Q&A Hero

Q: An implication of the bounded rationality models of management is that: A. all decision making processes are inherently perfect as human beings are rational beings. B. all decision making processes essentially involves dealing with a resource of unlimited reasoning power. C. the proficiency of a decision process increases exponentially with increase in information that is used for that process. D. the more information available to be included into the decision process, the less efficient that process will be.

Q: Which of the following is true of theories based on the bounded rationality models? A. It assumes that people are inefficient processors of information. B. It assumes that people use complete information and incomplete analyses to make decisions. C. It assumes that people have unlimited abilities to obtain and process information. D. It assumes that the human mind is fundamentally irrational.

Q: _____ analysis is based on the concept that a dollar to be received right now has more utility than does a dollar to be received at some time in the future. A. Liquidity B. Net present value C. Financial strength D. Budget

Q: The process of determining the effect of price and quantity changes on revenues and expenses refers to: A. accounting analysis. B. variance analysis. C. pro forma budgeting. D. financial flexibility.

Q: The difference between an actual and budgeted revenue or cost is called: A. liquidity. B. financial flexibility. C. variance. D. investing activities.

Q: _____ is an accounting method which assigns costs based on the different types of work a business does in order to sell a particular product or service. A. Differential revenues and expenses B. Net present value analysis C. Cost-volume-profit analysis D. Activity-based cost estimates

Q: The quantity of items sold times the price expected to be paid for each product is the calculation used for the: A. overhead budget. B. sales budget. C. purchases budget. D. cost of goods sold budget.

Q: The _____ budget shows the number of units that are expected to be acquired during the budget period. A. cash receipts B. labor C. sales D. purchases

Q: The first step in preparing a master budget is to prepare a _____ budget. A. production B. direct materials C. sales D. direct labor

Q: A comprehensive budget is also referred to as the: A. master budget. B. sales budget. C. purchases budget. D. universal budget.

Q: A financial plan for the future based on a single level of operations is called a(n): A. balance sheet. B. budget. C. income statement. D. statement of cash flows.

Q: Financial statements containing estimated or hypothetical information are called: A. pro forma statements. B. assumed income statements. C. tentative balance sheets. D. annual report statements.

Q: Elaborate on the key components to be included in a written marketing plan. Do you agree that marketing plan is a one-time process?

Q: How can a firm differentiate between its direct and its indirect competitors? What are the advantages of identifying competition in situation analysis?

Q: Discuss the three targeting strategies that marketers can choose from.

Q: What is market segmentation? What are the most frequently used basis of market segmentation?

Q: Define differential advantage. What are the ways in which a firm can gain such an advantage?

Q: Elaborate on the two major types of questions used in surveys. There are two major types of questions used in surveys: open- and close-ended questions. One frequent type of close-ended questionthe scalar question is answered by some sort of scale; for example, "On a scale of 1 to 5, how do you like this book?" Dichotomous questions are those with two choicessex, employed or not, and so on. Categorical questions give several predetermined groups from which to choosefor example, age levels (under 20, 20 to 29, 30 to 39, etc.). Open-ended questions allow the interviewees to answer any way they wish. Instead of asking, "Do you like XYZ?" (a question that can be answered, "yes," or "no,"), a researcher could ask, "What are the advantages of XYZ?"

Q: What are the approaches available for businesses to conduct primary research?

Q: What is marketing research?

Q: How does a marketing plan help small business owners?

Q: Which of the following statements is true about a marketing plan? A. A stand-alone marketing plan will not include any sort of financial data and projections. B. Creating a business's marketing plan is not a one-time process. C. The business's marketing plan, once created, cannot be revised. D. An entrepreneur cannot outsource the job of writing a marketing plan.

Q: If Jack's marketing plan is part of the business plan, which of the following can be avoided as a component of the marketing plan in order to prevent duplication? A. Marketing analysis B. Situational analysis C. Executive summary D. Cash flow statement

Q: Ian is developing a business plan for his company. Along with the other sections, the business plan will also include the marketing plan of his company. To avoid duplication of information, which of the following should Ian typically avoid including as a key component of the marketing plan? A. Specific details about the company's target market B. Information about the company's present and near future situation including competitors C. Balance sheets and income statements of the company D. Details of the company's differential advantage

Q: In creating a marketing plan, a firm typically identifies its competition and understands its strengths and weaknesses in a stage where the firm: A. discusses its target market. B. examines its current situation. C. details its marketing strategy and objectives. D. addresses the marketing mix.

