A1 and A2 Solution Customer Relationships Management

A1 and A2 solution customer relationships management.
A1 Q3 :
https://www.coursehero.com/file/18402243/CHAPT24eHoffmandoc/
A1 Q4 : https://www.coursehero.com/file/p7cgm6j/a-supply-
chainvalue-chain-b-customersupply-chain-c-value-chainsupply-
chain-d/ or http://www.siteforinfotech.com/2015/12/top-100-
interview-questions-on-e-commerce.html
A1 Q 8 : https://www.coursehero.com/file/p20gp5f/c-Nonraw-materials-d-
Petroleum-e-B-and-D-Answer-c-p-202-Easy-107-Which-of-the/ or
https://www.coursehero.com/file/p1990dl/You-have-just-read-an-article-on-
the-latest-research-about-product-quality-You/
A1 Q14: https://www.slideshare.net/SoleilGan/ch9-creating-brand-equity-
top-10-learning-questions
A1 Q 16 : http://www.google.com/url?
sa=t&rct=j&q=&esrc=s&source=web&cd=6&ved=0ahUKEwi7g6jY0YjTAhU
GcBoKHWdlBJwQFgg3MAU&url=http%3A%2F%2Fwww.uuooidata.org
%2Fcourse%2Fsns%2Fs082%2FNOTES%2FCustomer%2520Relationship
%2520Management%2520Lecture
%252007.docx&usg=AFQjCNF5Cs_rKVchX7DxZuLFBc7e-wqoCA
A1 Q17: https://books.google.com.om/books?
id=BXecAQAAQBAJ&pg=PA561&lpg=PA561&dq=An+approach+that+encompasses+a+wide
+range+of+relationships,+not+just+with+customers,
+but+also+those+that+organizations+develop+with+suppliers,+regulators,+government,
+competitors,+employees,
+and+others+is+referred+to+as&source=bl&ots=xiKCCVsmT7&sig=BeUunMxoVgXeF4ha7l
l76dfNhNI&hl=en&sa=X&redir_esc=y#v=onepage&q=An%20approach%20that
%20encompasses%20a%20wide%20range%20of%20relationships%2C%20not%20just
%20with%20customers%2C%20but%20also%20those%20that%20organizations%20develop
%20with%20suppliers%2C%20regulators%2C%20government%2C%20competitors%2C
%20employees%2C%20and%20others%20is%20referred%20to%20as&f=false
A 1 Q18 :
HTTP://WWW.ACADEMIA.EDU/10955017/CHANGING_FACE_OF_CUSTOMER_R
ELATIONSHIP_MANAGEMENT_CRM_IN_NEW_AGE_OF_TECHNOLOGY
Answere in the first page introduction part.
A1 Q 23: http://www.finalhomework.com/principles-of-marketing-by-
kotler-a-graded-test-bank/ Ques 63
A1 Q 25: https://www.slideshare.net/SoleilGan/ch9-creating-brand-equity-
top-10-learning-questions page 5
A1 Q 26: https://en.wikipedia.org/wiki/Customer_relationship_management
first line
A1 Q 27 : http://www.google.com/url?
sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0ahUKEwjC6omfqJDTAhV
GHxoKHY0YDCcQFgghMAE&url=http%3A%2F%2Fpeople.stfx.ca
%2Fx2011%2Fx2011aqi%2FBusiness%2FINFO%2520101%2FNotes
%2FChapter%252011%2520Learning
%2520Outcomes.docx&usg=AFQjCNExPgTJGZ1zQTzKRUawIW53crsqpg or
https://www.coursehero.com/file/p1atnp4c/Whats-the-value-of-particular-
customers-over-their-lifetime-Who-are-the-most/
A1 Q 30 advantages and problems with the more participative approach

http://www.google.com/url?
sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0ahUKEwiFv9HXs
5DTAhVHXBoKHUROC6QQFggeMAA&url=http%3A%2F
%2Fwps.pearsoned.co.uk%2Fwps%2Fmedia%2Fobjects
%2F1118%2F1145151%2Fcase_studies
%2Fch20_case1a.doc&usg=AFQjCNFajgKQHs9wLWqLhzzna1ho-_tEuQ
A1 Q 35: https://www.coursehero.com/file/p17e042/Is-available-for-all-types-of-
organizations-d-all-of-the-above-are-correct-2/
Question 8 OR
https://www.coursehero.com/file/p63ras/27-A-Value-Added-Reseller-can-help-install-
and-customize-software-along-with/ Question 35
A1 Q 39: https://books.google.com.om/books?
id=dNTYAgAAQBAJ&pg=PA522&lpg=PA522&dq=These+types+of+exchanges+are+characte
rized+by+a+long-term+orientation,
+where+there+is+complete+integration+of+systems+and+processes+and+the+relations
hip+is+motivated+by+partnership+and+mutual+support.&source=bl&ots=aOb2H3EjE1&si
g=wtEwKp-mJEhRQQQPMtQtqXHU_wc&hl=en&sa=X&redir_esc=y#v=onepage&q=These
%20types%20of%20exchanges%20are%20characterized%20by%20a%20long-term
%20orientation%2C%20where%20there%20is%20complete%20integration%20of
%20systems%20and%20processes%20and%20the%20relationship%20is%20motivated
%20by%20partnership%20and%20mutual%20support.&f=false
A1 Q 43: http://www.jobs.milegi.in/questionbank/questionsolution?
page=62 Ques 1845
A2 Q 4 : https://www.coursehero.com/file/p6tag/3-CONCLUDING-REMARKS-
You-are-once-again-invited-to-contact-us-if-you-experience/ Ques 1
A1 Q 11:
https://books.google.com.om/books?
id=dNTYAgAAQBAJ&pg=PA507&lpg=PA507&dq=The+relationship+becomes+stabili
zed,
+displaying+greater+levels+of+trust+and+commitment+between+the+partners.
+This+is+referred+to+as&source=bl&ots=aOb3C_EeA9&sig=YAuS1aQtaEMh7J9Ea
yNL2-4SC98&hl=en&sa=X&redir_esc=y#v=onepage&q=The%20relationship
%20becomes%20stabilized%2C%20displaying%20greater%20levels%20of%20trust
%20and%20commitment%20between%20the%20partners.%20This%20is
%20referred%20to%20as&f=false
Source 1: http://www.google.com/url?
sa=t&rct=j&q=&esrc=s&source=web&cd=5&ved=0ahUKE
wiypYCbkobTAhXBvhQKHbfyDM8QFgg2MAQ&url=http%3A
%2F%2Ftestbanktop.com%2Fwp-content%2Fuploads
%2F2016%2F12%2FDownloadable-Test-Bank-for-Services-
Marketing-Concepts-Strategies-Cases-4th-Edition-
Hoffman-CHAPT24eHoffman-
1.doc&usg=AFQjCNH5C0NKokBq7_l1qLI_eha8kjm7JQ
CHAPTER 2
MULTIPLE CHOICE QUESTIONS
It is generally accepted that the _______ includes the soft parts of the economy consisting
of nine industry supersectors.
service economy
industrial economy
agricultural economy
information economy
goods economy
ANS: A
REF: 32
Who provides an overview of each of the nine supersectors as well as a career guide?
A government
US Bureau of Labor Statistics
Federal Trade Commission
Federal Communication Commission
American Marketing Association
ANS: B
REF: 32
Financial activities supersector consists of all the following except:
Finance
Insurance
Social assistance
Investments
Securities
ANS: C
REF: 34
The world's largest industry in the private sector and highest projected generator of jobs is:
business services
the hospitality industry
health services
professional services
the food service industry
ANS: C
REF: 34
Which subsector is the second largest employment industry, accounting for 13.3 million
jobs?
Educational services
Healthcare
Social assistance
Professional services
The food services
ANS: A
REF: 34
Employment in the Department of Homeland Security is expected to increase while the

other jobs within which supersector will experience decline?
Educational
Business
Government
Information
Leisure and Hospitality
ANS: C
REF: 36
The service supersector that is the fastest growing sector in terms of employment is:
Wholesale and retail trade
Transportation and warehousing
Financial activities
Professional and business services
Education and health services
ANS: E
REF: 34
The leisure and hospitality industry comprises a variety of services. Which of the following is
not one of them?
food service
lodging
travel and tourism
meeting and convention planning
All the above are part of the hospitality industry
ANS: E
REF: 38
More than ____ percent of the workforce within the Arts, Entertainment, and Recreation
subsector has no formal education beyond high school.
35
40
45
50
55
ANS: B
REF: 38
____ percent of employees within the food service and drinking establishments are between
the ages of 16 and 19.
15
18
19
20
22
ANS: E
REF: 38
The professional and business supersector includes all of the following except:
computer services
legal advice
hospitals
accounting
architectural
ANS: C
REF: 39
Which supersector has consulting projected to be the fastest growing service and one of the
highest paid for the period of 2006-2016?
Transportations and Warehousing
Professional and Business Services
Wholesale and Retail Trade
Education and Health Services
Other Services
ANS: B
REF: 39
Which of the following is considered as part of the other service sector?
pet services
health care
dentists
physicians
engineers
ANS: A
REF: 40
Most wholesalers are small, employing fewer than 20 workers. Which of the following is not
an occupation in which 7 out of 10 wholesalers work?
Administrative support
Sales
Transportation
Purchasing
Material-moving
ANS: D
REF: 40
The term that reflects the belief that without manufacturing, there will be less for people to
service and more people available to do less work is:
Materialismo snobbery
manufacturing superiority
industrial champions
manufacturing dichotomization
none of the above
ANS: A
REF: 41
The service industry criticism that low wages will possibly lead to dramatic changes in future
governments is:
Materialismo snobbery
dichotomization of wealth
service industries are slow to adopt new technology
service productivity is weak
service inflation is difficult to control
ANS: B
REF: 41
Paying close attention to whether ones actions are right or wrong and why one is behaving
in that matter is referred to as:
business ethics
dichotomization of wealth
ethical vigilance
service ethics
materialism snobbery
ANS: C
REF: 42
The principles of moral conduct that guide behavior in the business world is called:
business ethics
ethics
ethical vigilance
service ethics
all of the above
ANS: A
REF: 42
Consumers often have a difficult time objectively evaluating services. This is due primarily
to:
a. intangibility
b. inseparability
c. perishability
d. standardization
e. heterogeneity
ANS: A
REF: 44
Which of the following reasons is not an explanation for why service consumers are
particularly vulnerable to ethical misconduct?
a. services possess few search attributes
b. services are often technical and specialized
c. services are deeds, efforts, or performances
d. the time lapse between performance and evaluation is sometimes conducted in the
distant future
e. many services are sold without guarantees and warranties.
ANS: C
REF: 44
Which of the following reasons is not an explanation for why service consumers are
particularly vulnerable to ethical misconduct?
a. services are provided by boundary-spanning personnel
b. variability in service performance is somewhat accepted
c. outcome-based reward systems may encourage ethical misconduct
d. consumers are involved in the production process
e. other consumers are involved in the production process
ANS: E
REF: 44
Service consumers often have little prepurchase information available to assist in making an
informed decision. This is due to:
a. the consumer's involvement in the production process
b. services are performed by boundary-spanning personnel
c. services possess few search attributes
d. service providers are inherently unethical
e. services are sold without guarantees
ANS: C
REF: 44
Service providers who deliver their services outside the firm's physical facilities are called:
a. roaming salespeople
b. expanding service providers
c. boundary-spanning personnel
d. area coordinators
e. regional responders
ANS: C
REF: 45
Situations where the service provider feels torn between the needs of the customer, the
organization, and the service provider's own personal interest are referred to as:
a. cognitive moral development
b. conflict of interest
c. organizational relationships
d. structure conflict
e. relationship conflict
ANS: B
REF: 47
Tim is an insurance agent who works for a large insurance agency. Tim's friend, who is also
his client, wants Tim to coach him on how to obtain a larger insurance settlement than what
he legitimately has coming to him. This type of ethical issue is called:
a. cognitive moral development
b. structure conflict
c. organizational relationships
d. conflict of interest
e. relationship conflict
ANS: D
REF: 48
The characteristics of truthfulness, integrity, and trustworthiness is called:
a. honesty
b. reward system
c. ethics
d. fairness
e. moral development
ANS: A
REF: 48
The process through which an individual adapts and comes to appreciate the values, norms,
and required behavior patterns of an organization is called:
a. a code of ethics
b. standards of conduct
c. employee socialization
d. rules for ethical conduct
e. conduct regulations
ANS: C
REF: 49
Formal standards of conduct that assist in defining proper organizational behavior are called:
a. a code of ethics
b. standards of conduct
c. employee socialization
d. rules for ethical conduct
e. conduct regulations
ANS: A
REF: 49
Which of the following statements are correct?
a. research indicates that employees desire a code of ethics
b. research indicates that employees of firms that have codes of ethics believe that
violators of the code should be punished
c. leaders must be examples of the standards of ethical conduct
d. employees often emulate the behavior of their supervisors
e. All of the above
ANS: E
REF: 50
Which of the following is not a suggestion for controlling and managing ethical behavior?
a. employee socialization
b. corrective control
c. service/product knowledge
d. opportunity
e. standards of conduct
ANS: D
REF: 50
SHORT-ANSWER ESSAYS
Rank and discuss the projected growth rates of the nine service supersectors.
ANS:
For the period 2006 2016, projected growth rates of the nine service supersectors
including: (1) education and health services, (2) professional and business services, (3)
information, (4) financial activities, (5) leisure and hospitality, (6) wholesale and retail trade,
(7) transportation and utilities, (8) government, (9) other services
Answers may vary. The highest projected growth is Education and health services.
Education will see the growth because one in four Americans is currently enrolled in
educational institution. Health services are currently the largest industry in the private
sector. The second highest projected growth is professional and business services because
the supersector includes multitude of activities. Professional, scientific, and technical
services is one of the highest paying industries across all supersectors. Finally, the third
highest ranked supersector is information, software publishers are currently the fastest
growing industry in the economy.
REF: 33-34
Discuss how the term materialismo snobbery is related to service wages.
ANS:
Materialismo snobbery reflects the belief that without manufacturing there will
be less for people to service and more people available to do less work.
As a result, the supply of labor will go up and at the same time the demand for
labor will go down. Both effects will drive the price of labor down.
REF: 41
Discuss the comparisons of changing from an agricultural economy to an industrial economy

as they relate to the changes associated with moving from an industrial economy to a
service economy.
ANS:
In 1850, 65 percent of the population was connected to farming.
During this period, many voiced concern over workers leaving their farms to work in
factories.
Today, less than 2 percent of the U.S. labor force is involved in farming operations.
Similarly, with advances in technology and new management practices, the need no longer
exists to have as many people in manufacturing as we had in the mid 1900s.
REF: 41
Discuss the reasons that consumers are particularly vulnerable to ethical misconduct within
the service sector.
ANS:
services possess few search attributes;
services are often technical and specialized, thereby, difficult to understand;
a time lapse sometimes exist between service performance and consumer evaluation;
many services are sold without warranties or guarantees;
many services are provided by unsupervised boundary-spanning personnel;
services are nonstandardized; consequently, some variability is accepted;
reward structures based solely on sales tend to reward and fail to punish ethical
misconduct.;
due to the consumer's involvement in the production process, consumers often accept part
of the blame for less than perfect performance.
REF: 44
Describe the consequences of ethical misconduct.
ANS:
Employees forced to deal with ethical issues on a continuous basis frequently suffer from:
job-related tension,
frustration,
anxiety,
ineffective performance (i.e., reduced sales and reduced profits),
turnover intentions and experience lower job satisfaction.
In addition to the personal effects of ethical misconduct, the organization as a whole suffers.
Ethical improprieties have also been linked to:
customer dissatisfaction (loss of sales),
unfavorable word-of-mouth publicity for the organization, and
negative public images for the entire industry.
REF: 44-45
Discuss strategies that attempt to control ethical behavior.
ANS:
Strategies suggested to control the ethical behavior of personnel include:
employee socialization,
specifying standards of conduct through codes of ethics,
leadership training,
increasing employee service/product knowledge,
monitoring employee performance relative to ethical conduct, and
stress to employees the benefits of long-term customer relationships.
REF: 49-50
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%2F%2Fsbuweb.tcu.edu%2Fbjones%2F20263%2FWord
%2Ftests%2Fold%2FDSP%252020263%2520Exam%2520II
%2520Key.doc&usg=AFQjCNGwmK4UCr8FyxOEJgtHBIRZ_3
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E-Commerce Exam II Name : _____________________
1. To the __________, physical location does not matter because the Internet allows
anyone to link to any Web site no matter where in the world that site might be.
a. bricks-and-clicks retailer
b. e-tailer
c. bricks-and-mortar retailer
d. B-to-G business
e. location always matters
2. What is true regarding competitive advantage.

a. companies must have it to survive
b. a high tech approach is necessary to derive it
c. information systems to key to its development
d. it is difficult to sustain
e. none of the above
3. Perhaps a potential customers most common path to a previously unknown website

is through a(n) __________.
a. search engine
b. online advertisement
c. personal contact
d. print advertisement
4. A competitive advantage derived from __________ is generally considered the best

approach for a company.
a. product placement
b. price
c. marketing
d. improved value chain and/or supply chain efficiency
5. When the supermarket scans your premier customer card it links you to your
purchases and then uses that information to establish a personal shopping pattern
for you. Subsequently, the supermarket uses that information to target advertising
(like coupons and mailers) directly to you based on your established shopping
patterns, a form of one-to-one, __________ marketing.
a. spam-based
b. mass
c. modified
d. e-commerce
e. relationship
6. Purchasing new computers or technologies generally leads to a competitive

advantage for a company.
a. true b. false
7. Web sites use __________ to compile personal information on their visitors and then
use the information to create customer profiles.
a. cookies
b. transition pages
c. registration forms
d. a and c
e. b and c
8. Digital products, such as software, music, digitized images, and electronic games are
a great fit for consumer focused (B2C) e-commerce because __________.
a. they are always free
b. electronic distribution is more efficient than alternative distribution
channels for digital products
c. digital products are not a good fit for B2C e-commerce
d. they cannot be easily monitored
9. When measuring the effectiveness on an online advertisement, the __________ is the

percentage of visitors to a page who click on an advertisement.
a. click ratio
b. click rate
c. nielsen rating
d. hit ratio
e. click-through rate
10. __________ is/are used to pay for microtransactions.
a. e-cash
b. digital cash
c. bank accounts
d. either A or B
11. __________ are used by consumers to locate the best price for a desired product
a. shopping bots
b. search engines
c. middleware routines
d. worms
e. spam
12. The development of __________ has been more evolutionary than revolutionary.
a. consumer focused e-commerce
b. B2C e-commerce
c. the dot-coms
d. intra-business e-commerce
e. consumer focused start-ups
13. Early business application programs focused on __________.

a. individual processes
b. automating selected manual tasks
c. neither A nor B
d. both A and B
14. Viewing a system (such as an organization) as a set of individual processes leads to

__________.
a. sub-optimization
b. optimization
c. standardization
d. isolation
e. process maximization
15. Islands of automation do not allow for productivity of individual functional groups.
a. true b. false
16. A __________ is an existing, often relatively inefficient application developed for an old
platform.
a. web application
b. functional application
c. resistant application
d. mission critical
e. legacy application
17. On a(n) __________ architecture, the server does most of the work.
a. fat client
b. island of automation
c. Richard Simmons client
d. thin client
e. web application
18. __________ is the act ferreting out previously unknown patterns and relationships from
a set of data.
a. database management
b. data mining
c. enterprise resource planning
d. data searching
e. data surfing
19. A(n) __________ is a private corporate network that uses standard Internet protocols
and interfaces.
a. ethernet
b. extranet
c. local area network
d. TCP/IP network
e. intranet
20. A __________ application is one that the company depends upon for its well-being.
a. dynamic
b. static
c. urgent need
d. web based
e. mission critical
21. For a company to obtain competitive advantage it must use a technology/process

that is:
a. non-substitutable
b. high tech
c. not easily copied
d. a and c
e. b and c
22. Intra-organizational e-commerce is __________ focused. B2B focuses on improving

information exchanges throughout the __________.
a. supply chain/value chain
b. customer/supply chain
c. value chain/supply chain
d. customer/value chain
23. In an effort to increase inter-organizational information flow, many companies expand

access to corporate intranets to include selected trading partners and customers by
creating a(n) __________.
a. EDI exchange
b. Extranet
c. VPN
d. RAND
e. VAN
24. __________ is the process of planning, implementing, and controlling the flow of goods
and services from point of origin to point of consumption.
a. CRM
b. surplus management
c. transportation
d. logistics
25. __________ includes software and integration efforts intended to increase customer
satisfaction and loyalty.
a. supply chain management
b. e-procurement
c. dynamic servicing
d. human services
e. CRM
26. The general premise of __________ is to effectively manage the flow of product,
information, and finances between all trading partners.
b. value chain management
c. logistics management
d. e-procurement
e. e-tailing
27. __________ is the electronic transmission of business transaction documents directly

between the computers of trading partners in a standard message format.
a. ERP
b. encapsulation
c. B2B
d. transaction processing
e. none of the above - EDI
28. Which of the following is likely to have the lowest cost of entry?
a. an e-retailer
b. a bricks-and-mortar presence
c. a bricks-and-clicks presence
d. a traditional storefront
e. all are about equal
29. Before the dot-com bubble burst, a proposed B2C venture that could legitimately
claim __________ had relatively little trouble getting startup funding.
a. competitive prices
b. good marketing strategies
c. convenience
d. first mover status
e. all of the above.
30. The ultimate objective of a companys website is to add enough value to achieve
__________, a state in which the customer has a vested interest to stay with the
company because switching to a competitor entails significant switching costs.
a. loyalty
b. integration
c. interconnection
d. lock-in
e. a dependency relationship
31. Consumer interaction, the essence of consumer focused (B2C) e-commerce, is the
front end to __________.
a. the value chain (intra-business e-commerce)
b. the supply chain (B2B e-commerce)
c. neither
d. both
32. __________, the act of modifying a product or service to fit a given users
requirements, is a possible e-commerce source of sustainable competitive
advantage.
a. specialization
b. customization
c. targeting
d. tuning
33. Intra-business e-commerce is sometimes called __________ e-commerce.

a. B2C
b. B2B
c. C2C
d. B2G
e. none of the above B2E
34. In a client/server application, the __________ logic provides the user interface.
a. business
b. information/data
c. presentation
d. all of the above
35. We can directly connect information systems with increased firm performance.
a. true b. false
36. A __________ is operated by a trusted third party that offers bandwidth and other
value added services to facilitate interconnectivity among multiple organizations.
a. virtual private network (VPN)
b. value added network (VAN)
c. both A and B
d. neither A nor B
37. What is the primary responsibility of the Chief Information Officer?

a. manage programmers
b. avoid failed systems
c. set and guide the information systems strategy
d. provide technical expertise
e. know the technical status organizational competitors
38. A(n) __________ is a pseudo private data network that uses public bandwidth in
combination with a tunneling protocol and security procedures.
a. value added network (VAN)
b. intranet
c. virtual private network (VPN)
d. leased line
e. virtual applied network
39. Which of the following forms of connectivity is the least scalable?

