BUSI 101 Exam 3 solutions complete answers

BUSI 101 Exam 3 solutions complete answers 

 

To be successful, salespeople find that their job responsibilities extend far beyond just closing the sale.

 

Paper ‘N More sells a variety of office supplies to small businesses and local offices. The fact that it sells only to other firms and not consumers indicates that Paper ‘N More engages only in:

 

During the ________ era, the prevalent business philosophy turned from an emphasis on production to an emphasis on advertising and selling.

 

Population growth and changing demographics are two elements of a firm’s socio-cultural environment.

 

Competition-based pricing is a strategy based on what all the other competitors are doing.

 

Price is the determining factor as to whether a good is classified as a consumer product or a B2B product.

 

At Blastoff.com, a web-based auction headquartered in upstate New York, when employees are at the company’s main office, they do not expect to necessarily sit at the same desk everyday. They may decide to situate in a projection room, in a temporary soundproof room, or in one of several lounge areas in the building. They may locate next to someone outside of their functional area. Blastoff management believes that breaking down barriers fosters more communication and innovation, and makes jobs more interesting.

 

Which of the following statements best summarizes the extent to which unions currently rely on strikes as a tactic when collective bargaining breaks down?

 

Anita enjoys her job as a salesperson for a store that sells high-quality entertainment systems. As an effective salesperson, Anita is expected to help her customers resolve any doubts they might have before the sale, and follow up to ensure that the customer is satisfied after the sale.

 

Weldon Taskman has just successfully negotiated a new long-term sales agreement with a major client. The personal satisfaction Weldon has about his efforts is his _______ reward.

 

The focus of the production era was on distribution and advertising.

 

John belongs to a labor union. He believes a few key people run the union by meeting secretly and making decisions without informing other members or allowing them to fully participate in the meetings. If John’s suspicions are correct, the union is violating provisions of the __________ Act.

 

Dewy, Cheatem, and Howe’s promotional efforts are intended to increase the public’s awareness of its new product’s benefits and uses. This effort is consistent with the ________ stage of the product life cycle model.

 

The purpose of institutional advertising is to create an attractive image for an organization.

 

The disparity in salaries is clearly reflected in the fact that the average executive compensation for a major company was $123 million, compared to a little more than $35,000 that the average worker was compensated.

 

The AFL originally was a federation of craft unions that did not attempt to organize industrial unions. The main reason for this strategy was that:

 

Referring to Maslow’s Hierarchy of Needs Theory, one would agree that U.S. workers are more often interested in satisfying their physiological and safety needs, as opposed to their self-esteem needs.

 

Kathy works as a manager at Fantastic Fabricators. The innovative staff at the company is regularly encouraged to suggest ideas for new products. Since Kathy works in product screening, she:

 

Betty Roosevelt is a human resource manager with Avondale Industries. Her current assignment is to revise and update Avondale’s employment testing procedures. Betty should:

 

The union movement in the United States was an outgrowth of the economic transition caused by the:

 

The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities, such as trade shows, event sponsorships, and contests, is known as:

 

Today’s public relations departments:

 

Online advertising allows advertisers to see how many people have clicked on an advertisement and how much of it the potential customer has read or watched.

 

A key element of customer relationship management is to:

 

Until recently, TrueTime International produced personal computers on an assembly line with each worker performing only one simple task. Three months ago, the company began allowing individual employees to assemble entire computers, test all of the components, and even install the software that TrueTime includes with each of its computers. TrueTime’s new production method is an example of:

 

In the fall semester, Alex noticed that the plastic cola bottles in the vending machines at his university had changed shape. Upon further investigation, he realized that each bottle contained 2 ounces less beverage than previous bottles, even though he paid the same price as last semester. The pricing objective of the beverage company is to:

 

Those organizations that assist in the movement of goods and services from producer to industrial and consumer users are known as:

 

With the current emphasis on product development, pricing, branding, and promotion, the physical distribution of materials and goods is no longer a major concern of marketing.

 

One way traditional retailers have maintained customers in the face of increasing competition from online sellers and other direct markers is to place more emphasis on providing _________ utility.

 

The strategy of first determining what the market is willing to pay, then subtracting a desired profit margin to determine a desired cost of production is called:

 

Whole grain breads, bagels, bread sticks, sandwiches, soup, and pastries are products that would be included in the product mix of El Trovodor’s Bread Company.

 

The goal of William Ouchi was to develop a modified business culture that blends the best of Type J with the best of Type A.