Q: The sales at Pizza Power have lately been declining due to a new Chinese restaurant in the same neighborhood. This is typically known as _____. A. direct competition B. indirect competition C. concentric diversification D. conglomerate diversification

Q: _____ comprises companies that provide alternatives that are dissimilar to a firm's product/service that consumers might choose to meet a similar need. A. Support industry B. Direct competition C. Related industry D. Indirect competition

Q: Danielle, a graduate in fashion technology, always found it tough to find clothes for her as she belonged to the category of plus-size. Hence, she launched her clothing brand Taurus Trends that catered to the needs of plus-size and extremely tall women. In future, if other clothing brands begin to cater to the same target market as does Taurus Trends, they will be considered as the firm's _____. A. strategic partners B. indirect competition C. equity partners D. direct competition

Q: Warm Wish, a maker of woolen apparel, would face direct competition during winters typically from: A. manufacturers of room heaters. B. restaurants that sell hot beverages. C. weavers of cashmere shawls. D. breweries that manufacture alcohol.

Q: In the situational analysis of a marketing plan, companies that provide the same product or service are referred to as _____. A. supporting industries B. direct competition C. stakeholder industries D. indirect competition

Q: In a marketing plan, a business should typically consider its _____ as the key component of its situational analysis. A. creditors B. board of directors C. shareholders D. competitors

Q: While the competitors of Premium Airlines cater to both the business and economy class customers along with the executive class customers, the company aims at focusing all its service efforts on customers who prefer to travel in style and comfort. Hence, the firm's airplanes only have executive seats. This is an example of a(n) _____ marketing strategy. A. differentiated B. concentrated C. undifferentiated D. mass

Q: Maya runs a home-based apparel business called Round Polka catering only to the needs of pregnant women. Identify the type of marketing strategy involved. A. Differentiated strategy B. Concentrated strategy C. Undifferentiated strategy D. Mass strategy

Q: In a(n) _____ marketing strategy, a marketer selects one specific group of consumers and designs a marketing mix specifically for that group. A. undifferentiated B. concentrated C. differentiated D. mass

Q: United One Bank has designed various loan schemes tailored according to the needs of students, differently abled, single parent, and retirees. The bank has typically adopted a(n) _____ marketing strategy. A. mass B. concentrated C. differentiated D. analogous

Q: Munch More's potato wafers are available in two different variantsthe fried variant and the baked variant. With the deep-fried wafers the firm aims to target customers for whom taste matters the most, and with the baked version it caters to the needs of those customers who are health-conscious. Munch More is typically following a(n) _____ marketing strategy. A. differentiated B. concentrated C. mass D. analogous

Q: In a(n) _____ marketing strategy, a marketer selects two or more distinct groups of consumers and designs specific marketing mixes to meet their needs. A. mass B. concentrated C. differentiated D. undifferentiated

Q: Peace Cut, Inc. manufactures "one size fits all" unisex pajamas. This is a typically an example of _____ marketing strategy. A. customization B. concentrated C. niche D. undifferentiated

Q: A(n) _____ marketing strategy assumes that all consumers have virtually identical needs and can be reached by the same marketing mix. A. undifferentiated B. concentrated C. differentiated D. customization

Q: Which of the following best exemplifies personality segmentation? A. Shoe Soul, Inc. produces three lines of sport shoes that cater to the high-end, mid-end, and low-end customers. B. Shoe Soul, Inc. makes different shoes for customers from the hilly areas and for those from the plains. C. Shoe Soul, Inc. segments its shoes as adventure shoes, limited edition shoes, and couture shoes. D. Shoe Soul, Inc. has shoes it brands as toddler series, teenage series, young adult series, and family series.