a. VAN
b. VPN
c. public bandwidth
d. private leased network
e. the Internet
40. A VPN relies on a special protocol understood only by the VPN software to transmit
packets, a technique called __________.
a. encryption
b. packet switching
c. tunneling
d. packet hiding
packet mining
Bonus (1 pt): What is the name of TCUs football team?
a. Rebels
b. Gauchos
c. UC Santa Cruz Banana Slugs
d. Gators
e. Horned Frogs (hint pick this one)
Source 3: http://maca.ac.in/MCQ/BCOMECOMM/IIISEM.pdf
No answers
DR.RAFIQ ZAKARIA CAMPUS-I
MAULANA AZAD COLLEGE OF ARTS, SCIENCE & COMMERCE
DEPARTMENT OF COMMERCE & MANAGEMENT SCIENCE
CLASS: E-COM III SEM SUBJECT: ECE-III
(Multiple Choice type Questions)
1. To the __________, physical location does not matter because the Internet allows anyone
to link to any Web site no matter where in the world that site might be.
a. bricks-and-clicks retailer
b. e-tailer
c. bricks-and-mortar retailer
d. B-to-G business
e. location always matters
2. What is true regarding competitive advantage.
a. companies must have it to survive
b. a high tech approach is necessary to derive it
c. information systems to key to its development
d. it is difficult to sustain
3. Perhaps a potential customers most common path to a previously unknown website is
through a(n) __________.
a. search engine
b. online advertisement
c. personal contact
d. print advertisement
4. A competitive advantage derived from __________ is generally considered the best
approach for a company.
a. product placement
b. price
c. marketing
d. improved value chain and/or supply chain efficiency
5. When the supermarket scans your premier customer card it links you to your purchases
and then uses that information to establish a personal shopping pattern for you.
Subsequently, the supermarket uses that information to target advertising (like coupons
and mailers) directly to you based on your established shopping patterns, a form of oneto-
one, __________ marketing.
a. spam-based
b. mass
c. modified
d. e-commerce
e. relationship
6. Purchasing new computers or technologies generally leads to a competitive advantage for
a company.
a. true b. false
7. Web sites use __________ to compile personal information on their visitors and then use
the information to create customer profiles.
a. cookies
b. transition pages
c. registration forms
d. a and c
e. b and c
8. Digital products, such as software, music, digitized images, and electronic games are a
great fit for consumer focused (B2C) e-commerce because __________.
a. they are always free
b. electronic distribution is more efficient than alternative distribution channels for
digital products
c. digital products are not a good fit for B2C e-commerce
d. they cannot be easily monitored
9. When measuring the effectiveness on an online advertisement, the __________ is the
percentage of visitors to a page who click on an advertisement.
a. click ratio
b. click rate
c. nielsen rating
d. hit ratio
e. click-through rate
10. __________ is/are used to pay for microtransactions.
a. e-cash
b. digital cash
c. bank accounts
d. either A or B
11. __________ are used by consumers to locate the best price for a desired product
a. shopping bots
b. search engines
c. middleware routines
d. worms
e. spam
12. The development of __________ has been more evolutionary than revolutionary.
a. consumer focused e-commerce
b. B2C e-commerce
c. the dot-coms
d. intra-business e-commerce
e. consumer focused start-ups
13. Early business application programs focused on __________.
a. individual processes
b. automating selected manual tasks
c. neither A nor B
d. both A and B
14. Viewing a system (such as an organization) as a set of individual processes leads to
__________.
a. sub-optimization
b. optimization
c. standardization
d. isolation
e. process maximization
15. Islands of automation do not allow for productivity of individual functional groups.
a. true b. false
16. A __________ is an existing, often relatively inefficient application developed for an old
platform.
a. web application
b. functional application
c. resistant application
d. mission critical
e. legacy application
17. On a(n) __________ architecture, the server does most of the work.
a. fat client
b. island of automation
c. Richard Simmons client
d. thin client
e. web application
18. __________ is the act ferreting out previously unknown patterns and relationships from a
set of data.
a. database management
b. data mining
c. enterprise resource planning
d. data searching
e. data surfing
19. A(n) __________ is a private corporate network that uses standard Internet protocols and
interfaces.
a. ethernet
b. extranet
c. local area network
d. TCP/IP network
e. intranet
20. A __________ application is one that the company depends upon for its well-being.
a. dynamic
b. static
c. urgent need
d. web based
e. mission critical
21. For a company to obtain competitive advantage it must use a technology/process that is:
a. non-substitutable
b. high tech
c. not easily copied
d. a and c
e. b and c
22. Intra-organizational e-commerce is __________ focused. B2B focuses on improving
information exchanges throughout the __________.
a. supply chain/value chain
b. customer/supply chain
c. value chain/supply chain
d. customer/value chain
23. In an effort to increase inter-organizational information flow, many companies expand
access to corporate intranets to include selected trading partners and customers by
creating a(n) __________.
a. EDI exchange
b. Extranet
c. VPN
d. RAND
e. VAN
24. __________ is the process of planning, implementing, and controlling the flow of goods
and services from point of origin to point of consumption.
a. CRM
b. surplus management
c. transportation
d. logistics
25. __________ includes software and integration efforts intended to increase customer
satisfaction and loyalty.
b. e-procurement
c. dynamic servicing
d. human services
e. CRM
26. The general premise of __________ is to effectively manage the flow of product,
information, and finances between all trading partners.
b. value chain management
c. logistics management
d. e-procurement
e. e-tailing
27. __________ is the electronic transmission of business transaction documents directly
between the computers of trading partners in a standard message format.
a. ERP
b. encapsulation
c. B2B
d. transaction processing
e. none of the above - EDI
28. Which of the following is likely to have the lowest cost of entry?
a. an e-retailer
b. a bricks-and-mortar presence
c. a bricks-and-clicks presence
d. a traditional storefront
e. all are about equal
29. Before the dot-com bubble burst, a proposed B2C venture that could legitimately claim
__________ had relatively little trouble getting startup funding.
a. competitive prices
b. good marketing strategies
c. convenience
d. first mover status
e. all of the above.
30. The ultimate objective of a companys website is to add enough value to achieve
__________, a state in which the customer has a vested interest to stay with the company
because switching to a competitor entails significant switching costs.
a. loyalty
b. integration
c. interconnection
d. lock-in
e. a dependency relationship
31. Consumer interaction, the essence of consumer focused (B2C) e-commerce, is the front
end to __________.
a. the value chain (intra-business e-commerce)
b. the supply chain (B2B e-commerce)
c. neither
d. both
32. __________, the act of modifying a product or service to fit a given users requirements,
is a possible e-commerce source of sustainable competitive advantage.
a. specialization
b. customization
c. targeting
d. tuning
33. Intra-business e-commerce is sometimes called __________ e-commerce.
a. B2C
b. B2B
c. C2C
d. B2G
e. none of the above B2E
34. In a client/server application, the __________ logic provides the user interface.
a. business
b. information/data
c. presentation
d. all of the above
35. EBanking is also known as
a. ATMs b. Net banking
c. Traditional banking d. None of these
36. is backbone of all Epayments in Ecommerce
a. EFT b. EPS
c. PayPal d. None of these
37. Which one is a client level threat?
a. Malicious code b. Viruses
c. Active contents d. All the above
38. Which one is not an encryption technique?
a. RSA b. DES
c. AES d. FTP
39. Which one is an encryption technique?
a. RSA b. DES
c. AES d. All of the above
40. Which one is not a server level threat?
a. Malicious code b. CGI threats
c. Database threats d. Buffer overflows
CLASS: E.COM-III SEM. SUBJECT: BUSINESS LAWS-I
1. Which of the following is false? An offer to be valid must:
(a) Intend to create legal relations.
(b) Have certain & unambiguous terms.
(c) Contain a term the non-compliance of which would amount to acceptance.
(d) Be communicated to the person to whom it is made.
2. Which of the following statement is true?
(a) Consideration must result in a benefit to both parties.
(b) Past consideration is no consideration in India.
(c) Consideration must be adequate.
(d) Consideration must be something, which a promisor is not already bound to do.
3. Which of the following is not an exception to the rule No Consideration, No Contract?
(a) Compensation for involuntary services.
(b) Love & Affection.
(c) Contract of Agency.
(d) Gift.
4. An agreement enforceable at law is a
(a) enforceable acceptance (b) accepted offer
(c) approved promise (d) contract
5. Every promise and every set of promises, forming the consideration for each other,is an
(a) agreement (b) contract
(c) offer (d) acceptance.
6. Which is correct
(a) proposal + acceptance = promise (b) promise + consideration = agreement
(c) agreement + enforceability = contract (d) all the above.
7. A, B and C jointly promised to pay Rs. 60,000 to D. Before performance of the contract,
C dies. Here, the contract
(a) becomes void on Cs death.
(b) should be performed by A and B along with Cs legal representatives.
(c) should be performed by A and B alone.
(d) should be renewed between A, B and D.
8. Generally, which of the following damages are not recoverable?
(a) Ordinary damages.
(b) Special damages.
(c) Remote damages.
(d) Nominal damages.
9. A mistake as to a law not in force in India has the same effect as:
(a) mistake of fact (b) mistake of Indian law
(c) fraud (d) misrepresentation
10. An agreement which is enforceable by law at the option of one or more of the parties
thereon but not at the option of the other or others is a ____________
(a) Valid Contract (b) Void Contract.
(c) Voidable Contract. (d) Illegal Contract.
11. When the consent of a party is not free, the contract is _____________
(a) Void. (b) Voidable.
(c) Valid. (d) Illegal.
12. Ordinarily, a minors agreement is ____________
(a) Void ab initio (b) Voidable.
(c) Valid. (d) Unlawful.
13. The threat to commit suicide amounts to ___________
(a) Coercion. (b) Undue Influence.
(c) Misrepresentation. (d) Fraud.
14. An agreement the object or consideration of which is unlawful, is _____________
(a) Void. (b) Valid.
(c) Voidable. (d) Contingent.
15. A contingent contract is ____________
(a) Void (b) Voidable
(c) Valid (d) Illegal
16. A agrees to sell his car worth Rs. 100,000 to B for Rs. 20,000 only, and As consent
was obtained by coercion. Here, the agreement is __________
(a) void (b) valid
(c) voidable (d) unlawful
17. A agrees to pay Rs. 5 lakhs to B if he (B) procures an employment for A in Income Tax
Department. This agreement is _________
(a) void (b) valid
(c) voidable (d) contingent.
18. Agreement-the meaning of which is uncertain is ________
(a) Valid. (b) Void.
(c) Voidable. (d) Illegal.
19.The law of contract in India is contained in
(a) Indian Contract Act, 1862 (b) Indian Contract Act, 1962
(c) Indian Contract Act, 1872 (d) Indian Contract Act, 1972
20. A void agreement is one which is
(a) Valid but not enforceable
(b) Enforceable at the option of both the parties.
(c) Enforceable at the option of one party
(d) Not enforceable in a court of law.
21. Which of the following is false? An acceptance:
(a) Must be communicated.
(b) Must be absolute and unconditional.
(c) Must be accepted by a person having authority to accept.
(d) May be presumed from silence of offeree.
22. A proposal when accepted becomes a
(a) Promise. (b) Contract.
(c) Offer. (d) Acceptance.
23. Which of the following statement is false? Consideration:
(a) Must move at the desire of the promisor.
(b) May move from any person.
(c) Must be illusory.
(d) Must be of some value.
(a) A contract with a minor is voidable at the option of the minor.
(b) An agreement with a minor can be ratified after he attains majority.
(c) A person who is usually of an unsound mind cannot enter into contract even when he
is of a sound mind.
(d) A person who is usually of a sound mind cannot enter into contract when he is of
unsound mind.
(a) A threat to commit suicide does not amount to coercion.
(b) Undue influence involves use of physical pressure.
(c) Ignorance of law is no excuse.
(d) Silence always amounts to fraud.
26. On the valid performance of the contractual obligations by the parties, the contract
(a) is discharged. (b) becomes enforceable.
(c) becomes void. (d) none of these.
27. A contract is discharged by rescission which means the
(a) change in one or more terms of the contract.
(b) acceptance of lesser performance.
(c) abandonment of rights by a party.
(d) cancellation of the existing contract.
28. Moral pressure is involved in the case of ___________
(a) Coercion . (b) Undue Influence.
(c) Misrepresentation. (d) Fraud.
29. Sometimes, a party is entitled to claim compensation in proportion to the work done by
him. It is possible by a suit for ________
(a) damages (b) injunction
(c) quantum meruit (d) none of these.
30. A contract dependent on the happening or non-happening of future uncertain event, is a-
(a) Uncertain contract (b) Contingent contract.
(c) Void contract. (d) Voidable contract.
31. A agrees to pay Rs. One lakh to B if he brings on earth a star from sky. This is acontingent
contract and __________.
(a) Illegal (b) Valid
(c) Voidable (d) Void.
32. As a general rule, an agreement made without consideration is __________
(a) void (b) voidable
(c) valid (d) unlawful
33. An agreement made with free consent to which the consideration is lawful but
inadequate, is _________.
(a) void (b) valid
(c) voidable (d) unlawful
34. In case of breach of contract, which of the following remedy is available to the
aggrieved party?
(a) Suit for rescission. (b) Suit for damages.
(c) Suit for specific performance. (d) All of these.
35. A contract is discharged by novation which means the
(a) cancellation of the existing contract.
(b) change in one or more terms of the contract.
(c) substitution of existing contract for a new one.
(d) none of these.
36. Property of the company belongs to
a) Company b) Share holders
c) Members d) Promoters
37. Which company shares can be freely transferable
a) Private Company b) Public Company
c) Both (a) & (b) d) None of the above
38. Minimum number of members in case of public company
a) 1 b) 2 c) 5 d) 7
39. Minimum number of members in case of private company is
a) 1 b) 2 c) 3 d)
40. Maximum no. of members in case of private company is
a) 50 b) 100 c) 150 d) 200
41. Maximum no .of members in case of public company is
a) 0 b) unlimited c) 50 d) 100
42. How many months did the company can continue its business u/s 45 _______
a) 1 b) 2 c) 5 d) 6
43. Minimum subscription should be received with in ______days
a) 120 b) 125 c) 130 d) 135
44. If minimum subscription is not received application money should be refunded with in
______days
a) 20 b) 25 c) 30 d) 10
45. The liability of members if company is limited by guarantee.
a) Unpaid value of shares b) Guarantee amount
c) Unlimited liability d) None of the above
46. The companies which are formed under special Act. Those companies are called as
a) Chartered companies b) Statutory companies
c) Registered companies d) None of these
47.The companies which are formed under companies Act. 1956. They will be called as
a) Chartered companies b) Statutory companies
c) Registered companies d) None of these
48. Public company Should start business only after getting certificate of
a) Incorporation b) Commencement of business
c) None of these
49.Private company can start business only after getting certificate of
a) Incorporation b) Commencement of business
c) None of these
50. A company can change its name at its own discretion by passing _________
a) Ordinary resolution b) Special resolution
c) Boards resolution d) None of the above
51. In the MOA there are 6 classes. We can alter all clauses expect one clause. What is that
clause?
a) Objects clause b) Name clause
c) Association clause d) None of these
52. Ultra vires means
a) Beyond the power b) with in the power
c) Both d) None of the above
53. ______ conceives the idea of the business
a) Promoters b) Directors
c) Auditors d) None of the above
54. Private Company need not issue prospectus
a) Yes b) No
55. Part of the issued capital taken by public is called ___________
a) Subscribed b) Called up capital
c) Un called capital d) Paid up capital
56.Part of authorized capital which is offered by the company for subscription.
a) subscribed b) Issued
c) Un called d) called up
CLASS: E-COMM-III SEM. SUBJECT: MANAGEMENT PRESPECTIVE-I
1. Important decisions in the business are made by____________
a) Management
b) Administration
c) Organization
d) Employee
2. Management is a profession because it has____________
a) Specialized knowledge
b) Training facilities
c) Code of conduct
d) None of these
3. According to views expressed by different management authorities, management and
administration are_____________
a) Synonymous
b) Different
c) Synonymous and different
d) None of these
4. Management is a ______________to co-ordinate group effort towards attaining the
cherished goals of the business.
a) Activity
b) Process
c) Objective
d) Control
5. --------------------------- is the basic and motivating factor of management
a) Human element
b) Capital
c) Direction
d) Control
6. Top management does _________ and _________function
a) Supervisory
b) Operative
c) Executive
d) Determination and administration
7. Which function of management involves filling, and keeping filled, the positions in
the organization structure?
a) Organizing
b) Planning
c) Staffing
d) Controlling
8. Administration is the involvement of __________management.
a) Top
b) Low
c) Middle
d) None of the Above
9. __________________deals with setting, seeking and reaching objectives.
a) Management
b) Administration
c) Managers
d) Organization
10. Management has _____________objectives
a) Pre-determined
b) Post-determined
c) Both a & b
d) None of the above
11. Supervisory level of management is directly linked to the ________functions of the
firm.
a) Similar
b) Routine
c) Common
d) Planning
12. Lower level management is also known as_____________management
a) Directive
b) Authoritative
c) Supervisory
d) Thinking
13. ___________ is the art of getting things done through others.
a) Manager
b) Employee
c) Management
d) Administration
14. In an organization generally there are _________levels of management
a) One
b) Two
c) Four
d) Three
15. Henry Fayol was born in _________
a) 1772
b) 1841
c) 1986
d) 1887
16. Henry Fayol spent his life as _________
a) Doctor
b) A mining Engineer
c) Management Thinker
d) Civil Engineer
17. How many principles are given by Henry Fayol?
a) 11
b) 12
c) 13
d) 14
18. Father of Scientific management?
a) Henry Fayol
b) Peter Drucker
c) F.W.Taylor
d) Elton Mayo
19. Management principles are _________________applicable
a) Universally
b) Organizationally
c) Both a& b
20. Authority & ________ always co-exist.
a) Planning
b) Responsibility
c) Organization
d) Level of management
21. Esprit de corps means union is _______\
a) Strength
b) Weakness
c) Team
22. All management principal are _________important.
a) Equally
b) Different
c) Same
23. ___________ is a systematically organized body of knowledge based on proper
findings and exact principles and is capable of verification.
a) Art
b) Science
c) Commerce
d) Profession
24. _______ is the bringing about a desired result through the application of skills.
a) Science
b) Arts
c) Profession
d) None of the above.
25. According to __________,management is the art of getting things done through
others
a) Henri Fayol
b) Harold Koontz
c) Mary Parker Follet
d) Peter Drucker
26. Management is __________function
a) Low
b) High
c) Middle
d) All of the above
27. Administration is _____________________function
a) Low
b) Middle
c) High
28. Ralph Davis classified managerial functions into __________categories.
a) One
b) Two
c) Three
d) Four
29. Luther Gullick coined the word ___________to describe the functions of
management.
a) POSDCORB
b) POSDC
c) FOCCC
d) CORBPOSD
30. Planning is ____________of all managerial activities.
a) Beginning
b) End
c) Beginning and end
d) All the above
31. Organizing involves____________
a) Entrusting work
b) Granting authority
c) Fixing responsibility
d) All the above
32. Classical theory is also known as________
a) Structural theory of organization
b) Modern theory
c) Both a & b
33. F.W.Taylor launched a new movement_______
a) 1910
b) 1845
c) 1847
d) 1925
34. The scientific management theory is known as ______
a) Mental Revolution
b) Social Revolution
c) Psychological Revolution
35. Who is the Father of Administrative theory??
a) F.W.Taylor
b) Henri Fayol
c) Elton Mayo
d) Max webber
36. Elton mayo is generally recognized as the_____________
a) Scientific management theory
b) Classical theory
c) Human Relations School
37. In which year George Elton Mayo and Fritz gave Hawthrone Experiment.
a) 1927
b) 1825
c) 1925
d) 1910
38. Illumination Experiment was conducted to establish ______
a) Establish relationship between manager and employee
b) Establish relationship between organization and manager
c) Establish relationship between output and manager
d) Establish relationship between output and illumination.
39. Hawthrone Experiments are classified into _______parts
a) Two
b) Four
c) Six
d) Eight
40. Taylor was born in______ Philadelphia, U.S.A
a) 1856
b) 1857
c) 1858
d) 1855
41. The concept of MBO was given by____
a) Peter Drucker
b) Elton Mayo
c) Henry Fayol
d) McGregor
42. Planning is ___________
a) Neutral process
b) Goal oriented
c) Forward looking
d) All of the above
43. Organizing involves__________
a) Division of work
b) Grouping of identical work
c) Assigning work to appropriate persons
d) All of the above
44. Staffing involves __________of the staff.
a) Recruitment and selection
b) Training and development
c) Orientation and appraisal
d) All of the above
45. Effective controlling is _________
a) Dynamic
b) Static
c) Pre-determined
d) All of the above
46. Guiding, inspiring, instructing and overseeing people towards desired goals is
called___________.
a) Staffing
b) Controlling
c) Planning
d) Directing.
47. Management By Objectives was introduced by _________
a) Taylor
b) Elton Mayo
c) Peter Drucker
d) Maslow.
48. A process whereby superiors and subordinates jointly set goals and assess
contributions of every one to the common goals is called as ___________.
a) MBE
b) MBO
c) MBS
d) MBP
49. MBO is a ______________
a) Technique management
b) Process of management
c) Steps in management
d) Procedure in management
50. MBO is suggested by Peter F. Drucker in the year_____
a) 1951
b) 1952
c) 1953
d) 1954
51. Under which control system only extra ordinary or exceptional deviations are reported
to management for remedial action?
a) MBE
b) MBO
c) MBS
d) MBP
52. MBE is a technique of management in _____________-
a) Control
b) Planning
c) Organizing
d) Staffing
53. The last function of management is ___________
a) Planning
b) Organizing
c) Controlling
d) Directing
54. Planning is looking ahead and controlling is
a) Looking back
b) Looking front
c) Looking sideward
d) Looking down.
55. The integration of objectives and activities of an organization is
a) Control
b) Co-ordination
c) Planning
d) Organizing.
56. Co-ordination between the activities of various departments and individuals working
within the organization is known as _____
a) Vertical co-ordination
b) External co-ordination
c) Internal co-ordination
d) Horizontal co-ordination
57. Scalar chain means _______
a) Hierarchy levels
b) Chain of command
c) Delegation of authority
d) Span of control
58. Span of Control means________
a) Chain of command
b) The number of people working
c) Leadership quality
d) The number of people managed
59. _____________is a force to drive a person to action.
a) Motivation
b) Co-ordination
c) Co-operation
d) Control
60. The effective execution was written by___
a) Peter Drucker
b) Terry
c) Lousi allan
d) Henry Fayol
61. The ability to work with resources in a particular area of expertise_______
a) Technical skills
b) Human skills
c) Conceptual skills
d) Decision making skills
62. Management is what a manager does was suggested by_______________
a) Elton mayo
b) George Terry
c) Louis Allen
63. To manage is to forecast and plant organize to compound to co-ordinate and to
control. This definition was given by________
a) Henry Fayol
b) Peter Drucker
c) F. W. Taylor
d) Terry George
64. Management is the art and science of decision making and leadership was quoted by
a) Harold Koontz
b) Donald J.Clough
c) Louis Allan
d) George Terry
65. The first man who advocated the view that the management should and can be taught
is__________
a) Harold Koontz
b) Henry Fayol
c) George Terry
66. The first woman authority in management is ________
a) Lillian Gilbreth
b) Mary Parker
c) White Head
d) Elton Mayo
67. A principle relating to the arrangement of things and people______
a) Order
b) Scalar chain
c) Discipline
d) Equity
68. The Era of Scientific management is _________
a) 1880-1930
b) 1880-1931
c) 1880-1932
d) 1880-1933
69. The most popluar management thinker of modern times is ____
a) Elton Mayo
b) F.W. Taylor
c) Peter Drucker
d) Mary P.
70. Espirit de corps means________
a) Service is our motto
b) Buyer beware
c) Union is strength
d) Product is our strength.
CLASS: E.COM-III SEM. SUBJECT: FINANCIAL ACCOUNTING - III
1.Which of the following is not a feature of "Bearer Debentures"?
a) Name & address of the bearer not recorded in the Company's records
b) Debentures are transferable by mere delivery
c) Need to be registered with the Company Law Board
d) Coupons are attached to the Debentures
2. B Ltd. issued shares of Rs.10 each at a discount of 10%. Mr. C purchased 30 shares and paid
Rs.2 on application but did not pay the allotment money of Rs.3. If the company forfeited his
entire shares, the forfeiture account will be credited by
a) Rs.90
b) Rs.81
c) Rs.60
d) Rs.54
3. A company forfeited 2,000 shares of Rs.10 each (which were issued at par) held by Mr. John
for non-payment of allotment money of Rs.4 per share. The called-up value per shares was
Rs.9. On forfeiture, the amount debited to share capital will be
a) Rs.10,000
b) Rs.8,000
c) Rs.2,000
d) Rs.18,000
4. Brave Ltd. issued 60,000 shares of Rs.10 each at a discount of Re. 1 per share. The application
money was Rs.2, allotment money was Rs.4,and first call was of Re.1. The amount of final
call will be
a) Rs.3
b) Rs.2
c) Re.1
d) Rs.4
5. Asha Ltd. issued shares of Rs.100 each at a premium of 25%. Mamta, who has 2,000 shares of
Asha Ltd., failed to pay first and final call totaling Rs.5. Premium was taken by Asha Ltd. at
the time of allotment. On forfeiture of Mamta's shares, the amount to be debited to Share
premium account will be
a) Rs.5,000
b) Rs.10,000
c) Rs.15,000
d) Nil
6. Jadu Ltd. reissued 2,000 shares of Rs.10 each, which were forfeited by debiting Share
forfeiture account by Rs.3,000. These shares were reissued Rs.9 per share. The amount to the
transferred to Capital Reserve account will be.
a) Rs.3,000
b) Rs.2,000
c) Rs.1,000
d) Nil
7. Bajaj Ltd. issued 25,000 equity shares of Rs.10 each payable as Rs.2 on application, Rs.3 on
allotment, Rs.2 on first call & the balance in the final call. Archit, who has 1,000 shares paid
full value of shares with allotment money. The amount to be debited to bank account at the
time of receipt of first call money will be.
a) Rs.50,000
b) Rs.47,000
c) Rs.49,000
d) Rs.48,000
8. Light Ltd. has 10,000 5% preference shares of Rs.10 each to be redeemed after 5 years. The
company forfeited 500 preference shares on which final call of Rs.2 has not received after due
notice & cancelled these shares on account of redemption. Remaining shares were redeemed
out of reserves of the company. The amount to be credited to capital redemption reserve will
be.
a) Rs.1,00,000
b) Rs.95,000
c) Rs.99,000
d) Rs.99,500
9. G Ltd. acquired assets worth Rs.75,000 from H Ltd. by issue of shares of Rs.10 at a premium
of Rs.5. The number of shares to be issued by G Ltd. to settle the purchase consideration will
be
a) 6,000 shares
b) 7,500 shares
c) 9,375 shares
d) 5,000 shares
10. Gama Ltd. issued 10,000, 10% debentures of Rs.100 each at a discount of 10%. The entire
amount is payable on application. Application were received for 12,000 debentures. The
allotment of debentures was made on 10th October, 2006. The amount which should be
credited to the debentures account on 10th October, 2006 will be
a) Rs.12,00,000
b) Rs.10,80,000
c) Rs.9,00,000
d) Rs.10,00,000
11. Alfa Ltd. issued 20,000, 8% debentures of Rs.10 each at par. The debentures are redeemable
at a premium of 20% after 5 years. The amount of loss on redemption of debentures should
be:
a) Rs.50,000
b) Rs.40,000
c) Rs.30,000
12. Indigo Ltd. had 9000, 10% redeemable preference shares of Rs.10 each, fully paid up. The
company decided to redeem these preference shares at par by the issue of sufficient number
of equity shares of Rs.10 each fully paid up at a discount of 10%. The number of equity
shares issued should be:
a) 9,000
b) 11,000
c) 10,000
13. Preference shares amounting to Rs.1,00,000 are redeemed at a premium of 5% by issue of
shares amounting to Rs.50,000 at a premium of 10%. The amount to be transferred to capital
redemption reserve account will be
a) Rs.55,000
b) Rs.50,000
c) Rs.45,000
d) Rs.57,500
14. Brokerage on the issue of shares and debentures is a _____________ expenditure:
a) Revenue
b) Capital
c) Deferred Revenue
d) Partly capital partly revenue
15. Security premium is shown under which head in the Balance Sheet.
a) Current Liabilities
b) Miscellaneous Expenditure
c) Reserves and Surplus
d) None of these
16 .The minimum subscription as prescribed by SEBI against the entire issue is:
a) 95%
b) 90%
c) 5%
d) None
17. Dividends are usually paid upon:
a) Paid up capital
b) Called up capital
c) Issued capital
d) Reserve capital
18. X was issued 100 shares of Rs. 10 each at a premium of Re. 1, he paid application money and
allotment money which in total amounted to Rs. 5 (excluding premium) and failed to pay the
balance call money of Rs. 5. Find the maximum discount that can be given at the time reissue
of shares:
a) Rs. 4 per share
b) Rs. 5 per share
c) Rs. 2 per share
d) Rs. 6 per share
19. Redeemable preference shares must be redeemed within:
a) 5 years
b) 10 years
c) 15 years
d) 20 years
20. When debentures are issued as collateral security, interest is paid on:
a) Nominal value of debentures
b) Face value of debentures
c) Discounted value of debentures
d) No interest is paid
21.Discount on issue of debentures is a ___________
a) Revenue loss to be charged in the year of issue
b) Capital loss to be written off from capital reserve
c) Capital loss to be written off over the tenure of the debentures
d) Capital loss to be shown as goodwill
22. B Ltd. issued shares of Rs.10 each at a discount of 10%. Mr. C purchased 30 shares and paid
Rs.2 on application and the allotment money of Rs.3. He failed to pay the call money. If the
company forfeited his entire shares, the capital account will be debited by
a) Rs.120
b) Rs.300
c) Rs.180
d) Rs.150
23. S Ltd. issued 2,000, 10% Preference shares of Rs.100 each at par, which are redeemable at a
premium of 10%. For the purpose of redemption, the company issued sufficient Equity
shares of Rs.100 each at a discount of 10% per share. At the time of redemption of
Preference Shares, the amount to be transferred by the company to the Capital Redemption
Reserve Account will be
a) Rs.50,000
b) Rs.65,000
c) Rs.2,00,000
d) NIL
24. G Ltd. acquired assets worth Rs.8,10,000 from H Ltd. by issue of shares of Rs.100 at a
discount of 10%. The number of shares to be issued by G Ltd. to settle the purchase
consideration will be
a) 6,000 shares
b) 7,500 shares
c) 9,000 shares
d) 5,625 shares
25. The following information pertains to X Ltd.
a) Equity share capital called up Rs.5,00,000
b) Calls in arrear Rs. 40,000
c) Calls in advance Rs. 25,000
d) Proposed dividend 12%
26. The amount of dividend payable will be
a) Rs.50,000
b) Rs.55,200
c) Rs.46,000
d) 43,500
27. Dividends are usually paid as a percentage of __________
a) Authorized share capital
b) Net profit
c) Paid - up Capital
d) Called - up capita
28. A company forfeited 2,000 shares of Rs.10 each (which were issued at 10% discount) for non
- payment of call money of Rs.4 per share. On forfeiture, the amount credited to share
forfeiture will be
a) Rs.10,000
b) Rs.8,000
c) Rs.12,000
d) Rs.18,000
29. That portion of Share Capital which can be called up only on the winding up of the Company
is
a) Authorised Capital
b) Issued Capital
c) Subscribed Capital
d) Reserve Capital
30. When shares are forfeited, the Called Up Amount on shares is debited to -
a) Shares Forfeited Account
b) Capital Reserve Account
c) General Reserve Account
d) Capital Account
31. A Company issues 10,000 shares of Rs.100 each at a premium of 10% payable as
application Rs.25; Allotment Rs.50 and First and Final Call Rs.35. A holder of 100 shares did
not pay the final call and his shares were forfeited. In this case, Share forfeiture Account will
be credited by
a) Rs.7,500
b) Rs.6,500
c) Rs.10,000
d) Rs.9,000
32. T Ltd. has issued 14% 20,000 Debentures of Rs.100 each at a discount of 10% on April 01,
2004 and the company pays interest half - yearly on June 30, and December 31 every year.
On March 31, 2006, the amount shown as ''interest accrued but not due'' in the Balance Sheet
will be
a) Rs.70,000 shown along with Debentures
b) Rs.2,10,000 under current liabilities
c) Rs.1,40,000 shown along with Debentures
d) Rs.70,000 under current liabilities
33. P Ltd. issued 5,000, 12% debentures of Rs.100 each at a premium of 10%, which are
redeemable after 10 years at a premium of 20%. The amount of loss on redemption of
debentures to be written off every year is
a) Rs.80,000
b) Rs.40,000
c) Rs.10,000
d) Rs.8,000
34. F Ltd. purchased Machinery from G Company for a book value of Rs.4,00,000. The
consideration was paid by issue of 10% debentures of Rs.100 each at a discount of 20%. The
debenture account was credited with
a) Rs.4,00,000
b) Rs.5,00,000
c) Rs.3,20,000
d) Rs.4,80,000
35. "Proposed dividends" is shown in the Balance Sheet of a company under the head:
a) Provisions
b) Reserves and Surplus
c) Current Liabilities
d) Other Liabilities
36. A company forfeited 100 equity shares of Rs. 100 each issued at premium of 50% (to be paid
at the time of allotment) on which the first call money of Rs. 30 per share was not received,
final call of Rs. 20 is yet to be made. These shares were subsequently reissued @ Rs. 70 per
share at Rs. 80 paid up. The amount credited to capital reserve is:
a) 4,000
b) 2,000
c) 3,000
d) None
37. Share Allotment Account is a:
a) Real Account
b) Nominal Account
c) Personal Account
d) Company Account
38. 10,000 equity shares of Rs. 10 each were issued to public at a premium of Rs. 2 per share.
Applications were received for 12,000 shares. Amount of Securities Premium Account will
be:
a) Rs. 20,000
b) Rs. 24,000
c) Rs. 4,000
d) Rs. 1,600
39. Asha Ltd. issued shares of Rs. 100 each at a premium of 25%. Mamta who has Rs. 2,000
shares of Asha Ltd., failed to pay first and final call totaling Rs. 5. Premium was taken at the
time of allotment by the company. On forfeiture of Mamta's shares, the amount to be debited
to Share Premium Account will be:
a) Rs. 5,000
b) Rs. 10,000
c) Rs. 15,000
d) Nil
e)
40. If a company is not able to the excess amount of share within the reasonable time. The
company will give them interest @:
a) 15% p.a.
b) 5% p.a.
c) 7% p.a.
d) 10% p.a.
41. When debentures are issued as Collateral Security, which entry has to be passed:
a) Debenture Suspense A/c Dr. To Debenture A/c
b) No Entry has to be made
c) Either (1) or (2)
d) None
42. Premium on redemption of debentures account is ---------------
a) A real account
b) A nominal account-Income
c) A personal account
d) A nominal account-expenditure.
43 Capital Redemption Reserve is utilised to
a) To redeem Preference Shares.
b) To redeem Debentures.
c) For issue of Bonus Shares
d) None of these
44Debenture premium cannot be used to -------
a) Write off discount on issue of Shares or Debentures
b) Write off premium on redemption of Shares or Debentures
c) Pay Dividends
d) Write off capital loss
45. As per Companies Act, "Interest accured and due on debentures" should be shown
a) Under Debentures
b) As Current Liabilities
c) As Provision
d) As a reduction of Bank balance
46. Which of the following is False with respect to debentures ?
a) They can be issued for Cash
b) They can be issued for consideration other than Cash
c) They can be issued as Collateral security
d) They can be issued in lieu of dividends
47. which of the following cannot be used for the purpose of creation of Capital Redemption
Reserve Account ?
a) Profit & Loss account (Credit balance)
b) General Reserve account
c) Dividends equalization reserve account
d) Unclaimed dividends account
48. As per Schedule VI of the Companies Act, 1956, Forfeited shares account will be
a) Added to the Paid-Up Capital
b) Deducted from the Paid-Up Capital
c) Shown as a Capital Reserve
d) Shown as a Revenue Reserve
49. The document inviting offers from Public to subscribe for Shares or Debentures or Deposits
of a body Corporate is a
a) Share Certificate
b) Stock invest
c) Fixed deposit receipt
d) Prospectus
50. Declared dividend should be classified in the Balance as a
a) Provision
b) Current Liability
c) Reserve
d) Current Asset
CLASS: E-COM- III SEM SUBJECT: OOPSWITH C++
1) In an assignment statementa=b;Which of the following statement is true?
a. The variable a and the variable b are equal.
b. The value of b is assigned to variable a but the later changes on variable b will not
effect thevalue of variable a
c. The value of b is assigned to variable a and the later changes on variable b will effect
the value of variable a
d. The value of variable a is assigned to variable b and the value of variable b is
assigned to variable a.
2) All of the following are valid expressions in C++
a = 2 + (b = 5);
a = b = c = 5;
a = 11 % 3
a. True
b. False
3)To increase the value of c by one which of the following statement is wrong?
a. c++; b. c = c + 1;
c. c + 1 => c; d. c += 1
4) When following piece of code is executed, what happens?
b = 3;
a = b++; a. a contains 3 and b contains 4 b. a contains 4 and b contains 4
c. a contains 4 and b contains 3 d. a contains 3 and b contains 3
5) The result of a Relational operation is always
a. either True or False b. is less than or is more than
c. is equal or less or more d. All of these
6) Which of the following is not a valid relational operator?
a. == b. =>
c. >= d. >=
7) What is the final value of x when the code int x; for(x=0; x<10; x++) {} is run?
a. 10 b. 9
c. 0 d. 1
8) When does the code block following while(x<100) execute?
a. When x is less than one hundred b. When x is greater than one hundred
c. When x is equal to one hundred d. While it wishes
9) Which is not a loop structure?
a. for b. do while
c. while d. repeat until
10) How many times is a do while loop guaranteed to loop?
a. 0 b. Infinitely
c. 1 d. Variable
11) Streams are
a. Abstraction to perform input and output operations in sequential media
b. Abstraction to perform input and output operations in direct access media
c. Objects where a program can either insert or extract characters to and from it
d. Both a and c
12)Which of the following is known as insertion operator?
a. ^ b. v
c. << d. >>
13) Regarding the use of new line character (/n) and endl manipulator with cout statement
a. Both ways are exactly same
b. Both are similar but endl additionally performs flushing of buffer
c. endl cant be used with cout
d. \n cant be used with cout
14) Which of the following is output statement in C++?
a. print b. write
c. cout d. cin
15) Which of the following is input statement in C++?
a. cin b. input
c. get d. none of above
16) By default, the standard output device for C++ programs is
a. Printer b. Monitor
c. Modem d. Disk
17) By default, the standard input device for C++ program is
a. Keyboard b. Mouse
c. Scanner d. None of these
18) Which of the following statement is true regarding cin statement?
a. cin statement must contain a variable preceded by >> operator
b. cin does not process the input until user presses RETURN key
c. you can use more than one datum input from user by using cin
d. all of above
19) Which of the following is extraction operator in C++?
a. ^
b. v
c. <<
d. >>
20) When requesting multiple datum, user must separate each by using
a. a space b. a tab character
c. a new line character d. all of above
21)Identify the correct statement
a. Programmer can use comments to include short explanations within the source code
itself.
b. All lines beginning with two slash signs are considered comments.
c. Comments very important effect on the behaviour of the program
d. both
22) The directives for the preprocessors begin with
a. Ampersand symbol (&) b. Two Slashes (//)
c. Number Sign (#) d. Less than symbol (<)
23) The file iostream includes
a. The declarations of the basic standard input-output library.
b. The streams of includes and outputs of program effect.
c. Both of these
d. None of these
24) There is a unique function in C++ program by where all C++ programs start their execution
a. Start() b. Begin()
c. Main() d. Output()
25) Every function in C++ are followed by
a. Parameters b. Parenthesis
c. Curly braces d. None of these
26) Which of the following is false?
a. Cout represents the standard output stream in c++.
b. Cout is declared in the iostream standard file
c. Cout is declared within the std namespace
d. None of above
27) Every statement in C++ program should end with
a. A full stop (.)
b. A Comma (,)
c. A Semicolon (;)
d. A colon (:)
28) Which of the following statement is true about preprocessor directives?
a. These are lines read and processed by the preprocessor
b. They do not produce any code by themselves
c. These must be written on their own line
d. They end with a semicolon
29) A block comment can be written by
a. Starting every line with double slashes (//)
b. Starting with /* and ending with */
c. Starting with //* and ending with *//
d. Starting with <!- and ending with -!>
30) When writing comments you can
a. Use code and /* comment on the same line
b. Use code and // comments on the same line
c. Use code and //* comments on the same line
d. Use code and <!- comments on the same line
31) Find out the error in following block of code.
If (x = 100)
Cout << x is 100;
a. 100 should be enclosed in quotations
b. There is no semicolon at the end of first line
c. Equals to operator mistake
d. Variable x should not be inside quotation
32) Looping in a program means
a. Jumping to the specified branch of program
b. Repeat the specified lines of code
c. Both of above
d. None of above
33) The difference between while structure and do structure for looping is
a. In while statement the condition is tested at the end of first iteration
b. In do structure the condition is tested at the beginning of first iteration
c. The do structure decides whether to start the loop code or not whereas while
statement decides whether to repeat the code or not
d. In while structure condition is tested before executing statements inside loop
whereas in do structure condition is tested before repeating the statements inside
loop
34) Which of the following is not a looping statement in C?
a. while b. until
c. do d. for
35) Which of the following is not a jump statement in C++?
a. break b. goto
c. exit d. switch
36) Which of the following is selection statement in C++?
a. break b. goto
c. exit d. Switch
37) The continue statement
a. resumes the program if it is hanged
b. resumes the program if it was break was applied
c. skips the rest of the loop in current iteration
d. all of above
38) Consider the following two pieces of codes and choose the best answer
CODE 1:
switch (x) {
case 1:
cout <<x is 1;
break;
case 2:
cout <<x is 2;
break;
default:
cout <<value of x unknown;
}
CODE 2:
If (x==1){
Cout <<x is 1;
}
Else if (x==2){
Cout << x is 2;
}
Else{
Cout <<value of x unknown;
}
a. Both of the above code fragments have the same behaviour
b. Both of the above code fragments produce different effects
c. The first code produces more results than second
d. The second code produces more results than first.
39)Observe the following block of code and determine what happens when x=2?
switch (x){
case 1:
case 2:
case 3:
cout<< "x is 3, so jumping to third branch";
goto thirdBranch;
default:
cout<<"x is not within the range, so need to say Thank You!";
}
a. Program jumps to the end of switch statement since there is nothing to do for x=2
b. The code inside default will run since there is no task for x=2, so, default task is run
c. Will display x is 3, so jumping to third branch and jumps to thirdBranch.
d. None of above
40) Which of the following is false for switch statement in C++?
a. It uses labels instead of blocks
b. we need to put break statement at the end of the group of statement of a condition
c. we can put range for case such as case 1..3
d. None of above
CLASS: E-COM- III SEM SUBJECT: OPERATING SYSTEMS
1. Which of the following is/ are the part of operating system?
A) Kernel services B) Library services
C) Application level services D) All of the above
2. The system of ............... generally ran one job at a time. These were called single stream batch
processing.
A) 40's B) 50's
C) 60's D) 70's
3. In ............. generation of operating system, operating system designers develop the concept of
multi-programming in which several jobs are in main memory at once.
A) First B) Second
C) Third D) Fourth
4. State True or False.
i) In spooling high speed device like a disk is interposed between running program and lowspeed
device in Input/output.
ii) By using spooling for example instead of writing directly to a printer, outputs are written to
the disk. A) i-True, ii-False B) i-True, ii-True
C) i-False, ii-True D) i-False, ii-False
5. Which of the following is/are the functions of operating system?
A. Sharing hardware among users.
B. Allowing users to share data among themselves.
C. Recovering from errors.
D. Preventing users from interfering with one another.
5. Scheduling resources among users.
A) i, ii, iii and iv only B) ii, iii, iv and v only
C) i, iii, iv and v only D) All i, ii, iii, iv and v
6. .................. executes must frequently and makes the fine grained decision of which process to
execute the next.
A) Long-term scheduling B) Medium-term scheduling
C) Short-term scheduling D) None of the above
7. With ................ a page is brought into main memory only when the reference is made to a
location on that page.
A) demand paging B) main paging
C) prepaging D) postpaging
8. .......................provides a larger sized of virtual memory but require virtual memory which
provides multidimensional memory.
A) Paging method B) Segmentation method
C) Paging and segmentation method D) None of these
9. ............... is a large kernel containing virtually the complete operating system, including,
scheduling, file system, device drivers and memory management.
A) Multilithic kernel B) Monolithic kernel
C) Micro kernel D) Macro kernel
10. ............... is a large operating system core provides a wide range of services.
A) Multilithic kernel B) Monolithic kernel
C) Micro kernel D) Macro kernel
11. The first batch operating system was developed in the .................by General Motors for use
on an IBM 701.
A) mid 1940's B) mid 1950's
C) mid 1960's D) mid 1970's
12. Process is ........................
A) A program in execution
B) An instance of a program running on a computer.
C) The entity that can be assigned to and executed
D) All of the above.
13. ................... is a facility that allows programmers to address memory from a logical point of
view, without regard to the main memory, physically available.
A) Visual memory B) Real memory
C) Virtual memory D) Secondary memory
14. ............ is a large kernel, including scheduling file system, networking, devicedrivers,
memory management and more.
A) Monolithic kernel B) Micro kernel
C) Macro kernel D) Mini kernel
15. A ....................architecture assigns only a few essential functions to the kernel, including
address spaces, Inter process communication(IPC) and basic scheduling.
A) Monolithic kernel B) Micro kernel
C) Macro kernel D) Mini kernel
16. State whether true or false.
i) Multithreading is useful for application that perform a number of essentially
independent tasks that do not be serialized.
ii) An example of multithreading is a database server that listens for and process
numerous client request.
A) i-True, ii-False B) i-True, ii-True
17. With ................ only one process can execute at a time; meanwhile all other process are
waiting for the processer. With ..............more than one process can be running
simultaneously each on a different processer.
A) Multiprocessing, Multiprogramming
B) Multiprogramming, Uniprocessing
C) Multiprogramming, Multiprocessing
D) Uniprogramming, Multiprocessing
18. The two central themes of modern operating system are ...............
A) Multiprogramming and Distributed processing
B) Multiprogramming and Central Processing
C) Single Programming and Distributed processing
D) None of above
19. ............... refers to the ability of multiple process (or threads) to share code, resources or data
in such a way that only one process has access to shared object at a time.
A) Synchronization B) Mutual Exclusion
C) Dead lock D) Starvation
20. .................is the ability of multiple process to co-ordinate their activities by exchange of
information
A) Synchronization B) Mutual Exclusion
C) Dead lock D) Starvation
21. Which of the following is not the function of Micro kernel?
A) File management B) Low-level memory management
C) Inter-process communication D) I/O interrupts management
22. Match the following.
i) Mutual exclusion a) A process may hold allocated resources while waiting
assignment.
ii) Hold and wait b) No resource can be forcibly removed from a process
holding it.
iii) No preemption c) Only one process may use a resource at a time.
A) i-a, ii-b, iii-c B) i-a, ii-c, iii-b
C) i-b, ii-c, iii-a D) i-c, ii-a, iii-b
23. A direct method of deadlock prevention is to prevent the occurrences of ...................
A) Mutual exclusion B) Hold and wait
C) Circular waits D) No preemption
24. The methods or algorithms which are used to increase the performance of disk storage subsystem
is called .............
A) Disk performing B) Disk scheduling
C) Disk storing D) Disk extending
25. .................is the time required to move the disk arm to the required track.
A) Seek time B) Rotational delay
C) Latency time D) Access time
26. The ............... policy restricts scanning to one direction only.
A) SCAN B) C-SCAN
C) N-Step SCAN D) Both A and B
27. ............... policy selects the disk I/O request that requires the least movement of the disk arm
from its current position.
A) FSCAN B) SSTF
C) SCAN D) C-SCAN
28. .................. refers to the ability of an operating system to support multiple threads of
execution with a single process.
A) Multithreading B) Multiprocessing
C) Multiexecuting D) Bi-threading
29. State whether the following statement is true.
i) It takes less time to terminate a thread than a process.
ii) Threads enhance efficiency in communication between different executing programs.
A) i-True, ii-False B) i-True, ii-True
30. ............ is a special type of programming language used to provide instructions to the monitor
simple batch processing schema.
A) Job control language (JCL) B) Processing control language (PCL)
C) Batch control language (BCL) D) Monitor control language (MCL)
31. The unit of dispatching is usually referred to as a..
A) Thread B) Lightweight process
C) Process D) Both A and B
32. .. is a example of an operating system that support single user process and
single thread.
A) UNIX B) MS-DOS
C) OS/2 D) Windows 2000
33. State true or false.
i) Unix, support multiple user process but only support one thread per process.
ii) A java run time environment is an example of a system of one process with multiple threads.
A) True, False B) True, True
C) False, True D) False, False
34. are very effective because a mode switch is not required to switch from one
thread to another.
A) Kernel-level threads B) User-level threads
C) Alterable threads D) Application level threads
35. is a condition in which there is a set of concurrent processes, only one of which
is able to access a given resource or perform a given function at any time.
A) Mutual Exclusion B) Busy Waiting
C) Deadlock D) Starvation
36. . Techniques can be used to resolve conflicts, such as competition for
resources, and to synchronize processes so that they can cooperate.
A) Mutual Exclusion B) Busy Waiting
C) Deadlock D) Starvation
37. . Can be defined as the permanent blocking of a set of processed that either
complete for system resources or communicate with each other.
A) Deadlock B) Permanent lock
C) Starvation D) Mutual exclusion
38. The following conditions of policy must be present for a deadlock to be possible.
i) Mutual exclusion ii) Hold and wait
iii) No preemption iv) Circular wait
A) i, ii and iii only B) ii, iii and iv only
C) i, iii and iv only D) All i, ii, iii and iv
39. A direct method of deadlock prevention is to prevent the occurrence of ..
A) Mutual exclusion B) Hold and wait
C) Circular waits D) No preemption
40. State true of false.
i) With paging, each process is divided into relatively small, fixed-size pages.
ii) Segmentation provides for the use of pieces of varying size.
A) True, False B) True, True
C) False, True D) False, False
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%25209%2520kOTLER.doc&usg=AFQjCNEVs0O7X7rbv77xC
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Chapter 9
Product, Services, and Branding Strategies
Multiple Choice
1. If you are looking for enlightenment in all the wrong places, _____ companies
are eager to help. Feeling good is the new religion. These companies are the
newest of the new prophets, turning the old notion of hope in a jar on its head.
a. auto
b. cosmetics
c. toy
d. food
(b; Moderate; p. 275)
2. Tony and Tiny have a _____ company with a mission statement: To aid in the
evolution of human consciousness. We think color therapy is going to be the
new medicine, said Tony.
a. auto
b. cosmetic
c. toy
d. food
3. At the 5S store in SoHo, you buy things that are energizing, nurturing, or
adoring. Here are products that are not intended to make you look better,
but to make you act better, feel better, and be a better person. What kind of a
store is this?
a. food
b. toy
c. electronics
d. cosmetics
(d; Easy; p. 276)
4. _____, the General Motors of the cosmetics world, has a passionately held belief
that the appeal is first the spirituality, and then the products.
a. Avon Company
b. Heaven Sent Company
c. Estee Lauder Companies
d. Proctor and Gamble
5. (c; Challenging; p. 276)
6.
7. The cosmetics image, its promises and positioning, its ingredients, its name
and package, the company that makes it, the stores that sell itall become a
part of the total cosmetic product. What is one thing they do not try to sell?
a. lifestyle
b. self-expression
c. service-profit chain
d. achievement
(c; Easy; p.276)
8. We define a _____ as anything that can be offered to a market for attention,

