87) Since front-line service workers are not able to predict the causes of customer complaints,
managers must be the ones to identify potential customer service problems.
Topic: Focus on the Customer
AACSB: Analytic Skills
88) Perhaps the worst of all marketing catastrophes is to have great advertising and a poor
quality product or service.
Topic: Devotion to Quality
AACSB: Analytic Skills
89) The ultimate goal of TQM is to avoid quality problems.
Topic: Devotion to Quality
AACSB: Analytic Skills
90) The best way for a small business to ensure quality products is to use quality inspections.
Topic: Devotion to Quality
AACSB: Analytic Skills
91) If employees are committed to quality, management’s commitment becomes unimportant.
Topic: Devotion to Quality
AACSB: Analytic Skills
92) When asked what they want from a business they deal with, most customers say
convenience.
Topic: Attention to Convenience
AACSB: Analytic Skills
93) Because of their organizational and managerial flexibility, small businesses often can detect
and act on new opportunities faster than large companies.
Topic: Concentration on Innovation
AACSB: Analytic Skills
20
94) The ability to innovate is one of the greatest weaknesses of the entrepreneur.
Topic: Concentration on Innovation
AACSB: Analytic Skills
95) The key to successful innovation is spending “megadollars” on research and development
and hiring staff who are very creative.
Topic: Concentration on Innovation
AACSB: Analytic Skills
96) The level of customer service in most small companies is excellent.
Topic: Dedication to Service and Customer Satisfaction
AACSB: Analytic Skills
97) It is the position of your authors that companies that do not offer quality customer service
will eventually fail, for that reason.
Topic: Dedication to Service and Customer Satisfaction
AACSB: Analytic Skills
98) Truly customer-oriented companies seek to go beyond customer satisfaction, striving for
customer astonishment.
Topic: Dedication to Service and Customer Satisfaction
AACSB: Analytic Skills
99) Listening to customers and responding to what you hear from them is a highly effective way
to achieve stellar customer service.
Topic: Dedication to Service and Customer Satisfaction
AACSB: Analytic Skills
100) Satisfied customers exhibit at least one of three characteristics: loyalty, resistance to
competition’s attempts to lure them away with lower prices, and increased purchases.
Topic: Dedication to Service and Customer Satisfaction
AACSB: Analytic Skills
21
101) Technology has little impact on the quality of customer service a small company offers.
Topic: Dedication to Service and Customer Satisfaction
AACSB: Analytic Skills
102) TCM focuses solely on reducing administrative time in product development.
Topic: Emphasis on Speed
AACSB: Use of IT
103) The key to successful time compression management is speeding up the manufacturing
process, since manufacturing consumes 90% of the time it takes to get the order into the
customer’s hand.
Topic: Emphasis on Speed
AACSB: Analytic Skills
104) Speeding new products to market is one of the philosophies of Total Quality Management
(TQM).
Topic: Emphasis on Speed
AACSB: Analytic Skills
105) Profits generally are low and marketing cost high in the introductory stage of the product
life cycle.
Topic: The Marketing Mix
AACSB: Analytic Skills
106) Sales and profits peak in the growth stage of the product life cycle.
Topic: The Marketing Mix
AACSB: Analytic Skills
107) Marketing experts recommend introducing a new product only when the existing one is in
the maturity stage of the product life cycle.
Topic: The Marketing Mix
AACSB: Analytic Skills
22
108) One of the most commonly cited reasons for a new product failing is that it is not
adequately differentiated from competitive products.
Topic: The Marketing Mix
AACSB: Analytic Skills
109) When a company makes a product available to the customer when he/she wants it, the
company is providing place utility to the customer.
Topic: The Marketing Mix
AACSB: Analytic Skills
110) Service companies tend to use the manufacturer-to-customer distribution channel more than
any other.
Topic: The Marketing Mix
AACSB: Analytic Skills
111) Relatively few consumer goods use the manufacturer-to-retailer-to-consumer distribution
channel.
Topic: The Marketing Mix
AACSB: Analytic Skills
112) The price element of the marketing mix affects both sales volume and profits.
Topic: The Marketing Mix
AACSB: Analytic Skills
113) A small company’s promotional goals may include creating a brand image, persuading
customers to buy, and/or to develop brand loyalty.
Topic: The Marketing Mix
AACSB: Analytic Skills
114) Promotion involves both advertising and lengthy warranties.
Topic: The Marketing Mix
AACSB: Analytic Skills
23
115) Almost everyone agrees that the price of the product or service is a key factor in the
decision to buy.
Topic: The Marketing Mix
AACSB: Analytic Skills
116) A free trial offer is an example of non-price competitive factor.
Topic: The Marketing Mix
AACSB: Analytic Skills
117) The marketing mix consist of the “4Ps” : Product, Plot, Place, Promotion.
Topic: The Marketing Mix
AACSB: Analytic Skills
118) Individualized (or one-to-one) marketing is a system of gathering data on individual
customers and then developing a marketing plan designed specifically to appeal to their needs,
tastes, and preferences.
Topic: How to Conduct Market Research
119) What are the objectives of a bootstrap marketing plan?
Topic: Creating a Bootstrap Marketing Plan
AACSB: Analytic Skills
120) What is the value of market research to the small business owner? How can he/she use it?
Topic: Determining Customer Needs and Wants through Market Research
AACSB: Reflective Thinking
24
121) What is market research?
Topic: Determining Customer Needs and Wants through Market Research
AACSB: Analytic Skills
122) How is the target market important to the small business? What does this concept signify
about changes in marketing?
Topic: Market Diversity: Pinpoint the Target Market
AACSB: Reflective Thinking
123) What is relationship marketing? What characterizes each of the four levels of customer
involvement that is part of relationship marketing?
Topic: Plotting a Bootstrap Marketing Strategy: Building a Competitive Edge
AACSB: Reflective Thinking
25
124) What is “revenue at risk?”
Topic: Plotting a Bootstrap Marketing Strategy: Building a Competitive Edge
AACSB: Analytic Skills
125) What characterizes companies that “get it right the first time,” that have an emphasis on
quality?
Topic: Devotion to Quality
AACSB: Analytic Skills
26
126) What can an entrepreneur do to be more effective at innovation?
Topic: Concentration on Innovation
AACSB: Analytic Skills
127) Discuss how a company can achieve stellar customer service and satisfaction.
Topic: Dedication to Service and Customer Satisfaction
AACSB: Analytic Skills
128) What is time compression management and what does it involve?
Topic: Emphasis on Speed
AACSB: Reflective Thinking
27
129) Describe the product life cycle, naming and explaining what characterizes each stage.
Topic: The Marketing Mix
AACSB: Analytic Skills
130) Identify the four common channels of distribution, briefly explaining their use by small
businesses in moving their product to the customer.
Topic: The Marketing Mix
AACSB: Analytic Skills
28