and allthe costs of an offering and the perceived alternatives.A. Customer perceived valueB. Failure avoidance rateC. Perceived usefulnessD. Report ratingE. Competitors market share rate4) 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. advisory panelsB. intermediariesC. sales force surrogatesD. external networksE. customer feedback systems5) A ________ is a set of procedures and sources managers use to obtain everyday information aboutdevelopments in the marketing environment.A. marketing intelligence systemB. marketing information systemC. marketing research systemD. product management systemE. vertical system
6) A(n) ________ is any good, service, or idea that is perceived by someone as new.A. new ideaB. productC. innovationD. creative product7) 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 expectationsB. Spend more moneyC. Develop marketing campaignsD. Manage customer experiencesE. Lower prices8) Particularly when shopping for ego-sensitive products such as perfumes and expensive cars, manyconsumers use price as an indicator of ________.A. capabilityB. sizeC. abilityD. qualityE. status9) A ________ consists of a group of customers who share a similar set of needs and wants.A. market segmentB. market levelC. market sliceD. market groupE. market target10) 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 the final price.B. Selecting a pricing method.C. Researching reference prices in the target market.D. Selecting the pricing objective.E. Determining demand.11) 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 2—develop the research plan.B. Step 3—information collectionC. Step 1—drafting the research objectives.D. Step 1—creating decision alternatives.E. Step 1—defining the problem.
12) 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. General-line marketing research firmsB. Non-profit marketing research firmsC. Specialty-line marketing research firmsD. Syndicated-service research firmsE. Custom marketing research firms13) Companies normally budget marketing research at ________ percent of company sales.A. 6.5B. 10 to 12C. 4D. 2 to 3E. 1 to 214) The marketing communications mix consists of six major modes of communications. Which of thefollowing is NOT one of these modes?A. PackagingB. AdvertisingC. Sales promotionsD. Direct marketingE. Personal selling15) The chief disadvantage to a firm that decides to follow a product specialization strategy inselecting target markets is ________.A. competitors can easily copy any new product introductionsB. e-commerce becomes difficult for the companyC. the product may be supplanted by an entirely new technologyD. logistics can become a nightmareE. no synergy exists16) New-to-the- world products are ________.A. new products that provide improved performance or greater perceived value and replace existingproductsB. existing products that are targeted to new markets or market segmentsC. new products that supplement established product lines (package sizes, flavors, and so on)D. new products that allow a company to enter an established market for the first timeE. new products that create an entirely new market17) Major retailer types include the following EXCEPT ________.A. the InternetB. superstoreC. catalog showroomD. discount storeE. specialty store18) Marketing communications can contribute to brand equity by establishing the brand in memoryand to________ (in)a brand image.
A. create demandB. communicateC. craftD. create interest19) Price has operated as the major determinant of buyer choice among poorer nations, amongpoorer groups, and with ________ products.A. similarB. over the InternetC. commodity-typeD. identical20) ________ communicates a company’s intended value positioning of its product or brand to themarket.A. PromotionB. PlaceC. Physical evidenceD. PackagingE. Price21) 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. market specializationB. product specializationC. full market coverageD. single-segment concentrationE. selective specialization22) 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. dominant the manufacturers they do business withB. aggressively pursue take over strategiesC. aggressively pursue market expansion and diversification strategiesD. contend with dwindling customer basesE. aggressively “squeeze” manufacturer margins23) 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. Computer gamesB. Cool eventsC. Online buzzD. Student ambassadorsE. Unconventional sports
24) The traditional view of conflict is the belief that conflict is _____.A. situationally-dependentB. necessaryC. neutralD. harmfulE. natural25) The two general approaches to bargaining are known as ________.A. formal and informal.B. distributive and integrativeC. legal and restrictiveD. emotional and rational.E. affective and reflective26) Which of the following is NOT included in the definition of conflict?A. something that is cared aboutB. disruption of tasksC. negative effectsD. perception27) If no one is aware of conflict, it is generally agreed that _____.A. conflict is inevitableB. no conflict existsC. conflict is psychologically driven as opposed to physically manifestD. employee-employer relations will be goodE. conflict is subversive28) Which of the following statements about leadership is true?A. leaders are hierarchically superior to followers.B. managers are leaders.C. Nonsanctioned leadership is as important as or more important than formal influence.D. leaders are managers.E. Formal rights enable managers to lead effectively.29) Which of the following statements best defines a work group?A. A work group consists of 3 or more people who take on self-supervising responsibilities.B. A work group interacts primarily to share information, rather than to engage in work that requiresjoint effort.C. A work group consists of 3 or more people from across departmental or functional lines.D. A work group is a group comprised of 10 or more peopleE. The performance of a work group is generally greater than the sum of its inputs from individualmembers.30) _____ bargaining is negotiation that seeks to divide a “fixed pie.”A. ReflectiveB. IntegrativeC. AffectiveD. ConjunctiveE. Distributive
