Marketing
When writing a persuasive business message, you should remember to
A. communicate your personal goals.
B. open the message with a meaningful quote.
C. place the least important information at the beginning.
D. describe the benefits to the audience.
D
Describe the benefits to the audience. The primary goal of a persuasive message is to influence behavior. Influencing others involves communicating benefits of taking action. The readers are more likely to respond favorably to the message if they know how the action will impact or help them. Communicating benefits is a central element to all types of persuasive messages. The beginning of the message should catch the readers' attention and encourage them to read more. Depending on the type of message, this might involve a quote. The message should be concise, so it should not contain unimportant information. The message should be written to communicate the business's goals rather than personal ones.
Companies that implement a clear chain of command often experience a __________ workflow with less
A. smoother; communication.
B. more flexible; redundancy.
C. smoother; redundancy.
D. more flexible; communication.
C
Smoother; redundancy. Organizations with effective chains of command see a smoother workflow and tend to have fewer workflow problems such as redundancy and confusion. A strong chain of command can improve overall communication among employees, not lessen it—the chain of command ensures that communication within a company is methodical, orderly, and efficient. A chain of command does not make workflow more flexible because it implements a hierarchy that should be followed.
Sales commissions are a __________ expense.
A. fixed
B. variable
C. one-time
D. capital
B
Variable. Sales commissions are a variable expense—they usually fluctuate with changes in production. They are not a one-time expense—businesses pay them on a continual basis. They are not a capital expense—these are one-time purchases a business makes, such as land or equipment. They are not a fixed expense—fixed expenses do not change along with changes in production.
The employees of the DER corporation have personally helped establish quality control guidelines to follow when serving customers. When problems occur, they discuss ways to further improve customer service with their supervisors. What type of quality control strategy is the DER corporation using?
A. Feedback control
B. External control
C. Concurrent control
D. Internal control
D
Internal control. Quality guidelines established by employees to solve problems are a type of internal control strategy. External control refers to rewards tied to performance and the supervision of employees by managers. Concurrent control monitors activities during their performance and makes corrective suggestions. Feedback control evaluates an activity afterwards and points out what may have gone wrong.
The Calisto Cafe franchise calculated how many times its new menu item sold.
What type of research data did the company collect?
A. Quantitative
B. Qualitative
C. Descriptive
D. Exploratory
A
Quantitative. Calisto Cafe collected numeric data to determine how many times its new menu item sold. Therefore, it collected quantitative data, which are specific and measurable. The franchise did not collect qualitative data based on thoughts, opinions, feelings, or experiences. Exploratory and descriptive are types of research, not types of data.
Which of the following is an example of a legal issue associated with information management:
A. Quality assurance
B. Customer privacy
C. Employee training
D. Company reputation
B
Customer privacy. Most governments have regulations regarding the privacy rights of customers. For example, a law may state that companies may not give out the personal information of customers unless they receive permission. This is an example of a legal issue associated with information management. Company reputation, quality assurance, and employee training are not necessarily legal issues related to information management.
One way that businesses can reduce the risk of credit card fraud at the point of sale is by
A. establishing credit limits for card usage.
B. verifying the cardholder's identification.
C. reviewing sales receipts during closing procedures.
D. conducting a financial audit.
B
Verifying the cardholder's identification. During a sales transaction, employees should ask customers to present another form of identification when they pay for items with a credit or debit card. By comparing the signature on the credit card that the customer presents with the signature or photo of another form of identification (e.g., driver's license), employees can verify that the customer is the authorized cardholder. Credit card issuers establish the credit limits for credit card holders. Reviewing sales receipts during closing procedures, conducting a financial audit, and establishing credit limits for card usage are not ways to reduce risks associated with credit card fraud at the point of sale.
45. What should you do if a customer is being difficult or demanding?
A. Tell the customer that their attitude is inappropriate.
B. Promise to give the customer a significant discount.
C. Continue to treat them with courtesy and respect.
D. Ignore them and focus on another customer.
C
Continue to treat them with courtesy and respect. Even if a customer is difficult and demanding, they should still be treated well. You should never ignore a customer, and it's out of line to tell a customer that their attitude is inappropriate. You also shouldn't confront customers. Even if they're being rude, you still must treat them respectfully. Be careful about making promises to the customer that you might not be able to fulfill. Broken promises are poor customer relations, so avoid promising anything unless you're sure that your manager would approve.