 

The Supreme Court ruled in 1938 that employers had the right to hire strikebreakers.

 

Effective sales promotion efforts focus exclusively on external audiences such as dealers and consumers, since they ultimately decide the fate of a product.

 

As one of the tools included in a firm’s promotion mix, public relations is intended to earn public understanding and acceptance.

 

The tendency of employees to behave differently when they know they are being studied is known as the Taylor effect.

 

During an interview, a manager should be careful not to ask the applicant about his or her family or other non-job-related questions.

 

One way for a firm to improve motivation of employees is to establish special rest rooms, dining areas, and parking areas for top executives.

 

Jerry has a great deal of faith in the abilities of his subordinates. He believes that most employees want to be productive, and will work hard if given the proper incentives. He also believes that most firms do not take full advantage of the intelligence and creativity of their employees. For these reasons Jerry favors a managerial style that allows employees to be flexible and creative in how they do their jobs, and empowers them to make and implement decisions. Jerry is a Theory Y manager.

 

The Green Velvet Lawn Care Company teaches all of its employees specific methods for fertilizing and seeding lawns. The methods are designed to ensure adequate lawn coverage with a minimum of time and effort. All employees are expected to follow these methods precisely. Green Velvet’s approach to lawn care is consistent with the ideas of scientific management.

 

The sense of satisfaction you get when you achieve an important goal is an intrinsic reward.

 

Extrinsic rewards are those that are given to a person by someone else.

 

Since motivation comes from within an individual, there is little that managers can do to help motivate employees.

 

When unhappy employees leave a company, the firm normally ends up benefiting financially.

 

Frederick Taylor’s goal was to find ways to improve worker motivation by making work more interesting and challenging.

 

A key element of Frederick Taylor’s approach was the time-motion study, which examined the tasks performed to complete a job and the time needed to complete each task.

 

Frederick Taylor based his approach on the belief that each worker was an individual who should be treated as a unique asset to the firm.

 

Scientific management became the dominant strategy for improving productivity during the early 1900s.

 

Elton Mayo conducted studies know as the Hawthorne Studies and became known as the father of scientific management.

 

Frederick Taylor believed that employees would be more productive if they were allowed to decide for themselves which methods at work to use.

 

Three elements were basic to Taylor’s approach: time, methods, and rules of work.

 

Frank and Lillian Gilbreth developed the principle of motion economy, which said that every job could be broken down into a series of elementary motions.

 

Frederick Taylor’s ideas about improving worker productivity attracted a lot of attention at the time, but had little lasting significance.

 

The concept engagement is used to describe the level of passion and motivation that a person has about their work.

 

Frederick Taylor encouraged managers to make use of psychological techniques to improve worker motivation.

 

Frederick Taylor believed that workers existed to make management’s job easier and more efficient. He believed that workers were interested in one thing: good pay. If a business provided good pay, workers would provide the grueling labor necessary to get the job done.

 

Janis works for a local bakery. At one time, she loved the idea of becoming a head pastry chef, but now she is not sure that this is how she would like to spend her working career. Her current supervisor does not believe in breaks. And, lately, he stands next to her and instructs her as to how to roll out the bread dough and ice the cupcakes, as though she never learned these basic skills in culinary school. Just this morning, he commented loudly from the other side of the room, “You should be able to ice five cupcakes in a minute! Time yourself!” Frederick Taylor would have approved of Janis’s supervisor.

 

Mark successfully completed a very challenging assignment given to him by his supervisor at work. The feeling of accomplishment and satisfaction Mark experienced is an example of an extrinsic reward.

 

The Green Velvet Lawn Care Company teaches all of its employees specific methods for fertilizing and seeding lawns. The methods are designed to ensure adequate lawn coverage with a minimum of time and effort. All employees are expected to follow these methods precisely. Green Velvet’s approach to lawn care is consistent with the ideas of scientific management.

 

Andy is a supervisor at a web design company. Andy has observed that most employees he supervises are more productive if he lets them have some freedom and flexibility in how they go about their work. Andy’s experience is consistent with the teachings of scientific management.

 

One of the original objectives of the Hawthorne studies was to determine the degree of lighting needed in the workplace to enable employees to achieve optimum productivity.

 

The original results of the Hawthorne studies proved that employees were much more productive when they worked in well-lit areas than when they worked in poorly lit areas.