31) Examples of off-the-job training include all of the following except _____.A. Internet coursesB. apprenticeship programsC. public seminarsD. videotapesE. classroom lectures32) Between the late 1960s and the mid-1980s, the use of written tests declined because they werecharacterized as _____.A. unreliableB. discriminatoryC. invalidD. mathematically flawedE. unprofessional33) Which type of skill training has become increasingly important in organizations?A. problem solvingB. technicalC. interpersonalD. socialE. financial34) According to a recent survey, about ___ percent of employees working in the 1,000 largest U.S.corporations receive ethics training.A. 50B. 10C. 75D. 2535) _____ can be used to increase the perception that employees are treated fairly.A. Multiple ratersB. Due processC. Documenting with a journalD. Focusing on subjective evaluationsE. Selective evaluation36) 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. the halo effectB. attribution biasC. distinctivenessD. self-serving biasE. fundamental attribution error37) A task that is subdivided into many separate jobs is considered to have _____.A. a high degree of work specialization
B. a low degree of decentralizationC. a low degree of structureD. a high degree of matrix structuringE. a high degree of departmentalization38) Organizational structure has six key elements. Which of the following is not one of theseelements?A. work specializationB. departmentalizationC. formalizationD. location of authorityE. centralization39) What term is used for the tendency of an individual to attribute his own successes to internalfactors while putting the blame for failures on external factors?A. consistencyB. stereotypingC. self-serving biasD. fundamental attribution errorE. selective perception40) Which of the following is not a primary force for change in organizations?A. decreasing skill setsB. the nature of the workforceC. economic shocksD. technologyE. social trends41) Which of the following would NOT be classified as a time-series technique?A. box Jenkins techniqueB. trend projectionsC. exponential smoothingD. simple moving averageE. regression model42) According to Goldratt and Fox, a useful performance measure to treat inventory is ______.A. quick ratioB. dollar daysC. current ratioD. inventory turnover43) According to David Maister, the most complex projects requiring innovation and creativity arecalled _________.A. “brain surgery” projectsB. “grinding” projectsC. “gray hair” projectsD. “procedures” projects
44) Operations stage toolkit for the Data Analysis and Solution Development phase include(s): I. SPCtools II. Bottleneck analysis III. Computer simulation IV. Balanced scoreboardA. I, II, IIIB. I, II, III, and IVC. II and IIID. I and IIE. II, III, and IV45) If the system contains a bottleneck, the _______ is the best place for control. If there is nobottleneck, the __________ is the best place for control.A. bottleneck, capacity constrained resourceB. none of these answersC. capacity-constrained resource, drumD. capacity-constrained resource, bottleneck46) __________ 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 TransactionsB. The Time Value of Money PrincipleC. The Principle of Comparative AdvantageD. The Options Principle47) Due to asymmetric information, the market fears that a firm issuing securities will do so when thestock is _________.A. caught up in a bear marketB. overvaluedC. undervaluedD. being sold by insiders48) Under capital rationing, given the choice among several equally attractive investments, the besttool to use is the __________.A. Profitability Index methodB. Payback methodC. Internal Rate of Return methodD. Net Present Value method49) A checking account is __________.A. a place to “collect” money between inflows and outflowsB. an account that acts like a reservoirC. useful because you can add money in any amountD. all of these50) __________ 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 EfficiencyB. The Principle of Diversification
C. The Principle of Risk-Return Trade-offD. The Principle of Valuable Ideas51) __________ says to seek out investments that offer the greatest expected risk-adjusted realreturn.A. The Principle of Self-Interested BehaviorB. The Signaling PrincipleC. The Principle of Incremental BenefitsD. The Principle of Valuable Ideas52) 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 (lendingor 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.53) Which of the following statements is true?A. The Principle of Incremental Benefits says to consider the possible ways to minimize the value lostto capital market imperfections, such as asymmetric taxes, asymmetric information, and transactioncosts.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 tax benefits fromcapital structure choices.D. all of these54) An all-equity-financed firm would __________.A. not pay corporate income taxes because it would have no interest expense.B. pay corporate income taxes because it would have interest expense.C. not pay any income taxes because interest would exactly offset its taxable income.D. pay corporate income taxes if its taxable income is positive55) “Hard” capital rationing refers to the rationing __________.A. always imposed by competitorsB. imposed internally by the shareholdersC. imposed by external factorsD. always imposed by debt holders56) A key variable covered in our text for the Black-Scholes OPM is __________.A. dividends.B. EPS.C. transaction costs.D. the riskless APR with continuous compounding57) The managerial decision best addresses which of the following questions?A. How fast should we grow?