Q: The Kent Automobile Company segments its cars as sports cars, safety cars, capacity cars, and premium cars based on the gains or the utility consumers seek. Which of the following segmentation types has the Kent Automobile Company adopted? A. Psychographic B. Geographic C. Ethnographic D. Benefit

Q: _____ segmentation typically divides customers into groups based on what advantages they seek when making product or service decisions. A. Geographic B. Demographic C. Benefit D. Ethnographic

Q: Drugs sold under the Myko Pharmaceuticals brand comes in two different quality standards. The high quality and high-priced drugs are exported to countries that have high per capita income, whereas the low-priced drugs are sold in countries that have low per capita income. This is an example of _____ segmentation. A. demographic B. benefit C. behavioral D. psychographic

Q: Dividing the market by categories such as age, income, education level, ethnicity, or sex is termed as _____ segmentation. A. geographic B. demographic C. trench D. psychographic

Q: E and C Inc. produces two categories of woolen clothes under the brand names "extreme" and "cool." The brand "extreme" is sold in areas that have harsh winters, and the brand "cool" is sold in areas that have warm summers. This is a typical example of _____ segmentation. A. psychographic B. behavioral C. demographic D. geographic

Q: The process of dividing the market into groups that have somewhat homogeneous needs for a product or service is called _____. A. product differentiation B. market degradation C. market segmentation D. benchmarking

Q: Which of the following is the first step of a business's marketing plan? A. Examining the current situation of the business B. Discussing the target market of the business C. Creating a detailed marketing strategy and objectives D. Addressing the 4 P's of the business

Q: While most cosmetic brands sell their products in specialty stores or departmental stores, Snowbird Inc. is the only cosmetic brand that uses direct marketing as a means to reach its customers. However, it prices its products close to that of its competitors. Hence, the company has carved a differential advantage typically in terms of its _____ strategy. A. people B. place C. product D. pricing

Q: If a firm is able to create a premium image in its customer's mind by offering a custom product or extra service, it should typically claim _____ as its pricing strategy and use it as a differential advantage. A. loss leader B. penetration pricing C. going rate D. prestige pricing

Q: Love Polka Inc., a clothing brand, realized after a market research that the clothing needs of pregnant women and new mothers were not met adequately. Hence, it launched the first ever maternity-based store in the market under the brand name Maternity and More. Thus, the company, by tapping a marginally served market, has typically gained _____. A. volatility B. differential advantage C. replacement value D. liquidity

Q: Differential advantage is typically the result of a business: A. adopting a code of conduct that is different from other businesses. B. exhibiting heterogeneity each time it provides its services. C. being distinct from other businesses in terms of product, price, place, and promotion. D. going through different stages of new product development and product life cycle.

Q: The characteristic that separates one company from another in product, price, promotion and/or distribution, is referred to as _____. A. differential advantage B. volatility C. liquidity D. external legitimacy

Q: A _____ is defined as a Web-based program that uses artificial intelligence techniques to automate tasks such as searches. A. blog B. bot C. cache D. lock-box

Q: A disadvantage of open-ended questions when compared to close-ended questions is that they: A. limit the information one can get. B. can be answered only in very limited ways. C. are more difficult to interpret when the sample size is large. D. are not useful for gathering preliminary information.

Q: Which of the following is an advantage of using open-ended questions? A. They make it easy for researchers to compare respondent groups. B. Relative to close-ended questions, it takes lesser time to ask and evaluate them. C. They help find new niches and perfect a product before it is introduced. D. They are the most convenient method when the sample size is large.

Q: Which of the following statements about open-ended questions is true? A. They can only be answered in a "yes" or "no" fashion. B. They make tabulation and comparison of data easy. C. They are best used for gathering preliminary information. D. They are best applied when samples are large.

Q: When compared to open-ended questions, close-ended questions: A. can be answered in many ways. B. provide data that are more difficult to tabulate. C. limit the information a researcher gets. D. take considerably more time to ask and evaluate.

Q: _____ questions provide data that are difficult to tabulate and compare. A. Categorical B. Open-ended C. Scalar D. Dichotomous

Q: Questions that allow respondents to express themselves as they choose are called _____ questions. A. open-ended B. categorical C. dichotomous D. scalar

Q: Which of the following best exemplifies close-ended questions? A. What aspects about a spa appeal the most to you? B. How can we improve this spa? C. Is this your first visit to the spa? D. How has the spa helped improve your life?

