Terminology

Question 1

Compare and contrast exploratory, causal, and descriptive research.

Answer 1

Exploratory research is done at the start, when little information is known about the subject. Generates hypotheses.

Causal research identifies correlation between variables. Used to test new ideas, products, benefits.

Descriptive research is used to describe or define a topic, and to provide additional information about it.

Descriptive research and exploratory research don’t answer a research problem and are instead used to gain a deeper understanding of the problem itself.

Question 2

Synectics:

Answer 2

Synectics is a problem solving methodology that stimulates thought processes of which the subject may be unaware. Uses metaphors and analogies.

Question 3

Convenience vs. shopping vs. specialty goods?

Answer 3

Convenience: low-priced, nondurable items that are purchased regularly and without much thought. Examples include candy bars and tobacco products.

Shopping: These are more expensive, durable items that are purchased less frequently and require more decision-making time.

Specialty: These are rare, expensive items that are often considered luxury purchases.

Question 4

Name the 5 economic utilities.

Answer 4

form utility, time utility, place utility, information utility and possession utility

Question 5

What is form utility?

Answer 5

Form utility: The design of a product or service

Question 6

What is time utility?

Answer 6

The ability of a company to provide services when customers need them

Question 7

What is information utility?

Answer 7

the value given to a product by virtue of the fact that it can provide the user with information that is useful

Question 8

What is place utility?

Answer 8

the value that is added to a product or service by making it available in the right location

Question 9

What is possession utility?

Answer 9

the amount of usefulness or perceived value a consumer derives from owning a specific product and being able to use it as soon as possible

Question 10

What do the economic utilities represent?

Answer 10

Economic utility is the amount of satisfaction a customer feels when they use a product or service.

Question 11

What are the 3 aspects of the Acquired Needs Theory?

Answer 11

humans are motivated by three possible needs: achievement, power, and affiliation. These 3 needs are based on one’s life experiences and acquired over time

Question 12

Name and describe 5 kinds of banks.

Answer 12

Commercial banks - accepts deposits from the public and gives loans for the purposes of consumption and investment to make a profit

Investment banks - focused on businesses

Retail banks - banking that provides financial services to individual consumers rather than businesses

Credit unions - Offer personalized and lower-cost banking services to their members. Credit unions may pay higher interest rates than banks due to their small size.

Brokerage bank - operates brokerage accounts (investment accounts used to buy, sell, and hold financial assets)

Question 13

What is a slotting fee?

Answer 13

a fee charged to companies or manufacturers by supermarket distributors (retailers) in order to have their product placed on their shelves.

Question 14

What is a payroll deduction?

Answer 14

an amount held back from an employee’s paycheque by the employer. This money is used for paying taxes, benefits like health insurance, or contributions to the Canadian Pension Plan.

Question 15

Factors that affect a business risk:

Answer 15

Economic, natural, human.

Caused by the economic fluctuations, natural disasters, or human errors respectively.

Question 16

Levels of management and examples:

Answer 16

Top-level management
Responsible for the overall direction of the company. CEO, CFO, VP, P.

Middle-level management
Responsible for managing the work of low-level managers and developing strategic plans to achieve the goals set by top management. Department head, project leader, division manager.

Low-level management
Responsible for managing the work of non-managerial employees who are directly involved in the production of the organization’s products. Supervisors, office managers, foremen.

Question 17

Matrix organizational structure:

Answer 17

Organizes employees from different departments to temporarily work together on a project
Each member in the matrix organization is held accountable to two managers: department/line manager, project manager from the matrix.

Question 18

Cluster sampling?

Answer 18

researchers divide a population into smaller groups known as clusters. They then randomly select among these clusters to form a sample.

Cluster sampling is a method of probability sampling that is often used to study large populations, particularly those that are widely geographically dispersed

Question 19

Membership vs. reference group?

Answer 19

a membership group is a group that someone is a part of, while a reference group is a group that someone uses to evaluate themselves

Question 20

Management functions are:

Answer 20

planning, organizing, leading, and controlling

Question 21

What is the planning management function?

Answer 21

setting objectives and determining a course of action for achieving those objectives

Question 22

Organizing management function?

Answer 22

developing an organizational structure and allocating human resources to ensure the accomplishment of objectives.

Question 23

Leading management function:

Answer 23

Inspiring employees to do their best by communicating goals, building a shared vision, and creating a culture of high performance.

Question 24

Controlling management function:

Answer 24

Ensuring that the business is achieving its goals by establishing performance criteria, measuring current performance, and taking action if there’s a gap.

Question 25

Keynesian theory?

Answer 25

Keynesians believe that, because prices are somewhat rigid, fluctuations in any component of spending—consumption, investment, or government expenditures—cause output to change.

Question 26

Define prejudice:

Answer 26

an opinion based on feeling or hearsay

Question 27

Define antitrust:

Answer 27

regulations that prevent a company from restraining competition

Question 28

Define consideration, in a contract:

Answer 28

what one party gives or receives in exchange for something else

Question 29

Define rebate:

Answer 29

a return of part of the price a customer pays for a product

Question 30

Define UPC:

Answer 30

universal product code

Question 31

Another name for predatory pricing:

Answer 31

below-cost pricing

Question 32

Structural unemployment:

Answer 32

Structural unemployment is a type of unemployment that occurs when there is a mismatch between the skills that workers have and the skills that employers need

Question 33

When demand is high,

Answer 33

increase prices

Question 34

Simpson’s Paradox is:

Answer 34

a statistical phenomenon where an association between two variables in a population emerges, disappears or reverses when the population is divided into subpopulations.