Archives: Quiz

The difference between budgeted variable overhead for actual hours and standard overhead is the variable overhead efficiency variance. Postinvestment audits can provide feedback of the accuracy of original cash flow estimates. Answer: TRUE In a just-in-time (JIT) environment, quality is […]

The difference between actual variable overhead and budgeted variable overhead based upon actual hours is referred to as the variable overhead efficiency variance. Negotiated transfer prices are most appropriate for customized high-volume and high-cost services. Answer: TRUE A company that […]

A long-run challenge for a business is achieving profitability. The higher an organization’s capital costs, the greater the opportunity cost of holding idle cash. Answer: TRUE A company that manufactures custom bridal gowns will use a job-order costing system to […]

The most theoretically correct method of allocating service department costs is the algebraic method. A decision in which projects are ranked according to their impact on achieving company objectives is a preference decision. Answer: TRUE Decentralization reduces the need for […]

Preparation of a value chart is the first step in activity analysis A total quality system should place an emphasis on prevention and continuous improvement. Answer: TRUE In a normal job-order costing system, factory overhead is applied using predetermined rates […]

A company that manufactures large quantities of homogenous goods will use a job-order costing system. When computing profit on an after-tax basis, it is necessary to multiply the pretax profit by (1 – effective tax rate). Answer: TRUE An organization’s […]

When a standard costing system is used with process costing, Work in Process inventory is recorded using actual costs. Allocating joint costs based upon a physical measure ignores the revenue-generating ability of individual products. Answer: TRUE In a mutually inclusive […]

Inbound telemarketing involves calling potential customers at their home or office. An in-depth interview is an unstructured conversation with an individual who was specifically selected, often because he or she has a specific demographic attribute. Answer: TRUE An in-depth interview […]

The value chain portrays a mixture of primary and support activities utilized by an organization to design, produce, market, deliver, and support its products. Strategic marketing refers to deciding which media, distribution, or pricing tactics to use. Answer: FALSE Marketing […]

Managers are typically aware of all the information in their own company. Trust in the ability of a service provider to do a difficult job is called reliability. Answer: FALSE Reliability is the ability to provide service dependably and accurately […]

Late majority are product followers that are price-sensitive and risk-averse. Licensing is a useful form of market entry when companies lack the resources to establish independent operations in foreign markets. Answer: TRUE Companies seeking to establish greater presence in a […]

Customer satisfaction and customer loyalty, two metrics used by brand managers, are metrics used in CRM. A wide range of organizational functions will have a stake in making a marketing plan successful. Even if the functions are outsourced, someone internally […]

The number of products purchased by the same customer is called repeat purchases. This can be important with things like stereos and cell phones because they rely on loyalty for success. Pricing decisions can be made by the accounting department […]

A producer can always grant an intermediary an exclusive territory for sales purposes. One of the disadvantages of using sales force composite to forecast sales is that potential customers must be few and well defined. Answer: FALSE One of the […]

An integrated decision is effectively a separate assessment of whether to invest in promoting the offer through one or more of the elements of the promotion mix. Caesars has found that customers who are in the zone of indifference make […]

Effectively communicating a product’s differential advantages is at the heart of positioning strategy, and exposure to these elements spurs the customer to develop perceptions of value and a subsequent understanding of the value proposition. Often, channel members adopt an approach […]

Salespeople consistently report that price is the most common customer apprehension. Firms should not be concerned that satisfied customers will switch to another brand. Answer: FALSE For firms interested in building long-term customer relationships, having satisfied customers is not enough […]

Research on brand personality identified six brand personality traits. These include sincerity, excitement, competence, ruggedness, charm, and sophistication. Attitudes are formed by values and beliefs. Cultural and personal values help form attitudes. Answer: TRUE Initially, a person’s attitudes are formed […]

Germany has a very relaxed culture. If you make a business appointment for 10:00, your German counterpart will not mind if you do not show up until 11:00. When companies sell in other countries through limited direct contact or indirect […]

Due to improved distribution, better communication tools, product standardization, and the Internet, businesses are not confined to a local market. McDonald’s socially responsible coffee, Kenco, is sold in the European market because Europeans expect companies to care about the environment. […]

According to the BCG matrix, a business that is classified as a star has high growth and low market share. Direct foreign investment is a market entry strategy with the greatest long-term implications. Answer: TRUE The market entry strategy with […]

The largest generation is the Millennial Generation. Members of this group were born after 1994 and are characterized by being heavily Hispanic, African-American, and Asian. Direct-to-consumer marketing by pharmaceutical companies and the vast amount of health information available to patients […]

Public relations has low control of how the message turns out. Everyone calculates ROMI the same, so when one corporate executive talks about the concept other people know what his or her measurement is. Answer: FALSE ROMI has become a […]

Captive pricing is sometimes called complementary pricing. In today’s workplace everyone is involved in service in some way; everyone has customers either outside or inside the firm, or both. Answer: TRUE In today’s workplace everyone is involved in service in […]

Post introduced Honey Bunches of Oats Greek Honey Crunch cereal because market research showed sales of its traditional Honey Bunches of Oats were down and sales of Greek yogurt were on the rise. One of the disadvantages of using style […]