acquisition, use, or consumption and that might satisfy a want or need.
a. private brand
b. service variability
c. service
d. product
(d; Easy; p. 276)
9. _____ are a form of product that consists of activities, benefits, or satisfactions

offered for sale that are essentially intangible and do not result in the
ownership of anything.
a. Line extensions
b. Services
c. Brands
d. Consumer products
(b; Easy; p. 276)
10. Product is a key element in _____. At one extreme, it may consist of pure
tangible goods or at the other extreme pure services.
a. market offering
b. brand equity
c. brand extension
d. co-branding
(a; Easy; p. 277)
11. Many companies are moving to a new level in creating value for their
customers. They are developing and delivering total customer experiences.
Whereas products are tangible and services are intangible, experiences are
_____.
a. product quality
b. memorable
c. unsought product
d. internal marketing
12. Product planners need to think about products and services on three levels.
Each level adds more customer value. The most basic level is the _____, which
addresses the question, What is the buyer really buying?
a. actual product
b. augmented product
c. core benefit
d. co-branding
(c; Challenging; p. 279)
13. Product planners need to think about products and services on three levels.
The third level is that the product planners must build on a(n) _____ around the
core benefit and actual product by offering additional consumer services and
benefits.
a. augmented product
b. brand equity
c. brand extension
d. industrial product
(a; Challenging; p. 279)
14. Product planners must design the actual product and find ways to _____ it in
order to create the bundle of benefits that will provide the most satisfying
customer experience.
a. core benefit
b. package
c. brand
d. augment
(d; Challenging; p. 279)
15. Products and services fall into two broad classes based on the types of
consumers that use them. Which is one of these broad classes?
a. industrial products
b. brand equity
c. co-branding
d. brand extension
(a; Moderate; p. 281)
16. _____ are products and services bought by final consumers for personal
consumption. These include convenience products, shopping products,
specialty products, and unsought products.
a. Services
b. Consumer products
c. Line extensions
d. Industrial products
(b; Easy; p. 280)
17.
18. _____ are less frequently purchased consumer products and services that
customers compare carefully on suitability, quality, price, and style.
Consumers spend much time and effort in gathering information and making
comparisons.
a. Shopping products
b. Brands
c. Services
d. Industrial Products
(a; Moderately; p. 280)
19. _____ are consumer products and services with unique characteristics or brand
identification for which a significant group of buyers is willing to make a special
purchase effort.
a. Shopping products
b. Unsought products
c. Specialty products
d. Industrial Products
(c; Moderate; p. 280)
20. _____ are consumer products that the consumer either does not know about or
knows about but does not normally think about buying. These products require
a lot of advertising, personal selling, and other marketing efforts.
a. Specialty products
b. Line extensions
c. Unsought products
d. Shopping products
(c; Easy; p. 281)
21. _____ are those products purchased for further processing or for use in
conducting a business.
a. Unsought products
b. Specialty products
c. Shopping products
d. Industrial products
(d; Easy; p. 281)
22. The three groups of industrial products and services include all of the following
except _____.
a. materials and parts
b. capital items
c. maintenance and operations
d. supplies and services
23. One of the three groups of industrial products includes materials and parts.
Which is not one of the material parts?
a. farm products such as wheat
b. natural products such as iron ore
c. nonraw materials
d. petroleum
(c; Easy; p. 281)
24. Manufactured materials and parts are sold directly to _____. Price and service
are the major marketing factors; branding and advertising tend to be less
important.
a. consumers
b. industrial users
c. brand extensions
d. co-branders
(b; Challenging; p. 281)
25. _____ are industrial products that aid in the buyers production or operations,
including installations and accessory equipment.
a. Materials
b. Parts
c. Capital items
d. Specialty products
26. Which of the following capital items is not considered an accessory part of
equipment? The billing department needs to know so they can be classified
correctly.
a. buildings
b. hand tools
c. lift trucks
d. desks
27. The final group of business products is _____ and _____. These include paper,
pencils, lubricants, paint, nails, and brooms.
a. supplies; services
b. capitals; installations
c. raw materials; farm products
d. specialty products; unsought products
(a; Easy; p. 282)
28. _____ consists of activities undertaken to create, maintain, or change the

attitudes and behavior of target consumers toward an organization.
a. Person marketing
b. Organization marketing
c. Internal marketing
d. Service variability
29. What is a major tool companies use to market themselves to various publics
such as General Electric states, We bring good things to life?
a. person marketing
b. corporate image advertising
c. product quality
d. product line
30. _____ consists of activities undertaken to create, maintain, or change attitudes

or behavior toward particular people.
a. Corporate image advertising
b. Organization marketing
c. Person marketing
d. Social marketing
31. _____ involves activities undertaken to create, maintain, or change attitudes

towards particular cities, states, and regions. Texas advertises its like a whole
other country.
a. Idea marketing
b. Place marketing
c. Social marketing
d. Interactive marketing
(b; Easy; p. 282)
32. _____ can also be marketed. In one sense, all marketing is the marketing of
this. It can be specific such as Crest toothpastes create smiles every day.
a. Co-branding
b. Internal marketing
c. Ideas
d. Unsought products
33. _____ is defined as the use of commercial marketing concepts and tools in
programs designed to influence individuals behavior to improve their well-
being and that of society.
a. Unsought product
c. Social marketing
d. Product line
(c; Easy; p. 283)
34. Marketing efforts, which include public health campaigns to reduce smoking,
alcoholism, drug abuse, and overeating are called _____.
a. specialty product
b. social marketing
c. shopping product
d. consumer product
35. The Ad Council of America has developed dozens of _____ advertising

campaigns, including classics such as Smoky Bear, Keep America Beautiful,
and Only You Can Prevent Forest Fires.
a. social
b. brand equity
c. service
d. product line
36. Developing a product or service involves defining the benefits that it will offer.
These benefits are communicated and delivered by _____ such as quality,
features, and style and design.
a. private brand
b. product attributes
c. consumer product
d. product mix
37. _____ is one of the marketers major positioning tools. It has a direct impact on
product or service performance; thus, it is closely linked to customer value and
satisfaction.
a. Packaging
b. Product quality
c. Social marketing
d. Specialty product
38. (b; Easy; p. 283)
39.
40. _____ is an approach in which all the companys people are involved in
constantly improving the products, services, and business processes.
a. Product quality
b. Brand equity
c. Total quality management
d. Specialty product
(c; Easy; p. 284)
41. You have just read an article on the latest research about product quality. You
want to tell your supervisor that product quality has two dimensions. What is
one of these dimensions?
a. consistency
b. brand
c. convenience product
d. specialty product
(a; Easy; p. 284)
42. Beyond quality level, high quality also can mean high levels of quality
consistency. Here, product quality means _____ freedom from defects and
consistency in delivering a targeted level of performance.
a. private brand
b. product quality
c. total quality management
d. conformance quality
43. A product can be offered with varying _____. A stripped-down model, one
without any extras, is the starting point.
a. co-branding
b. features
c. product quality
d. service variability
(b; Easy; p. 284)
44. The company periodically surveys buyers who have used a product and ask
questions such as, Which specific features of the product do you like the
most? The company can then assess each features _____ to customers versus
its _____ to the company.
a. cost; line extension
b. cost; service
c. value; cost
d. service; line extension
45. A sensational _____ may grab attention and produce pleasing aesthetics, but it
does not necessarily make the product perform better.
a. design
b. style
c. variable
d. service-profit chain
46. _____ is more than skin deepit goes to the very heart of the product. It
contributes to a products usefulness as well as to its looks.
a. Style
b. Design
c. Packing
d. Brand
(b; Easy; p. 284)
47. Good style and design can do many things. What is one thing it cannot do?
a. attract attention
b. improve product performance
c. cut production costs
d. cause unsought product reputation
(d; Easy; p. 284)
48. A(n) _____ is a name, term, sign, symbol, design, or a combination of these, that
identifies the maker or seller of a product or service.
a. service
b. brand
c. co-branding
(b; Easy; p. 285)
49. _____ involves designing and producing the container or wrapper for a product.
a. Packaging
b. Product line
c. Service
d. Branding
(a; Easy; p. 286)
50. Like New Products wants to improve its packaging after reading customer
responses to its customer opinion poll. Which is not a function of packaging?
a. Its purpose is to contain and protect the product.
b. It contains the brand mark.
c. It protects children.
d. It determines product quality.
(d; Moderate; p. 286)
51. At the very least, the _____ identifies the product or brand. It might also
describe several things about the product.
a. line extension
b. social marketing
c. label
d. specialty product
(c; Easy; p.288)
52. Labels may mislead customers, fail to describe important ingredients, or fail to
include needed safety warnings. As a result, several federal and state laws
regulate labeling. The most prominent is the _____.
a. Co-branding Act of 1972
b. Labeling Act of 1970
c. Packaging Act of 1968
d. Fair Packaging and Labeling Act
(d; Easy; p. 288)
53. _____ requires sellers to provide detailed nutritional information on food

products, and recent sweeping acts by the Food and Drug Administration
regulate the use of health-related terms such as low-fat, light, and high fiber.
a. Fair Packaging and Labeling Act of 1966
b. The Nutritional Labeling and Educational Act of 1990
c. Labeling Act of 1970
d. Packaging Act of 1970
54. Customer service is another element of product strategy. The first step is to
survey customers periodically to asses the value of current services and to
obtain ideas for new ones. From this careful monitoring, Cadillac has learned
that buyers are very upset by repairs that are not done correctly the first time.
What is the name of these types of services?
a. brand equity services
b. product support services
c. social marketing services
d. unsought product services
55. A _____ is a group of products that are closely related because they function in
a similar manner, are sold to the same customer groups, are marketed through
the same type of outlets, or fall within given price ranges.
a. product line
b. line extension
c. private brand
d. convenience product
56. Berkowitz Piano Company can lengthen its product line in one of two common
ways. Which is one of these ways that might prove productive?
a. internal marketing
b. line filling
c. product mix
d. social marketing
(b; Easy; p. 289)
57. An alternative to product line stretching is _____ adding more items within
the present range of the line. There are several reasons for doing this; some
are to reach for extra profits, satisfy dealers, use excess capacity, and to plug
holes to keep out competitors.
a. product mix
b. interactive marketing
c. product line filling
d. co-branding
58. An organization with several product lines has a _____. This consists of all the
product lines and items that a particular seller offers for sale.
a. product mix
b. brand line
c. consumer mix
d. packaging mix
59. Product mix _____ refers to the number of different product lines the company
carries. Procter & Gamble markets 250 brands organized into many product
lines.
a. length
b. height
c. width
d. perimeter
60. Product line _____ refers to the number of versions offered of each product in
the line. Crest toothpaste comes in 13 varieties, ranging from Crest Multicare
to Crest Baking Soda formulations.
a. length
b. depth
c. height
d. width
61. The _____ of the product mix refers to how closely related the various product
lines are in end use, production requirements, distribution channels, or some
other way.
a. depth
b. length
c. width
d. consistency
62. A company can increase its business in four ways. Which is not one of these
ways?
a. It can add new product lines, thus widening its product mix.
b. It can lengthen its existing product lines.
c. It can add more versions of each product and thus deepen its product mix.
d. The company can discontinue some of its lines.
(d; Easy; p. 291)
63. Some analysts see _____ as the major enduring asset of a company, outlasting
the companys specific products and facilities.
a. brands
b. convenience products
c. specialty products
d. unsought products
(a; Easy; p. 291)
64. Chicken of the Sea brand tuna sells more than the same size Kroger brand tuna
even though the Kroger tuna costs $0.15 less per can. This is known as brand
_____.
a. extension
b. equity
c. specialty
d. service
65. The fundamental asset underlying brand equity is _____ the value of the
customer relationships that the brand creates. A powerful brand is important,
but what it really represents is a set of loyal customers.
a. customer mix
b. customer equity
c. line equity
66. (b; Challenging; p. 291)
67.
68. Marketers need to position their brands clearly in target customers minds.
They can position brands at any of three levels. At the lowest level, they can
position the brand on _____.
a. interactive marketing
b. internal marketing
c. product attributes
d. strong beliefs and values
(c; Moderate; p.292)
69. Marketers need to position their brands clearly in target customers minds. The
strongest brands go beyond attribute or benefit positioning. They are
positioned on _____.
a. desirable benefit
b. good packaging
c. service inseparability
d. strong beliefs and values
(d; Easy; p. 292)
70. Desirable qualities for a brand name include all of the following except _____.
a. It should suggest something about the products benefits and qualities.
b. It should be easy to pronounce, recognize, and remember.
c. The brand should almost always be a long word to get attention.
d. The name should translate easily into foreign languages.
(c; Challenging; pp. 292-293)
71. Manufacturers brands have long dominated the retail scene. In recent times,
however, an increasing number of retailers and wholesalers have created their
own _____ (or store brands).
a. slotting fees
b. private brands
c. specialty product
(b; Easy; p. 293)
72. In the so-called battle of the brands between manufacturers and private
brands, _____ have many advantages. They control what products they stock,
where they go on the shelf, and which ones they will feature in local circulars.
a. unsought products
b. convenience products
c. specialty products
d. retailers
(d; Moderate; p.293)
73. Most retailers also charge manufacturers _____ payments demanded by

retailers before they will accept new products and find a place for them on the
shelves.
a. slotting fees
b. private fees
c. line extension fees
d. product line fees
(a; Easy; p. 294)
74. Most manufacturers take years and spend millions to create their own brand
names. However, some companies _____ names or symbols previously created
by other manufacturers, names of well-known celebrities, and/or characters
from popular movies and books. For a fee, any of these can provide an instant
and proven brand name.
a. service
b. license
c. market
d. package
75. _____ occurs when two established brand names of different companies are
used on the same product.
a. Brand extension
b. Brand equity
c. Co-branding
d. Internal marketing
76. In most _____ situations, one company licenses another companys well-known
brand to use in combination with its own.
a. brand extension
b. brand equity
c. co-branding
(c; Easy; p. 295)
77. As one Nabisco manager puts it, Giving away your brand is a lot like giving
away your _____ you want to make sure everything is perfect.
a. package
b. product line
c. child
d. product quality
(c; Easy; p. 296)
78. A company has four choices when it comes to developing brands. What is not
one of those choices?
a. line extension
b. brand extension
c. multibrands
d. width and depth extension
79. _____ occur(s) when a company introduces additional items in a given product
category under the same brand name, such as new flavors, forms, colors,
ingredients, or package sizes.
a. Line extensions
b. Product mix
c. Interactive marketing
d. Service variability
80. One risk of _____ is that sales may come at the expense of other items in the
line. It works best when it takes sales away from competing brands, not when it
cannibalizes the companys other items.
a. brand extension
b. line extension
c. packaging
d. social marketing
81. A _____ involves the use of a successful brand name to launch new or modified
products in a new category.
a. brand equity
b. product line
c. brand extension
d. private brand
82. _____ offer(s) a way to establish different features and appeal to different
buying motives. It also allows a company to lock up more reseller shelf space.
Or the company may want to protect its major brand by setting up flanker or
fighter brands.
a. New brands
b. Interactive marketing
c. Product quality
d. Multibrands
83. Retailers have become concerned that there are already too many brands, with
too few differences between them. Thus, Procter & Gamble and other large
consumer- product marketers are now pursuing _____ strategiesweeding out
weaker brands and focusing their marketing dollars only on brands that can
achieve the number-one or number-two market share positions in their
categories.
a. megabrand
b. service inseparability
c. social marketing
d. unsought product
84. Companies must carefully manage their brands. First, the brands positioning
must be continuously communicated to consumers. Major brand marketers
often spend huge amounts on advertising to create brand _____ and to build
preference and loyalty.
a. extension
b. awareness
c. packaging
(b; Easy; p. 297)
85. Advertising campaigns can help to create name recognition, brand knowledge,
and maybe even some brand preference. However, the fact is that brands are
not maintained by advertising but by the _____.
a. marketing
b. line extensions
c. brand experience
d. product mix
(c; Easy; p. 297)
86. The brands positioning will not take hold fully unless everyone in the company
lives the brand. Therefore the company needs to train its people to be _____.
a. customer-centered
b. specialty-centered
c. convenience-centered
d. line-extension-centered
87. The brands positioning will not take hold fully unless everyone in the company
lives the brand. This suggests that managing a companys brand assets can no
longer be left only to _____.
a. product line
b. product mix
c. brand extension
d. brand managers
(d; Easy; p. 298)
88. Canada Dry and Colgate-Palmolive have appointed _____ managers to maintain
and protect their brands images, associations, and quality, and to prevent
short-term actions by over-eager brand managers from hurting the brand.
a. product line
b. service
c. brand equity
d. brand extension
89. The recent wave of corporate mergers and acquisitions has decided, We need
a master brand to leave all our old names behind. What is this called?
a. product mix
b. rebranding
c. brand equity
d. consumer branding
(b; Easy; p. 298)
90. Building a(n) _____ and re-educating customers can be a huge undertaking for a
company. It cost tens of millions of dollars just for a special four-week
advertising campaign to announce the new name, followed by considerable
ongoing advertising expenses to the Verizon Company.
a. product mix
b. service intangibility
c. new image
(c; Easy; p. 298)
91. A company must consider four special service characteristics when designing
marketing programs. Which is not one of these characteristics?
a. intangibility
b. inseparability
c. perishability
d. interactive marketing
92. _____ means that services cannot be seen, tasted, felt, heard, or smelled before
they are bought.
a. Service inseparability
b. Service variability
c. Service intangibility
d. Service perishability
93. (c; Moderate; p. 299)
94. _____ means that services cannot be separated from their providers, whether
the providers are people or machines.
a. Service intangibility
b. Service inseparability
c. Service variability
95. JB Auto Detailings customers have noticed that the quality of services depends
on who provides them as well as when, where, and how they are provided.
What have the customers noticed?
a. service intangibility
b. service inseparability
c. service variability
d. service perishability
96. A barber cannot inventory haircuts. _____ means that services cannot be stored
for a later sale or use.
a. Service intangibility
b. Service inseparability
(d; Easy; p. 299)
97. In a product business, products are fairly standardized and can sit on shelves
waiting for customers. But in a service business, front-line service employees
and the support processes backing these employees participate in _____.
a. interaction
b. co-branding
c. industrial marketing
(a; Challenging; p. 300)
98. _____ means that the service firm must effectively train and motivate its
customer-contact employees and supporting service people to work as a team
to provide customer satisfaction.
a. Service inseparability
b. Service intangibility
d. Internal marketing
True False
99. Estee Lauder Company is the General Motors of the cosmetics world.
(True; Easy; p. 276)
100.The cosmetic company Aveda sells more than just a tangible product. They sell
lifestyle, self-expression, exclusivity, and spirituality.
101.We define a service as anything that can be offered to a market for attention,
acquisition, use, or consumption and that might satisfy a want or need.
(False; Easy; p. 276)
102.Co-branding is a form of product that consists of activities, benefits, or

satisfactions offered for sale that are essentially intangible and do not result in
the ownership of anything. Examples are banking, hotel, airline, retail, tax
preparation, and home repair.
(False; Moderate; p. 276)
103.Sony must offer more than just a camcorder. It must provide consumers with a
complete solution to their picture taking problems. This is called an augmented
product.
(True; Challenging; p. 279)
104.Unsought products are products and services that the customer usually buys
frequently, immediately, and with a minimum of comparison and buying effort.
105.Shopping products are less frequently purchased consumer products and

services that customers compare carefully on suitability, quality, price, and
style.
(True; Moderate; p. 280)
106.Programs that include public health campaigns to reduce smoking, alcoholism,

drug abuse, and overeating are examples of the social idea known as social
marketing.
107.Style is a larger concept than design. Design describes the appearance of a
product.
108.The brand of a product can determine its consumer value.

109.Packaging does not include the material necessary to ship a product.

110.Product support services identify the product or brand, describe several things
about the product, and promote the product through attractive graphics.
111.Quaker produces a variety of cereals. This variety is called its product line.
112.A companys product mix has four important dimensions: width, length, depth,
and consistency.
113.Dove marketers can go beyond the brands cleansing cream attributes and talk
about the resulting benefit of softer skin. This is known as product attributes in
brand positioning.
(False; Challenging; p. 292)
114.One important quality for a brand name is that it should translate easily into
foreign languages.
115.An increasing number of retailers and wholesalers have created their own
brands such as Wal-Mart offers Sams Choice beverages and food products.
This is called co-branding.
116.When a company introduces a new brand name in the same product category it
is called line extension.
117.Customers come to know a brand through a wide range of contacts and touch
points. These include word of mouth, personal interactions with company
people, telephone interactions, and company Web pages. Many brands are not
maintained by advertising but by brand experience.
118.An example of service variability is that within a given Marriot hotel, one
registration-desk employee may be cheerful and efficient, whereas another
may be unpleasant and slow.
(True; Challenging; p. 299)
119.Service inseparability means that the quality of services depends on who

provides them, as well as when, where, and how they are provided.
120.In a product business, products are fairly standardized and can sit on shelves
waiting for customers. In a service business, the customer and front-line service
employee interact to create the service.
121.The service-profit chain means the set of all product lines and items that a
particular seller offers for sale.
122.A big part in managing service differentiation is in the companys service

delivery.
123.Customer retention is perhaps the best measure of qualitya service firms

ability to hang on to its customers depends on how consistently it delivers
value to them.
124.Managing service productivity can take place when a company increases the
quality of their service by giving up some of their output.
125.The government cannot prevent companies from adding products through

acquisitions if the effect threatens to lessen competition.
126.Internal marketers face special challenges. They must figure out what products
to introduce to other countries.
127.In international product and service marketing it is important to know what

different colors mean to different countries.
128.In international product and service marketing, many banks were afraid to go
global and held off for quite a while.
129.Retailers such as Wal-Mart, Kmart, Toys R Us, Office Depot, and Disney are
among the first businesses to go global.
130.Service companies wanting to operate in other countries are usually welcomed

with open arms. Manufacturers usually face restrictions when attempting to
sell their products in another country.
Essay
131.Products and services fall into two broad classes based on the types of
consumers that use them. Name these two broad classes and describe how
they are different from each other.
Consumer productsthose bought by final consumersare usually classified

according to consumer shopping habits. Industrial productspurchased for further
processing or for use in conducting a businessinclude materials and parts.
(Moderate; p. 276)
132.Name and describe three decisions that companies make regarding their
individual products and services, product lines, and product mixes.
Product attribute decisions involve product quality, features, and style and design.
Branding decisions include selecting a brand name and developing a brand strategy.
Packaging provides many key benefits, such as protection, economy, convenience,
and promotion. There are additional answers to this question also.
(Easy; p. 284-285)
133.A manufacturer has four brand sponsorship options. Describe what they are.
It can launch a manufacturers brand (or national brand). It can sell to resellers who
use a private brand. It can market licensed brands. It can join forces with another
company to co-brand a product.
(Challenging; pp. 293-296)
134.A company has four choices when it comes to developing brands. Describe
what they are.
It can introduce line extensions. The company can introduce brand extension. It
can introduce multibrands. It can begin new brands (new brand names in new
product categories).
(Moderate; pp. 296-297)
135.Services are characterized by four key characteristics. Name and describe

these four characteristics.
Intangiblethey cannot be seen, tasted, felt, heard, or smelled before they are
bought. Inseparablethey are produced and consumed at the same time and
cannot be separated from their providers, whether the providers are people or
machines. Variabletheir quality may vary greatly, depending on who provides
them and when, where, and how. Perishablethey cannot be stored for later sale or
use.
(Challenging; p. 299)
136.Good service companies focus attention on both customers and employees.

Describe what the service-profit chain and internal marketing are, and how they
differ from each other.
The service-profit chain links service firm profits with employee and customer
satisfaction. Internal marketing by a service firm is to train and effectively motivate
its customer-contact employees and all the supporting service people to work as a
team to provide customer satisfaction. The first deals with employees and
customers. The second deals with training employees.
137.What are three ways a company manages competitive service differentiation?
One solution is to develop a differentiated offer. Another way is that companies can
differentiate their service delivery by having more and reliable customer- contact
people, by developing a superior physical environment in which the service product
is delivered. Service companies can work on differentiating their images through
symbols and branding.
138.Describe two special challenges that international marketers must consider to

be successful in marketing to other countries.
First, they must figure out what products and services to introduce and in which
countries. Then, they must decide how much to standardize or adapt their products
and services for world markets.
Source 5:
http://wps.prenhall.com/chet_harris_customerser_4/47/121
57/3112398.cw/content/index.html
1. Which of the following is one of the most effective and least expensive ways
to market a business?
Your Answer: Effective customer service
2. Which choice about customer service is true?
3. Correct Answer: Businesses must provide excellent customer service or
expect failure.
4. Which of the following is NOT a benefit of excellent customer service?
5. Your Answer: Work is less fulfilling.
4. Which of the following IS a benefit of excellent customer service?
Correct Answer: Profit goals are more likely to be reached.
5. How can excellent customer service help retain current customers?

