978-1260100044 Test Bank Chapter 19 Part 2

51. Which of the following is not a component of firmographics?

A. company size

B. reference groups

C. company objective

D. company location

E. All of these choices are components.

52. Which of the following statements is false regarding a firm’s size?

A. Large organizations are more likely than smaller ones to have a variety of specialists who attend to purchasing,

finance, marketing, and general management.

B. The same promotional message needs to be targeted to all of the various functions in the firm.

C. Larger organizations are generally more complex than smaller ones because more individuals participate in

managing the organization’s operations.

D. The purchase decision in a smaller firm might involve only the owner or manager.

E. One message would need to address all the key purchase issues when targeting a smaller firm.

53. Organizational objectives can be categorized as

A. commercial.

B. governmental.

C. nonprofit.

D. cooperative.

E. All of these choices are correct.

19-22

of McGraw-Hill Education.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: Easy

Gradable: automatic

Learning Objective: 19-02 Summarize the external factors that influence organizational culture.

Topic: Firmographics

54. Which of the following is not a category of organizational objectives?

A. commercial

B. governmental

C. nonprofit

D. cooperative

E. temporal

55. Organizational activities can be categorized as

A. routine.

B. complex.

C. technical.

D. routine and complex.

E. routine, complex, and technical.

56. The American Red Cross participates in fundraising activities all throughout the year. How would this be

classified with respect to general organizational objectives and the nature of the organizational activity?

A. commercial objective, routine activity

B. governmental objective, routine activity

C. nonprofit objective, routine activity

D. cooperative objective, routine activity

E. nonprofit objective, complex activity

57. General Electric commits millions of dollars a year to research and development to develop new products. How

would this be classified with respect to general organizational objectives and the nature of the organizational

activity?

A. commercial objective, routine activity

B. commercial objective, complex activity

C. commercial objective, technical activity

D. cooperative objective, technical activity

E. nonprofit objective, complex activity

58. A commercial firm in which stock is widely traded is known as a(n)

A. public firm.

B. cooperative firm.

C. private firm.

D. open firm.

E. trade firm.

19-24

of McGraw-Hill Education.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: Moderate

Gradable: automatic

Learning Objective: 19-02 Summarize the external factors that influence organizational culture.

Topic: Firmographics

59. Roger owns 200 shares of stock in Home Depot. Which type of commercial firm is Home Depot?

A. public firm

B. cooperative firm

C. private firm

D. open firm

E. trade firm

60. A commercial firm in which one or a few individuals owns a controlling share of the firm is known as a(n)

A. public firm.

B. cooperative firm.

C. private firm.

D. open firm.

E. nontrade firm.

61. Robert Mondavi is a well-known winery in Napa Valley, CA. It is a family-owned business and is not traded on

any stock exchange. Which type of commercial firm is this known as?

A. public firm

B. cooperative firm

C. private firm

D. open firm

E. nontrade firm

62. Which of the following is not an objective uncovered through research that drives the management of privately

held firms?

A. building a place for the entire family to work and be involved

B. becoming wealthy

C. avoiding corporations and working for others

D. build a lasting “empire”

E. change governmental regulations

63. The types of individuals who work in the organization represent the organization’s

A. size.

B. composition.

C. macrosegment.

D. reference group.

E. demographic group.

19-26

of McGraw-Hill Education.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: Moderate

Gradable: automatic

Learning Objective: 19-02 Summarize the external factors that influence organizational culture.

Topic: Firmographics

64. The culture of most organizations is influenced most heavily by which of the following?

A. government

B. overall membership

C. founder and top management

D. competition

E. customers

65. Organizations with distinguishing firmographics can be grouped into market segments through a process called

A. industry identification.

B. infrastructure segmentation.

C. conjoint analysis.

D. macrosegmentation.

E. factor analysis.

66. Which of the following statements regarding culture and government is true?

A. Variations in values and behaviors across cultures affect organizations as well as individuals.

B. In Europe, bribery and similar approaches for making sales are acceptable.

C. In the United States, there is a close working relationship between businesses and government.

D. Worker welfare is more important than corporate profit in most U.S. companies.

E. Plant closure laws, layoff regulations, and worker benefits tend to be much higher in the United States than in

European countries.

67. Perhaps the most powerful type of reference group in industrial markets is that of

A. innovators.

B. lead users.

C. government regulators.

D. market mavens.

E. business press.

68. Innovative organizations that derive a great deal of their success from leading change are referred to as

A. innovators.

B. lead users.

C. government regulators.

D. market mavens.

E. opinion leaders.

19-28

of McGraw-Hill Education.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: Moderate

Gradable: automatic

Learning Objective: 19-02 Summarize the external factors that influence organizational culture.

Topic: Reference Groups

69. Which of the following is not considered a user reference group in organizational buying?

A. lead user

B. trade press

C. early adopters

D. followers

E. All of these choices are considered a user reference group.

70. Microsoft is a company that has derived a great deal of success from leading change, and other computer-related

companies look to Microsoft for cues as to where technology will be heading in the future. Microsoft would be

classified as which type of user reference group?

A. lead user

B. industry leader

C. early adopters

D. followers

E. supportive firm

71. Lead users tend to accelerate market adoption, which is labeled as

A. market pull.

B. primary demand.

C. market push.

D. secondary demand.

E. leading indicator.

72. Which of the following is an infrastructure reference group?

A. business press

B. followers

C. early adopters

D. lead firms

E. government regulators

73. __________ refers to the flow of purchase influence within an industry.

A. User reference groups

B. Reference group infrastructure

C. Diffusion of innovations

D. Two-stage decision process

E. Buying centers

19-30

of McGraw-Hill Education.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: Moderate

Gradable: automatic

Learning Objective: 19-02 Summarize the external factors that influence organizational culture.

Topic: Reference Groups

74. Which of the following can influence an organization’s decision to buy or not buy a given product, or to buy or

not buy from a given supplier?

A. trade associations

B. financial analysts

C. dealer organizations

D. business press

E. All of these choices are correct.

75. Lead users tend to accelerate diffusion of information through infrastructure, which is labeled as

A. market pull.

B. primary demand.

C. market push.

D. secondary demand.

E. leading indicator.

76. Which of the following is a value representative of an innovative organization that seeks to change, views

problems as opportunities, and rewards individual efforts?

A. Risk taking is discouraged.

B. Cooperation is more important than competition.

C. Change is negative and actively avoided.

D. Hard work comes first, leisure second.

E. Rank or status is more important than performance.

77. Which of the following is the most important element of the communications mix in most industrial markets?

A. advertising

B. sales promotion

C. sales calls

D. public relations

E. pricing

78. For which type of markets are average costs per sales call the highest?

A. industrial

B. service

C. retail

D. wholesale distribution

E. nonprofit