Don Peppers and Martha Rogers popularized the term one-to-one marketing. Some firms come close to one-to-one marketing by combining flexible manufacturing with flexible marketing to enhance customer choices. The decomposition method of forecasting attempts to isolate three separate portions of […]

There is a big debate that today we operate in an economy that is increasingly focused on intangible offerings-services-instead of just physical goods. BMW has used the concept “Ban Boredom” as one of the key benefits of its MINI line. […]

Sales promotion is a promotion mix element that provides an inducement for an end-user consumer to buy a product or for a salesperson or someone else in the channel to sell it. Subculture is a group within the culture that […]

Throughout the lifecycle stages, consumers typically stick with the same products and purchase decisions. Direct mail is much more effective in B2B than B2C markets because reaching the appropriate individual inside an organization is easier. Answer: FALSE Direct mail is […]

Public relations (PR) is a specialized field. The first step of creating a direct marketing campaign is to specify direct marketing channels. Answer: FALSE The first step of a direct marketing campaign is to set strategy for the campaign. The […]

Brand loyalty develops when customers develop a number of emotional, psychological, and performance links with a brand. The shift in focus from services to goods is a shift from the means and the producer perspective to the utilization and the […]

Customers can quickly and easily become bored with any given advertising campaign, a concept referred to as advertising wearout. In general, B2B segmentation is more straightforward than B2C segmentation. Answer: TRUE In some ways, business market segmentation is more straightforward […]

The primary advantage of a market organization is that individual salespeople can develop familiarity with the technical attributes, applications, and most effective selling methods associated with a single product. CRM software is best selected for purchase by the Information Technology […]

Sales forecasting methods can only be objective, not subjective. Viral marketing is a marketing phenomenon that facilitates and encourages people to pass along a marketing message. Answer: TRUE The American Marketing Association defines viral marketing as a “marketing phenomenon that […]

OEM companies sell replacement parts to the customer that are at a better price than the original manufacturer can supply. When planning the product mix, marketing managers should assess packaging trends in the marketplace. Answer: TRUE see Exhibit 3.1. Value […]

Successful marketing strategy builds quality into only the product in order to validate a price premium. Exponential smoothing is a type of moving average that, instead of weighting all observations equally in generating the forecast, weights the most recent observations […]

It is generally better to collect primary data before turning to secondary data. Which of these levels of economic integration lacks only political unity to become a political union? A. Common market B. Free trade area C. Regional cooperation group […]

Ten high-technology companies joined forces to produce and market their products in China. By joining together, these companies were able to enter the Chinese market for the first time. A good name for this type of arrangement is a consortium. […]

Mark Harmon has found that using his new digital camera is a snap. He did not even have to read the instruction manual to determine how to turn the camera on, snap a digital picture, and export the picture to […]

Country X is likely to be in the age of mass consumption according to Rostow’s five-stage model of economic development if: A. its economy is primarily driven by natural resource extraction. B. the economy is moving away from agriculture and […]

Research has shown that commitment of workers to their companies tended to be higher in countries: A. higher in individualism and lower in power distance. B. higher in collectivism and lower in individualism. C. lower in individualism and higher in […]

In 1600, _____ were brought from South America to Europe, where they quickly spread to the rest of world and become a staple of agricultural production. A. tomatoes B. potatoes C. shallots D. peanuts E. eggplants Which of the following […]

For a culture, a low score in the _____ reflects more egalitarian views. A. Power Distance Index B. Individualism/Collectivism Index C. Distance from English Index D. Uncertainty Avoidance Index E. Masculinity/Femininity Index Which of the following statements about advertising laws […]

Which of the following factors often gets in the way of American team negotiations? A. A cultural heritage of interdependence and collectivism. B. Emphasis on careful note taking and training via observation. C. Compensation schemes overly emphasizing individual performance. D. […]

With respect to global marketing management, the argument for market segmentation in the 1980s was framed as _____. A. globalization versus localization B. standardization versus adaptation C. adaptation versus one-to-one marketing D. globalization versus one-to-one marketing E. standardization versus localization […]

A country has reached a level of economic development where there is focus on manufacturing of both semidurable and nondurable consumer goods. Also, the goods demanded relate to equipment and supplies to support manufacturing. Which of the following stages of […]

In the context of inventive international negotiations, which of the following is an obstacle to invention for Japanese society? A. Individualism B. Civility C. Lack of natural resources D. Hierarchy E. Relative isolation All of the following are specific objectives […]

An important first step in adapting a product to a foreign market is to determine: A. the degree of newness as perceived by the intended market. B. the economic climate of the target market. C. the advertising parallels with the […]

Goods are likely to be standardized if: A. they are being produced by the same firm. B. the cost of producing each unit is the same. C. their uses are the same across markets. D. they are being sold to […]

Which of the following behaviors of the Spaniards reinforces the view that Spanish negotiators use a high percentage of commands? A. Extensive use of silent periods. B. Highest incidence of touching another negotiator. C. Greeting callers on the phone with […]