 

A major conclusion of the Hawthorne studies was that the best way to motivate employees is with monetary incentives such as pay raises and bonuses.

 

The tendency of employees to behave differently when they know they are being studied is known as the Taylor effect.

 

The results of the Hawthorne studies encouraged researchers to begin studying human motivation and managerial styles that lead to higher productivity.

 

Elton Mayo’s researchers concluded that worker motivation improved when managers listened to worker’s ideas and suggestions.

 

The Hawthorne studies proved that the methods of scientific management were the best way to achieve maximum productivity among employees.

 

The Hawthorne studies concluded that intrinsic rewards are always better than extrinsic rewards.

 

The Hawthorne studies concluded that productivity at work seldom changed, but an employee’s attitude could show significant improvement if he/she were given the opportunity to think critically at work.

 

Although Elton Mayo originally intended to collect data for a traditional scientific management study, his breakthrough research led to further research on the kinds of things that drive employees to successfully meet and exceed productivity goals at work.

 

Harrison is a manager at the local post office. He wants to find ways to improve worker motivation, and has read about the Hawthorne studies conducted by Elton Mayo and his colleagues. He believes these studies offer important insights into what motivates employees. Harrison is not likely to support the methods and ideas associated with scientific management.

 

Bianca is conducting an experiment to determine how temperatures affect the productivity of employees. She has just completed the first phase of her experiment, in which she had a group of employees perform job-related tasks in a special room where the temperature was 10 degrees cooler than on the factory floor. The employees in the experimental group consistently outperformed employees in the factory. The Hawthorne effect suggests that the most likely reason for this improvement in performance is that the cooler working conditions allowed the employees in the experiment to work harder without getting tired.

 

Greg is a small business owner who wants to find a way to increase the productivity of his employees. He has just finished reading a book on worker motivation, and found the book’s discussion of the Hawthorne studies particularly relevant. Based on his reading, Greg is likely to view pay increases as the best way to improve employee motivation.

 

Marissa works for a large pharmaceutical company in the greater Chicago area. Last week she visited with an advisor at the nearby university because her employer encourages workers to continue their education and gives them time off to go to academic related appointments, even during regularly scheduled work hours. One would assume that management at Marissa’s company values the results of the Hawthorne studies, more so than traditional scientific management principles.

 

Abraham Maslow believed that motivation arises from the desire to satisfy unmet needs.

 

According to Maslow, it is impossible to rank human needs in any logical order.

 

According to Maslow, people will try to satisfy lower-order needs before they turn their attention to higher-order needs.

 

Safety needs are placed at the lowest level in Maslow’s hierarchy of needs.

 

Maslow referred to the needs people had for recognition and acknowledgement from others as esteem needs.

 

According to Maslow, a satisfied need is no longer a motivator.

 

In Maslow’s hierarchy, self-actualization needs are those needs associated with basic survival, such as the need for food and shelter.

 

In Maslow’s view, social needs include the need to feel loved and accepted.

 

Maslow believed that lower-level needs may emerge at any time when they are not met and take our attention away from higher-level needs.

 

Referring to Maslow’s Hierarchy of Needs Theory, one would agree that U.S. workers are more often interested in satisfying their physiological and safety needs, as opposed to their self-esteem needs.

 

According to Maslow, if you have a self-esteem problem, you probably will not be able to concern yourself with developing to your fullest potential.

 

Often we hear that teenagers have unmet social needs. According to Maslow, their desire to become socially accepted will consume them, at the expense of reaching for higher goals, such as developing to their fullest potential.

 

Jimmy is a talented musician, and has already won a number of awards. Still, he practices about two hours every day, trying to reach his highest potential. Jimmy is motivated by self-actualization needs.

 

Millie recently accepted a new job with better pay and a high degree of job security. She is now able to live in a nicer apartment and maintain a fairly comfortable life style. However, she still feels like an outsider at work, and does not yet perceive that her fellow employees have accepted her into their group. According to Maslow’s theory, Millie is driven by a desire to satisfy her social needs.

 

Jon earns a decent salary and is on friendly terms with the other employees in his department. Lately, he is frustrated because they don’t recognize or appreciate some of his accomplishments. According to Maslow’s hierarchy of needs theory, Jon will have a desire to satisfy his self-esteem needs before his self-actualization needs.