Which of the following is an advantage of opening a franchise:
A. Paying royalties
B. Reliance on raw materials
C. Restrictions on products, prices, and location
D. A well-known brand name
D
A well-known brand name. Often, opening a franchise brings an existing customer base that is familiar with the brand name, which can increase the possibility of success in comparison to a new, unknown business. Paying royalties and restrictions on products, prices, and location would be considered disadvantages of opening a franchise. Reliance on raw materials is a disadvantage of the manufacturing business model
An electronic data interchange (EDI) system facilitates a company's ability to
A. test product quality.
B. manage product availability.
C. improve product durability.
D. develop new products.
B
Manage product availability. An electronic data interchange (EDI) system allows a company to monitor its inventory and order products through a computer connection that it shares with its vendors. An EDI system helps a company monitor its inventory to ensure that enough products are available when and where they are needed. An EDI system does not facilitate a company's ability to improve product durability, test product quality, or develop new products.
Allowing customers to voluntarily provide their own information in customer relationship management programs is beneficial in which of the following ways:
A. It enables the sales department to prioritize sales leads.
B. It enables customers to offer suggestions for new services.
C. It enables the marketing department to tailor ads to those customers.
D. It enables customers to feel that the business is in control of their information.
B
It enables customers to offer suggestions for new services. Businesses benefit from feedback and new ideas when customers voluntarily offer suggestions for new services. Allowing customers to voluntarily provide their own information does not directly benefit the sales or marketing departments. Customers voluntarily providing their own information allows the customers to feel they are the ones in control of their information, not the business.
The migration of people from one location to another that affects the types of products that businesses sell is an example of a
A. population trend.
B. social lifestyle.
C. geography issue.
D. transportation route
A
Population trend. Migration is a population trend that indicates the movement of people throughout the country as well as into and out of the country. Migration trends are important to businesses because businesses need to know where their customers are located. For example, many people are leaving colder climates and migrating to what is considered the Sunbelt. This movement affects businesses because the types of products they sell and the way they sell them will change. Also, the increased migration of ethnic groups into the country creates a need for new goods and services that meet the needs of a multicultural population. The migration of people from one location to another is not a geography issue, a transportation route, or a social lifestyle.
Emma is reviewing the sales budget in relation to the actual sales generated for a set time frame. How is Emma using financial information in this situation?
A. To analyze the impact of aging accounts
B. To compare estimated performance with actual performance
C. To establish new quality standards and benchmarks
D. To identify external economic trends
B
To compare estimated performance with actual performance. Businesses rely on accurate financial information to make sound business decisions. In the situation provided, Emma is comparing one financial report (budget) with another financial report (actual sales) to determine if the business performed as expected—if it achieved its sales goals. Although external economic conditions can affect sales, Emma is analyzing internal financial information rather than identifying external economic trends. Emma is not establishing new quality standards and benchmarks or analyzing the impact of aging accounts.
Which of the following is an aspect of coordinating the distribution of a product with other marketing activities:
A. Setting an appropriate price
B. Analyzing customer satisfaction
C. Developing an operating budget
D. Recruiting qualified personnel
A
Setting an appropriate price. Setting the price of a product is one of the marketing activities that a business should coordinate with distribution in order to successfully sell to customers. Not only does a business need to make its product available, but it also must sell it at a price that consumers are willing to pay. If a product is not priced appropriately, customers usually will not buy it even if it is widely distributed. Businesses often analyze customer satisfaction after a product is marketed to determine if any changes need to be made. Developing an operating budget and recruiting qualified personnel are not marketing activities.
Traits of successful salespeople include self-motivation, persistence, and
A. impatience.
B. self-confidence.
C. insecurity.
D. selective listening skills
B
Self-confidence. The success and profitability of a business depends on how well the product sells. As employees, salespeople must be successful in persuading customers to purchase the company's products. Successful salespeople exhibit self-confidence; that is, they believe in their talents, skills, and objectives during the selling process. And by exhibiting self-confidence, salespeople communicate a sense of knowledge and credibility to the customer. Traits of successful salespeople also include patience, positive self-esteem, and comprehensive listening skills.
Which of the following areas of management and administration is often referred to as “support staff”:
A. Human resource management
B. Business information management
C. General management
D. Administrative services
D
Administrative services. Employees working in administrative services facilitate business operations through a variety of administrative and clerical duties, including information and communication management, data processing and collection, and project tracking. These positions are often referred to as support staff positions. Business information technology employees help to align business and IT goals. Careers in general management focus on planning, organizing, directing, and evaluating part or all of a business organization through the allocation and use of financial, human, and material resources. Human resource management careers focus on the staffing activities that involve planning, recruitment, selection, orientation, training, performance appraisal, compensation, and safety of employees
A business's ethics determine whether an action is acceptable for that business, especially if the action
A. contributes to the business's profitability.
B. has a negative impact on others.
C. is illegal.
D. affects the environment.
B
Has a negative impact on others. A business's ethics determine whether an action is acceptable for that business, especially if the action has a negative impact on others—employees, customers, community members, etc. Sometimes, a business's ethics influence its decision on an environmental issue, but the environment is not a more important factor in ethics than any other issue. Anything illegal should be unacceptable for a business, regardless of its ethics. Sometimes, unethical practices may contribute to a business's profitability, but this is not necessarily a more important factor than others in determining a business's actions.