Your Answer: All of the above.
6. Why is customer service mandatory?
Correct Answer: Customer service is mandatory because without it a company will

lose customers.
7. What is the main reason that more businesses are not actually providing
excellent customer service?
Correct Answer: They don't know how to get started.
8. Which choice is one of the top ten rewards of providing excellent customer
service?
Correct Answer: Work is more personally fulfilling.
9. Which statement about customer service is correct?
Your Answer: Excellent customer service results in a more positive business

reputation.
10. Incorrect Which statement about customer service is NOT correct?
Correct Answer: Excellent customer service results in lower expenses and lower
profits.
Source 6:
http://vusolutions.blogspot.com/2010/09/mgt610-online-
solved-quiz.html
Mgt610 Online solved quiz
Friday, September 03, 2010 Posted In MGT Edit This
Q.1 Why have consumers/customers been so hyper-aware and so nervous?
a. Much more information is collected and seemingly available to more people at

much
faster rate.
b. Much more information is collected and seemingly not available to more people at
much faster rate.

c. Much more information is not collected and seemingly available to more people at
much faster rate.
d. Much more information is not collected and seemingly not available to more people at
much faster rate.
Q.2 __________ organization try to segment their customers based on what product the
customer purchased.
a. Production-centered
b. Product-centered
c. Customer-centered
d. Consumer-centered
Q.3 The organizations make their special offer to the customers who will provide the highest
profit margins, greatest response rate and __________.
a. Lowest revenue
b. Greatest cost
c. Lowest cost
d. None of the given options
Q.4 If Mr. A buys 1,000 items from a super store with a profit margin of only Rs. 1 for each
item and Mr. B buys only 500 items from the same super store but the profit was
Rs. 5 for each item, which customer is the most valuable?
a. Mr. A
b. Mr. B
c. Both Mr. A & Mr. B
d. None of the above
Q.5 If two customers choose exactly the same package of certain service, but customer A
calls for help weekly and customer B calls only twice a year, which is most valuable
customer?
a. Both A & B customer
b. Customer A
c. Customer B
d. None of the above
Q.6 The customers who are not so-well-educated are called __________.
a. Loyal customer
b. Soft customer
c. None educated customer
d. Difficult customer
Q.7 All sensory impressions (Learning, seeing, smelling, feeling and tasting) are
telegraphed to our mind at the rate of approximately __________ per day.
a. 100, 0000 impressions
b. 10,000 impressions
c. 100,000 impressions
d. 110,000 impressions
Q.8 __________ is a tangible company asset that can (and should) be inventoried and
managed.
a. Geographical information
b. Customer information
c. Product information
d. All of the given options
Q.9 Both __________ depend on electronic information that has been collected
about customers, in place of human knowledge, to build and manage relationships.
a. CRM and e-CRM
b. Customer and consumer
c. Product and service
d. Service and idea
Q.10 __________ is the symptom of poor listening.
a. Listening Germinates Receptivity
b. Use correct level of language

c. Resist distractions
d. Eradicating details
Q.1 Which ONE of the following in not the requirement for managing customer?
a. Need and want of customers
b. Measurement of most or least profitability of customer or product
c. Measurement of least growth potential of product or customer
d. Knowing which customers will be advocates and supporters
Q.2 CRM as a discipline that depends on people, process, information and
__________
a. Technology
b. Innovation
c. Discovery
d. All of the given options
Q.3 According to AOL Cyber study conducted in early in 2000, the increase form
__________ per cent of the internet community purchasing something online in
1998 to __________ per cent of the same group purchasing semi-regularly online in
1999.
a. 7, 32
b. 13, 42
c. 3, 42
d. 3, 32
Q.4 A __________ is a software application that enables a user to display and interact
with text, images, and other information for customers/consumers located on a
web page at a website on the World Wide Web or a local area network.
a. Web browser
b. HTML
c. HTTP

Q.5 Which one of the following is NOT a part of sales applications?
a. Compensation
b. Opportunity and Pipeline Management
c. Proposal Generation and Management
d. Budgeting and forecasting
Q.6 MRP is stand for __________
a. Materials resource pricing
b. Material resource planning
c. Material resource placing
Q.7 Acquiring the Right Customers, based on known characteristics, which drives
growth and increased profit margin, is a benefit of __________
a. CRM Process
b. eCRM
c. CRM
d. eCRM process
Q.8 Correlate, combine, cognize and __________ are the four Cs of CRM Process
a. Connect
b. Customer
c. Consumer
Q.9 Quicker attention and resolution of complaints lead to ________
a. High profits
b. Low cost
c. Favorable word of mouth
d. Stronger customer relationship

Q.10 Organizations win-back programs should be _________.
a. Policy base
b. Reward base
c. Profit base
d. Sales base
Q. 1 Customer relationship management does not move around which of the following?
(a) Customer retention
(b) Policies development
(c) Retain customers
(d) Customer satisfaction
Q.2 Which of the following is NOT the general purpose of CRM?
(a) Purpose of CRM is better managing customers through the introduction of reliable
systems and methods.
(b) Purpose of CRM is to enable organizations to service their existing customers more
emphatically and more forcefully.
(c) Purpose of CRM is not developing processes and procedures for interacting
new customers.
(d) All of above given options
Q.3 Service Deficiency is known as:
(a) Product defects
(b) Inefficient service standards
(c) Incorrect service provision
(d) Identified in-sufficiency of service
Q.4 The process of performing activities that increase the value of goods or services to
consumers is known as:
(a) Value development
(b) Value creation

(c) Value chain
(d) Value addition
Q.5 Incentive schemes, additional services and sentiments based scheme are called:
(a) Concentration on the paying ability of customers
(b) Building switching barriers
(c) Relationship based pricing schemes
(d) Differentiation in price and quality standards
Q.6 Life style is an important variables of which of the following market segmentation?
(a) Time segmentation
(b) Geographic segmentation
(c) Psychographics segmentation
(d) Demographic segmentation
Q.7 Customer service facilitation includes EXCEPT:
(a) Divert attention of customer
(b) Resolve problem
(c) Improve efficiency
(d) Provide full information
Q.8 Traditionally, stores have carried inventory to:
(a) Terminate production economies
(b) Eliminate forecasting uncertainty
(c) Provide better service for customers
(d) Prevent strikes or product shortages
Q.9 Supporting customers through the process of selecting, purchasing, and maintaining a
product or service is known as:
(a) Customer loyalty
(b) Customer satisfaction
(c) Customer services

(d) Customer retention
Q.10 Geographical Concentration Means:
(a) Group of customers
(b) Specific geographical area
(c) Thick city markets
(d) Terrain of the so
Question # 1 of 10
Which of the following is an element of an organizations internal-environment?
Select correct option:
Wholesalers
Retailers
Employees
Competitors
Question # 2 of 10
Which of the following refers to Companies often failure to predict changes,
either slow or long range to at least calculate their impact on their product and
customers? Select correct option:
Failure to obtain Senior Management Commitment
Poor Communications
Failure to Coordinate
Inability to Predict Environmental Reaction
A _____ is an organized collection of comprehensive information about individual

customers or prospects. Select correct option:
Business database
Customer mailing list
Customer database
Marketing database
Supporting customers through the process of selecting, purchasing, and

maintaining a product or service is known as: Select correct option:
Customer loyalty
Customer satisfaction
Customer retention
Customer services
All of the following statements are principles of communication, EXCEPT: Select

correct option:
Communication is a system
Communication is static
Communication can be intentional or unintentional
Communication is a process
Operational customer relationship management supports which of the following

function? Select correct option:
Front Office
Customer campaigns
Effective interaction
Data mining
Question # 10 of 10
which of the following is NOT a dimension of service quality? Select correct
option:
Empathy
Assurance
Reliability
Competence
Question # 1 of 10
Customer Service Culture includes all EXCEPT: Select correct option:
Traits
Value
Norms
Behavior
Question # 2 of 10
Promoters are those customers who? Select correct option:
Use product occasionally
Use product when required
Recommend a company to others
Use product continuously
Question # 3 of 10
Companies can gain a strong competitive advantage through having better-
trained people. This is known as: Select correct option:
Personnel differentiation
Product differentiation
Personnel training
Human resources parity
Question # 4 of 10
Which of the following is Not part of marketing mix? Select correct option:
Competitors
Pricing
Promotion
Product
Question # 5 of 10
how can complaints provide the firm with great value? Select correct option:
They provide a chance to prove the company is right
They can be a source of information for a company
Resolving those ties up important resources
They offer an opportunity to shed bad customers
Question # 6 of 10
Marketing relationships are: Select correct option:
Intensely personal, like human relationships
Intended to deliver short-term customer satisfaction
Intended to deliver long-term customer satisfaction
The most important element of the marketing mix
Question # 7 of 10
Which of the following is a special human trait that we need to sharpen and use
very often in CRM? Select correct option:
None of the given options
Foresee
Forecast
Forecast and foresee
Question # 8 of 10
Horizon cat food mailed a packet of catnip seed to every person who visited its
website. Along with the catnip seed was a note that advised consumers to visit
http://www.horizon.com if they wanted to create a cat-friendly garden. This
illustration is the best use of which concept for approaching prospect customer?
Select correct option:
Print advertising
Direct marketing
Personal selling
Public relations
Question # 10 of 10
Which one of these is NOT the major area on which customer relationship
management focuses? Select correct option:
Expansion of customer base
Reduction of advertising costs
Gaining new customers, no focus on existing ones
Personal information gathering and processing
Read more: http://vusolutions.blogspot.com/2010/09/mgt610-online-solved-

quiz.html#ixzz4dCb9Hfn9
Source 7:
http://wps.pearsoned.co.uk/ema_uk_he_chaffey_digmark_5/
232/59437/15216089.cw/content/index.html
1. ______ is a key e-CRM technique to follow-up a customer when they

abandon a shopping cart to encourage them to buy.
Correct None of the above

Answer:
2. ______ is a key e-CRM technique to tailor messages according to stated
preferences or observed buyer behaviour.
Correct Personalisation
Answer:
3. Match these stages in online relationship building.
Option Your Answer: Correct Answer:
3.1 Stage B. Relationship or dialogue B. Relationship or dialogue

1 starts. starts.
3.2 Stage C. Further dialogue occurs E. Information about the

2 between the company and customer is stored in a
customer. database.
3.3 Stage C. Further dialogue occurs C. Further dialogue occurs

3 between the company and between the company and
customer. customer.
3.4 Stage D. Tailored communications and D. Tailored communications and

4 or products are offered to the or products are offered to the
customer consistent with customer consistent with
information stored about the information stored about the
customer. customer.
3.5 Stage C. Further dialogue occurs A. Company monitors customer

5 between the company and response and adjusts future
customer. offers accordingly.
4. In e-CRM, customer retention refers to:
Correct All of the above.

Answer:
5. In e-CRM, customer acquisition means:
Correct attracting customers in the target profile to your

Answer: website and encouraging them to opt-in.
6. What is the typical relationship between satisfaction and loyalty?
Correct Satisfaction determines loyalty.

Answer:
7. Mass customisation is the use of technology to:
Correct deliver offers and products tailored for individuals or

Answer: segments.
8. The concept of opt-in typically involves:
Correct All of the above.

Answer:
9. Which information would typically be most useful when profiling to deliver a

relevant message to a consumer of a business service?
Correct Not possible to say; all of the above.

Answer:
10 Match these benefits of online relationship marketing with their

. descriptions.
10.1 Targeting more B. It is possible to see C. It is more costly to

cost-effectively who has clicked on which personalise direct mail.
offer in an e-mail.
10.2 Learning B. It is possible to see B. It is possible to see

relationship who has clicked on which who has clicked on which
offer in an e-mail. offer in an e-mail.
10.3 Lower physical B. It is possible to see A. Cost of e-mail lower

cost who has clicked on which than direct mail.
offer in an e-mail.
10.4 More rapid C. It is more costly to D. Most recipients

response personalise direct mail. respond within 24 hours.
11 ______ data is information about how the customer has responded to

campaigns.
.
Correct Behavioural data
Answer:
12 ______ data is information about the purpose of communications to the

customer.
.
Correct Campaign history
Answer:
13 Permission marketing is also known as interruption marketing.
.
Correct False
Answer:
No that's incorrect, permission marketing is aimed at more focused

communications which have higher impact because they have been
requested.
14 Online communities or social networks can assist with CRM through:
.
Correct researching customer perceptions about products.
Answer:
15 Match these stages in permission marketing.
15.1 Stage B. Company welcomes the A. Contact is offered as an

1 customer through e-mail or incentive to opt-in by a
other media. company.
15.2 Stage E. Profile information about the E. Profile information about the
2 customer is stored in a customer is stored in a
database. database.
15.3 Stage A. Contact is offered as an B. Company welcomes the

3 incentive to opt-in by a customer through e-mail or
company. other media.
15.4 Stage C. Tailored communications C. Tailored communications

4 and or products offered to the and or products offered to the
customer are consistent with customer are consistent with
information stored about the information stored about the
customer. customer.
15.5 Stage D. Company monitors the D. Company monitors the

5 customer response, updates customer response, updates
profile and adjusts future profile and adjusts future offers
offers accordingly. accordingly.
16 Match these definitions of significant CRM acronyms
16.1 LTV C. A method of reviewing the B. A historical or forward

behaviour of customers in looking measure of the profit
terms of their patterns of contributed by a group of
purchase or interactions on a customers.
website
16.2 MGC B. A historical or forward D. A grouping of customers

looking measure of the profit showing their potential to
contributed by a group of contribute future profit. MVC
customers. (most valuable customers is
another customer type in this
categorization).
16.3 RFM A. A method of evaluating the C. A method of reviewing the

brand preference for a behaviour of customers in
company based on the terms of their patterns of
likelihood of its customers to purchase or interactions on a
recommend a brand. website
16.4 NPS D. A grouping of customers A. A method of evaluating the

showing their potential to brand preference for a
contribute future profit. MVC company based on the
(most valuable customers is likelihood of its customers to
another customer type in this recommend a brand.
categorization).
Source 8: http://www.jobs.milegi.in/questionbank/questionsolution?
page=63
Source 9: http://www.flashcardmachine.com/is-midterm1.html
Term Definition
IT's impact on business today

Internet
- *popularity
High percentage of users
Name two ways business

Email
has been influeced
by IT
Facebook
New websites
News & Media
Blogs
E-news
Twitter
Term Definition
Information Technology Capital

IT is theInvestment
main driver- of total investment over
*** the past few decades.
What effect does IT investment have on Total

investment?
Term Definition
A business information system

Processing
- **
Classify
After receiving an input what

Arrange
4 processes
does an Info System do to create an output?
Calculate
Term Definition
Inoformation Systems isOrganization

made up of what 3
broad catagories? *
Technology
Management
Term Definition
Management Information Tech:

Systems is made up
of 3 Technology and 3 Behavioral approaches.
List them. * Management Science
Computer science
Operations research
Behavioral:
Socialogy
Economics
Psychology
Term Definition
Tech Dimensions of IS - **
Hardware
Software
Storage
Communications technology
Networks
Term Definition
Organization-IT Interdependence
Hardware*
Data management
IS communicates Business
Telecommunications
objectives and
processes with what 3 aspects of software?
Term Definition
Strategic Business Objectives

Operational
of IT **excellence
UPS
There are 6 objectives, with

Newexamples.
products, services, and business models.
Spotify (soft ownership)
Customer and supplier intimacy
JCPenny and TAL - utilize customer data
Improved decision making
Verizon - shortened customer service call

times
Competative advantage
Dell - pull model
Survival
Citibank - first to put out ATM's

Term Definition
Variation of ROI of IT ***Benefit: on average investments in IT are far

above other investments
Explain the benefits and drawbacks of

investing in IT Drawback: Variation is much higher across
firms (risky)
Term Definition
Complementary Assets **
Organizational
Culture
List some assets that complement

Business model
of each of
the following aspects of business:
Processes
Organizational Assets
IS Developement
Managerial Assets
Mangerial
Social Assets
Management Support
Innovation
Teamwork
Training
Social
Society's invetment
Laws and regulations
Internet
Education
IT Services
Term Definition
Four Major Business Functions

Sales &**Marketing
Manufactuing & Production
List them. Finance & Accounting
Human Resource
Term Definition
List the 3 levels of of business

Strategic
andLevel
what(top)
information systems pertain to that level. **
ESS - Executive Support System
Management Level (middle)
MIS - Management Information Systems
DSS - Decision-Support Systems
Operational level (bottom)
TPS - Transaction Processing Systems
Term Definition
What is TPS, and when isTPS

it used?
- Transaction
** Processing System
TPS is used by employees to support

operational activities and transactions
Term Definition
What is MIS, and when isManagement

it used? ** Information Systems
MIS is used to sum up all relevant information

for management to make educated decisions.
Term Definition
What is DSS, and when is

Decision
it used?Support
** System
Takes in various information, analyzes the
data and gives the best possible solution.
Term Definition
What is ESS, and when is

Executive
it used? Support System
ESS is used to monitor each devision of a

company and make broad strategic executive
decisions.
Term Definition
Order Tracking System Manufacturing & Production
What type of:
Business Function? TPS
Information System?
Term Definition
Order fulfillment SystemSales

e.g. NewEgg
& Marketing
What type of:
Business Function? TPS
Information System?
Term Definition
Order fufilment process Sales

*
Generate and submit order
Name the function of each

Accounting
of the following
processes
Check/approve credit
Sales Manufacturing & Production
Accounting Assemble product
Manufacturing and Production

Ship product
Term Definition
Challenges and oppurtunities

Challenge:
with IT
consearning Customer satisfaction in
information Era More "empowered" customers - online forums
and customer reviews can tarnish your
product
Oppurtunity
More "involved" customer - fish for feedback

on your product to improve
Term Definition
CRM - Acronym for what?

Customer
** Relationship Management
An enterprice applicatin "relationships"

taht helps firms
manage ________ with customers.
Term Definition
From Marketing * Cost is 1/6th of a new customer.
Explain some benifits of Dissatisfied

a high customer
customers gossip
retention, and good customer service.
Profits increase 85% by increasing customer

retention by 5%
Odds of selling to a new customer - 15%

Odds of selling to an existing customer - 50%
Term Definition
Beyond Sales... ** b. Entire company
The front office is the focus of the:
a. Sales department
b. Entire company
Term Definition
Beyond Sales... ** from "transaction"-based business model to

"service"-based business model.
With new CRM technology business models

are shifting from _________-based to _________-
service based.
Term Definition
Beyond Sales... ** Maxime value of every customer interaction
Customer Centricity definition
Term Definition
Customer Loyalty Management

Returning
Process
Customer?
Map *
w/ high value and loyalty
After entering customer Provide

information
special
intooffers
the and service*
CRM database, what are the three possible
w/o high value and loyalty
routes to manage their service?
Route to best agent to resolve issue*
New Customer?
Route to best agent to resolve issue*
* = end result
Term Definition
Functions of CRM * Manages ways used by firms to deal with

existing and potential new customers
Captures customer data

List a few functions of CRM
Consolidates customer data and provides
analytical tools for answering questions
Provides a unified view of customers across

the company
Distribute customer info to variosu systems

and customer touch points
Term Definition
Touch Points * Good
New product offerings to customers in need
3 Good Customized website
Product promotions to right customers
3 Bad Bad
Junk mails
Phone calls at wrong time
SPAM
Term Definition
How CRM System Supports

Telephone
Marketing
(30.8%)
* & Direct Mail (29.2%)
What two mediums of communication
generate the best response
Term Definition
Customer Relationship Management

Sales (CRM) **
Telephone sales
Provides/organizes customer
Web Sales
data to aid in
these three fields.
Retail Store sales
List the fields and explain how they are
helped. Field Sales
Marketing
Campaign data
Content
Data Analysis
Service
Call center data
Web self-service
Wireless data
Term Definition
Example of CRM Software

Sales
Capabilities *
Account management
List the 3 uses of customer

Lead
data
management
and how you
can use that data.
Order management
Sales planning
Field sales
Sales analytics
Marketing
Campaign management
Channel promotions management
Events management
Market planning
Market operations
Marketing analytics
Service
Service delivery
Customer satisfaction management
Returns management
Service planning
Call center & help desk
Service analytics
Term Definition
Operational CRM ** Managing customers face to face, sales,

service and marketing.
Define operational CRM and give examples

Examples include:
Campaign management
e-marketing
account and contact management
lead management
telemarketing
telselling
e-selling
field sales
Term Definition
Analytical CRM ** Analyzes customer data generated by

operational CRM applications to provide
information for improving business
performance.
Define and give examples of Analytical CRM
Examples include:
Develop customer segmentation and profiles
analyze customer or product profitability
identify trends in sales length cycle
analyze leads generate and conversion rates
Term Definition
Analytical CRM Data Warehouse

The Customer
* Data Warehouse collects data
from channels within the company and other
sources. It then uses analysis tools and data
mining to
The Customer Data Warehouse provide
plays whatinfo on profitable
role within CRM? customers, market segments, customer
profiles and churn rates.
Term Definition
Business Value of CRM Systems

Increased
** customer satisfaction
More effective marketing and reduce direct

marketing costs
What are the values of a CRM System (6 total)
Lower costs for customers acquisition and
know the 2 bold ones retention
Increased revenue from identifying most

profitable customer and segements of
marketing, cross-selling, up-selling
Reduce churn rate: Number of customers who

stop using or purchasing products or services
from a company.
Realizing Customer Lifetime Value (CLTV):
Difference between revenues and expenses
minus the cost of promotional marketing used
to retain an account.
Term Definition
CRM Performance Measurement

Cost per **
lead
Cost per sale
List ways to measure CRM

Number
effectiveness
of repeat(5customers
total)
Churn rate
Sales closing rate
Term Definition
Name 4 types of IT and a

Pricing
company
and that
marketing:
utilizes that QuiBids/Priceline/Groupon
Selling direct: Amazon Fresh/Dell/MINIUSA
1. Digital goods: iTunes/Amazon Kindle
C2C commerce:
Craigslist/eBay/Prosper.com/GetAround
Term Definition
What are 3 types of media

TV:IT
HDTV
is prevalent
/ Interactive
in TV / 3D TV / Google TV
and an example of its use in that type?
Music: Spotify / Satellite Radio / iCloud /
Google Music
1. Movie: Netflix / Amazon VOD / Hulu
Term Definition
What are examples of ITGaming:

in Gaming,
MW3 Social
/ WoW / Second Life / Kinect /
Networking, & Virtual Communities?
Wii
Social: Facebook / MySpace / LinkedIn / Twitter
1. Virtual Communities: Wikipedia / Flickr /

YouTube / Instagram
Term Definition
What is IT? Broad subject conerned with

other aspects of managing and processing
information especially in large organizations.
2.
Term Definition
What are computer professionals

IT Specialists
called?
Division of company that deals with software
technlonogy called? IT department
Term Definition
What is MIS (IS)? System (includes hardware, software, people,

& communications systems) that
rocesses data and provides it to managers at
2. all levels who use it for
program implementation, and control.
Term Definition
What are the four roles of

Functional
IS? support role
Decision support role
2. Strategic support role
Performance monitoring role
Term Definition
What are the historical IT

Connection
views and View
what(~1970-95)
they
were viewed as?
Immersion View (~1991-2012)
Environment
2. Fusion View (~2012 - ?)
Term Definition
What is the idea of Ubiquitous

Computing/technology
Computing? surrounds us. WiFi,
laptops, cell phones, projectors, tvs. It
requires focused effort to remove yourself
1. from tech environment.
Term Definition
What are some voice recognition

Siri, GPS, Shazam, Phone operator systems
applications?
1.
Term Definition
What is special about today's

Doingbusiness
businessvs
on a Global Scale
business 50+ years ago.
Overcoming regional/country differences and
similarities
1.
Term Definition
To be good at everythingSpecialization
means being good
at nothing.
--Old Chinese Idiom
What is it referring to?

1.
Term Definition
What are challenges/impacts

Organizational
of the
ubiquitous environment?
Economic
Technological
1.
Political, cultural, social, etc.
Term Definition
List an example of the benefits

Factories
for business
specialization for each section (Factories,
Remote offices, BusinessJust-in-time production
Partners, Suppliers,
Customers) Continuous inventory replenishment
Production planning
Remote offices
Communicate plans and policies
Group Collaboration
Electronic communication
Scheduling
Business Partners
Joint Design
Outsourcing
Suppliers
Procurement
Supply chain management
Customers
Online marketing
Online sales
Built-to-order products
Customer service
Sales force automation
Term Definition
IT is considered a key enabler.

Without What
IT, communications
does that between
mean/refer to? retailers, distributors, customers, etc. would
not be as efficient or information rich. IT
enables many types of info: inventory,
1. shipping, production, procurement, order
processing, and planning & scheduling.
Term Definition
What is the history of adoption

Global Outsourcing
of Global increased from 40% of US
Outsourcing in the US (% largest
& Yearmanufacturers
--> % and (1991) to 80% (2004).
Year)
2.
Term Definition
What % of companies experienced

61% of global
costcompanies using outsourcing
saving from outsourcing?
experience cost saving
2.
Term Definition
What % of companies utilizing

57% found
outsourcing
increasing ability to focus on core
found increasing ability to
business
focus on core
business?
2.
Term Definition
What % of companies utilizing

50% reported
outsourcing
improvements in process speed
reported improvements in process speed?
2.
Term Definition
What is the relationship Website

betweencontains
a website
webpages
&
webpage?
2.
Term Definition
How does someone access

Client
a website?
sends request to a server. Server sends
data back.
2.
Term Definition
What is the impact of theEnables

architecture
enterprise
of applications to automate
enterprise applications? processes that span multiple business
functions (S&M, M&P, Fin & Acc, HR) and
organizational levels (programmer - CEO)
1. may extend outside the organization
(Suppliers, Customers, etc.).
Term Definition
The Leavitt Diamond [image]

2.
Term Definition
What is an Enterprise Resource

A cross-functional
Planning enterprise system that
System? allows different software modules to
communicate with each other and utilize each
other's data.
1.
Term Definition
What is the traditional view

Business
of systems?
functions (M&P, Fin & Acc, S&M, HR)
utilize business processes to communicate
with their corresponding Information Systems
2. (M&P Systems, Fin & Acc Systems, etc.).
Vendors and customers outside the
"organizational boundaries."
Term Definition
How do Enterprise Systems

All business
Work? processes communicate with a
centralized database to access information
required to complete their tasks. (HR can see
2. how many hours worked, labor cost, and job
skills of an individual)
Term Definition
What are ERP benefits? Decision support and Knowledge

Management (KM): provides cross-functional
information on business performance to
2. managers, increases decision speed &
effectiveness.
Enterprise agility: breaks down walls of
business processes, accelerates transfer of
information between departments
Term Definition
What are the challengesDifficult

of Enterprise
to build: requires fundamental
Systems? changes in the way the business operates
1. Technology: Requires complex software; large

investments of time, money, expertise
Centralized organizational coordination and

decision making: Not best way for all firms to
operate
Term Definition
Costs of ERP (pie-chart) Reengineering: 43%
Data Conversions: 15%
2. Training and Change Management: 15%
Sofware: 15%
Hardware: 12%
Term Definition
What is a Supply Chain Management

Enterprise application
System? that helps manage
(SCM) relationshiop with suppliers.
Macy's sends purchase data to suppliers so

they can analyze what colors are popular,
2. when to restock, etc.
Term Definition
What is a supply chain? Network of organizations and business

processes for getting raw materials, turning
them into products, and distributing to
customers.
2.
Term Definition
Which directions do materials,

Supplies:
information,
downstream
and payments flow through the supply chain?
(raw materials -> finished product ->
consumer)
2.
Information: upstream & downstream
(supplier <- purchase info ; tracking info ->

consumer)
Payments: upstream
(supplier <- firm <- consumer)
Term Definition
Nike supply chain Note the tiers of suppliers, flow from Nike <->
Distributor <-> Retailer <-> Customer
1.
[image]
Term Definition
Name 2 key processes of[image]

SCM for each:
Plan, Source, Make, Deliver, Return
2.
Term Definition
What are 2 functions of SCM Systems?
Decide when and what to produce, store, and

move.
2.
Rapidly communicate orders/product design
Track status of orders/shipment
Check inventory availability; monitor

inventory levels
Reduce inventory, transportation, &

warehousing costs
Plan production based on actual customer

demand
Term Definition
Define the push-based and

Push-based:
pull-based
Production master schedules
models. Who uses them?based
(SCM)on forecasts of demand for products;
products "pushed" to customers (Fashion
industry)
3.
Pull-based: Supply chain driven by actual

customer orders (Dell)
Term Definition
Push vs. Pull SCM [image]
1.
Term Definition
What are the 3 Supply Chain

Supply
Management
chain management systems:
Applications? Automate flow of info between company and
supply chain partners
Supply chain planning systems: Generate

demand forecasts for a product; help develop
2. sourcing & manufacturing plans
Supply chain execution systems: Ensure

products delivered to right locations in most
efficient manner. Manage flow of products
thru distribution centers and warehouses.
Term Definition
What are the metrics used

Fill to
rate
evaluate Supply
Chain Performance?
Average time: order to delivery
Number of days of supply in inventory

2.
Forecast accuracy
Cycle time for sourcing and making a product
Term Definition
What are two benefits ofClose

SCM coordination
systems? of activities involved in
buying, making, and moving product; match
supply w/ demand
1. Integrates supplier, manufacturer, distributor,
and customer logistics; including reverse
logistics
Reduces time, redundant effort, and inventory

costs; minimizes inventory level
Helps in procurement of materials &

transformation of raw materials into
intermediate and finished products
Helps in distribution of the finished products

to customers
Speed product time to market; use assets

more effectively
Term Definition
What is the "Future Internet-Driven

A chain withSupply
not beginning or end,
Chain?" communication/information flowing
throughout.
1.
[image]
Term Definition
Growth of e-Commerce 1994: just above $0 billion
From graph, 1994 - 2104,

2014:
whatprojected
is the $350 billion
projected growth?
1.
Term Definition
Traits of e-Commerce Ubiquity: shop anywhere
Name 3 Global reach: shop anywhere
Universal standards: Communications

between different systems are seamless
2.
Increases richness: Internet increases depth,
detail, and scope of info
Interactivity: More interactions with

customers
Information density: Reduces information cost

and information asymmetry
Personalization: Individualized commerce
Social technology: user-generated content
Term Definition
What do digital markets Information

reduce? asymmetry
Search costs
1. Transaction costs
Menu costs
Term Definition
What do digital markets Price

enable?
discrimination
Dynamic pricing
1. Disintermediation
Term Definition
Digital Markets Compared

Digital
to Traditional
markets reduces over cost, reduces
Markets information asymmetry, delays gratification,
has stronger network effects, and
disintermediates the transaction.
3.
Traditional markets have a higher overall cost,

instant gratification, high info asymmetry,
intermediation, and weaker network effects.
Chart on pg. 380
Term Definition
What is the fundamentalRevenues

basis of e-
generated from customers who see
Commerce? Why do people
it having
use it?
a superior value to traditional
markets.
1.
Term Definition
What is one e-Commerce

Commerce:
Revenue Option
from each group?
Product sales
Commerce, community, content,
infrastructure Commissions
Sales or transaction fees
1. Content:
Subscription fees
Document fees
Registration fees
Community:
Ad fees
Referral fees
Membership fees
Infrastructure:
Software/hardware sales or license
Maintenance/update
Integration/install
Hosting/access fees
Term Definition
What is a portal? Provides initial point of entry to Web
ex. Yahoo.com, MSN.com
2.
Term Definition
What is an e-Tailer? Online retail store for goods
ex. Amazon.com, Newegg.com
2.
Term Definition
What is a content provider?
Provides digital content
ex. WSJ.com, ESPN.com
2.
Term Definition
What is a transaction broker?

Facilitates online transactions
ex. eTrade.com, Expedia.com
2.
Term Definition
What is a market creator?

Provides a trading platoform for individuals
and firms
ex. eBay.com, craigslist.org

2.
Term Definition
What is a service provider?

Provides online services, including search
ex. flickr.com, PayPal.com
2.
Term Definition
What is a community provider?

Provides online community to focused groups
ex. MySpace.com, facebook.com
2.
Term Definition
What are two propertiesInformation

of information
based
goods?
Big fixed cost
Example? Small or negligible variable cost
Easy versioning and pricing
2. Ex. Movie, record, book, research paper, etc.
Term Definition
What is the goal of versioning?