 

The late famous broadcast journalist Walter Cronkite said that one of his regrets in life was not actively participating in the space program as an astronaut. Back in the 1980s, he was selected as a candidate to be the first journalist to fly into space, but NASA decided to take a teacher instead. In some ways, this may appear as though Cronkite was pursuing a self-esteem need; however, having already achieved celebrity status, for Cronkite, this was the pursuit of a self-actualization need.

 

Talk about “shell-shock”! Two nights ago, Adam was living in a tent with 30 other Marines in the hills of Afghanistan. Today he is waking up to the smell of fresh linen, in a king-sized bed, in his very own room in DeKalb, Illinois. Three days ago, his first priority was the welfare of his battle buddies. This morning, his first priority according to his family is not wasting any time in getting back into college. But Adam sees it a bit differently. Although he has always believed in the importance of school and the respect that comes with achieving a degree, and wants to pursue his education, right now he is not quite in the frame of mind. His first desire is to spend time renewing old friendships, including organizing a couple of float trips and ballgame nights with the group of friends he left behind. According to Maslow’s hierarchy of needs, Adam has a strong desire to satisfy his self-esteem needs.

 

Herzberg’s research focused on determining which management style achieved the highest level of worker motivation.

 

Herzberg’s research examined how conditions related to the job itself affected the motivation of employees.

 

Herzberg’s study showed that pay was the job characteristic that ranked highest as a motivator.

 

Herzberg found that the factors associated with job content ranked high as employee motivators.

 

Herzberg found that the sense of achievement employees experienced when they performed their jobs was an important motivator.

 

Herzberg used the term hygiene factor to refer to an element of job content that was most important as a source of worker motivation.

 

According to Herzberg, when a hygiene factor is not fulfilled, employees will become dissatisfied.

 

Herzberg’s research found that improvements in the work environment were a more effective way to motivate employees than improvements in job content.

 

Maslow identified and categorized basic needs that most persons would like to satisfy, while Herzberg’s research identified motivators and hygiene factors that inspire employees to fulfill their needs.

 

Herzberg’s research identified the key factors that motivate workers, including company policies and administration, wage rates, interpersonal relations with co-workers, and physical environment at work.

 

Herzberg’s findings suggest that the best way for firms to increase worker motivation is to focus on improving pay and making working conditions more pleasant.

 

Since hygiene factors do not motivate workers toward high achievement at work, managers can safely ignore these factors when trying to develop an effective work environment.

 

Herzberg’s findings suggest that many U.S. firms can help workers satisfy higher-order needs by identifying those things that motivate (inspire) them to work at their fullest potential.

 

Douglas McGregor observed that all managers tend to share common assumptions about employees.

 

According to McGregor, Theory X managers assume that employees dislike work, and will avoid it if possible.

 

According to McGregor, Theory X managers motivate employees by giving them a great deal of freedom and responsibility.

 

Managers who make Theory X assumptions about employees tend to watch their subordinates very closely and provide detailed instructions to employees about how they should do their jobs.

 

Theory X management has essentially disappeared from the real-world workplace.

 

Theory Y managers assume that most people are capable of using a relatively high degree of imagination and creativity to solve problems.

 

Theory Y managers assume that the main factor that motivates most employees is the desire to earn more money.

 

Theory Y managers are likely to use empowerment to motivate employees.

 

Theory Y managers adhere to the principle that most people do not work to their fullest intellectual potential.

 

According to William Ouchi, two of the main features of the Japanese approach to management are individual decision making and rapid promotions.

 

William Ouchi concluded that culture should not be a factor in one’s management style.

 

Ouchi’s Theory Z is a blend of Type A and Type J business cultures.

 

Theory Z calls for the creation of a sense of participation and cooperation within an organization.

 

Theory Z emphasizes reliance on individual creativity and initiative rather than collective decision making.

 

Recent economic problems as well as demographic and social changes in Japan have led some Japanese firms to seek new approaches to management.

 

In the view of William Ouchi, managers of U.S. firms would have a smooth transition when implementing the management styles employed by Type J managers.

 

The best way for U.S. firms to become more competitive is to adopt the Type J approach to management.

 

Recent economic events and demographic trends in Japan have clearly demonstrated the superiority of a Type J approach to management.

 

The goal of William Ouchi was to develop a modified business culture that blends the best of Type J with the best of Type A.

 

Alan tries to make life easy on his employees by telling them exactly what to do and how to do it. He believes that most of his subordinates are lazy, and will goof off if he doesn’t keep an eye on them, so he spends much of his time monitoring their work. When he finds an employee who is not performing up to his expectations, Alan uses threats and punishment to increase the worker’s motivation. Alan is a Theory X manager.