Marketing is described as creating
A. gaps.
B. exchanges.
C. advertisements.
D. needs.
B
Exchanges. Marketing is described as creating exchanges—or encouraging trade by providing opportunities. Regarding the other options, marketing satisfies needs, uses advertisements, and bridges the gap between producers and customers.
Providing favorable adjustment and return policies is one way that a __________ builds clientele.
A. business
B. society
C. coalition
D. salesperson
A
Business. Without a loyal customer base, a business cannot thrive in the marketplace. A business that develops and implements favorable adjustment and return policies not only makes the customer happy, but helps the salesperson sell the product and improves the business's overall ability to build a loyal clientele. A society is a group of individuals that shares an environment. A coalition is a group of individuals who gather for a specific purpose. Societies and coalitions do not exist for the purpose of building clientele.
Which of the following is a benefit to consumers of promotion:
A. Building a clientele
B. Creating a specific image
C. Increasing sales of products
D. Learning new ways to use products
D
Learning new ways to use products. Consumers often learn new or better ways to use the products they purchase from the promotions for the products. This helps them to receive full value for their money. Increasing sales of products, creating an image, and building a clientele are promotional activities that benefit the business.
How can a consumer typically determine the best interest rates for personal savings accounts and personal loans?
A. Contact a brokerage firm to get advice.
B. Evaluate commercial banks' requirements and rates.
C. Evaluate rates offered by uninsured online banks.
D. Evaluate credit union requirements and rates.
D
Evaluate credit union requirements and rates. Credit unions typically provide the highest interest rates on savings accounts and the lowest interest rates on loans. Commercial banks typically do not offer consumers the beneficial interest rates that credit unions can provide. Uninsured online banks sometimes offer better rates, but they also carry more risk. Brokerage firms buy and sell different types of securities and do not typically provide information about interest rates offered by banking institutions.
What is the most important piece of information that a cash flow statement provides?
A. Amount of money expected
B. Beginning of tax year
C. Cost of maintenance
D. Statistics from industry
A
Amount of money expected. How much money will flow into and out of a business is typically the most important piece of information that a cash flow statement provides. Businesses need to know whether they will have enough cash coming in to meet monthly obligations. For example, if businesses discover that they will not collect enough money, they can plan a sale to generate more income or tighten their credit policies. Predicting the cost of maintenance is only a small part of estimating expenses in a cash flow statement. Businesses decide when their tax year will begin. Many businesses use industry statistics when developing their cash flow statements.
As an employee, you should accept your supervisor's suggestions for improvement and then
A. forget the suggestions.
B. change your behavior.
C. go your own way.
D. complain to your coworkers.
B
Change your behavior. Constructive criticism is evaluative information designed to help someone improve. Changing your behavior is both the intent of the feedback and the desired outcome. Forgetting about the suggestions and going your own way or complaining about them will not benefit you and may cause you problems.
A company's managers ask themselves, “Why is our market share dropping?” This is an example of a __________-oriented decision problem.
A. discovery
B. strategy
C. situation
D. research
A
Discovery. Discovery-oriented decision problems are aimed at answering the questions “what?” or “why?” Strategy-oriented questions are aimed at answering the questions “how?” or “which?” A research problem asks what research needs to be done to solve the decision problem. This is not referred to as a situation-oriented problem
93. Which of the following is an example of salespeople using customer service to facilitate sales relationships:
A. Following up only when necessary
B. Sending information about competitors
C. Responding to complaints promptly
D. Recommending expensive new products
C
Responding to complaints promptly. Salespeople invest a lot of time in acquiring customers; therefore, it is important that they concentrate on developing those relationships. One way to maintain and improve a sales relationship is to provide excellent customer service, such as responding to complaints promptly. Salespeople who respond promptly are telling their customers that they are important and that their business is valuable. Customers appreciate the prompt attention and usually respond by continuing to do business with the salesperson. Salespeople should follow up with customers frequently rather than only when necessary. Salespeople do not send information about competitors or recommend expensive new products that their customers don't need.