To charge as many people as possible the
price as high as possible.
2.
Term Definition
What is the theoretical basis

Price of
discrimination.
versioning? Purpose is to capture
What is its purpose? consumer surplus
Is it easier to version information

Information
goods
goods.
or Same product, different
physical goods? modules enabled/disabled.
2.
Term Definition
Costs of Digital vs. Traditional

DigitalGoods
goods have zero marginal cost, high
cost of production, and low copying, dributed
delivery, and inventory costs. Marketing and
3. pricing are variable.
Traditional goods have high marginal,

copying, distributed delivery, and inventory
costs. Variable cost of production and market
cost. Fixed pricing.
Chart pg. 381
Term Definition
The study by Brynjolfsson and Smith (2000)
showed what about prices for online and
conventional stores? Prices online < conventional store
Price fluctuation online > conventional store
2. Price dispersion online > conventional store
Term Definition
Why should prices onlineRegular

be lower
shopping
than provides:
traditional stores?
Affective processing (images, sounds, smells)
leading to impulse buys vs cognitive faculties
(price and feature comparison)
3.
Invisible trasaction costs (gas, time, parking)
vs. visible (shipping)
Instant gratification vs. delayed gratification
Term Definition
What is cost transparency?

Ability of consumer to determine the premium
the seller is charging.
2.
Term Definition
What are direct impacts Low

of cost
profits:
transparency?
(AT&T vs. Sprint) Sprint undercut
AT&T showing extreme premium AT&T was
charging
2. Services and products as commodities:
(Ameritrade, e-Trade vs. Merrill Lynch) Online
trading taking lower commission
Customer loyalty: (P&G)
Reputation damage by price unfairness: (Auto

industry 1970s) High value, low price
japanese cars coming into market
Source 10: https://quizlet.com/99143668/chapter-1-
marketing-flash-cards/
1) Marketing is
Managing profitable customer relationships
2) The twofold goal of marketing is to

1. Attract new customers by promising superior value and 2. To keep and grow
current customers by delivering satisfaction
3) Marketing
The process by which companies create value for customers and build strong
customer relationships in order to capture value from customers in return
4) 5 Step Model of the Marketing Process

1. Understand the marketplace and customer needs and wants
2. Design a customer-driven marketing strategy
3. Construct an integrated marketing program that delivers superior value
4. Build profitable relationships and create customer delight
5. Capture Value from customers to create profits and customer equity
5) 5 Core Customer and Marketplace Concepts

1. needs, wants, and demands
2. market offerings (products, services, and experiences)
3. value and satisfaction
4. exchanges and relationships
5. markets
6) The most basic concept underlying marketing is that of

Human Needs
7) Needs
States of felt deprivation
8) 3 Types of Needs
1. Physical (food, clothing, warmth)
2. Social (belonging and affection)
3. Individual (knowledge, self expression)
9) Wants
The form human needs take as they are shaped by culture and individual
personality
10) Demands
Human wants that are backed by buying power
11) Market Offerings

Some combination or products, services, information, or experiences offered to a
market to satisfy a need or want
12) Market offerings include other entities such as

persons, places, organizations, information, and ideas
13) Marketing Myopia
The mistake of paying more attention to the specific products a company offers
than to the benefits and experiences produced by these products
14) Marketing Myopia in Example

A manufacturer of a quarter-inch drill bits may think that the customer needs a drill
bit when really the customer needs a quarter-inch hole
15) Customer Value and Satisfaction are

key building blocks for developing and managing customer relationships
16) Customers form expectations about the value and satisfaction

that various market offerings will deliver and buy accordingly
17) Exchange
The act of obtaining a desired object from someone by offering something in return
18) Marketing occurs when

people decide to satisfy their needs and wants through exchange relationships
19) Market
The set of all actual and potential buyers of a product or service
20) Customer-managed Relationships

"How should our customers reach us?"
21) Once it fully understand consumers and the marketplace (step 1), marketing
management
can design a customer-driven marketing strategy (step 2)
22) Marketing Management

The art and science of choosing target markets and building profitable relationships
with them
23) The aim of marketing managers is to

find, attract, keep, and grow target customers by creating, delivering, and
communicating superior customer value
24) Marketing Managers need to decide

what customers to serve and how to serve them best
25) Selecting Customers to Serve

Done by dividing the market into segments of customers (market segmentation)
and selecting which segments it will go after (target marketing)
26) Marketing Management is

Customer Management and Demand Management
27) Value Proposition

Set of benefits or values a brand promises to deliver to customers to satisfy their
needs; helps when the company decides how to differentiate and position itself
28) 5 Alternative Concepts under which organizations design and carry out their
marketing strategies
1. Production concepts
2. Product concepts
3. Selling concepts
4. Marketing concepts
5. Societal marketing concepts
29) Production Concept

The idea that consumers will favor products that are available and highly affordable;
therefore, the organization should focus on improving production and distribution
efficiency
30) Production Concept can lead to

Marketing Myopia by focusing too narrowly on a company's operations and losing
sight of the real objective - satisfying customer needs and building customer
relationships
31) Product Concept

The idea that consumers will favor products that offer the most quality,
performance, and features; therefore the organization should devote its energy to
making continuous product improvements
32) Product Concept can also lead to

Marketing Myopia - mouse trap example
33) Selling Concept

The idea that consumers will not buy enough of the firm's products unless the firm
undertakes a large-scale selling and promotion effort (profits through volume)
34) Selling concept is typically practiced with

unsought goods - insurance or blood donations
35) Marketing Concept

A philosophy in which achieving organizational goals depends on knowing the needs
and wants of target markets and delivering the desired satisfactions better than
competitors do (profits through customer satisfaction)
36) Under the marketing concept,

customer focus and value are the paths to sales and profits
37) Societal Marketing Concept

The idea that a company's marketing decisions should consider consumers' wants,
the company's requirements, consumers' long-run interests, and society's long-run
interests
38) The societal marketing concept questions whether

the pure marketing concept overlooks possible conflicts between consumer short-
run wants and consumer long-run welfare
39) Sustainable Marketing

Socially and environmentally responsible marketing that meets the present needs of
consumers and businesses while also preserving or enhancing the ability of future
generations to meet their needs
40) Marketing program builds customer relationships by

transforming the marketing strategy into action
41) Marketing Mix

The set of marketing tools the firm uses to implement its marketing strategy
42) 4 Ps of Marketing
1. Product
2. Price
3. Place
4. Promotion
43) Customer Relationship Management is

the most important concept of modern marketing
44) Customer Relationship Management (CRM)

The overall process of building and maintaining profitable customer relationships by
delivering superior customer value and satisfaction
45) Customer-perceived Value

The customer's evaluation of the difference between all the benefits and all the
costs of a marketing offer relative to those of competing offers
46) Customer Satisfaction

The extent to which a product's perceived performance matches a buyer's
expectations
47) Basic Relationship

A company with many low-margin customers may seek to develop this
48) Full partnerships

Markets with few customers and high margins want this
49) Frequency Marketing Programs

Reward customers who buy frequently or in larger amounts
50) Customer-Managed Relationships are

Marketing relationships in which customers, empowered by today's new digital
technologies, interact with each other to shape their relationships with brands
51) Consumer-Generated Marketing

Brand exchanges created by consumers themselves- both invited and uninvited - by
which consumers are playing an increasing role in shaping their own brand
experiences and those of other consumers
52) Partner Relationship Management

Working closely with partners in other company departments and outside the
company to jointly bring greater value to customers
53) Customer lifetime Value
The value of the entire stream of purchases a customer makes over a lifetime of
patronage
54) Share of Customer

The portion of the customer's purchasing that a company gets in its product
categories
55) Customer Equity

The total combined customer lifetime values of all of the company's customers
56) 4 Customer Relationship Groups

1. Strangers - short term projected loyalty and low potential profitability
2. Barnacles - long-term projected loyalty and low potential profitability
3. Butterflies - short-term projected loyalty and high potential profitability
4. True Friends - long-term projected loyalty and high potential profitability
57) Internet
A vast public web of computer networks that connects users of all types all around
the world to each other and to an amazingly large information repository
58) The first 4 steps of the marketing process

create value for customers and build customer relationships
59) The last step of the marketing process

captures value from customers in return
Source 11: http://whatis.techtarget.com/quiz/Quiz-

Business-Intelligence
Quiz: Business Intelligence
1. This is an approach to selling goods and services in which a prospect explicitly

agrees in advance to receive marketing information.
a. customer managed relationship
b. data mining
c. permission marketing
d. one-to-one marketing
e. batch processing
2. In an Internet context, this is the practice of tailoring Web pages to individual

users' characteristics or preferences.
a. Web services
b. customer-facing
c. client/server
d. customer valuation
e. personalization
3. This is the processing of data about customers and their relationship with the
enterprise in order to improve the enterprise's future sales and service and lower
cost.
a. clickstream analysis
b. database marketing
c. customer relationship management
d. CRM analytics
e. B2C
4. This is a broad category of applications and technologies for gathering, storing,

analyzing, and providing access to data to help enterprise users make better
business decisions.
a. best practice
b. data mart
c. business information warehouse
d. business intelligence
e. business warehouse
5. This is a systematic approach to the gathering, consolidation, and processing of

consumer data (both for customers and potential customers) that is maintained in a
company's databases.
a. database marketing
b. marketing encyclopedia
c. application integration
d. service oriented integration
e. business technology management
6. This is an arrangement in which a company outsources some or all of its

customer relationship management functions to an application service provider
(ASP).
a. spend management
b. supplier relationship management
c. hosted CRM
d. Customer Information Control System
e. online transaction processing
7. This is an XML-based metalanguage developed by the Business Process

Management Initiative (BPMI) as a means of modeling business processes, much as
XML is, itself, a metalanguage with the ability to model enterprise data.
a. BizTalk
b. BPML
c. e-biz
d. ebXML
e. ECB
8. This is a central point in an enterprise from which all customer contacts are
managed.
a. contact center
b. help system
c. multichannel marketing
d. call center
e. help desk
9. This is the practice of dividing a customer base into groups of individuals that are
similar in specific ways relevant to marketing, such as age, gender, interests,
spending habits, and so on.
a. customer service chat
b. customer managed relationship
c. customer life cycle
d. customer segmentation
e. change management
10. In data mining, this is a technique used to predict future behavior and anticipate
the consequences of change.
a. predictive technology
b. disaster recovery
c. phase change
d. Digital Silhouettes
e. predictive modeling
SCROLL DOWN FOR ANSWER KEY
Answer Key:
1.) c. permission marketing

Jon Panker's article looks at how the "'Do not call' list changes game for marketers."
2.) e. personalization
SearchCRM offers a selection of Best Web Links for Personalization.
3.) d. CRM analytics

SearchCRM.com has more information in their Featured Topic, Crash Course:
Analytics.
4.) d. business intelligence

Jacqueline Sweeney-Coolidge's article explains "Data warehousing and business
intelligence" in greater detail.
5.) a. database marketing

According to Michael Lowenstein's article, "It's really (almost) all about the data:
Optimizing loyalty initiatives."
6.) c. hosted CRM

Jen Hubley's article explores the question about "CRM: Should you implement or be
hosted?"
7.) b. BPML
There's more information on the BPMI Web site.
8.) a. contact center

For more information, see SearchCRM.com's "Special report: Contact center
strategies."
9.) d. customer segmentation

This article explains how "Customer segmentation contributes to the bottom line."
10.) e. predictive modeling

Michael Lowenstein's article describes "Modeling modelers in predictive churn."
Source 12: http://csetips.catchupdates.com/business-intelligence-

mcqs/
Business Intelligence Multiple Choice Questions
November 23, 2013
| No Comments
This is an approach to selling goods and services in which a prospect explicitly

agrees in advance to receive marketing information.
A. customer managed relationship

B. data mining
C. permission marketing
D. one-to-one marketing
E. batch processing
Answer C
In an Internet context, this is the practice of tailoring Web pages to individual users
characteristics or preferences.
a. Web services
b. customer-facing
c. client/server
d. customer valuation
e. personalization
Answer E
This is the processing of data about customers and their relationship with the
enterprise in order to improve the enterprises future sales and service and lower
cost.
a. clickstream analysis
b. database marketing
c. customer relationship management
d. CRM analytics
e. B2C
Answer D
This is a broad category of applications and technologies for gathering, storing,

analyzing, and providing access to data to help enterprise users make better
business decisions.
a. best practice
b. data mart
c. business information warehouse
d. business intelligence
e. business warehouse
Answer D
This is a systematic approach to the gathering, consolidation, and processing of

consumer data (both for customers and potential customers) that is maintained in a
companys databases.
a. database marketing
b. marketing encyclopedia
c. application integration
d. service oriented integration
e. business technology management
Answer A
Also Read : C program to print India Map
This is an arrangement in which a company outsources some or all of its customer

relationship management functions to an application service provider (ASP).
a. spend management
b. supplier relationship management
c. hosted CRM
d. Customer Information Control System
e. online transaction processing
Answer C
This is an XML-based metalanguage developed by the Business Process

Management Initiative (BPMI) as a means of modeling business processes, much as
XML is, itself, a metalanguage with the ability to model enterprise data.
a. BizTalk
b. BPML
c. e-biz
d. ebXML
e. ECB
Answer B
This is a central point in an enterprise from which all customer contacts are
managed.
a. contact center
b. help system
c. multichannel marketing
d. call center
e. help desk
Answer A
This is the practice of dividing a customer base into groups of individuals that are
similar in specific ways relevant to marketing, such as age, gender, interests,
spending habits, and so on.
a. customer service chat
b. customer managed relationship
c. customer life cycle
d. customer segmentation
e. change management
Answer D
In data mining, this is a technique used to predict future behavior and anticipate the
consequences of change.
a. predictive technology
b. disaster recovery
c. phase change
d. Digital Silhouettes
e. predictive modeling
Answer E
Source 13: https://quizlet.com/61584177/mis-final-ch-7-flash-

cards/
Which of the following statements is true of personal information systems?
Personal information systems have only a single user and so procedures are not
documented or formalized.
Personal information systems are most likely to be used by ________.
drug salespersons
Which of the following is a characteristic of workgroup information systems?
resistance to change
Physician partnerships most likely use ________.

workgroup information systems
Which of the following statements is true of workgroup information systems?
Workgroup information systems typically support 10 to 100 users.
Which of the following is a characteristic of enterprise information systems?
They typically have hundreds to thousands of users.
Which of the following statements is true of enterprise information systems?
The solutions to problems in these systems usually involve more than one
department
________ are systems that are shared by two or more independent organizations.
Inter-enterprise information systems
Which of the following is most likely to make use of an inter-enterprise information

system?
PRIDE systems
A(n) ________ exists when data are isolated in separated information systems.
information silo
Information silos arise as a result of ________.
data being isolated in systems that are separated across different organizational
levels
Which of the following is an information systems application that supports the sales
and marketing department in an organization?
lead generation
Which of the following departments in an organization is supported by information

systems applications such as recruitment and compensation?
human resources department
Budgeting and treasury management are information systems applications that

support an organization's ________.
accounting department
Sales forecasting and brand management are information systems applications that
support an organization's ________.
sales and marketing department

________ is an information systems application that supports the human resources
department in an organization.
Compensation
Which of the following is a problem posed by information silos?
There is a lack of integrated enterprise information.
The problems posed by information silos ultimately lead to ________.
increased costs for an organization
________ is the activity of altering the existing business processes and designing new
ones to take advantage of new information systems.
Business process reengineering
Which of the following statements is true of business process reengineering?
It is a very expensive process
Inherent processes are ________.
predesigned procedures for using software products
Which of the following statements is true of inherent processes?
Inherent processes provide an alternative to business process reengineering.
The first phase in the customer life cycle involves ________.
sending messages to target audiences to attract customer prospects
When prospects become customers who need to be supported, the organization is

in the ________ phase of the customer life cycle.
customer acquisition
Which of the following is a component of relationship management?
increasing the value of existing customers by selling them more products
During which of the following phases of the customer life cycle does win-back
processes categorize customers according to value?
churn
________ is the last phase in the customer life cycle.
churn
Which of the following statements is true of customer relationship management

(CRM) systems?
They vary in the degree of functionality they provide.
Enterprise resource planning (ERP) helps in ________.
consolidating business operations into a single, consistent, computing platform
Which of the following statements is true about ERP?
ERP systems are used to forecast sales and to create manufacturing plans and
schedules to meet those forecasts
________ is the worldwide leader of ERP vendors.
SAP
ERP was originally used in the ________ domain.
manufacturing
________ is a suite of software applications that consolidates existing systems by

providing layers of software that connect applications together.
Enterprise integration application (EAI)
Which of the following is a function of EAI?
It enables a gradual move to ERP.
Which of the following statements is true of EAI?
EAI software can be configured to automatically make conversions needed to share

data among different systems.
The expenses and risks associated with the implementation or upgrading of

enterprise systems arise from the ________.
resistance from a company's employees to changes in existing systems
When implementing new enterprise systems in a company, process issues that may
arise can be effectively resolved by ________.
developing committees and steering groups for process management
________ is a major issue faced by companies when implementing enterprise

systems.
The gap between the requirements of an organization and the capabilities of an

application
________ is a person's belief that he or she can be successful at his or her job.
Self-efficacy
Inter-enterprise PRIDE systems are referred to as ________ because in such systems
processing is divided across multiple computing devices.
distributed systems
Source 14 : https://quizlet.com/48967782/mktg-3310-ch-4-
practice-test-flash-cards/
1) Despite the data glut that marketing managers receive, they frequently complain
that they lack ________.
A) enough information of the right kind
B) reliable information
C) timely information
D) accurate information
E) valid information
Answer: A
Diff: 1 Page Ref: 101
Skill: Concept
AACSB: Communication
2) Which of the following statements is NOT true regarding information collected by

marketers?
A) Managers lack information of the right kind.
B) Most managers do not need more information.
C) Most managers need better information.
D) Many managers are burdened by data overload.
E) Managers have the right information and they have enough of it.
Answer: E
Skill: Concept
3) A marketing information system (MIS) consists of people and procedures to

assess information needs, ________, and help decision makers analyze and use the
information.
A) experiment to develop information
B) test market the information
C) develop the needed information
D) critique the needed information
E) compare the needed information
Answer: C
Skill: Concept
4) The real value of a company's marketing research and information system lies in
the ________.
A) amount of data it generates
B) variety of contact methods it uses
C) efficiency with which it completes studies
D) quality of customer insights it provides
E) marketing information system it follows
Answer: D
Skill: Concept
5) The marketing information system can serve ________.

A) the company's marketing managers
B) suppliers
C) resellers
D) marketing services agencies
E) all of the above
Answer: E
Skill: Concept
6) A good MIS balances the information users would ________ against what they
really ________ and what is ________.
A) need: like: feasible
B) like: can afford: needed
C) like to have: need: feasible to offer
D) need: can afford: useful
E) use: have to use: available
Answer: C
Skill: Concept
7) Marketers must weigh carefully the costs of additional information against the
________ resulting from it.
A) organization
B) benefits
C) creativity
D) ethical issues
E) cost
Answer: B
Skill: Concept
8) Four common sources of internal data supplied to internal databases include the
accounting department, operations, the sales force, and the ________.
A) owners
B) stockholders
C) marketing department
D) competition
E) Web
Answer: C
Skill: Concept
9) Marketing information from which type of database usually can be accessed more
quickly and cheaply than other information sources?
A) external
B) LexisNexis
C) DataStar
D) internal
E) ProQuest
Answer: D
Skill: Concept
AACSB: Use of IT
10) ________ is the systematic collection and analysis of publicly available

information about consumers, competitors, and developments in the marketing
environment.
A) Marketing data
B) Marketing intelligence
C) Sales management
D) Customer intelligence
E) Competitive intelligence
Answer: B
Skill: Concept
11) Which of the following statements regarding marketing intelligence is true?

A) Marketing intelligence is privately held information.
B) The advantage of using competitive intelligence is negligible.
C) All marketing intelligence is free.
D) Marketing intelligence is publicly available information.
E) Marketing intelligence gathering is more focused on gaining insights into
consumer activities than competitors' activities.
Answer: D
Skill: Concept
12) Which of the following is NOT considered a source of marketing intelligence?

A) suppliers
B) resellers
C) key customers
D) causal research
E) activities of competitors
Answer: D
Skill: Concept
13) Which of the following is NOT a potential source for marketing intelligence?
A) competitors' garbage
B) competitors' products
C) competitors' sales data published in annual reports
D) primary data
E) discussions with purchasing agents
Answer: D
Skill: Concept
14) Through which of these sources of information is a competitor least likely to

reveal intelligence information?
A) annual reports
B) trade show exhibits
C) Web pages
D) press releases
E) internal marketing meetings
Answer: E
Skill: Concept
15) Which of the following is an example of a free online database that a company
could access in order to develop marketing intelligence?
A) LexisNexis
B) Hoover's
C) Dialog
D) U.S. Security and Exchange Commission's database
E) ProQuest
Answer: D
Skill: Concept
AACSB: Use of IT
16) Faced with determined competitive marketing intelligence efforts by

competitors, most companies are now doing which of the following?
A) training employees on protecting company information
B) promising to not participate in marketing intelligence efforts against competitors
C) providing employees with less key company information
D) decreasing the number of employees involved in decision-making processes
E) introducing codes of ethics
Answer: A
Skill: Concept
17) ________ is the systematic design, collection, analysis, and reporting of data
relevant to a specific marketing situation facing an organization.
A) The marketing information system
B) Marketing research
C) Exploratory research
D) Observational research
E) Causal research
Answer: B
Skill: Concept
18) What is the first step in the marketing research process?

A) developing a marketing information system
B) defining the problem and research objectives
C) developing the research plan for collecting information
D) implementing the research plan
E) interpreting data and deciding on type of research
Answer: B
Skill: Concept
19) Your colleague is confused about using the marketing research process, as he
knows that something is wrong but is not sure of the specific causes to investigate.
He seems to be having problems with ________, which is often the hardest step to
take.
A) developing the research plan
B) determining a research approach
C) defining the problem and research objectives
D) selecting a research agency to help
E) C and D
Answer: C
Skill: Concept
20) Which of the steps in the marketing research process has been left out of the
following list: defining the problems and research objectives, implementing the
research plan, and interpreting and reporting the findings?
A) developing the research budget
B) choosing the research agency
C) choosing the research method
D) developing the research plan
E) comparing and contrasting primary and secondary data
Answer: D
Skill: Concept
21) Causal research is used to ________.

A) test hypotheses about cause-and-effect relationships
B) gather preliminary information that will help define problems
C) find information at the outset of the research process in an unstructured way
D) describe marketing problems or situations
E) quantify observations that produce insights unobtainable through other forms of
research
Answer: A
Skill: Concept
22) Of the following combinations, managers would be most likely to start with
________ research and later follow with ________ research.
A) exploratory: causal
B) descriptive: causal
C) descriptive: exploratory
D) causal: descriptive
E) causal: exploratory
Answer: A
Skill: Concept
23) The objective of ________ research is to gather preliminary information that will
help define the problem and suggest hypotheses.
A) descriptive
B) exploratory
C) causal
D) corrective
E) descriptive and exploratory
Answer: B
Skill: Concept
24) In the second step of the marketing research process, research objectives
should be translated into specific ________.
A) marketing goals
B) information needs
C) dollar amounts
D) research methods
E) information sources
Answer: B
Skill: Concept
25) Secondary data consists of information ________.

A) that already exists somewhere but is outdated
B) that does not currently exist in an organized form
C) that already exists somewhere but was collected for another purpose
D) that is used by competitors
E) that the researcher can only obtain through surveys and observation
Answer: C
Skill: Concept
26) Information collected from online databases on the Internet is an example of

________ data.
A) primary
B) secondary
C) observational
D) experimental
E) ethnographic
Answer: B
Skill: Concept
AACSB: Use of IT
27) Which form of data below can usually be obtained more quickly and at a lower
cost than the others?
A) primary
B) survey research
C) secondary
D) experimental research
E) observational research
Answer: C
Skill: Concept
AACSB: Analytic Skills
28) It is most accurate to say that secondary data are ________.

A) collected mostly via surveys
B) expensive to obtain
C) not always very usable
D) never purchased from outside suppliers
E) always necessary to support primary data
Answer: C
Diff: 2 Page Ref: 108-110
Skill: Concept
29) Your assistant wants to use secondary data exclusively for the current marketing
research project. You advise him that the use of secondary data has some potential
problems. Which of the following is NOT one of them?
A) It may not exist.
B) It may not be relevant.
C) It may not be impartial.
D) It is generally more expensive to obtain than primary data.
E) It may not be current.
Answer: D
Diff: 2 Page Ref: 108-110
Skill: Concept
30) For secondary data to be useful to marketers, it must be relevant, current,

unbiased, and ________.
A) complete
B) accurate
C) inexpensive
D) collected before secondary data
E) experimental
Answer: B
Skill: Concept
31) Which method could a marketing researcher use to obtain information that
people are unwilling or unable to provide?
A) observational research
B) focus groups
C) personal interviews
D) Internet surveys
E) questionnaires
Answer: A
Skill: Concept
32) Ethnographic research ________.

A) comes from traditional focus groups
B) is gathered where people live and work
C) provides secondary data
D) is most popular in the service sector
E) provides data to marketers when observation is impossible
Answer: B
Skill: Concept
33) Which of the following is true of ethnographic research?

A) It is conducted within traditional focus groups.
B) It provides fresher and better insight into customer behavior than traditional
approaches do.
C) It provides researchers with secondary data.
D) It is most popular in the service sector.
E) It is a research option when observation is not possible.
Answer: B
Skill: Concept
34) Survey research, though used to obtain many kinds of information in a variety of
situations, is the approach best suited for gathering ________ information.
A) interpersonal
B) causal
C) attitudinal
D) descriptive
E) exploratory
Answer: D
Skill: Concept
35) Fredia Pellerano has just discovered the major advantage of survey research.
She reports to her supervisor that the advantage is its ________.
A) flexibility
B) interactive design
C) ease to complete
D) understandability
E) simplicity
Answer: A
Skill: Concept
36) Survey research is least likely to be conducted through which of the following?
A) the Web
B) the mail
C) the telephone
D) observation
E) person-to-person interactions
Answer: D
Skill: Concept
37) Experimental research is best suited for gathering ________ information.

A) exploratory
B) causal
C) attitudinal
D) interactive
E) descriptive
Answer: B
Skill: Concept
38) ABC Company has decided to use mail questionnaires to collect data.
Management recognizes this method has all the following advantages EXCEPT which
one?
A) low cost per respondent
B) more honest
Answers may be given

C) has an average response rate
D) has no interviewer to bias respondents' ; Answers
E) can collect large amounts of information
; Answer: C
Skill: Concept
39) Which of the following is NOT a disadvantage of telephone interviews?
A) They are more expensive to conduct than mail questionnaires.
B) Interviewer bias is introduced.
C) Respondents may be unwilling to
Answer personal questions.

D) Interviewers may explain or probe more deeply on some questions.
E) Potential respondents may refuse to participate.
; Answer: D
Skill: Concept
40) Which of the following contact methods is generally the least flexible?
A) telephone interviewing
B) personal interviewing
C) mail questionnaires
D) online surveys
E) online panels
Answer: C
Skill: Concept
41) Which contact method for marketing research is flexible, allows for explanation
of difficult questions, and lends itself to showing products and advertisements?
A) personal interviewing
B) online interviewing
C) phone interviewing
D) ethnographic research
E) observational research
Answer: A
Skill: Concept
42) Focus group interviewing has become one of the major marketing research tools
for getting insight into consumer thoughts and feelings. However, if the sample size
is small, a researcher would be most concerned about which of the following?
A) finding a representative sample
B) generalizing from the results
C) administering the questions
D) orchestrating cooperation among participants
E) finding enough secondary data to support the findings
Answer: B
Skill: Concept
43) Which of the following is a disadvantage of online focus groups?

A) Participants must be in a central location.
B) The Internet format can restrict respondents' expressiveness.
C) Results take longer to tabulate and analyze.
D) The cost of online focus groups is greater than that of most other qualitative
research methods.
E) The format of focus groups can be varied.
Answer: B
Skill: Concept
AACSB: Use of IT
44) Which of the following is NOT an advantage of Web-based research?

A) speed
B) low costs
C) almost instantaneous results
D) control over who respondents are
E) ease of administration
Answer: D
Skill: Concept
AACSB: Use of IT
45) Which of the following has the highest rating for speed of data collection and
compilation?
A) open-ended questionnaires
B) personal interviews
C) mail surveys
D) online surveys
E) ethnographic research
Answer: D
Skill: Concept
AACSB: Use of IT
46) Marketing researchers usually draw conclusions about large groups of

consumers by studying a small ________ of the total consumer population.
A) group
B) sample
C) population
D) target group
E) audience
Answer: B
Skill: Concept
47) You generally need to ask three questions when developing a sampling plan.
Which of the questions below is one of these three?
A) Who should be left out of the sample (sampling exclusion)?
B) How should we contact the sample (sampling approach)?
C) Why should respondents be selected (sampling justification)?
D) How should participants be chosen (sampling procedure)?
E) none of the above
Answer: D
Skill: Concept
48) What is a major drawback of probability sampling?

A) It can be time consuming.
B) Sampling error cannot be measured.
C) The most difficult population from which to obtain information is chosen.
D) Everyone has an equal chance of selection.
E) Marketers must rely on the judgment of the researcher in respondent selection.
Answer: A
Skill: Concept
49) What are the two main types of research instruments used to collect primary
data?
A) surveys and samples
B) questionnaires and mechanical devices
C) focus groups and online databases
D) online panels and experiments
E) personal interviews and online focus groups
Answer: B
Skill: Concept
50) The most common research instrument used is the ________.

A) mechanical device
B) live interviewer
C) questionnaire
D) telephone interviewer
E) moderator
Answer: C
Skill: Concept
51) Which of the following is the best advice about creating research
questionnaires?
A) Use simple and direct language.
B) Questions should not be arranged in a particular order.
C) Ask difficult questions in the beginning to "weed out" uninterested respondents.
D) Ask personal questions in the middle of the instrument.
E) Avoid personal questions that may make some respondents uncomfortable.
Answer: A
Skill: Concept
52) After a research instrument is selected, the next step in the marketing research
process is ________.
A) selecting a sampling method
B) interpreting the findings
C) implementing the research plan
D) collecting secondary data
E) selecting a research approach
Answer: C
Skill: Concept
53) AMF Research Group must guard against problems during the implementation
phase of marketing research for its clients. Which of the following is NOT a problem
that should be anticipated during this phase?
A) ensuring the accuracy of the collected data
B) respondents who give biased
Answers
C) interviewers who make mistakes or take shortcuts
D) interpreting and reporting the findings
E) ensuring the completeness of the collected data
; Answer: D
Skill: Concept
54) Typically, customer information is buried deep in separate databases, plans, and
records of many different company functions and departments. To overcome such
problems, which of the following should you try?
A) customer satisfaction measurement
B) more sophisticated software
C) customer relationship management
D) a marketing information system
E) decreased marketing intelligence
Answer: C
Skill: Concept
AACSB: Use of IT
55) Which of the following is true about customer relationship management (CRM)?
A) It relies on information produced through primary research.
B) Its aim is to maximize profit margins.
C) Its aim is to increase the efficiency of each customer touchpoint.
D) Its aim is to maximize customer loyalty.
E) Most companies who first implemented CRM have greatly benefited from the
results.
Answer: D
Skill: Concept
AACSB: Use of IT
56) Which of the following most accurately identifies the purpose of a data
warehouse?
A) to prioritize information
B) to integrate information a company already has
C) to interpret data
D) to analyze data
E) to identify and discard old data
Answer: B
Skill: Concept
AACSB: Use of IT
57) In CRM, findings about customers discovered through ________ techniques often
lead to marketing opportunities.
A) data warehousing
B) data mining
C) customer strategy
D) customer loyalty management
E) value network
Answer: B
Skill: Concept
AACSB: Use of IT
58) A successful CRM program can be expected to help a company achieve all of
the following EXCEPT ________.
A) providing higher levels of customer service
B) developing deeper customer relationships
C) creating offers tailored to specific customer requirements
D) understanding competition better
E) understanding how to better build the marketing mix
Answer: D
Skill: Concept
59) Marketing information is only valuable when it is used to ________.