 

Jerry has a great deal of faith in the abilities of his subordinates. He believes that most employees want to be productive, and will work hard if given the proper incentives. He also believes that most firms do not take full advantage of the intelligence and creativity of their employees. For these reasons Jerry favors a managerial style that allows employees to be flexible and creative in how they do their jobs, and empowers them to make and implement decisions. Jerry is a Theory Y manager.

 

Jenny is a creative and intelligent person who likes to work independently on challenging projects. Jenny would be most effective when working for a Theory X manager.

 

Martina is a very talented and ambitious person who likes to work independently and wants to move up in her company as quickly as possible. Martina might become frustrated if she worked in a firm that took a Theory Z approach to management.

 

Hillary enjoys working with others to solve problems and make decisions, but is also able to assume individual responsibility. She prefers working for a company that takes a holistic view of its employees. These preferences suggest that Hillary might enjoy working at a company that uses a Theory Z approach to management.

 

After a 3-year probationary period, career positions at Fairview Community College are fairly secure, even though the opportunity for promotion runs pretty slowly. These jobs would probably appeal to people who currently work for Type A companies, similar to the way many companies operate in Silicon Valley.

 

Peter Drucker made an important distinction when he stated that managers do not motivate employees, but employees motivate themselves.

 

Management by objectives (MBO) is a goal-setting theory model that sets goals by getting all employees active in the goal formulation process, committing employees to meeting the goals, and then monitoring performance.

 

The central idea behind MBO (management by objectives) is that employees motivate themselves through the process toward goal achievement.

 

The management by objectives model devised by Peter Drucker works best in a dynamic, rapidly changing business environment, where management makes short-term plans.

 

It may be difficult to utilize the MBO (management by objectives) model when employees have not agreed upon the goals set by top management.

 

According to Victor Vroom, the effort employees exert on a specific task depends on their expectations of the outcome.

 

According to Victor Vroom’s expectancy theory, expectations of employees can affect their motivation.

 

Vroom’s expectancy theory contends that prior to committing maximum effort to a task, employees want to know if they can accomplish the task and if it will equally reward everyone at work, even if others were not involved in the accomplishment of the task.

 

According to expectancy theory, one of the things employees want to know before they commit to making a maximum effort on a task is whether the reward for accomplishing the task is worth the effort.

 

Expectancy theory says that employees will be motivated if (1) they can actually achieve the task; (2) they will be rewarded for their achievement; and (3) the reward will be worthy of their effort.

 

According to researchers David Nadler and Edward Lawler, managers should set performance standards that are attainable only by the most talented and dedicated employees.

 

According to expectancy theory, employees in a given organization tend to have very similar expectations.

 

Reinforcement theory suggests that employees respond to carrots (rewards) but not to sticks (punishment).

 

According to reinforcement theory, individuals act to receive rewards and to avoid punishment.

 

In reinforcement theory, reprimands and reductions in pay are examples of negative reinforcements.

 

The basic principle of equity theory is that employees try to maintain fairness between their efforts and their compensation compared to others in similar positions.

 

Equity theory tells us that when employees perceive inequitable treatment they will respond in a manner that will attempt to reestablish fairness.

 

According to equity theory, if employees perceive that their level of effort is greater than their compensation, they will work to increase their productivity.

 

Equity theory suggests that if employees perceive inequity in the workplace, they might respond with reduced productivity, higher absenteeism, or even voluntary resignation.

 

Equity judgments are precise, objective measurements of the fairness between an employee’s effort and their compensation.

 

The best strategy to deal with a perceived inequity in the compensation of different employees is to require that salaries and other forms of compensation are kept secret.

 

For management by objectives to be successful, employees must be willing to accept the objectives set by top management without question and without hesitation.

 

A major problem with the MBO approach is that it provides no way for employees to provide input into the goal-setting process.

 

According to expectancy theory, worker motivation almost always increases when employees are assigned a very challenging task.

 

U.S. workers value being treated fairly. According to equity theory, if things seem unfair, they will do their best to make them equitable by withholding effort, increasing effort, or by rationalizing that they are undeserving of the same as others.

 

In reinforcement theory, extinction refers to a strategy of responding to undesirable behavior with negative reinforcements, such as verbally reprimanding an employee in front of his peers.

