Question 1

All of the following would be included in the total product offer of benefits that consumers consider when buying a good or service the:
A) price.
B) consumer's income.
C) buyer's past experience.
D) store's atmosphere.

Accepted Answer

The answer of All of the following would be included...

Question 2

When purchasing a product,the consumer is actually buying its anticipated benefits and
A) satisfaction.
B) price.
C) costs.
D) productivity.
E) form.

Accepted Answer

The anticipated benefits are the primary reason why a consumer purchases a product, and it is the satisfaction they gain from those benefits that ultimately motivates their decision to buy. Price, costs, productivity and form are all factors that may influence the purchasing decision but are secondary to the benefits or satisfaction gained from the product.

Question 3

When consumers calculate the value of a product,they:
A) subtract cost of production from market price.
B) eliminate all nontangible elements that might affect their perception of the product.
C) look at the benefits the product provides then subtract the cost.
D) identify the variable and the fixed components of the product's benefits.

Accepted Answer

Consumers typically calculate the value of a product by looking at the benefits the product provides and then subtracting the cost. This takes into account both tangible and non-tangible elements that might affect their perception of the product, giving a more comprehensive understanding of the product's value. Therefore, choice C is the best option.

Question 4

Successful product differentiation:
A) of consumer goods is determined exclusively by price.
B) can be based on either real or perceived differences in products.
C) is prohibited if it restricts price competition and market access.
D) is less important due to the growth of the Internet.

Accepted Answer

Successful product differentiation can be based on real differences (e.g. quality, features, performance) or perceived differences (e.g. branding, image, packaging, marketing). This can give a product a competitive advantage in the market. However, product differentiation that restricts price competition or market access may violate antitrust laws. The growth of the Internet may have changed some aspects of product differentiation, such as increasing the ease of comparison shopping, but it has not made product differentiation less important overall.

Question 5

Non-profit organizations,
A) last for only short periods of time as their objective is not to create profits for their owners.
B) Have a hard time hiring employees as they have no means of paying them.
C) Are not concerned about meeting their financial needs.
D) Can provide an opportunity for individuals to address social issues.

Accepted Answer

Non-profit organizations are established to address social issues and meet the needs of society, not to create profits for their owners. They can provide an opportunity for individuals to get involved in social causes and contribute to creating positive change in their communities. While they may face financial constraints, they often rely on donations and grants to sustain their operations and achieve their mission.

Question 6

The _______ of the value proposition is the perceived sum of your company's ability to deliver in each of the areas noted within the value proposition equation,versus the _____ of your competitors' value propositions measured across these same benefit areas.
A) Total; strength
B) Strength; strength
C) Strength; weakness
D) Weakness; weakness
E) Weakness; strength

Accepted Answer

The strength of the value proposition is the perceived sum of your company's ability to deliver in each of the areas noted within the value proposition equation, versus the strength of your competitors' value propositions measured across these same benefit areas.

Question 7

____________ is the amount a business earns over and above what it spends for salaries and other expenses.
A) Profit
B) Revenue
C) Interest
D) Dividends
E) Assets

Accepted Answer

Profit is the amount a company earns after deducting all expenses, such as salaries and other operating costs, from its revenue. Profits are typically used by businesses to reinvest in their operations, pay dividends to shareholders, or otherwise support growth and development. Revenue refers to the total amount of money a business earns from its sales, while interest and dividends are types of income earned from investments or financial instruments. Assets refer to the various resources owned by a company, including cash, property, equipment, and intellectual property.

Question 8

A value proposition which has a positive price/quality relationship is considered superior to those of your competitors,if it:
A) is more unique
B) is more important
C) your product is more value-driven
D) provides greater opportunity to communicate to the potential purchaser
E) all of the above

Accepted Answer

All of the above factors contribute to a superior value proposition with a positive price/quality relationship. A more unique value proposition sets apart the product from competitors, making it stand out. Offering something more important to the customer than competitors also enhances the value proposition. If the product is more value-driven, it means the customer is getting more value for their money. Finally, having greater opportunities to communicate the value proposition to potential customers is crucial in making them aware of what makes the product superior.

Question 9

Businesses differ from nonprofit organizations in that a business's focus is on
A) price.
B) goods.
C) profit.
D) organization.
E) plans.

Accepted Answer

Businesses strive to earn profits;nonprofit organizations do not.

Question 10

If a business is to be successful in the long run,it must treat its customers,employees,and community with social
A) meetings.
B) responsibility.
C) agendas.
D) insight.
E) interests.

Accepted Answer

Social responsibility refers to a business's obligation to act in ways that benefit society. Treating customers, employees, and the community with social responsibility means prioritizing their well-being and considering the impact of the business's actions on them. This is essential for building long-term success and positive relationships with stakeholders.

Question 11

_______ expenditures are expenses incurred as a result of the normal business operations.The salaries/wages of employees,the purchase of raw materials for the fabrication of products,the costs of shipping products from point A to point B,or the costs of advertising campaigns,are examples of such expenses.
A) Asset-based
B) Working
C) Operating
D) Functioning
E) Past

Accepted Answer

Operating expenditures, also known as operating expenses, refer to the costs incurred in the normal course of business operations, such as salaries/wages, raw materials, shipping, and advertising. Asset-based expenditures are related to the acquisition and maintenance of assets, such as property, plant, and equipment. Working expenditures are related to short-term funding needs, such as inventory and accounts payable. Functioning and Past expenditures are not standard accounting terms.

