41) Time compression management (TCM) involves:
A) speeding new products to market.
B) enhancing the quality of existing products.
C) decreasing the time it takes a product to move from introduction to the maturity stage of the
product life cycle.
D) shortening the sales clerks’ response time to customers entering the retail store and then being
served.
Topic: Emphasis on Speed
AACSB: Use of IT
42) The primary opportunity for time compression management (TCM) lies in its application to:
A) the purchasing process.
B) the production process.
C) the administrative process.
D) the marketing process.
Topic: Emphasis on Speed
AACSB: Use of IT
43) ________ refers to developing, maintaining, and managing long-term relationships with
customers so that they will want to keep coming back.
A) Customer relationship management
B) Customer retention management
C) Customer management software
D) Customer reassurance management
Topic: Plotting a Bootstrap Marketing Strategy: Building a Competitive Edge
AACSB: Analytic Skills
44) Which strategy allows a small company to maximize the advantages of its smallness and to
compete effectively even in industries dominated by giants?
A) Grand market strategy
B) Mass strategy
C) Niche strategy
D) None of the above
Topic: Find a Niche and Fill It
AACSB: Analytic Skills
11
45) The cost of marketing a product is highest in the:
A) introductory stage.
B) growth and acceptance stages.
C) maturity stage.
D) saturation stage.
Topic: The Marketing Mix
AACSB: Analytic Skills
46) The time span between stages in the product life cycle:
A) generally runs about six months to one year per stage.
B) is highly influenced by the amount of promotion that is done.
C) depends entirely on the type of products involved.
D) depends on the types of market strategy the small business owner is pursuing.
Topic: The Marketing Mix
AACSB: Analytic Skills
47) The product life cycle concept means that small businesses must:
A) constantly be involved in product innovation.
B) track demographic and psychographic trends carefully.
C) create both place and time utility if they are to survive.
D) use a market penetration strategy if they are to be successful.
Topic: The Marketing Mix
AACSB: Analytic Skills
48) The most common channel of distribution for consumer goods is:
A) manufacturer → consumer.
B) manufacturer → retailer → consumer.
C) manufacturer → wholesaler → retailer → consumer.
D) manufacturer → broker → consumer.
Topic: The Marketing Mix
AACSB: Analytic Skills
12
49) The right price for a product depends on which factors?
A) A small company cost structure
B) The desired image the company wants to create in its customers’ minds
C) An assessment of what the market will bear
D) All of the above
Topic: The Marketing Mix
AACSB: Analytic Skills
50) Free trial offers, free delivery, lengthy warranties, and money back guarantees are examples
of:
A) promotion.
B) product differentiation.
C) non-price competition.
D) customer discounts.
Topic: The Marketing Mix
AACSB: Analytic Skills
51) ________ is the process of creating and delivering desired goods and services to customers
and involves all of the activities associated with winning and retaining loyal customers.
A) Retailing
B) Selling
C) Marketing
D) None of the above
Topic: Creating a Bootstrap Marketing Plan
AACSB: Analytic Skills
52) Bootstrap marketing also is sometimes known as:
A) ambush marketing.
B) target marketing.
C) customer marketing.
D) guerilla marketing.
Topic: Creating a Bootstrap Marketing Plan
AACSB: Analytic Skills
13
53) One of the objectives of a bootstrap marketing plan is to find the ________ in the market.
A) “pain points”
B) “entry point”
C) “skimming point”
D) “unique point”
Topic: Creating a Bootstrap Marketing Plan
AACSB: Analytic Skills
54) One of the objectives that a bootstrap marketing plan should accomplish is:
A) it should pinpoint the target market.
B) it should determine customer needs, wants and characteristics.
C) it should identify company vendor potential.
D) Both A and B
Topic: Creating a Bootstrap Marketing Plan
AACSB: Analytic Skills
55) One of the first steps in building a marketing plan is identifying a small company’s
________, the group of customers at whom the company aims its products and services.
A) target market
B) competitors
C) customers
D) Both A and C
Topic: Market Diversity: Pinpoint the Target Market
AACSB: Analytic Skills
56) ________ is the vehicle for gathering the information that serves as the foundation for the
marketing plan.
A) Target market identification
B) Market research
C) Banker identification
D) Competitive analysis
Topic: Determining Customer Needs and Wants through Market Research
AACSB: Analytic Skills
14
57) A ________ is a small number of customers who give you feedback on specific issues in
your business—quality, convenience, hours of operation, service, and so on.
A) survey
B) questionnaire
C) focus group
D) All of the above
Topic: How to Conduct Market Research
AACSB: Analytic Skills
58) Customer surveys and questionnaires should:
A) be short.
B) not give biased results.
C) use simple ranking systems.
D) All of the above
Topic: How to Conduct Market Research
AACSB: Analytic Skills
59) Surveys, questionnaires, and focus groups are considered to be:
A) primary research.
B) secondary research.
C) data collation.
