Exam 1 Flashcards
A business that effectively coordinates channel management with marketing activities is more likely to
provide
A. good customer service.
B. attractive product displays.
C. free delivery.
D. flexible credit terms.
A. Good customer service. Channel management is one of the marketing functions that must work with the
other marketing activities to get goods and services from producers to consumers. The goal of marketing
is to satisfy consumer wants and needs while achieving company goals. Businesses cannot satisfy those
needs and provide quality customer service unless all the marketing activities work together. For
example, businesses are only able to serve customers when they have the advertised items on hand and
at the right price. Not all businesses need or use product displays, provide free delivery, or offer flexible
credit terms.
Which of the following types of business organizations reduces or limits the risk of its stockholders:
A. Franchise
B. Sole proprietorship
C. Corporation
D. Partnership
C
Corporation. A corporation, which is owned by its stockholders, limits the losses or risks to the amount
each individual owner has invested in the corporation. The other types of business organizations are not
owned by stockholders. A partnership usually divides the risk among two or three partners. In a sole
proprietorship, the owner generally assumes all of the risk. A franchise is a contractual agreement
between a parent company and a franchisee to distribute goods and services.
Which of the following would probably use a longer channel of distribution than the others:
A. A bag of oranges
B. A printing press
C. An airplane
D. A bottle of shampoo
D
A bottle of shampoo. Shampoo is a low-cost, standard product that would probably use a longer channel
of distribution than the other alternatives. A bag of oranges is perishable and needs to use short
channels. A printing press is highly technical, requires installation, and is quite heavy; therefore, it would
rely on short channels. An airplane is technical and quite heavy and would probably use a direct route
from the producer to the industrial user.
Electronic billing, purchase-order verification, bar-code technology, and image processing are examples
of
A. functions of the finance department.
B. horizontal channel integration.
C. integrated data between channel members.
D. vertical channel integration.
C
Integrated data between channel members. The technology of electronic billing, purchase-order
verification, bar coding, and image processing enable channel members to integrate data. Vertical and
horizontal channel integration are methods of organizing distribution channels. The finance department
may utilize the methods to share data, but the methods are not unique to that department.
When filing a tort against a business, the plaintiff must establish that the defendant
A. violated the doctrine of sovereign immunity.
B. damaged property intentionally.
C. conspired with a competitor.
D. breached the duty of care.
D
Breached the duty of care. The duty of care is the basic principle that expects all individuals and
businesses to exhibit socially responsible behavior by using caution to prevent harm and by watching out
for one another. A tort is a private wrongdoing that potentially harms another person or entity. If a
business or one of its employees breaches the duty of care, the business may be held liable for the tort.
However, the plaintiff must have grounds or proof that establishes that the business or its employee
(defendant) has committed a wrongful act, thereby breaching the duty of care. Intentional damage and
conspiring with a competitor (collusion) are types of torts. The doctrine of sovereign immunity is the
universally accepted principle that each nation has the right to manage its own government and develop
its own laws.
A producer can minimize channel conflict among its distributors and retailers by
A. selling its items directly to the end users.
B. offering different products through each channel.
C. establishing slotting fees for certain channels.
D. requesting that the channel members carry only its brand.
B
Offering different products through each channel. Channel conflict can occur when channel members are
competing among themselves for customers. When each channel sells different products, they are not
directly competing among themselves for business. For example, if a guitar manufacturer sells its line of
guitars through authorized distributors and sells accessories for the guitars through online retailers, the
channel members are not competing for the customers because they are selling different products.
Bypassing channel members and selling directly to end users, establishing slotting fees, and requesting
channel members to carry only its brand are actions that tend to create channel conflict rather than
minimize it.
What is an advantage of verbal communication?
A. You use passive listening skills to understand the message.
B. Tone of voice can be used to express emotions and thoughts.
C. It focuses attention on facial expressions rather than words to express enthusiasm.
D. People must see you to understand the intent of your message.
B
Tone of voice can be used to express emotions and thoughts. This means that people can show their
interest and enthusiasm by what they say and by the way they say it. Although body language conveys
intent, people can communicate how they feel through their choice of words. The words that people use
often express their interest and enthusiasm. A key element of verbal communication is active listening.
