Deck 6: Small Business Marketing

Question 1

Relationship marketing emphasizes on selling a product to customers regardless of their satisfaction

Answer 1

False

Question 2

The primary purpose of relationship marketing is customer acquisition

Answer 2

False

Question 3

Small business marketing has evolved over the years

Answer 3

True

Question 4

Anything that a firm offers in the market and is targeted at satisfying customer needs and wants is called a good

Question 5

When customers buy a car with a warranty, they are buying only a good

Question 6

Customers order cabs through online apps like Uber. A Cab-ride is a service.

Question 7

According to the text, a key difference between goods and service is tangibility

Question 8

The most basic product the firm is offering is an augmented product

Question 9

According to the text, an augmented product is a product with basic features that differentiate it from the other products offered by the same firm

Question 10

Selling products only to a captive customer is a good approach for the long-term success of a firm

Question 11

All contacts in the top of the marketing funnel are those buyers who are ready to purchase your product

Question 12

Small businesses must promote their product to buyers based on the buyers' stage in a marketing funnel

Question 13

The cost of customer retention is higher than the cost of acquisition

Question 14

The Can-Spam Act of 2003 established federal standards for the use of commercial e-mail

Question 15

When opening a new firm, competition is one of the criteria used to decide its location

Question 16

Groupon was cofounded by Andrew Mason, Eric Lefkoksky and Brad Keywell

Question 17

Guerilla marketing involves the use of conventional way to promote a product

Question 18

A break-even price is a point at which revenue exceeds costs

Question 19

Mark-up pricing is also known as penetration pricing

Question 20

A loss-leader product is a one that is sold at a break-even price so that a firm can recover its cost

Question 21

Surge-pricing is common in the airline industry

Question 22

Products for which the demand fluctuates with changing prices are inelastic products

Question 23

Clothing is an example of an inelastic product

Question 24

The Price elasticity of demand coefficient equal to one indicates that the demand for a good does not change with any change in price

Question 25

The Price elasticity of demand coefficient equal to infinity indicates perfectly elastic demand

Question 26

Which of the following must be a goal of good marketing?

A) Customer retention and customer acquisition
B) Customer retention
C) Sell and tell
D) Customer acquisition

Question 27

Relationship marketing involves all EXCEPT:

A) Customer satisfaction
B) Understanding customer needs
C) Developing beneficial relationships with customers
D) Manager's hubris

Question 28

What is NOT true about existing customers?

A) Existing happy customers refer their friends and family
B) The non-financial cost of selling to existing customers is less
C) Existing customers are highly price-sensitive
D) Existing customers appreciate the value proposition offered by firms

Question 29

Anything that a firm offers in the market and that is targeted at satisfying customer needs and wants is called _______

A) An idea
B) A product
C) A dream
D) A brand

Question 30

Caroline's Cleaning Solutions employs people to clean homes, apartments, and new construction. The firm is offering which of the following?

A) An idea
B) A good
C) A service
D) An ingredient

Question 31

The four elements of services include:

A) Intangibility, perishability, inseparability, heterogeneity
B) Consistency, tangibility, homogeneity, purchase
C) Purchase, consistency, tangibility, heterogeneity
D) Convenience, tangibility, inseparability, heterogeneity

Question 32

Goods are highly______, whereas services tend to be _______

A) Heterogeneous, homogenous
B) Homogenous, heterogeneous
C) Intangible, homogenous
D) Homogenous, tangible

Question 33

The three levels of a product include:

A) Intangibility products, perishable products, and heterogeneous products
B) Core goods-services, augmented goods-services, and total goods-services
C) Core goods-services, non augmented goods-services, and goods
D) Intangibility products, perishable products, and homogeneous products

Question 34

Which of the following buyers are at the top of a marketing funnel?

A) Leads
B) Contacts
C) Prospects
D) Loyal customers

Question 35

_________divides market into smaller portions of people based on their gender, race, race, gender, and age

A) Geographic segmentation
B) Activity segmentation
C) Demographic segmentation
D) Psychographic segmentation

Question 36

Which of the following is NOT an online marketing tool?

A) Email marketing
B) Social media marketing
C) Virtual events
D) Door-to-door marketing

Question 37

What factors influence the location of a business?

A) Competition
B) Customers
C) Costs involved
D) All of the above

Question 38

Which of the following is NOT a form of advertising?

A) Direct response
B) Direct mail
C) Telemarketing
D) Market penetration

Question 39

Which of the following is a drawback of marketing through coupon or daily deal websites for small businesses?

A) Large market
B) Allows to get rid of excess inventory
C) Lot of competition
D) Easy to manage a coupon or daily deal site

Question 40

Meow Mix, cat food manufacturer, develops the Meow Mix Mobile to cruise around spreading brand awareness on local streets and highways. Meow Mix is pursuing which form of marketing?

A) Guerilla marketing
B) Market segmentation
C) Market penetration
D) Gouging

Question 41

If the total cost-price of a good is $100 and the mark-up percentage is 50%, what is the selling price of a good?

A) $100
B) $110
C) $150
D) $50

Question 42

_______is selling at a loss to attract customers to new offerings for a specific time period

A) Penetration pricing
B) Mark-up pricing
C) Floor pricing
D) Cost-plus pricing

Question 43

When the firm adds a profit mark-up to the cost, the pricing is called a ________

A) Surge pricing
B) Mark-up pricing
C) Penetration pricing
D) Competition-based pricing

Question 44

A product that is sold at a loss to get customers to buy other products from the firm is called a ________

A) Core product
B) Augmented product
C) Loss-leader
D) Cost-plus pricing

Question 45

The Fech Moving Company, in Virginia, is into cleaning and moving services. To charge for its services, it obtains pricing information from the market and uses the prices of competitors as a benchmark. Which pricing strategy is the Fech Moving Company using?

A) Surge pricing
B) Cost-plus pricing
C) Competition-based pricing
D) Dynamic pricing

Question 46

Price elasticity of demand refers to:

A) Effect of change in the price on the quantity of demand
B) Price and mark-up profit
C) Supply of an inelastic product
D) Price and competition based pricing

Question 47

When the price of an elastic product doubles, demand ______, and when the price of an inelastic product increases, demand_______

A) Increases one-fourth, reduces by one-fourth
B) Increases one-third, increases by one-third
C) Reduces by about half, reduces by little
D) increases, reduces by half

Question 48

The Price elasticity of demand coefficient equal to zero indicates:

A) Perfectly elastic demand
B) Unit elastic
C) Perfectly inelastic demand
D) Cross-price elasticity

Question 49

A grocery store suddenly and unreasonably increases the price of toilet rolls as a response to the COVID lockdown. The firm is indulging in _____practices

A) Price gouging
B) Guerilla marketing
C) Market penetration
D) Cost-plus pricing