Question 12

For small businesses,product differentiation:
A) is more difficult than it is for larger firms because of the high cost of product research and development.
B) usually concentrates on the pricing component of the total product offer.
C) can be an important strategy to gain market share.
D) is less important than it is for big firms with multiple product lines.

Accepted Answer

Small businesses often operate in highly competitive markets, where products and services can be easily replicated by competitors. Product differentiation can help a small business stand out from the competition and gain market share. It does not necessarily require high costs for research and development; small businesses can differentiate their products through unique features, superior quality, or exceptional customer service. Pricing is certainly a component of the total product offer, but it is not the only element that can differentiate a product. Additionally, while product differentiation may be less important for big firms with multiple product lines, it can still be an important strategy for them in certain markets or with certain products.

Question 13

When people consider purchasing a good,they:
A) are responding to the market forces of supply and demand.
B) are most influenced by the price of the product or service.
C) will not consider goods that require them to make a special effort to purchase.
D) may evaluate and compare a variety of factors.

Accepted Answer

People may evaluate and compare a variety of factors before making a purchase decision, such as quality, brand reputation, features, convenience, and price. While market forces of supply and demand may affect the availability and pricing of goods, they are not the only factors that consumers consider. The price of a product or service may be an important factor, but it is not the only factor that influences purchasing decisions. Some consumers may be willing to make a special effort to purchase goods that meet their needs, such as eco-friendly products or specialty foods. Therefore, option D is the best choice.

Question 14

All of the following would allow a firm to utilize product differentiation :
A) pricing differences.
B) increased production.
C) elaborate packaging.
D) intensive advertising.

Accepted Answer

The answer of All of the following would allow a...

Question 15

The combination of all the factors that consumers evaluate when deciding whether or not to buy a good or service is called a:
A) total product offer.
B) product mix.
C) product differentiation.
D) product package.

Accepted Answer

A total product offer includes all the factors that consumers evaluate when deciding whether or not to buy a good or service, such as price, packaging, brand reputation, features, and after-sales service. Product mix refers to the range of products offered by a company, while product differentiation refers to the ways in which a company distinguishes its products from those of its competitors. Product package refers specifically to the physical container or wrapping in which a product is sold.

Question 16

Which of the following refers to a group of products offered by a firm that are physically similar or are intended for a similar market?
A) Product matrix.
B) Product line.
C) Product mix.
D) Total product offer.

Accepted Answer

A product line refers to a group of products offered by a firm that are physically similar or are intended for a similar market.

Question 17

LoRider Wheels sells high quality bicycles and accessories.The store is known for a pleasant environment,friendly salespeople and an excellent service department.All of these elements are part of the ___________ offered by LoRider.
A) total product offer
B) product line
C) competitive environment
D) marginal utility package

Accepted Answer

The total product offer refers to all the elements that go into a product or service, which includes the physical product itself, customer service, atmosphere, and other intangibles. In this scenario, LoRider's pleasant environment, friendly salespeople, and excellent service department are all part of their total product offer.

Question 18

When consumers decide to purchase a particular product,they:
A) will search for the retailer that offers the lowest price.
B) consider the total collection of benefits that the product offers.
C) base their decision on a brand name nearly all of the time.
D) initially evaluate the product's package.

Accepted Answer

Consumers consider the total collection of benefits that the product offers before making a purchase decision. While price may be a factor, it is not the sole consideration. Brand name and packaging may also play a role, but the overall benefits of the product are typically the most important factor.

Question 19

The purpose of __________ is to create real or perceived product differences.
A) niche marketing
B) product differentiation
C) product mixing
D) target marketing

Accepted Answer

Product differentiation is the process of creating real or perceived differences between products to distinguish them from competitors in the market. Niche marketing is a strategy of targeting a specific segment of the market, while product mixing and target marketing refer to broader marketing concepts that may or may not involve product differentiation.

Question 20

The total amount of money that businesses earn by selling goods and services is called ________.
A) profit
B) revenue
C) loss
D) retained earnings

Accepted Answer

Revenue is the correct answer as it refers to the total amount of money earned by businesses from the sale of goods and services. Profit is the amount of revenue left over after subtracting expenses, loss is the negative difference between revenue and expenses, and retained earnings refers to a portion of profit that is kept within the business for reinvestment or future use.

Quiz 1: What Is Business

All of the following would be included in the total product offer of benefits that consumers consider when buying a good or service the:

When purchasing a product,the consumer is actually buying its anticipated benefits and

When consumers calculate the value of a product,they:

Successful product differentiation:

Non-profit organizations,

The ___ of the value proposition is the perceived sum of your company's ability to deliver in each of the areas noted within the value proposition equation,versus the _ of your competitors' value propositions measured across these same benefit areas.

____________ is the amount a business earns over and above what it spends for salaries and other expenses.

A value proposition which has a positive price/quality relationship is considered superior to those of your competitors,if it:

Businesses differ from nonprofit organizations in that a business's focus is on

If a business is to be successful in the long run,it must treat its customers,employees,and community with social

For small businesses,product differentiation:

When people consider purchasing a good,they:

All of the following would allow a firm to utilize product differentiation :

The combination of all the factors that consumers evaluate when deciding whether or not to buy a good or service is called a:

Which of the following refers to a group of products offered by a firm that are physically similar or are intended for a similar market?

LoRider Wheels sells high quality bicycles and accessories.The store is known for a pleasant environment,friendly salespeople and an excellent service department.All of these elements are part of the ___________ offered by LoRider.

When consumers decide to purchase a particular product,they:

The purpose of __________ is to create real or perceived product differences.

The total amount of money that businesses earn by selling goods and services is called ________.