B. What size of firm do we want?C. How should we compensate our managers?D. all of these58) The financing decision best addresses which of the following questions?A. Should we increase our inventory?B. Should we issue common stock or convertible debt?C. Should we buy this piece of land?D. Should we give employees stock options?59) Which of these investments would you expect to have the highest rate of return for the next 20years?A. intermediate-term U.S. government bondsB. long-term corporate bondsC. U.S. Treasury billsD. anybody’s guess60) Dimensions of risk include __________.A. the certainty of a negative outcomeB. uncertainty about the future outcomeC. the impossibility of the same returnD. uncertainty about yesterday’s outcome61) __________ says to recognize the value of options contained in derivatives.A. The Capital Market Efficiency PrincipleB. The Principle of Valuable IdeasC. The Options PrincipleD. The Principle of Comparative Advantage62) Which of the following is (are) true?A. The Principle of Capital Market Efficiency states that differences between financial assets aremeasured primarily in terms of risk and return. Investors choose the highest return for a given risklevel.B. The Principle of Comparative Advantage states that people apply the Principles of Self-InterestedBehavior, Two-Sided Transactions, and Signaling to an environment characterized by similar financialassets, low transaction costs, and intense competition leads to capital market efficiency.C. The Principle of Valuable Ideas states that new ideas can provide value when first introduced, evenin an efficient capital market.D. all of these answers are correct.63) 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 $4,000.B. You would expect Magic Tape to close at $28 the day of the announcement.C. You would lose $1,800.
D. You would lose $2.00 per share64) Which of the following is not an advantage of going public?A. Going public gives existing shareholders a chance to sell portions of their shares as part of the IPOgiving them a cash return on their investment and allows them to diversify their investmentportfolios.B. Going public enables a firm to raise additional capital.C. Going public generally brings a lower price in the public market than in the venture capital orprivate placement markets.D. Going public achieves liquidity and diversification for current shareholders65) Incremental analysis would not be appropriate forA. an allocation of limited resource decision.B. a make or buy decision.C. elimination of an unprofitable segment.D. Analysis of manufacturing variances66) 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 sold at split off since processing further would only reduce profits by $6,500.B. should be processed further to increase profits by $6,500.C. should be processed further to increase profits by $19,000.D. an be processed further or sold at split off; there is no difference in profit.67) Cena Corporation has a joint process that produces three products: P, G, and A. Each product maybe 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: ProductSales Value at Split-off Processing Costs after Split-off Sales Value at CompletionP $32,000 $5,000 $40,000G 16,500 7,500 29,000A 6,400 8,000 10,000Once product P is produced, processing it further will cause profits to _____.A. decrease by $5,000B. increase by $8,000C. decrease by $8,000D. increase by $3,00068) A transfer price exists when two segments of the same organization sell _____.
A. a service to each otherB. a product to the same customerC. a product in a foreign countryD. the same service to competitors69) For what purpose is the theory of constraints used?A. To balance performance measurement.B. To reduce product defects.C. To identify and manage constraints that bottle-neck operations.D. To reduce inventory levels70) A _____ gives the expected sales under a given set of conditions.A. sales budgetB. sales predictionC. budget forecastD. sales forecast71) Important factors considered by sales forecasters include all of the following except _____.A. marketing research studiesB. the desired level of salesC. past patterns of salesD. competitors’ activities72) Effectiveness is indicated by _____.A. static-budget variancesB. all of these answers are correctC. sales-activity variancesD. flexible-budget variances73) _____ is an important factor considered by sales forecasters.A. Estimates made by the sales forceB. All of these answers are correctC. Past patterns of salesD. General economic conditions74) 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. $11.50.B. Not enough informationC. $43.50.D. $16.00.75) A company has total fixed costs of $120,000 and a contribution margin ratio of 20%. The totalsales necessary to break even areA. $600,000.B. $144,000.C. $480,000.D. $150,000.
