FINAL EXAMS FINAL ANSWERS FINAL QUESTIONS

1. STR 581 FINAL EXAMS
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1) Total customer satisfaction is the general feeling of pleasure or disappointment that results
from comparing perceived performance to expectations. To achieve total customer satisfaction,
organizations need to_____________.
2) A ________ is a set of procedures and sources managers use to obtain everyday information
about developments in the marketing environment.
3) 3M, Hewlett-Packard, Lego, and other companies use the ________ to manage the innovation
process.
4) ________ consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and
distribute needed, timely, and accurate information to marketing decision makers.
5) A company can take several steps to improve the quality of its marketing intelligence. If the
company purchases competitive products for study, attends open houses and trade shows, and
reads competitors' published reports and stockholder information, the company is using
________ to improve the quality of its marketing intelligence.
6) Most established companies focus on ________ when it comes to innovation.
7) The value proposition consists of a cluster of benefits the company promises to deliver; it is
8) Particularly when shopping for ego-sensitive products such as perfumes and expensive cars,
many consumers use price as an indicator of ________.
9) ________ is the result of a concentrated effort by designers, engineers, and purchasing agents
to reduce the product's overall costs.
10) 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?
11) The first step in the marketing research process is to ________.
12) Marketing research is now about a ________ billion industry globally.
13) Which of the following types of marketing research firms would best be described as one
that gathers consumer and trade information which they sell for a fee (e.g., Nielsen Media
Research)?
14) ________ communicates a company's intended value positioning of its product or brand to
the market.
15) A company can add new products through acquisition or development. The acquisition route
can take three forms. The company can buy other companies, it can acquire patents from other
companies, or it can buy a ________ or _________ from another company.
16) Some intermediaries use the following: strategic planning, advanced information systems,
sophisticated marketing tools, measure performance on a return-on-investment basis, segment
their markets, improve their target marketing and positioning, and ________.
17) Price has operated as the major determinant of buyer choice among poorer nations, among
poorer groups, and with ________ products.
18) The chief disadvantage to a firm that decides to follow a product specialization strategy in

2. selecting target markets is ________.
19) 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 of chances to win great Foo Fighters prizes, and become part of the Foo Fighters
Family.” Which of the following techniques for reaching Generation Y are the Foo Fighters
using?
20) The marketing communications mix consists of six major modes of communications. Which
of the following is NOT one of these modes?
21) “Power prices” use price as a key strategic tool. These “power prices” have discovered the
highly ________ effect of price on the bottom line.
22) Following the ________ approach to target market selection encompasses a strong
knowledge of the segment's needs, a strong market presence, and operating economies through
specializing in production, distribution, and promotion.
23) New-to-the- world products are ________.
24) If no one is aware of conflict, it is generally agreed that _____.
25) The two general approaches to bargaining are known as ________.
26) Danielle wants to become a surgeon, not only because achieving this goal will give her self-
respect and autonomy, but also because she wants a job with high status and recognition from
others. Which of Maslow's needs is Danielle trying to fill?
27) Which of the following statements about leadership is true?
28) The traditional view of conflict is the belief that conflict is _____.
29) _____ bargaining is negotiation that seeks to divide a “fixed pie.”
30) Which of the following statements best defines a work group?
31) Which type of skill training has become increasingly important in organizations?
32) Examples of on-the-job training include all of the following except _____.
33) According to a recent survey, about ___ percent of employees working in the 1,000 largest
U.S. corporations receive ethics training.
34) Which of the following is NOT a typical written test used in organizations?
35) _____ can be used to increase the perception that employees are treated fairly.
36) Which of the following is not a primary force for change in organizations?
37) What term is used for the tendency of an individual to attribute his own successes to internal
factors while putting the blame for failures on external factors?
38) Whenever Jane is successful she takes full credit for what has happened, but whenever she is
unsuccessful she attributes her failure to bad luck or blames one of her fellow employees. She is
guilty of _____.
39) Work specialization is the same as _____.
40) Organizational structure has six key elements. Which of the following is not one of these
elements?
41) According to David Maister, the most complex projects requiring innovation and creativity
are called _________.