When Amber walked by Ryan’s desk, she noticed that Ryan was raking his left hand through his hair,
that his face was red, and that he kept hitting the enter button on his keyboard with his right hand, while
frowning at his computer screen. Based on his nonverbal cues, Amber would probably assume that Ryan
was
A. patient.
B. frustrated.
C. bored.
D. enthusiastic.
B
Frustrated. Nonverbal cues can tell others a lot about your emotions. In this situation, Ryan’s nonverbal
behavior indicated that he was frustrated because he couldn’t get his computer to do what he wanted it to
do. If Ryan was patient, he would not continuously hit his keyboard, turn red, or frown. If Ryan was bored,
he would be inattentive about his situation or surroundings. He might even yawn or do something other
than computer work for a while. Enthusiasm is associated with a positive attitude.
You’re giving directions to a group of coworkers, and you want to be sure they do exactly what you say.
You should
A. raise your voice.
B. give directions in the proper order.
C. make the directions challenging.
D. demonstrate the final steps of the directions.
B
Give directions in the proper order. It’s much easier for your listeners to follow along if you give directions
in the order in which they should be completed. Raising your voice isn’t necessary when giving
directions; in fact, it may intimidate your listeners. Your directions should not be challenging, even if the
task itself is challenging. If you choose to demonstrate how to complete the directions, you should show
how to do each step, not just the final ones.
It is most appropriate for businesspeople to use complex, technical jargon when they are
A. speaking with coworkers.
B. greeting new customers.
C. introducing a friend to a business associate.
D. informally conversing with an acquaintance.
A
Speaking with coworkers. Jargon is a specialized language known only to a certain group of people.
Industries and companies often use jargon that is meaningful to their businesses and may not be easily
understood by people outside their industries or companies. Coworkers are more likely to use jargon
because they are familiar with the terms and their meanings or applications. New customers, friends,
business associates, and acquaintances may not be familiar with a specific industry’s jargon.
The human resources manager sends an email to all employees stating that they will need to park on the
street on Tuesday because the maintenance department will be repairing the company’s parking lot. This
is an example of a(n)
A. informational message.
B. projection report.
C. business proposal.
D. formal inquiry.
A
Informational message. Communicating information involves providing others with facts. In the example,
the human resources manager is informing the company’s employees about an issue with the company’s
parking lot. The human resources manager is not writing a projection report, business proposal, or formal
inquiry.
A memorandum is typically used for communication that takes place
A. within a business.
B. among competitors.
C. infrequently.
D. between friends.
A
Within a business. Memorandums are a frequently used form of brief, written communication exchanged
by people within an organization. Memorandums are rarely used among competitors or between friends.
Jayson just learned his company wants to hire a new public relations assistant. He posts the job position
information on his personal social media accounts and gives contact information for the manager that will
be conducting interviews. Why is this inappropriate use of social media?
A. It could give Jayson’s friends an unfair advantage over other job candidates.
B. It is unprofessional to post company employment information on a personal site.
C. Jayson is using inside knowledge to appear more important on his social sites.
D. Jayson is using his company’s image to increase his number of social contacts.
B
It is unprofessional to post company employment information on a personal site. Jayson’s placement of a
job opening on his personal sites is unprofessional and gives the company little control over the
presentation or distribution of the information. There’s no indication his friends would gain an unfair
advantage over other candidates since Jayson is not conducting the interviews. It’s not clear whether
Jayson is trying to look important or increase his social contacts; however, those acts are of less concern
than the unprofessionalism of posting employment information.
Which of the following is a common product-related complaint:
A. Pressure selling
B. Reduced price
C. Poor service
D. Incorrect size
D
Incorrect size. Customers’ complaints about products are the result of defective, damaged, or spoiled
products; the wrong size or color; mispricing; or the failure to meet the customers’ needs. Poor service
and the use of pressure in selling cause complaints about the sales staff. Customers seldom complain
about reduced prices.
Two similar brand promises may be carried out differently depending on their
A. business environments.
B. types of packaging.
C. logos.
D. slogans.
A
Business environments. Two similar brand promises may be carried out differently depending on their
business environments. For example, a product that is sold in stores will have different touchpoints than
a product that is sold online. Types of packaging, logos, and slogans should not have a significant impact
on how a brand promise is carried out.