76) A cost which remains constant per unit at various levels of activity is aA. fixed cost.B. manufacturing cost.C. variable cost.D. mixed cost.77) For an activity base to be useful in cost behavior analysis,A. there should be a correlation between changes in the level of activity and changes in costs.B. the activity level should be constant over a period of time.C. the activity should always be stated in dollars.D. the activity should always be stated in terms of units.78) An absorption-costing income statement separates cost into the major categories of_____.A. product and periodB. all of these answers are correctC. manufacturing and nonmanufacturingD. inventoriable and noninventoriable79) The _____ is/are NOT a difference between the standard absorption-costing format and thevariable-costing format.A. presentation of direct manufacturing costsB. major cost categoriesC. computation of unit product costD. presentation of fixed manufacturing cost80) _____ costs relate to more than one product and cannot be separately identified with anindividual productA. BundleB. AllocableC. CommonD. Joint81) The last step in activity-based costing is toA. compute the activity-based overhead rate per cost driver.B. identify and classify the major activities involved in the manufacture of specific products.C. assign manufacturing overhead costs for each activity cost pool to products.D. identify the cost driver that has a strong correlation to the activity cost pool.82) Jack and Jill form a partnership. Jack runs the business in New York, while Jill vacations in Hawaii.During the time Jill is away from the business, Jack increases the debts of the business by $20,000.Which of the following statements is true regarding this debt?A. Only Jill is personally liable for the debt of the business, since Jack has been working and she hasnot.B. Both Jack and Jill are personally liable for the business debt.C. Only Jack is personally liable for the debt, since he has been the managing partner during thattime.
D. Neither Jack nor Jill is personally liable for the business debt, since the partnership is a separatelegal entity.83) The _____ is not one of the three major financial statements.A. income statementB. balanceC. statement of cash flowsD. statement of equity position84) A local retail shop has been operating as a sole proprietorship. The business is growing and nowthe owner wants to incorporate. Which of the following is not a reason for this owner to incorporate?A. desire to limit the owner’s personal liabilityB. the prestige of operating as a corporationC. ability to raise capital for expansionD. the ease in transferring shares of the corporation’s stock85) The _____ is also called the statement of financial position.A. balance sheetB. statement of retained earningsC. income statementD. statement of cash flow86) The theory of business social responsibility that holds that a business owes duties solely toproduce the highest return for its shareholders is:A. The maximizing profits theory.B. The corporate citizenship theory.C. The moral minimum theory.D. The social audit theory.E. The stakeholder interest theory.87) Which country does the text describe as becoming the largest producer and consumer of many ofthe worlds goods?A. CanadaB. ChinaC. JapanD. EcuadorE. Mexico88) The centerpiece of most diversity programs is _____.A. employee commitmentB. human resource personnelC. top management commitmentD. employee satisfactionE. training89) Which social responsibility theory has been advocated by Novel Prizewinning economist MiltonFriedman?A. Moral minimum
B. Corporate citizenshipC. Maximizing profitsD. Corporate social auditE. Stakeholder interest90) Although the U.S. has had a longstanding agreement with ___________, after the passage ofNAFTA, _________ became the United States second largest trading partner.A. Canada, VenezuelaB. Canada, MexicoC. Mexico, CanadaD. Mexico, VenezuelaE. Great Britain, Paraguay91) Which of the following is correct about litigating commercial disputes?A. Commercial disputes, because of their specialized nature, are first heard at the appellate courtlevel.B. Businesses generally dislike the concept of specialized trail courts for commercial disputes becausethe large numbers of consumers who sue businesses in these courts have led the judges to becomegenerally biased against business.C. Nearly all states have specialized trial courts that hear commercial disputes.D. In all states, commercial disputes must be heard in a limited-jurisdiction court.E. A few states have established specialized trial courts for commercial disputes.92) Which article of the United States Constitution deals with the judicial power of the federalgovernment?A. Article II.B. Article III.C. Article V.D. Article I.E. Article IV.93) When an economist says that the demand for a product has increased, this means that:A. firms make less of the product available for sale.B. quantity demanded is greater at each possible price.C. the demand curve becomes steeper.D. consumers respond to a lower price by buying more.94) When movie ticket prices increase, families tend to spend less time watching movies and moretime at home watching videos instead. This best reflects:A. the income effect.B. diminishing marginal utility.C. the substitution effect.D. the rationing function of markets.95) The force behind globalization in _____ was the amount of muscle, horsepower, wind power, orsteam power that a country could deploy.A. Globalization 2.0B. Globalization 1.0C. None of these
D. Globalization 3.096) The Global, Web-Based Platform enables individuals to do which of the following?A. access information, services, and entertainmentB. exchange knowledgeC. all of these answers are correctD. connect, compute, communicate, collaborate, and compete everywhere and all the timeE. produce and sell goods and services97) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled byinformation technologies.A. nationalizationB. regionalizationC. business environmentD. globalization98) A _____ scale is a scale that scores an object or property without making a direct comparison toanother object or property.A. RatingB. CategorizationC. RecordingD. RankingE. Sorting99) Marketing research is now about a ________ billion industry globally.A. $21.5B. $16.5C. $7.5D. $50E. $10100) The use of a(n) _____ serves as a comparison to assess the existence and potency of themanipulation.A. Control groupB. Criterion variableC. Field experimentD. Experimental groupE. Explanatory variable