3. 42) Refer To: 0801 The inventory turnover for this company is:
43) According to Goldratt and Fox, a useful performance measure to treat inventory is ______.
44) Which of the following product promotional activities would probably help make the supply
chain more efficient?
45) If the system contains a bottleneck, the _______ is the best place for control. If there is no
bottleneck, the __________ is the best place for control.
46) A checking account is __________.
47) An all-equity-financed firm would __________.
48) Under capital rationing, given the choice among several equally attractive investments, the
best tool to use is the __________.
49) An investor's risky portfolio is made up of individual stocks. Which of the following
statements about this portfolio is true?
50) __________ says to seek out investments that offer the greatest expected risk-adjusted real
return.
51) Due to asymmetric information, the market fears that a firm issuing securities will do so
when the stock is _________.
52) “Hard” capital rationing refers to the rationing __________.
53) Which of the following statements is true?
54) __________ says to recognize the value of hidden options in a situation, such as the foreign
exchange options in some derivative instruments.
55) __________ says to look for opportunities to invest in positive-NPV projects in foreign
markets or to develop derivatives or design arrangements that enable firms to cope better with
the risks they face in their foreign operations.
56) A key variable covered in our text for the Black-Scholes OPM is __________.
57) The conversion price (for a convertible security) is usually adjusted __________.
58) The managerial decision best addresses which of the following questions?
59) The investment decision best addresses which of the following questions?
60) __________ says to use derivatives to pay others to take risks.
61) __________ says to recognize the value of options contained in derivatives.
62) 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
Magic Tape's stock has announced that insiders have sold 10% of their holdings. You are
concerned because you own 1,000 shares of Magic Tape and it had closed the day before
unchanged at $30 per share. If markets are at least semi-strong form efficient, what would you
expect?
63) Which (if any) statement is false?
64) Which of the following is (are) true?
65) A transfer price exists when two segments of the same organization sell _____.
66) Which decision will involve no incremental revenues?
67) Cena Corporation has a joint process that produces three products: P, G, and A. Each product

4. may be sold at split-off or processed further and then sold. Joint-processing costs for a year
amount to $25,000.
68) It costs Garner Company $12 of variable and $5 of fixed costs to produce one bathroom
scale which normally sells for $35. A foreign wholesaler offers to purchase 2,000 scales at $15
each. Garner would incur special shipping costs of $1 per scale if the order were accepted.
Garner has sufficient unused capacity to produce the 2,000 scales. If the special order is
accepted, what will be the effect on net income?
69) Joint products should be processed beyond the split-off point if _____.
70) Important factors considered by sales forecasters include all of the following except _____.
71) Which of the following does not appear as a separate section on the cash budget?
72) Beginning cash balance plus total receipts
73) The financing section of a cash budget is needed if there is a cash deficiency or if the ending
cash balance is less than:
74) How much sales are required to earn a target income of $80,000 if total fixed costs are
$100,000 and the contribution margin ratio is 40%?
75) A company has total fixed costs of $120,000 and a contribution margin ratio of 20%. The
total sales necessary to break even are
76) A variable cost is a cost that
77) 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?
78) A process cost accounting system is most appropriate when
79) Absorption costing assigns _____ to the product.
80) Identify which statement about "currently attainable standards" is NOT true.
81) A well-designed activity-based costing system starts with
82) Which of the following statements is incorrect with respect to creditors and equity investors?
83) _____ are sections of the balance sheet.
84) The _____ is not one of the three major financial statements.
85) _____ are profitability ratios.
86) Although the U.S. has had a longstanding agreement with ___________, after the passage of
NAFTA, _________ became the United States' second largest trading partner.
87) Which country does the text describe as becoming the largest producer and consumer of
many of the world's goods?
88) Diversity training programs are generally intended to provide a vehicle for _____.
89) Which social responsibility theory has been advocated by Novel Prizewinning economist
Milton Friedman?
90) One study found that manufacturing labor costs about ___ an hour in China, compared to
____ dollars in the United States.
91) Which of the following statements is generally NOT true about state intermediate appellate
courts?
92) Which of the following is correct about litigating commercial disputes?

5. 93) If consumer incomes increase, the demand for product Y will _____________.
94) When an economist says that the demand for a product has increased, this means that:
95) The force behind globalization in _____ was the amount of muscle, horsepower, wind
power, or steam power that a country could deploy.
96) The Global, Web-Based Platform enables individuals to do which of the following?
97) The costs of delivering products in the _____ channel are much higher than delivering
products in the _____ channel.
98) Two complimentary approaches to measure marketing productivity are ________ and
marketing-mix modeling to estimate casual relationships and how marketing activity affects
outcomes.
99) ________ is a qualitative research approach for getting inside a consumer's mind and finding
out what they are thinking or feeling (e.g., a consumer says that the John Deere brand makes
them think of a rugged Midwestern male who is hard-working and trustworthy).
100) The use of a(n) _____ serves as a comparison to assess the existence and potency of the
manipulation.