D) All of the above
Topic: How to Conduct Market Research
AACSB: Analytic Skills
60) ________ is a process in which computer software that uses statistical analysis, database
technology, and artificial intelligence finds hidden patterns, trends, and connections in data so
that business owners can make better marketing decisions and predictions about their customers’
behavior.
A) Demographic collection
B) Target marketing
C) Data mining
D) None of the above
Topic: How to Conduct Market Research
AACSB: Use of IT
15
61) What drives my customers’ buying behavior? Are they receptive to new products or are they
among the last to accept them? What values are most important to them? These questions are to
identify:
A) psychographic data.
B) geographic data.
C) demographic data.
D) All of the above
Topic: How to Conduct Market Research
AACSB: Multicultural and Diversity
62) Too often, business plans describe in great detail what the entrepreneur intends to accomplish
but pay too little attention to how he plans to accomplish it.
Topic: Introduction
AACSB: Analytic Skills
63) The marketing function cuts across the entire company, affecting every aspect of its
operation.
Topic: Creating a Bootstrap Marketing Plan
AACSB: Analytic Skills
64) The product or service offered is the foundation of any marketing-oriented business.
Topic: Creating a Bootstrap Marketing Plan
AACSB: Analytic Skills
65) The primary goal of any business, according to Theodore Levitt, is to create and keep a
customer.
Topic: Creating a Bootstrap Marketing Plan
AACSB: Analytic Skills
66) A bootstrap marketing plan should have four objectives: profit, profit, profit, and profit.
Topic: Creating a Bootstrap Marketing Plan
AACSB: Analytic Skills
16
67) Tracking demographic trends is interesting, but it is not essential to building or implementing
a successful marketing plan.
Topic: Determining Customer Needs and Wants through Market Research
AACSB: Analytic Skills
68) Market research frequently only confirms the intuition of the small business owner.
Topic: Determining Customer Needs and Wants through Market Research
AACSB: Analytic Skills
69) Small companies are at a definite disadvantage compared to larger ones when it comes to
conducting market research since it is so expensive.
Topic: Determining Customer Needs and Wants through Market Research
AACSB: Analytic Skills
70) While market research is a sophisticated and complex process, the small business owner can
conduct some of it for him/herself, but will need assistance interpreting it.
Topic: Determining Customer Needs and Wants through Market Research
AACSB: Analytic Skills
71) The primary general goal of market research is to identify and profile the target market and
most profitable customer in it.
Topic: How to Conduct Market Research
AACSB: Analytic Skills
72) The marketing approach that companies of all sizes strive to achieve is mass marketing.
Topic: How to Conduct Market Research
AACSB: Reflective Thinking
73) The goals of one-to-one marketing are to attract, retain and increase the purchases by the
target customer.
Topic: How to Conduct Market Research
AACSB: Analytic Skills
17
74) Small business owners can use market research to uncover potential market opportunities.
Topic: How to Conduct Market Research
AACSB: Analytic Skills
75) Small businesses have found out that social media such as Facebook and Twitter are
expensive.
Topic: How to Conduct Market Research
AACSB: Analytic Skills
76) Individualized marketing requires business owners to gather and assimilate detailed
information about their products.
Topic: How to Conduct Market Research
AACSB: Analytic Skills
77) Most marketing experts contend that the greatest marketing mistake small businesses make is
defining their target market too specifically or clearly.
Topic: Market Diversity: Pinpoint the Target Market
AACSB: Analytic Skills
78) A target market is the group of customers at whom the company aims its products and
services.
Topic: Market Diversity: Pinpoint the Target Market
AACSB: Analytic Skills
79) The most effective way to market to the diversity of the American market is to choose a
single ethnic segment and market to it as if it were a homogeneous market.
Topic: Market Diversity: Pinpoint the Target Market
AACSB: Analytic Skills
80) The increasing diversity of our population is creating a marketing “threat” to small
businesses because they can’t profitably serve small niches.
Topic: Market Diversity: Pinpoint the Target Market
AACSB: Multicultural and Diversity
18
81) Price is the safest criterion upon which to build a competitive edge.
Topic: Plotting a Bootstrap Marketing Strategy: Building a Competitive Edge
AACSB: Analytic Skills
82) Generally speaking, small businesses are more effective at relationship marketing than larger
companies.
Topic: Plotting a Bootstrap Marketing Strategy: Building a Competitive Edge
AACSB: Analytic Skills
83) While customer contact is important to a small business, excellent products and low prices
can offset any problems a small business may have with customer service.
Topic: Plotting a Bootstrap Marketing Strategy: Building a Competitive Edge
AACSB: Analytic Skills
84) Most dissatisfied customers complain about rude or discourteous service to the owner or
manager.
Topic: Focus on the Customer
AACSB: Analytic Skills
85) The difference between weak customer service and “world-class” customer service is attitude
and attention to detail.
Topic: Focus on the Customer
AACSB: Analytic Skills
86) Giving customers a chance to complain about a problem usually is fruitless; once a business
makes a customer angry, he typically will not buy from that company again under any
circumstances.
Topic: Focus on the Customer
AACSB: Analytic Skills
19