Q: Gerald, a student at a local university, has prepared a questionnaire for his research on consumer behavior. The questions in his survey allow respondents to answer in either a "Yes" or a "No." Which of the following question types is the questionnaire typically using? A. Open-ended B. Categorical C. Scalar D. Dichotomous

Q: The question "What is your ethnicity?" with answer options such as White, African American, Hispanic, Asian, and other, is an example of a(n) _____ question. A. open-ended B. categorical C. dichotomous D. scalar

Q: Which of the following best exemplifies dichotomous questions? A. "On a scale of 1 to 5, how would you rate this dining experience?" B. "What did you dislike about your today's dining experience?" C. "Have you ever purchased a product online?" D. "Which are your favorite restaurants in this city?"

Q: The question "On a range of 1 to 10, how would you rate the service in this restaurant?" is an example of a(n) _____. A. categorical question B. scalar question C. dichotomous question D. open-ended question

Q: If a researcher wants to be able to ask for clarification from participants of a survey, have participants expand on their answer, or even change the next question based on their responses, he or she should conduct _____ survey. A. mail B. in-person C. online D. telephone

Q: Gold Pelican, Inc. is a small e-commerce company that sells custom made briefcases to customers spread across the globe. The company is now planning to expand its operations by opening stores in many countries. Hence, the company decides to conduct a survey to understand what its existing customers think about it as a brand, its product quality, pricing, and their future expectations. Keeping in mind the budget constraints of a small business and the need to cover customers all over the world, which of the following is the most appropriate way to conduct a survey? A. Internet B. In person C. Telephone D. Focus group

Q: By using multiple screens of questions in online surveys, respondents can select the screen they will see based on their responses to an earlier question. In Internet survey terms, this is known as _____. A. factoring B. bootstrapping C. benchmarking D. branching

Q: Which of the following survey methods has the lowest return rate and does not allow for much flexibility? A. Mail B. Face To Face C. Telephone D. Internet

Q: Which of following survey methods is the most expensive? A. Mail B. Telephone C. In person D. Online

Q: A(n) _____ is a data-collection method using a questionnairein person, on phone, on paper, or on the Internet. A. desk research B. survey C. focus group research D. ethnographic research

Q: Naomi had always been complimented for her excellent cooking skills. Hence, she decided to commercialize this ability by starting a restaurant. Before starting the restaurant, she invited a few friends and neighbors over for dinner to taste her dishes and provide feedback that she could incorporate in her business venture. This is a typical example of conducting an informal _____. A. secondary research B. focus group research C. ethnographic study D. branching survey

Q: Which of the following statements is true about the focus group method of market research? A. It is a form of secondary research. B. It involves observing the participants without interacting with them. C. It is a large group of more than 50 participants. D. It is led by a moderator who is skilled to ask questions the right way.

Q: Myro Labs, Inc. has organized for a formal discussion between 12 potential customers to test a new drug product's packaging and pricing. The company's marketing head has been carefully questioning the participants in order to effectively bring out their reactions toward the new product. This is a typical example of a(n) _____. A. ethnographic research B. secondary research C. focus group research D. survey research

Q: A _____ is best described as a small group (8 to 20 people) that is asked to meet to discuss a series of questions about a particular product or service. A. focus group B. strategic group C. reference group D. command group

Q: A manufacturing company is planning to test market its new product, a shampoo. It has tied up with a retailer to research on the product's packaging. The retailer has hired students as interns to observe customers' reactions toward the new shampoo in its stores. All of the research is conducted without directly interacting with the customers. This is a typical example of _____. A. focus group research B. survey research C. ethnographic research D. secondary research

Q: Data gathered by simple observation that involves seeing what customers do rather than asking them refers to _____ research. A. focus group B. survey C. ethnographic D. secondary

Q: Which of the following primary research methods is the least expensive for small businesses? A. Conducting in-person surveys B. Conducting formal focus group interviews C. Using online survey services D. Hiring marketing research firms

Q: Which of the following is a way to collect secondary data? A. Researching on the Internet B. Conducting a survey with the help of questionnaires C. Observing the target consumers D. Interviewing a focus group

Q: Which of the following is a problem associated with secondary research? A. It is expensive. B. It is time-consuming. C. It includes data that may not be timely. D. It requires multiple researchers to design questions.

Q: With regard to marketing research, _____ refers to information already collected for some other purpose than the current problem. A. primary research B. field research C. first-hand research D. secondary research