A) simplify management's job
B) identify a target market
C) please shareholders
D) increase efficiencies in the supply chain
E) make better marketing decisions
Answer: E
Skill: Concept
60) What source of marketing information provides those within the company ready
access to research information, stored reports, shared work documents, contact
information for employees and other stakeholders, and more?
A) an intranet
B) an extranet
C) the Internet
D) marketing research
E) marketing intelligence
Answer: A
Skill: Concept
AACSB: Use of IT
61) When managers use small convenience samples such as asking customers what
they think or inviting a small group out to lunch to get reactions, they are using
________.
A) informal surveys
B) experiments
C) observation
D) direct marketing
E) marketing intelligence
Answer: A
Skill: Concept
62) Small organizations can obtain, with minimal effort and cost, most of which type
of data available to large businesses?
A) experimental
B) observational
C) secondary
D) primary
E) ethnographic
Answer: C
Skill: Concept
63) You have been asked to locate secondary data for your small organization's
research needs. Which of the following is NOT a common source for this type of
research?
A) competitors' Web sites
B) the U.S. Small Business Administration
C) the U.S. Census Bureau
D) online surveys
E) the local Chamber of Commerce
Answer: D
Skill: Concept
64) The availability of which of the following is most problematic in international

marketing research?
A) primary data
B) research specialists
C) secondary data
D) intelligence limitations
E) consumers willing to
Answer surveys
; Answer: C
Skill: Concept
AACSB: Multicultural and Diversity
65) Because of the scarcity of good secondary data, international researchers often
must collect their own primary data. An initial problem with this collection is
developing good ________.
A) samples
B) research firms
C) customer relationships with nationals
D) relationships with channel members
E) analytical models
Answer: A
Skill: Concept
66) What do many researchers encounter when conducting market research in

foreign countries?
A) Some countries have few telephones, limiting access to respondents.
B) Some countries have poor mail services.
C) Some countries have poor roads that limit personal contacts.
D) Some cultures may not value marketing research.
E) all of the above
Answer: E
Skill: Concept
67) Cultural differences, especially those involving language, can add to research
costs in foreign markets and can increase the ________.
A) foreign trade
B) risks of error
C) response rate
D) need for a larger sample
E) reliance on primary data
Answer: B
68) Anna Gregory just completed reading a marketing research report about the top
25 countries that purchase American products. What would the report most likely
say about international research within these countries?
A) It is on the decrease due to high costs.
B) The costs are higher than the benefits.
C) There is a lack of qualified research personnel.
D) Despite the costs of international research, the costs of not doing it are higher.
E) Interpretations of American quality are consistent among different countries.
Answer: D
Skill: Concept
69) According to your text, what are two current major public policy and ethical
issues in marketing research?
A) child pornography and identifying sampling methods
B) intrusions on consumer privacy and misuse of research findings
C) misuse of research findings and locating valuable secondary data
D) selling of personal information to other firms and online secondary data
E) ethnography and the misinterpretation of it
Answer: B
Skill: Concept
AACSB: Ethical Reasoning
70) Choose the statement that is NOT a typical consumer concern about intrusion
on consumer privacy.
A) Sophisticated researchers probe our deepest feelings.
B) Marketers use personal information to manipulate our buying.
C) Marketers build huge databases full of personal information.
D) Marketers make too many products and services available, creating unnecessary
consumer wants.
E) Protecting personal information is increasingly important.
Answer: D
Skill: Concept
71) Behavioral targeting, the practice of ________, is being used by more and more
companies.
A) tracking customers' activities and rewarding customer loyalty
B) managing customer relationships
C) mining and analyzing data from data warehouses
D) tracking consumers' online movements and using this information to target ads
to them
E) observing and interacting with consumers in their natural environments
Answer: D
Skill: Concept
AACSB: Use of IT
72) Consumers are most likely to willingly provide research information when
researchers provide which of the following?
A) coupons
B) social network membership
C) value for the exchange
D) prizes
E) rebates
Answer: C
73) The best approach for researchers to take to guard consumer privacy includes
all of the following EXCEPT which one?
A) Ask only for the information needed.
B) Use information responsibly to provide value.
C) Avoid sharing information without the customer's permission.
D) Sell the information only when it is financially worthwhile.
E) Fully explain to the respondents how the information will be used.
Answer: D
Skill: Concept
74) Many major companies have created the position of ________ to address
concerns about the privacy of customers.
A) chief customer loyalty manager
B) chief behavioral analyst
C) chief privacy officer
D) ethics manager
E) data warehouse manager
Answer: C
Skill: Concept
75) To address concerns about the misuse of research study findings, several highly
regarded marketing associations have developed ________.
A) customer relationship management guidelines
B) behavior targeting "Do Not Track" lists
C) chief privacy officer job descriptions
D) codes of research ethics
E) bans against using "cookies"
Answer: D
Skill: Concept
Source 15: https://quizlet.com/5322776/relationship-

marketing-flash-cards/
1) Advocate, a person who not only buys the company's products but recommends
them to others
One of the highest levels of loyalty a customer may develop to a marketing firm is
that of:
2) Retaining; more expensive
Relationship marketing focuses more attention on _________ customers because new

customers are _________ compared to existing customers
3) Create long-term, cost-effective links with individual customers for mutual benefit
Relationship marketing can help an organisation:
4) Relationship marketing
_____ is a strategy that entails forging long-term partnerships with customers
5) Relationship marketing
Frequent-flyer programs are an example of financial incentives to customers in

exchange for their continuing patronage. After flying a certain number of miles or
flying a specified number of times, the frequent-flyer program participant earns a
free flight or some other award such as free lodging. Airlines that use frequent-flyer
programs are practicing:
6) Large database of customers
Which of the following is NOT a necessary feature of relationship marketing?
7) Customer relationship management (CRM) systems
Software systems that provide all staff with a complete view of the history and
status of each customer are called:
8) Customer Relationship Marketing
All marketing activities and strategies used to retain customers are called:
9) Customer satisfaction
A state of mind reached when the provision of goods or services meets or exceeds a
customer's pre-purchase expectations of quality and service is called
10) Customer Acquisition
All marketing activities and strategies used by organisations to attract new

customers are called
11) Customer Retention

All marketing activities and strategies used by organisations to keep current
customers are called:
12) Customer relationship cycle
There are three stages that a customer moves through during their relationship with
an organisation. These stages are customer acquisition, development and retention
and are called the:
13) Perceived risk
What term refers to the real and imagined risks that customers consider when
purchasing products and services?
14) Perceived value
A customer's estimate of the extent to which a product or service can satisfy their
needs is known as:
15) Switching costs
All the direct and indirect costs incurred by buyers when they change supplier are
known as
16) Trust
The degree of confidence that one person (or organisation) has in another to fulfil
an obligation or responsibility
17) Core product/service-the bundle of attributes, features, and benefits which must
reach competitive levels if a relationship is to develop; support services and
systems; Technical performance; Elements of customer interaction; Affective
dimensions of services.
Which of the following is a contributor to customer satisfaction?
18) Competing goals
A number of factors can be a cause of conflict between partners. When two

organizations adopt marketing goals that are incompatible, this is an example of
which type of cause of conflict?
19) Transactional exchanges
These types of exchanges are characterized by short-term, product- or price-

oriented exchanges, between buyers and sellers coming together for one-off
exchanges independent of any other or subsequent exchanges
20) Collaborative exchanges

These types of exchanges are characterized by a long-term orientation, where there
is complete integration of systems and processes and the relationship is motivated
by partnership and mutual support
Source 16:
Chapter 13
Communicating Customer Value: Personal Selling and
Direct Marketing
GENERAL CONTENT: Multiple-Choice Questions
1. These employees are well-educated, well-trained professionals who work to build

and maintain long-term customer relationships by listening to their customers,
assessing customer needs, and organizing the companys efforts to solve
customer problems. Who are these employees?
a. Managers.
b. Missionary salespeople.
c. Salespeople.
d. Sales managers.
e. All of the above.
(Answer: e; 401; Moderate)
2. Which of the following communication and promotion tools involve direct

connections with customers aimed toward building customer-unique value and
lasting relationships?
a. Personal selling.
b. Direct marketing.
c. E-commerce.
d. Publicity.
e. A and B.
(Answer: e; p. 401; Moderate)
3. Johnson Fabric Company has four selling positions for employees. One of them is
not really an actual selling position. Which is it?
a. Order taker.
b. Missionary salesperson.
c. Order getter.
d. Creative selling.
e. B and D
4. A _____ is an individual acting for a company by performing one or more of the

following activities: prospecting, communicating, servicing, and information
gathering.
a. sales manager
b. sales executive
c. sales support person
d. salesperson
(Answer: d; p. 402; Easy)
5. _____ involves two-way, personal communication between salespeople and

individual customerswhether face-to-face, by telephone, through video or Web
conferences, or by other means.
a. Advertising
b. Persuasive selling
c. Personal selling
d. Integrated marketing communication
e. A and B
(Answer: c; p. 402; Easy)
6. Current view holds that salespeople should be concerned with producing

customer satisfaction and company profit. So whom do they generally serve?
a. They represent the company to customers.
b. They represent the company to investors.
c. They represent the customer to the company.
d. A and C
e. None of the above
(Answer: d; p. 402; Challenging)
7. When a firm sets out to analyze, plan, implement, and control sales force
activities through sales force management, it sets and designs its_____, recruits,
selects, trains, supervises, compensates, and evaluates the firms salespeople.
a. sales territories
b. sales force management
c. team selling efforts
d. coop selling and advertising
e. promotional objectives
(Answer: b; p. 414; Challenging)
8. Of the three typical types of sales force structures, which one is often supported
by many levels of sales management positions in specific geographical areas?
a. Territorial.
b. Product.
c. Customer.
d. Complex systems.
e. Matrix.
(Answer: a; p. 403; Moderate)
9. Which of the following is not a disadvantage of a product sales force structure?

a. Extra selling costs involved with multiple sales visits from separate divisions.
b. Attention given to individual products.
c. Salespeople may wait to see the same customers purchasing agents.
d. Increase customer delivery time.
e. B and C
10. What do many companies use to set sales force size?

a. The workload approach.
b. Product availability.
c. Demographic characteristics of the sales force.
d. Sales quotas established.
e. Profit margin.
11.To reduce time demands on their outside sales forces, many companies have
increased the size of their inside sales forces, which include technical support
people, sales assistants, and _____.
a. order takers
b. order getters
c. telemarketers
d. administrative assistants
e. secretaries
12. Which activity was not mentioned in the text as typical for a sales assistant?
a. Call ahead and confirm appointments.
b. Provide technical support.
c. Conduct credit checks.
d. Follow up on deliveries.
e. C and D
(Answer: b; p. 40%; Moderate)
13.A growing trend for many companies is to use a group of people from sales,
marketing, engineering, finance, technical support, and even upper
management to service large, complex accounts. This approach is called _____.
a. department selling
b. multiple selling
c. team selling
d. management-controlled selling
e. simultaneous selling
14.In many cases today, a major reason to adopt team selling results from changes
in _____.
a. customers buying organizations
b. competition
c. rising costs
d. fewer skilled salespeople
15. One of the following is not a pitfall or disadvantage of team selling. Which is it?
a. Selling teams can confuse or overwhelm consumers.
b. Individual salespeople may have trouble learning to work with and trust
others.
c. In the long run, team selling ties up more time and increases overall costs.
d. Difficulties in evaluating individual contributions to the team selling effort can
create some sticky compensation issues.
(Answer: c; p. 408; Challenging)
16. The catalyst of any successful sales force organization is _____.

a. the recruitment and selection of good salespeople
b. current and relevant customer research data
c. relevant and extensive sales training
d. sales managers who work with their people
e. all of the above
(Answer: a; p. 408; Challenging)
17.In a typical sales force, the top 30 percent of the salespeople may bring in _____
percent of the sales.
a. 40
b. 50
c. 60
d. 70
e. 80
18.All of the following are problems associated with the poor selection of
salespeople except one. Which one?
a. Lower sales.
b. Costly turnover.
c. Less productivity.
d. Less office support.
e. Loss of company image.
19. Which of the following traits should salespeople have?

a. Honesty.
b. Patience.
c. Responsiveness.
d. All of the above.
e. A and C
20. Studies show that good salespeople possess all of these traits except which one?
a. Honesty.
b. Patience.
c. Caring.
d. At least average listener.
e. None of the above.
(Answer: d; p. 409; Moderate)
21. Sales applicants are typically not tested for _____.

a. sales aptitude
b. organizational skills
c. accounting skills
d. analytical skills
e. B and D
(Answer: c; p. 409; Moderate)
22.Initial sales training typically covers all of the following topics except one. Which
one?
a. Companys history and objectives.
b. Companys financial structure.
c. Chief products and markets.
d. Field procedures and responsibilities.
e. B and C
23. The chapter suggests that Cisco benefits from the _____.
a. best products
b. best prices
c. best-trained sales force
d. best technical support
e. best market value
24.To attract salespeople, a company must have an appealing compensation plan. It

is made up of several elementsa fixed amount, _____, expenses, and fringe
benefits.
a. bonuses
b. retirement
c. a variable amount
d. nonmonetary rewards
e. recognition
25.Management at Happy Motors must decide what mix of compensation elements

to offer their sales force. Which of the following is not one of the four basic types
of compensation plans?
a. Straight commission.
b. Straight salary.
c. Salary and commission.
d. Commission and bonuses.
26.A recent study showed that 70 percent of all companies use a combination of
_____ to compensate its sales force.
a. base salary and expense accounts
b. commission and fringe benefits
c. base salary and incentives
d. base salary only
27.Sales force compensation should direct the sales force toward activities that are
consistent with _____.
a. overall company strategies
b. overall marketing objectives
c. overall company objectives
d. overall department objectives
e. all of the above
(Answer: e; p. 410; Challenging)
28.Through sales management supervision, the company directs and _____the sales
force to do a better job.
a. coaches
b. motivates
c. coerces
d. influences
e. forces
(Answer: b; p. 410; Easy)
29.Which sales management tool shows which customers and prospects to see
during the next 12 months and in which months, as well as which activities to
carry out?
a. Time-and-duty analysis.
b. Sales force automation systems.
c. Annual call plan.
d. Sales quota plan.
30.Salespeople and sales managers now realize that perhaps the fastest-growing
sales force technology tool is _____.
a. the cell phone
b. the laptop computer
c. e-mail
d. the Internet
e. the U.S. mail
Companies are always looking for ways to increase selling time. All of the following
are ways to save time to accomplish this goal except one. Which one?
f. Use phones instead of traveling.

g. Simplify record keeping.
h. Find better call and routing plans.
i. Reduce the number of customers each sales rep should see.
j. Increase the number of customers each sales rep should see.
31.Sales efficiency has been greatly improved using sales force automation
systems. Salespeople primarily use laptops, handheld computing devices, _____,
and customer-contact software.
a. video conferencing
b. the U.S. mail
c. Web technologies
d. cell phones
32.Three common techniques sales managers use to boost sales force morale
include the organizational climate, sales quotas, and positive _____.
a. incentives
b. thinking
c. recognition
d. vocabularies and mannerisms
e. feedback
(Answer: a; p. 412; Easy)
33.Management sets standards that state the amount each salesperson should sell
and how sales should be divided among the companys products with _____.
a. sales goals
b. company quotas
c. sales quotas
d. sales incentives
e. all of the above
34.Of all the tools commonly used, which one of the following is the best for
management to use in evaluating salespeople?
a. Call reports.
b. Sales reports.
c. Expense reports.
d. Sales quota reports.
e. Customer feedback reports.
(Answer: b; p. 413; Moderate)
35.The selling process consists of several steps that the salesperson must master.
They focus on the goals of _____ and _____ from them.
a. closing sales; getting orders
b. getting new customers; extracting their problems to solve
c. getting new customers; obtaining orders
d. overcoming objections; obtaining orders
e. quoting prices; obtaining orders
36. The step that follows preapproach in the selling process is _____.
a. presentation
b. demonstration
c. handling objections
d. approach
e. qualifying
37. What should the salesperson and the sales manager accomplish during an
evaluation?
a. Provide constructive feedback.
b. Provide motivation to perform well.
c. Develop and communicate clear standards.
38.The prospecting step in the selling process includes identifying and _____ the
prospects. Without both of them much time and effort will be wasted.
a. calling
b. qualifying
c. preselling
d. making an appointment with
e. approaching
39.Prospects can be qualified by looking at their financial ability, volume of

business, _____, location, and possibilities for growth.
a. ability to pay
b. longevity in the market
c. special needs
d. compensation
e. image
40. The type of salesperson that fits best with todays marketing concept is a _____.
a. hard-sell salesperson
b. problem-solver salesperson
c. razzle-dazzle salesperson
d. salesperson on salary and not on commission
e. salesperson on commission and not on salary
41.The qualities that buyers like most in salespeople include empathy, honesty,
dependability, thoroughness, follow-through, and _____.
a. being a good listener
b. being a good communicator
c. being sympathetic
d. being a caring person
e. candor
42.The qualities buyers dislike most in salespeople includes all of the following
except _____.
a. being pushy
b. being deceitful
c. being too early for an appointment
d. being unprepared
e. all of the above
43.To handle objections successfully, a salesperson should use a positive approach,

seek out hidden objections, ask the buyer to clarify any objections, take
objections as opportunities to provide more information, and _____.
a. turn the objections into humor
b. seek to minimize or play down the objections
c. compliment the buyer for bringing the objections up
d. turn the objections into reasons for buying
e. A and C
(Answer: d; pp. 415416; Challenging)
44.Other than prospecting, a difficult step in the sales process for most people is to
_____ because they may lack confidence or feel guilty about asking for an order.
a. approach the prospect
b. make a professional presentation
c. handle the objections well
d. close the sale
e. follow up
45.Which step in the sales process is necessary if the salesperson wants to ensure
customer satisfaction and repeat business?
a. Proper approach.
b. Professional presentation.
c. Handling objections well.
d. Follow-up.
46.Today, most companies still use direct marketing as a _____ for marketing their
goods.
a. supplementary channel or medium
b. major marketing mix element
c. compliment to personal selling
d. technique reserved for mature and international markets
e. A, B, and C
47.Today, direct marketing relies heavily on database technologies and the Internet.
Early direct marketers used primarily direct mailers, telemarketers, and _____.
a. door-to-door salespeople
b. catalogs
c. C.O.D. delivery
d. A and C
48.For buyers, direct marketing is convenient, easy to use, and private. For sellers it
is _____.
a. a great tool for building customer relationships
b. great to find customers that a firm might otherwise overlook
c. a low-cost, efficient alternative for reaching their markets
d. all of the above
e. a hassle
(Answer: d; pp. 418419; Moderate)
49.Belinda Stahl would like to reach more customers and save money in the
process. Through research she has learned that _____ is the fastest growing form
of marketing.
a. personal selling
b. advertising
c. direct marketing
d. public relations
e. sales promotions
50.A comprehensive database is a tremendous tool for the direct marketer. It should
contain data that is geographic, demographic, psychographic, and _____ in
nature.
a. specific
b. culturally oriented
c. current and relevant
d. behavioral
e. sociological
51.What might be found in a B2B marketing database? A customers profile might

contain products and services purchased, past volumes of purchases, and _____.
a. key contact people
b. personal information about buyers
c. history of the business
d. B and C
52.A great advantage of a comprehensive marketing database is that companies

can identify small groups of customers to receive _____ marketing offers and
communications.
a. frequent
b. finely tuned
c. low-cost
d. competitive
e. unusual
53.Which one of the following purposes is not a common use of a direct marketing
database?
a. Identify prospects.
b. Generate sales leads.
c. Profile customers based on previous purchases.
d. Reduce competitive loyalty by up to 50 percent.
e. A and D
54. Which of the following is not a form of direct marketing?

a. Personal selling.
b. Advertising.
c. Telephone marketing.
d. Direct-mail marketing.
e. A and C
55. The major direct-marketing communications tool in todays business world is _____.
a. television marketing
b. kiosk marketing
c. telephone marketing
d. catalog marketing
e. the Internet
56. Direct mail has advantages over other forms of direct marketing, such as _____.
a. high target-market selectivity
b. it can be personalized
c. it is flexible
d. all of the above
57.During the last decade, three forms of mail delivery have become popular. Which
one is in direct competition with the post office and is highly automated?
a. Fax mail.
b. E-mail.
c. Voice mail.
d. Cell phone and laptop combination.
58.Catalog marketing can be personalized on a one-to-one basis. Which is not a

common form of catalog marketing?
a. Print catalog.
b. Video catalog.
c. Add-on catalog.
d. Electronic catalog.
e. B and D
59.Catalog sales have grown tremendously in the last few years with more than
10,000 companies producing some 14,000 specialty catalogs. Sales were $69
billion in 1996 and are expected to be more than _____ billion by 2008.
a. $50
b. $175
c. $300
d. $500
e. $900
60.Which statement is true regarding catalog marketing?

a. More and more catalogs are going digital.
b. Consumers make 36 percent of their purchases online.
c. Customers who receive print catalogs are more likely to buy online.
d. Catalog marketing is increasing in popularity.
e. All of the above statements are true.
(Answer: e; p. 423; Easy)
61. Web-based catalogs present challenges. What is one of those challenges?

a. They are intrusive.
b. They create their own attention.
c. They are passive and must be marketed.
d. They offer limited selections.
e. They are difficult to locate on the Web.
62.An effective form of direct marketing today is using the 30-minute television
advertising programs for a single product called _____.
a. direct-response TV advertising
b. infomercials
c. home shopping TV
d. publicity
e. all of the above
63. The infomercial-selling champ of all time is _____.

a. Martha Ray
b. Martha Stewart
c. George Foreman
d. Ron Popeil
e. Faith Hill
64.Direct-response ads always contain _____ to make it easier for marketers to
gauge whether consumers are paying attention to their sales pitches.
a. a mailing address for comments
b. a 1-800 number or the Web address
c. a hit button to record the number of viewers
d. an order number
e. pop-ups
65.In contrast to vending machines, which dispense only products, many companies
are using _____ to dispense information and take orders without direct human
aid.
a. kiosks
b. TV monitors
c. the Internet
d. cell phones
66. Kiosk marketing is used for _____.

a. consumer marketing
b. business marketing
c. consumer and business marketing
d. industrial marketing
e. hot foods
67.Too often, a companys individual direct-marketing efforts are not _____ with one
another or with other elements of its _____.
a. well integrated; companys strategy
b. well integrated; marketing and promotion mix
c. timed; promotion
d. compared; marketing and promotion mix
e. A and B
68.Public policy and ethical issues related to direct marketing include all of the
following except one. Which one?
a. Irritation and unfairness.
b. Deception.
c. Fraud.
d. Invasion of privacy.
69.The toughest public policy issue now confronting the direct-marketing industry is
_____.
a. deception
b. privacy
c. fraud
d. irritation
e. pornography
70. Which is the primary benefit to consumers from database marketing

a. More offers closely matched to their interests.
b. Availability of name-brand images.
c. Better prices.
d. Faster service.
e. Instant credit.
71.Using sophisticated computer technologies today, direct marketers can use their
databases to _____ their selling efforts.
a. track
b. integrate
c. microtarget
d. supplement
e. complement
72.Direct marketers know that, left unattended, problems such as privacy, fraud,
irritation, and deception issues can result in _____.
a. increasingly negative consumer attitudes
b. lower response rates
c. calls for more restrictive government legislation
d. A and C
e. all of the above
73. What is the common goal that both direct marketers and consumers want?
a. Honest marketing efforts.
b. Well-designed marketing efforts.
c. Efforts that consumers will appreciate and respond to.
d. A and C
74. Call objectives may be to _____.
a. qualify the prospect
b. gather information
c. make an immediate sale
d. A and C
e. all of the above
True/False
75.Today, most salespeople are well-educated, well-trained professionals who work

to build and maintain long-term customer relationships by teaching their
customers, assessing their needs, and organizing the companys efforts to solve
customer problems.
(True; p. 400; Challenging)
76.In her position as an outside field salesperson, Anna Beruk, is the interpersonal
arm of her companys promotion mix.
(True; p. 404; Moderate)
77.Designing sales force strategy and structure is not a major step in sales force
management that a typical company might encounter.
(False; p. 404; Easy)
78.Of all the ways to structure a sales force, product sales force structure helps the
company to become more customer focused and build closer relationships with
important customers.
(False; p. 405; Moderate)
79.To allow outside salespeople more time to spend with customers, many
companies have increased their inside sales forces and added technical support
people and sales assistants.
(True; p. 404; Easy)
80.Team selling is ideal when customer problems become more complex and
customers become larger and more demanding. These teams have the
advantages of uncovering problems that an individual would not, and they can
develop new opportunities.
(True; pp. 406407; Moderate)
81. The workload approach to set sales force size is outdated.

82.Networking equipment and software maker Cisco Systems has learned that using
the Internet to train salespeople offers few advantages.
83.The last thing your manager wants is to have someone ruin a customer
relationship because he or she is pushing too hard to close a deal. Instead,
companies are designing compensation plans that reward salespeople for
building customer relationships and growing the long-run value of each
customer.
84.Sales force automation systems have been developed for more efficient order-
entry transactions and improved customer service.
(False; p. 412; Challenging)
85.More and more companies are pushing their salespeople to make short-term
goals for business.
86.If Johnny Pages company is like most consumer goods companies today, he can
boost sales force morale and performance through his organizational climate,
sales contests, and positive incentives.
87.Formal sales force evaluation forces management to develop and communicate

clear standards for judging performance and provide constructive feedback and
motivation to perform well.
88.The step in the selling process where the salesperson learns as much as possible
about the buying organization, what its needs are, and who is involved in the
buying, is called qualifying.
89.During the presentation step of the selling process, the salesperson tells the
product story and explains the product benefits to the customer.
90.The major reason why Sonja Bergman might not be able to close sales to her
clients very well is because she may lack confidence, feel guilty about asking for
the order, or fail to recognize the need for the product being sold.
91.Todays large customers favor suppliers and salespeople who can sell and deliver
a coordinated set of products and services to many locations, and who can work
closely with customer terms to improve products and processes.
92.The forerunners of todays direct marketing were the catalog companies, direct
mailers, and telemarketers who gathered customer names and sold goods
mainly by mail and telephone.
93.A strong set of reasons for companies to use direct marketing is that it is an
easy, private, and convenient way for customers to shop.
94.Customer databases are invaluable tools for the direct marketer. Typical, they
contain the customers demographics, psychographics, buying behavior, and
other relevant information.
95.My Favorite Flowers floral shops can use its database in many useful ways. The
owners can identify prospects and generate sales leads by advertising products
or offers. They can profile customers based on previous purchasing and decide
which customers should receive particular offers. Salespeople can also help the
business to deepen customer loyalty.
96.The major forms of direct marketing include personal selling, telephone

marketing, direct-mail marketing, catalog marketing, direct-response television
marketing, kiosk marketing, and fax marketing.
97.The method of inbound telephone marketing is to provide a toll-free 1-800

number to receive orders from television and print ads, direct mail, or catalogs.
98.Direct mail is well suited to direct, one-to-one communication. It permits high

target-market selectivity, can be personalized, and is flexible. However, it does
not allow easy measurement of results.
99.Catalog marketing has grown explosively during the past 25 years. Most
recently, the Internet has helped boost the popularity even more.
100. In many instances, direct response television marketing has the advantages
of appealing to more than one of the physical senses, being in color, live product
demonstrations, and prime-time viewing.
101. Kiosk marketing, typically used in stores, airports, malls, and other locations,
dispenses information and takes orders, as opposed to vending machines that
dispense products for sale.
102. The major public policy and ethical issues in direct marketing today are
irritation, unfairness, privacy, deception, and fraud.
103. Wing Supply sells game calls to hunters through direct mail and database
marketing. Their customers can benefit from this database marketing because
they may receive more offers that are closely matched to their interests.
104. In a typical sales force, the top 30 percent of the salespeople might bring in
60 percent of the sales.
Essay
105. Describe the nature of personal selling and the role of the sales force.
Today, most salespeople are well-educated and well-trained professionals who

work to build and maintain long-term customer relationships by listening to their
customers, assessing customer needs, and organizing the companys efforts to
solve customer problems. Salespeople act as order takers, order getters, and
creative sellers. Personal selling is the interpersonal arm of the promotion mix.
The sales force acts as a critical link between a company and its customers.
Salespeople represent the company to the customer and the customer to the
company to produce customer satisfaction and company profit.
(p. 401; Moderate)
106. Compare and contrast the three major sales force structures.
In the territorial sales force structure, each salesperson is assigned to an

exclusive geographic area and sells the companys full line of products or
services to all customers in that territory. This organization clearly defines each
persons job, fixes accountability, and increases the persons desire to build local
business relationships that improve selling effectiveness. The product sales force
structure allows the sales force to sell along product lines; the seller becomes
very knowledgeable about products. This method can cause duplication of
efforts and several salespersons calling on the same accounts. The customer
sales force structure organizes along customer or industry lines; this can help a
company to become more customer focused and build closer relationships with
important customers.
(p. 403; Challenging)

107. Why are more companies using team selling? What are its pros and cons?
Team selling is useful to service large, complex accounts. Sales teams can
uncover problems, solutions, and sales opportunities that no individual
salesperson could. Teams can help train their members informally and boost
morale. Some pitfalls exist, such as selling teams can confuse or overwhelm
customers who are used to working with only one salesperson. Some
salespersons have trouble working with others. Finally, difficulties in evaluating
individual contributions to the team selling effort can create some sticky
compensation issues.
(pp. 4064077; Moderate)
108. What are the steps in finding and training an adequate sales force? Which
step is more important?
Recruiting and selecting the sales force comes first. Following selection,
orientation and training must be conducted based upon the knowledge and skill
levels of the recruits. The proper compensation method must be selected to
motivate and assist each person to reach his or her goals and the companys
goals. Management must supervise salespeople and assist them in reaching
their goals. Management must also evaluate salespeople and provide feedback
to improve performance. The most important step is probably the recruitment
and selection step. Good performers produce results; typically, 30 percent of the
sales force produces 60 percent of the sales.
109. Provide the seven steps in the selling process. What may be the two most
difficult steps for most salespeople?
Prospecting and qualifying begin the process, followed by the preapproach. Next,
the salesperson makes an approach to make a presentation or demonstration.
Handling objections follows, leading into closing the sale. Each sale requires a
follow up to make it complete. For most salespeople, especially new ones, the
prospecting, qualifying, and closing steps are the most difficult and require much
skill.
(pp. 4134144; Easy)
110. Please explain the major benefits of direct marketing.

For buyers, direct marketing is convenient, easy to use, and private. It gives
buyers ready access to a wealth of products and information, at home or work
and around the globe. It is immediate and interactive. For sellers it is powerful
for building customer relationships. Using database marketing, marketers can
target small groups or individual consumers, tailor offers of individual needs, and
promote these offers through personalized communications. It provides great
timing and offers a low-cost, efficient alternative for reaching markets. Direct
marketing has become the fastest form of marketing.
(p. 417; Moderate)
112. Provide the major advantage of each form of direct marketing.
Telephone marketing provides purchasing convenience and increased product

and service information. Direct mail marketing permits selectivity and
personalization. Catalog marketing allows customers to buy just about anything
they desire. Direct-response television marketing allows live demonstrations with
salespeople coming to your home or business. Kiosk marketing places
information and ordering machines in convenient places, airports, stores, malls,
and so forth.
(p. 421; Easy)
113. What are the five major public policy and ethical issues in direct marketing?
Why are consumers concerned about them?
The five major issues are irritation, unfairness, deception, fraud, and invasion of
privacy. Consumers are concerned those marketers know too much about their
lives and that they use this knowledge to take unfair advantage of consumers.
(p. 428; Easy)
114. How does database marketing benefit consumers?
Consumers often benefit from all this information kept about them in databases.
They receive more offers that are closely matched to their interests.
(p. 429; Moderate)
115. Explain the follow-up step of the selling process.

The follow-up step is necessary if the salesperson wants to ensure customer
satisfaction and repeat business. Right after closing, the salesperson should
complete any details on delivery time, purchase terms, and other matters. The
salesperson then should schedule a follow-up call when the initial order is
received, to make sure there is proper installation, instruction, and servicing.
This visit would reveal any problems, assure the buyer of the salespersons
interest, and reduce any buyer concerns that might have arisen since the sale.
(p. 416; Easy)
APPLICATION CONTENT: Multiple-Choice Questions
116. New Wave Music Company has decided to switch to a customer sales force
structure. Which of the following advantages may the company now enjoy?
a. The company can become more customer focused.
b. The company can build closer relationships with important customers.
c. The company can build a more knowledgeable and well-rounded sales force.
d. A and C
117. East Bay Communications has increased its inside sales force. How will this
help its outside sales force?
a. It will allow them more time to sell to major accounts.
b. It will allow them more time to find major new prospects.
c. It will allow them more time to provide after-the-sale customer service.
d. A and B
(Answer: e; pp. 404405; Moderate)
118. Your sales manager wants to hire only proven salespeople. His reasoning
includes all of the following except _____.
a. They need less training.
b. They will not ask for a large expense account.
c. They can be immediately productive.
d. They can grasp both product knowledge and sales skills faster.
e. all of the above
119. Greg Burden is sales manager for High Grade Industrial Chemicals. He wants
to raise his sales force selling time by 33 percent. Currently they spend the
nationwide average of _____ percent of their workweek actually selling.
a. 20 to 30
b. 40 to 50
c. 60 to 70
d. 80 to 90
e. 100
120. Your firm wants to increase sales and reach new markets with direct
marketing. To accomplish this, the sales or marketing manager would choose
which of the following?
a. Sales promotions.
b. Advertising.
c. Kiosk marketing.
d. Public relations and publicity.
e. A or B
121. Pete Sanchez has added telemarketing as a form of direct marketing to his
company. He sees an opportunity to grow and at the same time offer advantages
to his customers. Which of the following is not a customer advantage?
a. Purchasing convenience.
b. Increased product information.
c. Increased delivery time.
d. Increased service information.
e. A and B
122. Neal Murphy sells his companys unique gift items on television programs
and entire channels dedicated to selling goods and services. Neal is using _____.
a. infomercials
b. home shopping channels
c. Internet-based infomercials
d. prime-time selling
e. public relations
123. Adam Fox Limited, a noted consumer goods company, uses integrated direct
marketing to greatly improve response rate. Which of the following is his
company not likely to use to accomplish this goal?
a. A Web site.
b. A toll-free number.
c. A faxing component to provide more information.
d. An outbound telemarketing effort.
124. Lyall Electric, Inc., maintains a sales force for its small appliance customers
and a separate sales force for its automotive customers. Lyall Electric utilizes a
_____ structure.
a. product sales force
b. customer sales force
c. territorial sales force
d. a combination of B and C
125. Stahl, Inc., has 1,000 Type-A accounts, each requiring 28 calls per year, and
2,200 Type-B accounts, each requiring 15 calls per year. What is the sales forces
workload?
a. 40,000 calls
b. 41,000 calls
c. 50,000 calls
d. 61,000 calls
e. 71,000 calls
126. If each salesperson at Stahl, Inc., can make 1,500 sales calls per year, based
on the information in question #125, approximately how many salespeople will
be needed?
a. 31
b. 35
c. 41
d. 45
e. 48
127. You are responsible for hiring inside salespeople at Acme, Inc. What jobs
might you expect these people to perform?
a. Free outside salespeople to spend time with major accounts.
b. Use the phone to find new leads.
c. Act as liaisons between outside salespeople and customers.
d. Service accounts.
128. As a sales manager, you are not convinced that Web-based training is
valuable until someone demonstrates that _____.
a. salespeople can obtain text-based product training through the Web
b. sales skills are not likely to be acquired via Web-based training
c. sales skills are likely to be acquired via Web-based training
d. A and C
e. all of the above
129. Your companys goal is to maximize profitability; therefore, you will likely
want a salesperson who is _____.
a. an independent self-starter
b. a team player
c. not a team player
d. money driven
e. A and C
130. Your inside sales force is responsible for prospecting and qualifying
customers. Which of the following will likely occur?
a. The number of qualified customers will exceed the number of prospects.
b. The outside sales force will call on all prospects.
c. A salesperson may have to approach all qualified customers just to make one sale.
e. A and C
131. Saturn uses a database. How might this automobile manufacturer benefit?
a. Saturn can determine the geographic concentration of its customers in Illinois
versus Ohio, for example.
b. Saturn can determine what features to add to next years models.
c. Saturn can fine-tune certain marketing offers for specified customer groups.
d. A and B
132. As a marketing manager, you are trying to determine how much of your
promotional effort should be geared toward personal selling. Which factor(s) may
influence your choice?
a. Promotional dollars available.
b. Nature of your products.
c. Nature of your industry.
d. Target market characteristics.
(Answer: e; p 402; Easy)
133. Morrill Motors splits the United States into 10 sales regions. Within each of
those regions, the company maintains two sales teamsone for existing
customers and one for prospects. What type of sales force structure does Morrill
Motors use?
a. Territorial.
b. Product.
c. Customer.
d. Complex.
e. Workload.
134. You want to collect information about your sales force in the New England
states. What might you consider in doing so?
a. Sales reports.
b. Call reports.
c. Expense reports.
d. Profit performance in the territory .
135. Your sales force is able to easily assess their opportunities within the firm.
This feeling describes your firms _____.
a. prospecting
b. organizational climate
c. workload approach
d. technical support
e. sales structure
Short Answer
136. What are three roles given to people who do the selling?
Salespeople are order takers, order getters, creative sellers, and relationship
builders.
(p. 402; Easy)
137. What type of company may use the territorial sales force structure?
Companies who have split their customer bases up based on geographic location
will benefit from this type of structure. With a territorial sales force structure, the
organization clearly defines each salespersons job and accountability. In
addition, this type of structure increases the salespersons desire to build strong
customer-vendor relationships.
(p. 403; Moderate)
138. What type of company may use a product sales force structure?
With this structure, the salespeople sell along product lines; this type of structure
will most likely be used by companies that carry extensive product lines with the
need to separate customers according to the products they buy.
(p. 403; Moderate)
139. What type of company may use a customer sales force structure?
With this type of structure, companies organize their sales forces according to
customer types. For example, a manufacturer of insulated wire for both the small
appliance and automotive industries may decide to segment their salespeople
according to either the small appliance category or the automotive category.
(p. 403; Moderate)

140. Explain how the workload approach helps companies set sales force size.
Using this approach, the company first groups accounts into different classes
according to size, account status, or other factors related to the amount of effort
required to maintain them. It then determines the number of salespeople needed
to call on each class of accounts the desired number of times.
(p. 404; Moderate)
141. Why might a company need to hire both an inside and an outside sales force?
For example, larger accounts may require special nurturing; therefore, an

outside sales force can call on those customers. Smaller accounts may be able to
be taken care of by an inside sales force.
(pp. 404405; Moderate)
142. Identify the four types of compensation plans available to salespeople.
These include: straight salary, straight commission, salary plus bonus, and salary
plus commission.
(p. 410; Easy)
143. What does the annual call plan indicate?
The annual call plan shows which customers and prospects to call on in which
months and which activities to carry out.
(p. 411; Moderate)
144. What does time-and-duty analysis reveal?

This tool indicates time spent selling, traveling, waiting, eating, taking breaks,
and doing administrative chores.
(p. 411; Easy)
145. What is a firms organizational climate?
Organizational climate describes the feeling that salespeople have about their
opportunities, value, and rewards for a good performance.
(p. 412; Moderate)
146. Why does a firms number of prospects always equal or exceed its number of
qualified customers?
Prospecting identifies the total number of potential customers in an area;

qualifying breaks that number of prospects down into the actual group that the
salesperson will target.
(p. 414; Moderate)
147. Why does a salesperson set call objectives?
Call objectives allow the salesperson to better qualify the prospect, gather more
or better information, and/or make an immediate sale.
148. In what situation might a demonstration be especially critical during a

salespersons presentation?
A demonstration may be important if the products use or value can be better

understood with a visual demonstration. For example, if comparing Brand A
brass cleaner with another leading brand, a demonstration of how much more
quickly Brand A works may be more convincing for the prospective buyer.

149. In what situation might the need-satisfaction approach be important to the
salesperson?
This approach calls for good listening and problem-solving skills. The salesperson
commits himself or herself to listening to the customers problems, providing
viable solutions, follow-up, and so forth.
150. What are three possible signs that the salesperson should close the call?
The call should be closed when the customer nods approvingly when asking
about price or credit terms. In addition, the salesperson should close the call
after the customer or prospect has asked for updated pricing or product samples,
or when the customer/prospective buyer suggests a future meeting date to
discuss pricing, quality, and so on.
151. Why might the follow-up be considered the most critical step of the sales process?
The follow-up allows the salesperson to assure his or her continued interest and
to address buyer concerns that might have arisen since the sale.
(p. 416; Moderate)
152. What types of information are stored in a customer database?
A database can store demographic, psychographic, geographic, and/or product-

use information. This information allows the marketer to keep track of numerous
characteristics of the typical customer.
(p. 420; Easy)
153. Why might e-mail eventually become an ineffective promotional medium?

As people receive more and more e-mail, they tend to resent the intrusion of
unrequested messages.
(p. 423; Easy)
154. What may be considered a huge disadvantage with kiosk marketing?
Kiosks provide an informal way of contacting customers and prospects; kiosks

provide an impersonal touch that many customers may appreciate from
marketers.
(p. 426; Easy)
155. Why have firms adopted sales force automation systems?
Many firms have adopted sales force automation systems for more efficient
order-entry transactions, improved customer service, and better salesperson
decision-making support.
(p. 412; Moderate)
Scenario
Reliable Tool Company is a manufacturer of hubs and axles for the trailer and
heavy truck industry. Though the customer base is small, monthly sales at Reliable
are approximately $1 million. You might say we have all of our eggs in one basket,
says owner Arthur Deetz. Reliable Tool has captured a small piece of the pie but is
the sole supplier of hub and axle components to its customers; therefore, it is
critical that a competent sales force be maintained in order to nurture those few but
large accounts. Ninety-five percent of Reliables customers are located in Michigan,
Ohio, and Indiana. Travel time to all customers is short but, given the nature of the
industry, time spent with each customer is essential.
156. Why might personal selling be the best way for Reliable to promote?
Personal selling provides face-to-face contact with Reliables customers. This is

essential because the scenario indicates that the current customer base
demands a fair amount of personal attention. In addition, a heavy emphasis on
personal selling helps to build Reliable Tools credibility among prospects as they
quickly become familiar with Reliables face-to-face efforts.
(p. 402; Easy)
157. What sales force structure will work best for Reliable Tool?
A customer sales force structure may work best; this structure allows separate
salespeople to contact current versus existing customers and allows salespeople
to build closer relationships with important customers and prospects. In addition,
for some of the larger accounts, a team effort may prove to be successful; this
approach would allow various employees from various departments at Reliable
to make contact with their customer contacts.
158. Will an inside or outside sales force benefit Reliable Tool the most?
An outside sales force provides the face-to-face contact necessary to nurture

these few but large accounts. In addition, attracting new customers may
require intense face-to-face communication with prospects in the industry.
(p. 404; Moderate)
159. In order to best motivate this workforce, which of the four compensation
plans may work best?
Students answers will vary. However, because Reliable Tools accounts require
special nurturing, a straight salary may work best. A straight salary may
eliminate the aggressiveness or assertiveness that can often accompany
salespeople who are working to earning a commission or bonuses.
160. Assess the organization climate at this company.
Students assessments will vary. However, because Reliables customers require

a level of attentiveness that may go beyond typical accounts in other industries,
Arthur Deetz must certainly understand that salespeople turnover, at whatever
rate, would be detrimental to the customer-vendor relations necessary for
Reliables success.
161. What are some factors that may be considered when qualifying prospects at
Reliable Tool Company?
The prospects ability to pay, the prospects annual amount purchased, and the
prospects images in the marketplace may all play a role.
(p. 414; Easy)
162. What is an effective way for salespeople at Reliable Tool Company to follow
up after a call?
As with any sales call, a good follow-up will include an overview of the previous
sales meeting, an update on pricing or changes within the company since the
salesperson last spoke with the customer, any plans for a future visit, as well as
a thank-you for the customers time.
(p. 416; Moderate)
163. How could this company benefit from using a customer database?
Because the products produced at Reliable are probably customized hubs and
axles,
a database may likely serve a diminished purpose. However, such a database

can provide the marketer with any types of product changes or evolutions that
may have occurred in the distant past as well as a number of other changes.
(p. 420; Moderate)
164. Should this company use kiosk marketing? Why or why not?
Unlikely. Kiosk marketing is most often used as a convenience tool; therefore, the
attention required by the typical Reliable Tool customer could not be given. In
addition, kiosks will not likely work well for products that are custom-made; a
trade-show may be a better tool for Reliable Tool.
(p. 426; Moderate)
165. What qualities might customers dislike most in salespeople at Reliable Tool?
Such qualities may include being deceitful, late, pushy, and unprepared or
disorganized.
(p. 415; Easy)
Source 16: http://iimts.com/faculty/wp-

content/uploads/2013/01/Marketing-and-Services.pdf
Chapter-1: Basic of Marketing of Service
Self Assessment Questions
1 What is the 5th unique characteristic of service markets?
Lack of ownership
Intangibility
Inseparability
Heterogeneity
__________
a. Serviceability
b. Perish ability
c. Protract ability
d. Homogeneity
2 Which of the following are considered service organizations?
a. HSBC Bank.
b. The Salvation Army.
c. Cancer Research..
d. All of these.
3 In terms of the traditional Marketing Mix what is the third of the additional 3Ps that
have been incorporated to form the 7Ps of Services Marketing?
People
Process
______
a. Precipitation
b. Policies
c. Physical evidence
d. Progress
4 Which of the following is not one of the five characteristics of services?
a. Perish ability.
b. Inseparability.
c. Tangibility.
d. Heterogeneity.
5 When discussing services, what is considered a hybrid offering?
a. Equal parts of goods and services.
b. Service with accompanying minor goods.
c. Pure tangible product.
d. Pure service.
6 Which of the following is not a mechanism for managing customer service quality?
a. Customer focus groups.
b. Customer surveys.
c. Implementation of (TQM) Total Quality Management programmes.
d. Implementation of (JIT) Just in Time.
7 The _____________ reflects the view that the intangible aspects of products are
becoming the key features that differentiate the product in the marketplace.
a. Services marketing
b. Servuction model
c. Service imperative
d. Benefit concept
8 Which of the following businesses would be characterized as a pure service?
a. Insurance
b. Farming
c. Mining
d. There is no such thing as a pure service
9 The marketing function's main concern is with
a. producing goods or providing services
b. procuring materials, supplies, and equipment
c. building and maintaining a positive image
d. generating the demand for the organization's products or services
10 Which of the following sets of terms best describes a service?
a. Deeds, effort, and performances
b. Effort, objects, and deeds
c. Things, devices, and performances
d. Objects, devices, and things
11 The service sector produces intangible goods, some well known government,
health, education and some quite new modern communications, information, and
business services.
(a) True (b) False
12 The most commonly characteristics ascribed to services are:
a. Intangibility
b. Inseparability
c. Heterogeneity
d. All of these
13 Which of the following statements about services marketing is incorrect?
a. The marketing of products and services is exactly the same.
b. Satisfied and productive service employees will ensure the generation of greater
service value to the customer.
c. Successful service companies focus their attention on both their employees and
customers.
d. The specific nature of services marketing requires tailored marketing approaches.
14 Which are the factors or elements of internal marketing within a service firm?
a. Investment in staff training and development programmes.
b. Ensuring that all employees are customer oriented.
c. Ensuring effective teamwork.
d. All of these
15 A new entry into an industry sector that is mature in other states and, therefore, is
often protected by its government is:
a. Para-stately industry
b. Infant industry
c. Start-up firm
d. Venture capital firm
e. Service industry
16 States protect domestic industry
a. To raise revenues through taxes.
b. In order to protect an infant industry.
c. Only in authoritarian systems.
d. In order to increase imports.
17 In the services marketing triangle, _____ marketing refers to communications a firm
uses to make promises to customers regarding service delivery.
a. Internal
b. Interactive
c. Relationship
d. External
18 Which is External Marketing?
a. Marketing to employees
b. Marketing to end-users
c. Both (a) and (b)
d. None of these
19 The service marketing mix is also known as an extended marketing mix and is an
integral part of a service blueprint design.
(a) True (b) False
20 The ..in service marketing mix is intangible in nature.
a. Process
b. Product
c. Pricing
d. People
Answers for Self Assessment Questions
1. (b) 2.(d) 3.(c) 4.(c) 5.(a) 6.(d) 7.(c) 8.(d) 9.(d) 10.(a)
11.(a) 12.(d) 13.(a) 14.(d) 15.(b) 16.(b) 17.(d) 18.(b) 19.(a) 20.(b)
Chapter-2: Consumer Behavior in Services
1 Consumer behavior is a complex, dynamic, multidimensional process, and all
marketing decisions are based on assumptions about consumer behavior.
(a) True (b) False
2 Which of the following is NOT a barrier to excellent customer service?
a. Moodiness
b. Negative attitude
c. Laziness
d. Ability to handle stress
3 Which of the following statements is NOT true of perceptions?
a. Perceptions are developed over a period of time.
b. The ways we see things based on our experience are our perceptions.
c. Sometimes perceptions are irrational.
d. Perceptions are always the same.
4 What actions should we take in order to exceed our customers' expectations?
a. Maintain consistency.
b. Be confident that you know about customers and do not need to learn about
them.
c. Don't ask customers about their expectations.
d. Avoid telling customers what to expect.
5 Which statement is true of ethics in customer service?
a. Ethics are a set of principles that govern the conduct of a group or individual.
b. Ethics are unnecessary.
c. Ethics are unpopular choices of behavior.
d. Ethics are never a problem because they never come up.
6 Customer expectations are attitude about service deliverance that serve as standards or
position points against which performance is judged.
(a) True (b) False
7 Which statement about customer expectations is correct?
a. Customer expectations rarely change
b. Customer expectations are always changing
c. Often promising to solve a problem is enough. Customers usually forget
d. Companies should focus on themselves and forget about what the competition is
doing
8 The highest possible level of customer expectations is _____ expectations.
a. Desired
b. Acceptable
c. Ideal
d. Ego-satisfying
9 _____ services is the level of service the customer hopes to receive.
a. Desired
b. Adequate
c. Functional
d. Predictable
10 The _____ is the customer's underlying generic attitude about the meaning of service
and the proper conduct of service providers.
a. Augmented service expectation
b. Personal service philosophy
c. Derived service expectation
d. Cultural service expectation
11 _____ consists of short-term, individual factors that make a consumer more aware of
the need for service.
a. Temporary service intensifiers
b. Perceived service alternatives
c. Customer self-perceived service roles
d. Situational factors
12 One factor that influences adequate service is _____, the level of service that customers
believe they are likely to get.
a. Predicted service
b. Forecasted intensity
c. Evoked service
d. Ego-oriented service
13 Adulteration of goods is one such problem which is faced by the consumer in day today
purchases.
(a) True (b) False
14 Which of the following can influence how satisfied a customer is with a service?
a. Customers' emotions
b. Product features
c. Customers' perception of service quality
d. All of these
15 Quality refers to how a service is delivered to the customer.
a. Output
b. Interaction
c. Experiential
d. Technical outcome
e. Interactive
16 _____ has consistently proven to be the most important determinant of service quality.
a. Reliability
b. Responsiveness
c. Assurance
d. Empathy
17 From the customer's point of view, the most vivid impression of service occurs in the
service _____ when the customer interacts with the service firm
a. Event
b. Socialization
c. Encounter
d. Arrangement
e. Experience
18 A service encounter that occurs without any direct human contact is a(n) _____
encounter.
a. Remote
b. Phone
c. Detached
d. Public
19 Which of the following themes is NOT a source of customer satisfaction/dissatisfaction
in service encounters?
a. Recovery
b. Adaptability
c. Spontaneity
d. Credibility
20 Consumers move through a digit of stages on the way to making a purchase.
(a) True (b) False
1. (a) 2.(d) 3.(d) 4.(a) 5.(a) 6.(a) 7.(b) 8.(c) 9.(a) 10.(b)
11.(a) 12.(a) 13.(a) 14.(d) 15.(b) 16.(a) 17.(c) 18.(a) 19.(d) 20.(a)
Chapter-3: Relationship Marketing
1 Relationship marketing is focused upon the development of robust links between the
company and its customers. Which of the following are value-building approaches to
customer relationship marketing?
a. Social, political and financial benefits.
b. Financial, political and economic benefits.
c. Financial, social and structural benefits.
d. Structural, political and economic benefits.
2 Which of the following are examples of adding financial benefits to customer
relationship?
a. Computer programmes to improve information transfer.
b. Frequent flyer programmes.
c. Computer linkages to improve information transfer.
d. Individualizing products and services for customers.
3 What is the difference between transaction marketing and relationship marketing?
a. Transaction marketing tracks customer payments and credits.
b. Transaction marketing tracks the customer payments.
c. Focus upon one sales transaction at a time.
d. None of these
4 Under which of the following conditions would relationship marketing not be suitable
for a company?
a. When a company has high switching costs.
b. When companies use Global e-procurement systems.
c. When a company has long time frames or 'horizons'.
d. All of these
5 Which of the following is not a characteristic of relationship marketing?
a. The Intensity of the exchanges between customers and sellers
b. The importance of the product in exchanges between customers and sellers
c. The frequency of the exchanges between customers and sellers
d. The long-term nature of exchanges between customers and sellers
6 Sesser identified that long-term relationship leads to ___________ and higher profits.
a. Lower product returns
b. Increased customer expectations
c. Lower relationship costs
d. Higher retention levels
7 Which of the following is not part of the customer relationship development phases?
a. Development,
b. Decline
c. Customer acquisition,
d. Maintenance
8 Relationship marketing is an integral part of what type of marketing philosophy?
a. Selling philosophy.
b. Product philosophy.
c. Production philosophy.
d. Customer and marketing philosophy.
9 Building long-term relationships with customers is essential for any business. The
application of technology to achieve CRM is a key element of e-business but what does
CRM stand for?
a. Consumer relationship management
b. Customer relationship management
c. Customer retailing management
d. Customer resource management
10 The four marketing activities within the customer relationship management include
customer selection, customer acquisition, customer retention, plus:
a. Customer re-sell
b. Customer extension
c. Customer cross-sell
d. Customer Up-sell
11 A strength of social media and viral marketing is:
a. Highly targeted with controlled costs
b. It is possible to reach a large number at relatively low cost
c. Considered credible
d. Cannot be ignored in user's inbox
12 Relationship marketing is an old idea but a new focus now at the forefront of services
marketing practice and academic research.
(a) True (b) False
13 Elements of RM are the operational tools for implementing RM in an organization.
(a) True (b) False
14 Which of the following is central to any definition of marketing?
a. Transactions
b. Customer relationships
c. Making a sale
d. Making a profit
e. Demand management
15 When marketers set low expectations for a market offering, they run the risk of
________.
a. Disappointing loyal customers
b. Incorrectly identifying a target market
c. Failing to understand their customers' needs
d. Failing to attract enough customers
16 In addition to attracting new customers and creating transactions, the goal of
marketing is to ________ customers and grows their business
a. Encourage
b. Educate
c. Entertain
d. Retain
17 Which of the following marketing management concepts is most likely to lead to
marketing myopia?
a. Customer-driven marketing
b. Production
c. Societal marketing
d. Selling
18 .are more personal than organizational.
a. Trust
b. Financial Bonds
c. Social bonds
d. All of these
19 ..is tying the customers primarily through financial incentives that may be in
the form of lower prices for greater volumes purchases or lower prices for customers
who have been with the firm for a long time.
a. Trust
b. Financial bond
c. Social bond
d. All of these
20 Relationship Management is the strategy of consolidating, sharing and leveraging
information across an organization to optimize communication and facilitate
transactional interactions.
(a) True (b) False
1. (c) 2.(b) 3.(c) 4.(b) 5.(b) 6.(b) 7.(d) 8.(d) 9.(b) 10.(b)
11.(b) 12.(a) 13.(a) 14.(b) 15.(d) 16.(d) 17.(b) 18.(c) 19.(b) 20.(a)
Chapter-4: Market Segmentation and Targeting
1 Market segmentation is a powerful tool which provides knowledge and further
information on your existing and potential customers.
(a) True (b) False
2 The market segments provide information on:
a. Health indicators including obesity.
b. Participation in wider cultural activities
c. Participation in active recreation: walking and cycling
d. All of these
3 The success of the "imitative" innovation strategy is dependent on achieving what?
a. Advanced warning of new products
b. Economies of scale
c. A high market share
d. All of these
4 The market "segmentation/specialist" innovation strategy is characterized by:
a. Identifying a niche market
b. Intensive science and technology activities
c. Agility in design and manufacturing
d. Limited technology base
5 The concept of the knowledge base of the firm is based on the belief that:
a. The knowledge base can learn
b. Organizations have memory
c. The knowledge base is dependent on a firm's heritage
d. The knowledge base is more than the sum of the individuals' knowledge bases
6 The Profit Impact of Marketing Strategies studies have shown a strong correlation
between which of the following?
a. Profitability and partnerships.
b. Research and development and profitability.
c. High product quality and profitability.
d. Profitability and marketing penetration strategies.
7 Market segmentation involves a division of the prospective market into identifiable
groups.
(a) True (b) False
8 The major variables used for segmenting the market for tourism products and services
are:
a. Geographic Segmentation
b. Demographic Segmentation
c. Psychographic Segmentation
d. All of these
9 When a company identifies the parts of the market it can serve best and most
profitably, it is practicing ________.
a. Market targeting
b. Segmenting
c. Concentrated marketing
d. Mass marketing
10 Demographic variables are so frequently used in market segmentation because they
________.
a. create smaller segments
b. do not involve stereotypes
c. are comparatively easy to measure
d. create more easily reached segments
11 Marketers must be careful to guard against ________ when using age and life cycle
segmentation.
a. Underestimating
b. Cultural bias
c. Traditional marketing
d. Stereotyping
12 Many marketers believe that ________ variables are the best starting point for building
marketing segments.
a. Age
b. Behavioral
c. Beneficial
d. Family size
13 The first step in the market segmentation process is to.
a. Segment the market.
b. Define the market.
c. Position offer in the market.
d. Target the market.
14 Which one of the following is not a geodemographic basis for market segmentation?
a. Marital status
b. Postcode
c. Occupation
d. Personality
15 Psychographic segmentation categorizes markets according to ...
a. Preference to behave in certain ways.
b. Characteristics of the organisation.
c. People's product usage patterns.
d. None of the above.
16 Which of the following could be used as a basis for segmenting business-to-business
markets?
a. Frequency of purchase
b. Number of employees.
c. Industry type.
d. All of these
17 Which of the following should not a lifestyle segmentation factor?
a. An interest in sports.
b. Stamp collecting.
c. The growth rate of the segment.
d. The buyers interest in cars.
18 Positions are described by variables and within parameters that are significant to the
customers.
(a) True (b) False
19 The market for any product is normally made up of several segments.
(a) True (b) False
20 The place the product occupies in consumers minds relative to competing products is
________
a. Positioning
b. Perceptual mapping
c. Merchandising
d. Competitive strategy
1. (a) 2.(d) 3.(d) 4.(a) 5.(d) 6.(c) 7.(a) 8.(d) 9.(a) 10.(c)
11.(d) 12.(b) 13.(b) 14.(d) 15.(a) 16.(d) 17.(c) 18.(a) 19.(a) 20.(a)
Chapter-5: Service Recovery
1 _____ describes what the owner of the rehabilitation center did when he gave a
customer who was complaining that his therapist was an hour late for their appointment
a credit for one free hour of therapy.
a. Service recovery
b. Service paradox
c. Service inconsistency
d. Procedural recovery
2 A person who is a _____ is a type of complainer who is unlikely to say anything to the
service provider. This type of complainer often doubts the effectiveness of complaining
because of a belief that the consequences will not merit the time and effort they will
expend complaining.
a. Irate
b. Passive
c. Aggressive
d. Activist
3 Which of the following is NOT an example of a commonly used service recovery
strategy?
a. Learn from recovery experience
b. Act quickly
c. Encourage and track complaints
d. Implement the service paradox
4 The empowerment of employees makes which of the following service recovery
strategies easier to implement?
a. Make the service fail safe
b. Learn from lost customers
c. Encourage and track complaints
d. Act quickly
5 We define a ________ as anything that can be offered to a market for attention,
acquisition, use, or consumption that might satisfy a want or need.
a. Service variability
b. Private brand
c. Service encounter
d. Product
6 Service recoveries are very imperative for the companies in the perspective of customer
loyalty.
(a) True (b) False
7 Recovery and intervention Services Include the Following:
a. Day Support Mental Health Programs
b. Community Support
c. Emergency Assistance
d. All of these
8 The goal of service recovery is not to identify customers with issues and then to
address those issues to the customers satisfaction to promote customer retention.
(a)True (b) False
9 ________ is defined as the use of commercial marketing concepts and tools in programs
designed to influence individuals' behavior to improve their well-being and that of
society.
a. Internal marketing
b. Unsought product marketing
d. Social marketing
10 Developing a product or service involves defining the benefits that it will offer. These
benefits are communicated and delivered by ________ such as quality, features, and style
and design.
a. Marketing tools
b. Private brands
c. Product mixes
d. Product attributes
11________ is an approach in which all the company's people are involved in constantly
improving the products, services, and business processes.
a. Positioning
b. Brand equity
c. Total quality management
d. Product quality
12 A service failure, minimally defined, is service presentation that fails to meet
a. Customer cross-sell
b. Customer Up-sell
c. Customer expectations
d. All of these
13 Service marketing literature has distinguished between two types of service failure:
process and
a. Income
b. Outcome
c. Both (a) and(b)
d. None of these
14 Maturity Or Maturity date refers to the final imbursement date of a loan or other
financial apparatus, at which point the principal (and all remaining interest) is due to be
paid.
(a)True (b) False
15 In the services marketing triangle, _____ marketing refers to communications a firm
uses to make promises to customers regarding service delivery.
a. Internal
b. Interactive
c. Relationship
d. External
16 All of the following could be classified as internal customers of a hospital EXCEPT:
a. Patients
b. Doctors
c. Nurses
d. Bookkeepers who work in the hospital's billing office
e. Anesthesiologists
17 The frontline service employees are referred to as:
a. Gatekeepers
b. Control centers
c. Boundary spanners
d. Service encounter experts
e. External service providers
18 Which type of conflict results from the fact that Sullins Cleaning requires its
employees to wear uniforms?
a. Person/role
b. Vertical
c. Organization/client
d. Interfluent
e. Horizontal
19 Service recoveries have received concentration for over 20 years within service
management and service marketing.
(a)True (b) False
20 What are the Stages of Service Recovery Maturity?
a. Moribund
b. Active Listening
c. Solicitous
d. All of these
1. (a) 2.(b) 3.(d) 4.(d) 5.(d) 6.(a) 7.(d) 8.(b) 9.(d) 10.(d)
11.(c) 12.(c) 13.(b) 14.(a) 15.(d) 16.(a) 17.(c) 18.(a) 19.(a) 20.(d)
Chapter-6: Service Development and Design
1 Total product concept is used by the customers when evaluating the products among
different brands and they distinguish benefits and go for the product which provides
them with best value for the money paid.
(a)True (b) False
2 Psychological ring is formed by benefits resulting from the consumers feelings
associated with owning/using the product.
(a)True (b) False
3 What has caused the rise in services within developed economies?
a. More demand for coffee bars and smoothie bars
b. Decrease in unemployment levels
c. Increase in GDP
d. Increase demand in specialist business services
4 According to Johnson & Clark (2005) Information and communication technologies
(ICT) have contributed to the development of new services by?
a. Decreasing volumes per unit and increasing costs
b. Decreasing unit costs and increasing volumes per unit
c. Developing capabilities and developing commodity services
d. Reducing complexity and thereby improving capability
5 Services have characteristics which distinguish them from physical products such as:
a. Services are not perishable
b. Services are co-produced by the consumer
c. Services are homogenous
d. Services are tangible
6 Within the new service development process which of the following is part of the
realization stage?
a. Formulation of new service strategy
b. Concept development
c. Business analysis
d. Service design & testing
7 Johnson et al (2000) argue that new service development should be viewed as a cycle.
What are the four key pieces at the centre of the cycle?
a. Technology-people-systems-service
b. People-product-systems-service
c. Technology-product-systems-quality
d. People-product-systems-technology
8 Which of the following is not a factor which can significantly reduce time to market for
a product or service?
a. An early resolution of design conflict and uncertainty
b. Separation of the design of products and services from the design of the
processes which will produce them
c. An organizational structure which reflects the development project
d. Simultaneous development of the various stages in the overall process
9 There are 5 main stages in design of products or services. Which is the correct
sequence?
a. Preliminary design, Screening, concept generation, prototyping and final design,
evaluation and improvement
b. Concept generation, Screening, Preliminary design, Evaluation and
improvement. Prototyping and final design
c. Concept generation, Screening, Preliminary design, , Prototyping and final
design, Evaluation and improvement
d. Preliminary design, Screening, Concept generation, Evaluation and
improvement. Prototyping and final design
10 Supplementary aids and services include which of the following?
a. Universal design for learning
b. Classroom ecology
c. Educational and assistive technology
d. All of these
11 _____________________ refers to the design of instructional materials and activities to
make content information accessible to all children.
a. Accommodations
b. Universal design for learning
c. Goals and objectives
d. Content standards
12 Universal designs for learning promote flexibility in representing content, presenting
content, and ________________________.
a. Demonstrating content mastery
b. Accommodations
c. Grading
d. Assessment
13 Different formats for representing and presenting content include which of the
following?
a. Performance formats
b. Text formats
c. Digital formats
d. All of these
14 A market-product grid is a framework to relate:
a. Estimated expenses for products sold to various market segments.
b. Total anticipated revenue for each product to market segments.
c. Total anticipated profit for each product to segments.
d. The segments of a market to products offered or potential marketing actions by
the firm.
15 A perceptual map is most like a:
a. Consumer map of likes and dislikes.
b. Two-dimensional graph.
c. Pyramid design.
d. Three-dimensional cube.
16 The benefits of the Product Audit are:
a. Excellent way to confirm compliance
b. Develops stronger Due Diligence
c. Isolates specific materials that may be considered high risk
d. All of these
17 A service product consists of two components, the core invention and supplementary
services.
(a)True (b) False
18 The design of the service opening must address the following issues:
a. How the deferent service components are delivered to the customer.
b. The nature of the customers role in those processes.
c. How long delivery lasts
d. All of these
19 Positioning strategies cannot be conceived and developed in a diversity of ways.
(a)True (b) False
20 The delivery processes surrounding this core product are:
a. Nature of the processpeople processing in this instance
b. Service levelwhat level and style of service
c. Both (a) and (b)
d. None of these
1. (a) 2.(a) 3.(d) 4.(a) 5.(b) 6.(d) 7.(d) 8.(b) 9.(b) 10.(d)
11.(b) 12.(a) 13.(d) 14.(d) 15.(b) 16.(d) 17.(a) 18.(d) 19.(b) 20.(c)
Chapter-7: Services capes
1 All aspects of the organization's physical facility are collectively referred to as the:
a. Service span
b. Service encounter arena
c. Services cape
d. Service encounter place
2 In a_____ environment, the services cape must be planned to attract, satisfy, and
facilitate the activities of both customers and employees simultaneously.
a. Saleable service
b. Self-service
c. Customized services
d. Interpersonal services
3 The services cape plays all of the following roles EXCEPT:
a. Package
b. Boundary spanner
c. Differentiator
d. Facilitator
4 The employees at Franklin Credit Union correspond to the _____ in the stimulusorganism-
response model.
a. Organic motivator
b. Stimulus
c. Organism
d. Referent
5 The first step in developing an effective physical evidence strategy is to:
a. Map the physical evidence of the service
b. Assess and identify physical evidence opportunities
c. Clarify roles of the services cape
d. Recognize the strategic impact of physical evidence
6 Once an organization that is developing a physical evidence strategy has recognized
the strategic impact of physical evidence, it must next:
a. Clarify the tactical roles of the services cape
b. Create a cross-functional work team
c. Blueprint the physical evidence of service
d. Map the service encounter points
7 The design of the service site has the potential to help or hinder service delivery
(a)True (b) False
8 The role of the services cape is functional rather than strategic in nature
(a)True (b) False
9 Behavioral responses to the services cape are attraction and repulsion
(a) True (b) False
10 Self service environments require a complex servicescape compared to full service
environments
(a) True (b) False
11 The term services cape refers to which of the following?
a. The schematic diagram of the service flows of material, information and
customers
b. The emergency exit plan from a service facility
c. The physical surroundings in which the service takes place
d. The network of government rules regulating the service
12 Services are often intangible, and customers cannot assess quality well.
(a)True (b) False
13 When customers are actively involved in service production, they need ________ to
help them perform well.
a. Choice
b. Incentives
c. Training
d. Qualifications
14 The physical design of the service outlet is called the _____________.
a. Service scene
b. service landscape
c. service design
d. Services cape
15 In _______ marketing, customers agree to learn more about a company and its
products.
a. Permit
b. Services
c. two-way
d. Permission
16 A useful checklist for marketing-communications planning is provided by the ___ Ws
model.
a. 3
b. 5
c. 6
d. 4
17 are often designed to facilitate the service encounter and to increase
productivity.
a. Saleable service
b. Self-service
c. Customized services
d. Service environments
18 Feelings as a Key Driver of Customer Responses to Service Environments
a. The MehrabianRussell Stimulusresponse Model
b. The Russell Model of Affect
c. Drivers of Affect
d. All of these
19 A is not a passive setting it plays an important role in service transactions.
a. Service span
b. Service encounter arena
c. Services cape
d. Service encounter place
20 Customer performs most of the activities and few if any employees are involved.
(a)True (b) False
1. (c) 2.(d) 3.(b) 4.(c) 5.(d) 6.(c) 7.(a) 8.(b) 9.(b) 10.(b)
11.(c) 12.(a) 13.(c) 14.(d) 15.(d) 16.(d) 17.(d) 18.(d) 19.(c) 20.(a)
Chapter-8: Managing Demand and Capacity
1 The fundamental issue underlying supply and demand management in services is the
lack of _____ capability.
a. Inventory
b. Customization
c. Automation
d. Standardization
2 At any given time, the lack of inventory capability in service firms can result in all of
the following scenarios EXCEPT:
a. Demand that exceeds maximum capacity
b. Demand that exceeds optimum capacity
c. Supply and demand balanced at the level of optimum capacity
d. Demand that is below minimum capacity
3 Organizations have four approaches for capacity expansion. Which of the following is
not one of them?
a. lead demand with incremental expansion
b. lag demand with one-step expansion
c. lag demand with incremental expansion
d. lead demand with one-step expansion
e. average capacity with incremental expansion
4 Which of the following is false regarding capacity expansion?
a. Average" capacity sometimes leads demand, sometimes lags it.
b. If "lagging" capacity is chosen, excess demand can be met with overtime or
subcontracting.
c. Total cost comparisons are a rather direct method of comparing capacity
alternatives.
d. Capacity may only be added in large chunks.
5 A mathematical expression relating the amount of output produced to quantities of
capital and labor utilized is the
a. Real interest rate
b. Productivity relation
c. Production function
d. Marginal product
6 If it is observed that, in a particular market, price has risen and quantity exchanged has
increased, it is likely that:
a. Supply has increased
b. Supply has decreased
c. Demand has increased
d. Demand has decreased
7 The first steps of capacity planning and control do not include:
a. Studying the effect of queuing theory
b. Measuring aggregate demand and capacity?
c. Choosing the most appropriate capacity plan?
d. Identifying the alternative capacity plans?
8 Which of the following alternative methods of responding to demand fluctuations is
not appropriate?
a. Attempt to change demand to fit available capacity using demand management?
b. Ignore the fluctuations and apply a level capacity plan?
c. Adjust capacity to reflect the fluctuations through a chase demand plan?
d. Increase marketing activity and develop a chase demand plan?
9 Yield management is not especially useful where:
a. The service cannot be sold in advance
b. Capacity is relatively fixed
c. The market can be fairly clearly segmented
d. The service/product can be stored
10 Which of the following is not a measure of utilization?
a. Number of hours available for production
b. Room occupancy level in hotels
c. Uptime in a factory
d. Load factor for aircraft
11 Capacity is usually expressed in terms of:
a. The Master Production Schedule
b. The design life of an operations process
c. A production forecast
d. Potential output from an operations system
12 The maximum output of a system in a given period is called:
a. The breakeven point
b. The designed capacity
c. The production efficiency
d. The economic order quantity
13 With a chase demand strategy, which one of these statements is correct?
a. Outputs are stored until required
b. Staff turnover is likely to be high
c. Processes are buffered through inventory
d. Throughput rates respond to changes in demand
14 With a level capacity plan, which one of these statements is correct?
a. Processes are buffered through inventory
b. Processing capacity will vary according to demand
c. Throughput rates respond to changes in demand
d. Outputs are stored until required
15 Productivity is defined as the ratio between output and input.
(a)True (b) False
16 The main benefits of good capacity management are:
a. The performance of IT resources is optimized.
b. Insufficient information for realistic capacity planning.
c. Unnecessary expenses caused by last minute purchases are avoided.
d. All of these
17 The main activities involved in capacity management may be summarized as:
a. Developing the capacity plan.
b. Monitoring the use and performance of the IT infrastructure.
c. Demand Management.
d. All of these
18 The CDB must cover all the business, financial, technical and service information
received and generated by capacity management in relation to the capacity of the
infrastructure and its elements.
(a)True (b) False
19 Managers are not generally conscious that capacity and record policies must
concurrently be determined for arm to be optimally managed.
(a)True (b) False
20 Customers arrive; waiting lines can still form if the arrival and service processes are
arbitrary.
(a)True (b) False
1. (a) 2.(d) 3.(b) 4.(d) 5.(c) 6.(c) 7.(a) 8.(d) 9.(d) 10.(a)
11.(d) 12.(b) 13.(d) 14.(d) 15.(a) 16.(d) 17.(d) 18.(a) 19.(b) 20.(a)
Chapter-9: Services Marketing Communication Mix
1 A useful mnemonic in marketing communications is DRIP. In this mnemonic what
does the letter D stand for?
a. Differentiate
b. Distribute
c. Deliver
d. Demonstrate
2 One of the tasks of marketing communications is to reassure customers.
(a) True (b) False
3 Price, Promotion, Product & Place are the defining elements of the:
a. Marketing Mix
b. Marketing Communications Mix
c. Promotional Mix
d. All of these
4 Buying the same brand of toothpaste every month is a typical:
a. Reciprocal exchange
b. Redistributive exchange
c. Market exchange
d. Relational exchange
7 Marketing communications is a subset of the overall subject area known as marketing.
(a)True (b) False
6 Which marketing communications tool is characterized by low interaction, high
credibility, low costs and high wastage?
a. Direct marketing
b. Public relations
c. Personal selling
d. Sales promotion
7 Which marketing communications tool is best for awareness?
a. Personal selling
b. Advertising
c. Direct marketing
d. Public relations
e. Sales promotion
8 Which marketing communications tool best encourages action?
a. Public relations
b. Advertising
c. Personal selling
d. Sales promotion
9 Sales Promotion is regarded as an above-the-line tool.
(a) True (b) False
10 Effective marketing communications is:
a. A two-way process
b. It depends on the needs of the audience
c. A dialogue between two or more participants
d. A simple, one-way process
11 Business to business marketing communications are usually:
a. Formal
b. Informal
c. Both (a) and (b)
d. None of these
12 Personal selling is most dominant in the:
a. Business to business market (b2b)
b. Business to consumer market (b2c)
c. Both (a) and (b)
d. None of these
13 Most of the marketing communications budget in the b2b market is likely to be
allocated to:
a. Media costs
b. Sales management
c. Brand management
d. Agency fees
14 The impact of negative communications is potentially greater in:
a. Business to consumer contexts (b2c)
b. Business to business contexts (b2b)
c. Business to consumer market (b2c)
d. All of these
15 Post-industrial societies are currently witnessing a move:
a. From market to relational exchanges
b. From relational to market exchanges
c. Both (a) and (b)
d. None of these
16 Public relations and advertising functions often are performed by outside agencies
that specialize in these areas while the marketing functions are usually performed within
a large or midsize company or corporation.
(a) True (b) False
17 Direct marketing is considered as costing/contributing:
a. Through-the-line
b. Below-the-line
c. Above-the-line
d. None of these
18 Marketing communications with an audience known to be seeking information are
termed:
a. Intervention-based
b. Permission-based
c. Both (a) and (b)
d. None of these
19 Which of the following is regarded as a key criterion when selecting a marketing
communications tool?
a. Level of available human resources
b. Level of agency influence
c. Level of available financial resources
d. Level of competitor activity
20 Which of the following is a key characteristic of business-to-business marketing
communications?
a. Short purchase decision times
b. Use of information-based and rational messages
c. Informality of communications
d. Small number of people involved with the decision
1. (a) 2.(a) 3.(a) 4.(d) 5.(a) 6.(b) 7.(b) 8.(c) 9.(b) 10.(b)
11.(a) 12.(a) 13.(b) 14.(b) 15.(a) 16.(a) 17.(a) 18.(b) 19.(c) 20.(b)
Chapter-10: Value and Price
1 What is the impact, all else equal, of an increasing volatility of the stock price on the
value of an option?
a. Increase the value
b. Decrease the value
c. Leave the value unchanged
d. The impact is indeterminate with the information given
2 The market price of a convertible security minus its conversion value is known as the
__________.
a. Premium over conversion value
b. Conversion ratio
c. Conversion price
d. Conversion value
3 ________ is the amount of money charged for a product or service.
a. Wage
b. Salary
c. Price
d. Experience curve
4 Consumer perceptions of the product's value set the ________ for prices.
a. image
b. variable cost
c. demand curve
d. ceiling
5 Which of the following is a customer-oriented approach to pricing?
a. Value-based pricing
b. Target profit pricing
c. Sealed-bid pricing
d. Break-even pricing
6 In ________, price is considered along with the other marketing mix variables before
the marketing program is set.
a. Target pricing
b. Value-based pricing
c. Variable costs
d. Price elasticity
7 Underpriced products sell very well, but they produce less revenue than they would
have if price were raised to the ________ level.
a. Perceived value
b. Demand curve
c. Value-based
d. Price-floor
8 Which of the following is a cost-based approach to pricing?
b. Break-even pricing
c. Going-rate pricing
d. Good-value pricing
9 Which of the following is an external factor that affects pricing decisions?
a. The company's overall marketing strategy
b. The salaries of production management
c. Overall pricing objectives
d. Competition
10 When companies set prices, the government and social concerns are two ________
affecting pricing decisions.
a. External factors
b. Temporary influences
c. Economic conditions
d. Internal factors
11 The market price of a convertible security minus its conversion value is known as the
__________.
a. Premium over conversion value
b. Conversion ratio
c. Conversion price
d. Conversion value
12 In marketing terms, ___________ refers to what we get for what we pay:
a. Revenue
b. Cost
c. Value
d. Product
13 This is the amount the customer has to pay to receive a good or service:
a. Price
b. Relative price
c. Product price
d. Display price
14 Strike price is the contracted price that would be exchanged in the event of the
exercise of the option by the buyer of the contract.
(a) True (b) False
15 Volatility is the standard deviation of the price of the underlying over a defined
period of time.
(a) True (b) False
16 The pricing approach where prices are set based on what customers believe to offer
value is called the:
a. Cost-oriented approach.
b. Demand-oriented approach.
c. Competitor-oriented approach.
d. Value-oriented approach.
17 With this pricing approach, the pricing process begins with the customer; not the cost
of the product offering:
b. Cost-based pricing.
c. Customer-led pricing.
d. Sales pricing.
18 Value-based pricing is a method of pricing products in which companies first try to
determine how much the products are worth to their customers.
(a) True (b) False
19 Strategic pricing group is a consulting firm that helps corporations design and
implements value-based pricing strategies.
(a) True (b) False
20 .or expected dividends of an underlying stock impacts in a peculiar way
the pricing of its derivative be it futures or options.
a. Volatility of Underlying
b. Dividends
c. Rental Equivalent
d. All of these
1. (a) 2.(a) 3.(c) 4.(d) 5.(a) 6.(b) 7.(a) 8.(b) 9.(d) 10.(a)
11.(a) 12.(c) 13.(a) 14.(a) 15.(a) 16.(c) 17.(a) 18.(a) 19.(a) 20.(b)
Source 17: http://dimr.edu.in/wp-

content/uploads/2015/03/MCQ-Services-Marketing-Unit-
1.pdf
MCQ: Unit-I: Introduction to Services marketing

1. A ______________________ is a form of product that consists of activities, benefits, or
satisfactions offered for sale that are essentially intangible and do not result in the ownership of
anything.
a. Service
b. Demand
c. Need
d. Physical object
2. Distinct characteristic of services is_____________
a. Intangibility
b. Inseparability
c. Variability
d. Perishability
3. All of the following are examples of services EXCEPT:

e. a. banking.
f. b. hotels and motels.
g. c. tax preparation.
h. d. computer software.
4. Services are typically produced and consumed simultaneously. This is an example of the
________characteristic of services.
a. Intangibility
b. Variability
c. Inseparability
d. Simultaneously
e. Perishability
5. Services can not be stored. This describes the ___________characteristic of services.

a. Intangibility
b. Variability
c. Inseparability
d. Inconsistency
e. Perishability
6. Examples of pure tangible goods include all of the following EXCEPT:

a. Soap.
b. Tax preparation.
c. Toothpaste.
d. Salt.
7. __________describes the employees skills in serving the client.
a. Internal Marketing
b. External Marketing
c. Relationship marketing
d. Interactive marketing
e. Communication Marketing
8. SSTS refers to __________

a. Service Standards Testing
b. Self- Service Technologies
c. Standard Service Technologies
d. Self Service Treatments
9. _____________ occurs when a company intentionally uses services as the stage, and goods as the
props, to engage individual customers in a way that creates a memorable event.
a. Hybrid offer
b. Core service
c. Augmented or ancillary product
d. Experience
10. Top firms audit service performance by collecting_________measurements to probe customer
satisfiers and dissatisfiers.
a. Customer satisfier
b. Customer complaint
c. Voice of the customer
d. Psychological
11. The services a customer expects are called the ______service package.
a. Expected
b. Augmented
c. Primary
d. Secondary
e. Perceived
12. The fact that a business traveler may have one very positive check-in experience at a hotel and
then a very negative check-in experience with a different employee on a subsequent visit is evidence
of service:
a. intangibility.
b. inseparability.
c. variability.
d. perishability.
13. Added features to an offering are called _________service features.
a. Expected
b. Augmented
c. Primary
d. Secondary
e. Perceived
14. The intangibility of services has implications for the choice of _________
a. Brand elements
b. Location
c. Price
d. Product features
e. Channels of distribution
15. __________cost refers to the products purchase cost plus the discounted cost of maintenance and
repair less the discounted salvage value
a. Total
b. Variable
c. Life cycle
d. Net
e. Out of pocket
16. Successful service companies focus their attention on both their customers and their employees.
They understand ___________________, which links service firm profits with employee and
customer satisfaction.
a. Internal marketing
b. Service-profit chains
d. Service differentiation
17. If a firm is practicing ____________________, the firm is training and effectively motivating its
customer-contact employees and all of the supporting service people to work as a team to provide
customer satisfaction.
a. Double-up marketing
d. Service marketing
18. According to Parasuraman, Zeithaml & Berry , the most important determinant of service quality
is :
a. Responsiveness
b. Reliability
c. Assurance
d. Empathy
e. Tangibles
19. The extended marketing mix for services includes: People, Processes and _________
a. Product
b. Place
c. Physical Evidence
d. Promotion
20. Which of the following is not an element of physical evidence?

a. Employee Dress
b. Employee Training
c. Equipment
d. Facility Design
21. Which of the following is not an element of people?

a. Motivation
b. Teamwork
c. Flow of activities
d. Customer training
22. Standardized and customized flow of activities , simple and complex number of steps and
customer involvement by which a service is delivered is called
a. Place Mix
b. Physical evidence mix
c. Process mix
d. People mix
23. _ _________ is the environment in which the service is delivered and where the firm and
customer interact and any tangible components that facilitates performance or communication of the
service.
a. Physical evidence
b. Process
c. Place
d. People
24. All human actors who play a part in service delivery and thus influence the buyers perceptions :
namely , the firms personnel,, the customer and other customers in the service environment.
a. Process
b. Physical environment
c. People
d. Place
25. ____________ is a tool for simultaneously depicting the service process , the points of customer
contact and the evidence of service from the customers point of view .
a. Front of Planning
b. Service Blueprinting
c. Service standardization
d. None of these
26. __________ is the physical surroundings or the physical facility where the service is produced,
delivered and consumed.
a. Servicespace
b. Servicescape
c. Serviceplace
d. Servicescope
27. ___________ are the only service distributors which do not require direct human interactions.
a. Electronic channels
b. SSTs
c. Direct Service channels
d. Speculative channels
28. In the absence of a physical product, service providers need to consider the use of
______________ that enable customers to make a judgment on the service quality.
a. Intangible clues
b. Tangible clues
c. Blueprint
d. Performance measures
29. Compared with low-contact services, customers of high-contact services are more likely to judge
service quality on the basis of:
a. Price of the service
b. Processes used in carrying out the service
c. Intangible outcomes eg. The performance of an investment portfolio
d. Tangible outcomes
30. Which of the following is not generally accepted as being part of the extended marketing mix for
services?
a. Product
b. Price
c. Process
d. Practice

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%2F2%2F0%2F6%2F3%2F2063657%2Fch14.doc&usg=AFQjCNHLj2M
c7JqQ1s3gYeiO76VQ5ybcGg
Chap14: E-Business
Multiple Choice
1. What is the buying and selling of goods and services over the Internet?
A. E-business
B. E-commerce
C. E-market
D. E-mall
Ans: B
Level: Easy
Learning Outcome: 14.1
Response: This is the definition of e-commerce.
2. What is the conducting of business on the Internet, not only buying and selling, but also serving customers and
collaborating with business partners?
A. E-business
B. E-commerce
C. E-market
D. E-mall
Ans: A
Level: Easy
Response: This is the definition of e-business.
3. Which of the following represents any business that sells its products or services to consumers over the Internet?
A. B2B
B. B2C
C. C2B
D. C2C
Ans: B
Level: Easy
Response: This is the definition of B2C.
4. Which of the following represents businesses buying from and selling to each other over the Internet?
A. B2B
B. B2C
C. C2B
D. C2C
Ans: A
Level: Easy
Response: This is the definition of B2B.

5. Which of the following represents sites primarily offering goods and services to assist consumers interacting with
each other over the Internet?
A. B2B
B. B2C
C. C2B
D. C2C
Ans: D
Level: Easy
Response: This is the definition of C2C.
7. Which of the following represents any consumer that sells a product or service to a business over the Internet?
A. B2B
B. B2C
C. C2B
D. C2C
Ans: C
Level: Easy
Response: This is the definition of C2B.
8. Which of the following are the primary challenges to e-business models?
A. Providing security
B. Adhering to taxation rules
C. Protecting customers
D. All of the above
Ans: D
Level: Easy
Response: All of the above are challenges to the e-business models.

9. What is an e-shop?
A. Interactive business communities providing a central market space where multiple buyers and sellers can engage
in e-business activities
B. Version of a retail store where customers can shop at any hour of the day without leaving their home or office
C. Serves as a gateway through which a visitor can access other e-shops
D. None of the above
Ans: B
Level: Easy
Response: This is the definition of e-shop.
10. What is an e-mall?
A. Interactive business communities providing a central market space where multiple buyers and sellers can engage
in e-business activities
B. Version of a retail store where customers can shop at any hour of the day without leaving their home or office
C. Serves as a gateway through which a visitor can access other e-shops
Ans: C
Level: Easy
Response: This is the definition of e-mall.
11. What is a business that operates in a physical store without an Internet presence?
A. Brick-and-mortar business
B. Pure-play business
C. Click-and-mortar business
D. Electronic marketplace
Ans: A
Level: Easy
Response: This is the definition of brick-and-mortar.
12. What is a business that operates on the Internet only without a physical store?
Ans: B
Level: Easy
Response: This is the definition of pure-play business.
13. What is a business that operates in a physical store and on the Internet?
Ans: C
Level: Easy
Response: This is the definition of click-and-mortar business.
14. What type of online auction occurs when sellers and buyers solicit consecutive bids from each other and prices
are determined dynamically?
A. Electronic auction
B. Forward auction
C. Reverse auction
D. All of the above
Ans: A
Level: Easy
Response: This is the definition of electronic auction.
15. What type of online auction occurs when sellers use it as a selling channel to many buyers and the highest bid
wins?
B. Forward auction
C. Reverse auction
D. All of the above
Ans: B
Level: Easy
Response: This is the definition of forward auction.
16. What type of online auction occurs when buyers use it to purchase a product or service, selecting the seller with
the lowest bid?
B. Forward auction
C. Reverse auction
D. All of the above
Ans: C
Level: Easy
Response: This is the definition of reverse auction.
17. What is a community of interest?
A. People interact with each other on specific topics, such as golfing and stamp collecting
B. People come together to share certain life experiences, such as cancer patients, senior citizens, and car
enthusiasts
C. People participate in imaginary environments, such as fantasy football teams and playing one-on-one with
Michael Jordan
Ans: A
Level: Easy
Response: This is the definition of a community of interest.
18. What is a community of relations?
enthusiasts
Michael Jordan
Ans: B
Level: Easy
Response: This is the definition of a community of relations.
19. What is a community of fantasy?
enthusiasts
Michael Jordan
Ans: C
Level: Easy
Response: This is the definition of a community of fantasy.
20. Which of the following is an e-business challenge?

A. Improved information content
B. Increased convenience
C. Decreased cost
D. Increasing liability
Ans: D
Level: Easy
Response: Increased liability is an e-business challenge.
21. Which of the following is an e-business benefit?
A. Adhering to taxation rules
B. Protecting customers
C. Decreased cost
D. Increasing liability
Ans: C
Level: Easy
Response: Decreased cost is an e-business benefit.
True/False
22. E-business is the buying and selling of goods and services over the Internet.
Ans: F
Level: Easy
Response: E-commerce is the buying and selling of goods and services over the Internet.
23. Business-to-consumer applies to any business that sells its products or services to consumers over the Internet.
Ans: T
Level: Easy
Response: Business-to-consumer applies to any business that sells its products or services to consumers over the
Internet.
Essay
24. Describe how IT accelerates and enhances e-business.
Ans: IT accelerates and enhances e-business through the multiple opportunities a business can touch customers,
enrich products and services with information, and reduce costs. IT maximizes convenience, and improves
communications globally.
Level: Easy
25. Differentiate between B2B and B2C e-business models.
Ans: B2B applies to companies buying from and selling to each other over the Internet. B2C applies to any business
or organization that sells its products or services to consumers over the Internet.
Level: Easy
26. Compare the four types of e-business models.
Ans: Business-to-business (B2B) Applies to businesses buying from and selling to each other over the Internet.
Business-to-consumer (B2C) Applies to any business that sells its products or services to consumers over the
Internet. Consumer-to-business (C2B) Applies to any consumer that sells a product or service to a business over the
Internet. Consumer-to-consumer (C2C) Applies to sites primarily offering goods and services to assist consumers
interacting with each other over the Internet. The primary difference between B2B and B2C are the customers; B2B
customers are other businesses while B2C markets to consumers. Overall, B2B relations are more complex and have
higher security needs; plus B2B is the dominant e-business force, representing 80 percent of all online business.
Level: Easy
27. Describe the benefits and challenges associated with e-business.
Ans: e-business is the conducting of business on the Internet, not only buying and selling, but also serving
customers and collaborating with business partners. E-business benefits include: Highly accessible, Increased
customer loyalty, Improved information content, Increased convenience, Increased global reach, Decreased cost. E-
business challenges include: Protecting consumers, Leveraging existing systems, Increasing liability, Providing
security, Adhering to taxation rules
Level: Easy
28. Explain the differences among e-shops, e-malls, and online auctions.
Ans: An e-shop is a version of a retail store where customers can shop at any hour of the day without leaving their
home or office. An e-mall consists of a number of e-shops; it serves as a gateway through which a visitor can access
other e-shops. An online auction is a place where buyers and sellers come together to auction items and prices are
determined dynamically.
Level: Easy
Source 19: https://www.google.com/url?

sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0ahUKEwjcjvqsxpXTAhVCtxoKHQoJAXEQFggbMAA
&url=https%3A%2F%2F08061981154820024265.googlegroups.com%2Fattach
%2F80d8891cddfeb848%2FMKT610_02_MID_solved%2520by%2520Soban.pdf%3Fpart%3D5%26vt
%3DANaJVrHSa2OnAOENaZh2wSDP-
HzNB2_ZzSFkjI8vd1NQ4g5Ha8Qmy4U9IGi7UqcIwGeQ8nOGuku7Nzb8Hh7Jv86CciM0ajX9DbTEae0tRS4
CwhgvCt_2pWQ&usg=AFQjCNFbvWTh1oUfQECN_JE2gPr_TR4zyA&cad=rja
MIDTERM EXAMINATION
Spring 2009
MKT610- Customer Relationship Management (Session - 2)
Question No: 1
( Marks: 1 ) - Please choose one
Customers who always use your product over competitors product refers to which one of
the following customers?
Loyal customer
Regular customer
Regular customer & loyal customer
New customer
Question No: 2
The process of performing activities that increase the value of goods or services to
consumers is known as:
Value chain
Value creation
Value development
Value addition
Question No: 3
Geographic concentration is a ______________ which affects the strategy of customer
relationship management.
Specific area
Specific group of customers
Specific urban area
Specific rural area
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Question No: 4
Which one of the following options drives the utility of product?
Consumer
Customer and consumer
Buyer
Customer
Question No: 5
Lead tracking, solicitation and ______________ are the components of comprehensive
Customer Relationship Management (CRM) applications.
Marketing management
Customer service
Relationship management
Product and brand management
Question No: 6
Customer complaints are helpful for organization because resolution of complaints leads
to stronger relationship. Following are the benefits of customer complaints EXCEPT:
Increase customer satisfaction
Create nuisance
Improve product efficiency
Improve sales services
Question No: 7
Recognize which of the following is an acronym of TCCP.
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Total customer convenience program
Total customer care program
Total customer commitment program
Total customer courtesy program
Question No: 8
Customer services department is responsible of providing services at which time?
Before purchase and after purchase
At the time of purchase
Before purchase
After purchase
Question No: 9
Total customer care program performs following functions EXCEPT:
Product packaging
Constant communication
Satisfaction of customer
Product availability
Question No: 10
Which of the following benefits is NOT communicated and delivered by tangible product
attributes?
Effectiveness of product
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Features
Quality
Style
Question No: 11
Ahmed purchased the Dawlance AC from the Dawlance outlet. He was provided free
installation of AC, this is the description of which of the following concepts?
Good offer
Convenience
Friendly environment
Durability
Question No: 12
Customer metrics include all of the following EXCEPT:
Profitability
Market share
Innovation
Question No: 13
A security measure to stop unauthorized access to documents is:
Backup/restore
Physical access restrictions
Network access control
Network admission control
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Question No: 14
The ability to interface with users via many different devices (phone, WAP, internet, etc)
is called:
Multiple communication channels
Database
Scalability
Workflow
Question No: 15
The ability to trigger a process in the back office system, e.g. Email Response is BEST
described by which of the following?
Scalability
Database
Multiple communication channels
Workflow
Question No: 16
The three factors that influence the ethical decision-making process include:
Peer influences, personal moral philosophies, and opportunity
Individual factors, organizational relationships, and opportunity
Opportunity, personal moral philosophies, and situational variables
Individual factors, corporate culture, and peer influence
Question No: 17
The buyer-supplier relationship characterized by a close cooperative relationship where
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the seller adapts to meet the customer's needs without expecting much adaptation or
change on the part of the customer in exchange is referred to:
Customer is king
Buyer-supplier relationship is transctional
Supplier is king
Question No: 18
Which of the following concepts refers to the process of identifying prospective buyers,
understanding them intimately and developing favorable long-term perceptions of the
organization and its offerings?
A customer-oriented marketing mix
Customer relationship management
A database warehouse
A flexible marketing system
Question No: 19
What might be the responses of listening?
It will be verbal
It will be nonverbal
It will either be verbal or nonverbal
It will neither be verbal nor nonverbal
Question No: 20
Which of the following is NOT the best way while responding to a customer?
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Be as detailed as possible
Always agree with him or her to avoid conflict
Hold back on feelings
Be brief and concise
Question No: 21
Not all aspects of the environmental analysis are equally important. So what should be
the order of priority?
Competitors, customers and complementary
Customers, immediate competitors then the broader environment
The broad environment, competitors and then customers
Markets, segments and then individual customers
Question No: 22
Strategic management is performed by which one of the following management?
Top management
Middle management
Lower level management
First line management
Question No: 23
Which question is NOT generally asked in an industry assessment?
Are there any established best practices?
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Who are the major players in the industry?
Can your company compete?
Who are the customers?
Question No: 24
Companies often fail to analyze brands, competitors activities and pricing strategies that
having impact on their products and customers. This statement reflects which one of the
following failures of strategic plans?
Failure to obtain senior management commitment
Poor communications
Failure to coordinate
Inability to predict environmental reaction
Question No: 25
Which of the following is a special human trait that we need to sharpen and use very
often in CRM?
Neither forecast nor foresee
Foresee
Forecast
Forecast and foresee
Question No: 26
The loyalists who maintain undivided loyalty with regard to their brand choice are known
as:
Soft-core loyalists
The same watchers
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Hardcore loyalists
Innovators
Question No: 27
A customer who willfully accepts whatever product or service is offered by an
organization is known as:
Loyalty towards Sales Persons
Loyalty towards Organization
Loyalty towards Stores
Loyalty towards Brands
Question No: 28
The customer left to use the specific product because of late supplies of the product. This
defection refers to which one of the following reasons?
Dissatisfied with the product
Dissatisfied with the sales person
Displeasure at the point of purchase
Dissatisfied with the elements of marketing mix
Question No: 29
Which of the following refers to individuals perception of the performance of the
product or service in relation to his or her expectations?
Customer delight
Customer value
Customer profitability-focused marketing
Question No: 30
Customer relationship management is selling product by using which one of the
following approaches?
Economic inducement
Psychological inducement
Business inducement
Question No: 31
( Marks: 5 )
Briefly explain the relation between "Socio-Economic Status" and "Life Style of People".
Are these factors independent or dependent on each other? To what extent both will
affect the customer relationship strategy of any organization?
Question No: 32
( Marks: 10 )
If you are working as Sales Manager in big shopping mall, describe how you can be an
active listener and what techniques you might use to communicate actively?

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A1 Q 30 advantages and problems with the more participative approach

MULTIPLE CHOICE QUESTIONS

US Bureau of Labor Statistics

Federal Trade Commission

Federal Communication Commission

American Marketing Association

Financial activities supersector consists of all the following except:

the hospitality industry

the food service industry

The food services

Employment in the Department of Homeland Security is expected to increase while the

Leisure and Hospitality

Wholesale and retail trade

Transportation and warehousing

Professional and business services

Education and health services

travel and tourism

meeting and convention planning

All the above are part of the hospitality industry

Transportations and Warehousing

Professional and Business Services

Wholesale and Retail Trade

Education and Health Services

none of the above

service industries are slow to adopt new technology

service productivity is weak

service inflation is difficult to control

all of the above

a. services possess few search attributes

b. services are often technical and specialized

c. services are deeds, efforts, or performances

e. many services are sold without guarantees and warranties.

a. services are provided by boundary-spanning personnel

b. variability in service performance is somewhat accepted

c. outcome-based reward systems may encourage ethical misconduct

d. consumers are involved in the production process

e. other consumers are involved in the production process

a. the consumer's involvement in the production process

b. services are performed by boundary-spanning personnel

c. services possess few search attributes

d. service providers are inherently unethical

e. services are sold without guarantees

b. expanding service providers

a. cognitive moral development

a. cognitive moral development

The characteristics of truthfulness, integrity, and trustworthiness is called:

d. rules for ethical conduct

d. rules for ethical conduct

Which of the following statements are correct?

a. research indicates that employees desire a code of ethics

c. leaders must be examples of the standards of ethical conduct

d. employees often emulate the behavior of their supervisors

e. All of the above

Discuss how the term materialismo snobbery is related to service wages.

Discuss the comparisons of changing from an agricultural economy to an industrial economy

In 1850, 65 percent of the population was connected to farming.

services possess few search attributes;

services are often technical and specialized, thereby, difficult to understand;

many services are sold without warranties or guarantees;

many services are provided by unsupervised boundary-spanning personnel;

services are nonstandardized; consequently, some variability is accepted;

Describe the consequences of ethical misconduct.

ineffective performance (i.e., reduced sales and reduced profits),