 

Elias is disappointed with the work effort of the employees in his department. According to expectancy theory, Elias could improve employee performance by setting more ambitious performance standards that exceed the ability of most employees to attain them.

 

Cedric works for a landscaping business. His employer has asked Cedric if he would be willing to work overtime this weekend to finish a job for an important client. According to expectancy theory, Cedric will want to compare the compensation or other rewards offered by his employer to the extra effort involved before he decides whether to agree to the job.

 

Ruth Eday is sorry she ever hired Helen Highwater since Helen’s work is sloppy and often late. Moreover, she doesn’t get along well with most of the other employees and frequently initiates arguments. According to reinforcement theory, the only effective way for Ruth to deal with Helen’s behavior is to wait for Helen to do something good, and then praise and reward her for the result.

 

You get a lower grade in a course than your friend did even though you studied more during the semester and attended class more often. As a result, equity theory predicts that you might convince yourself that “Grades aren’t all that important. After all, lots of people who succeed in the real world didn’t make good grades in school.”

 

Jill operates her own small business and is a strong advocate of equity theory. Because of her acceptance of this theory, Jill is likely to try to assure employees that they are compensated in a way that reflects their efforts and contributions relative to those of other employees.

 

As a human resources manager for your company, you are looking for ways to motivate employees to favor your company over competitors. The company cannot afford to offer a wide array of benefits, but you are confident that if you survey employees and provide them the opportunity to vote on the benefits that are most important to them, they will see this as a fair and equitable way to operate.

 

LivWell Biotechnology Company has four locations in California. You work as a marketing specialist at the oldest and southernmost location. Your colleagues at the three other locations get an hour off each day to work out because there are workout facilities at each of their locations. You know that you make a little more money than they do, but after measuring the cost of stopping off at the gym on your way home each evening, you realize that your extra compensation does not cover the cost of the membership. You are keeping tabs on marketing positions that may open at the company’s other sites. Equity theory suggests that you are motivated to bring a sense of fairness to what you perceive as an inequity.

 

You are a graduate student in the biology department at Fair University. You have several graduate student friends who have graduate appointments in the business department and the English department. While everyone’s compensation and employee benefits are exactly the same, your department requires you to always show up and tutor students at least four hours each day and to serve on one university committee each semester. Graduate students at the other departments are not required by their management to follow these rules. Lately, you are doing your best to limit your daily obligation to 2 to 3 hours each day. Relating your situation to one of the theories we have studied, your goal of limiting inputs is explained by expectancy theory.

 

As the marketing director for Chipper’s Golf Resort, you are making plans for the annual golf tournament, and trying to decide on the amount for the top three prizes. In past years, you successfully raised $25,000 through registration fees and sponsorship. You know that you could easily attract some great local talent if you made the top prize $10,000, but can you afford to announce a $10,000 top prize at the expense of losing out on a portion of the registration fees of lesser players who decide not to participate? Using expectancy theory rationale that you learned in business class, you explain to the general manager that if you set the prize too high, several better than average golfers in the area will find their chances to be “out of their league” when the top players join in and will be unmotivated to participate and spend their money. Your analysis of the situation is reasonable to the general manager.

 

As the marketing manager for Chipper’s Golf Resort, you hired three interns from the local university to go out and sell your annual golf event. You provided each of the interns with their own list of past sponsors, participants, and prize contributors. You asked each to create a marketing plan to secure five new sponsors in the next four weeks, and promised them a bonus at the end of the fourth week if they could verify that they followed their own plan, contacted everyone on their list and also developed new sponsors. During the fourth week, you randomly contact a few sponsors on each of the three lists and quickly learn that one of the interns has slacked off on the job. As a motivational technique, you prefer to provide positive reinforcement, so when you meet with the interns, you withhold the bonus from the one that did not do the job and inform him that his internship grade will reflect the fact that he was not motivated to get the job done.

 

Based on Herzberg’s theory of motivators, job enrichment will motivate employees to satisfy higherorder needs.

 

Job enrichment is based on Herzberg’s higher motivators, such as responsibility, achievement, and recognition.

 

Job enlargement is about breaking down a sizeable job into smaller parts so that the employee is not overwhelmed by a large task.

 

Skill variety is one of the characteristics of work that lead to improved motivation and performance.

 

Using job enrichment strategy, management can contribute to improved motivation and worker performance primarily by increasing employee pay.

 

Feedback enhances worker motivation by giving employees a feeling of achievement and recognition.

 

Task identity refers to the degree to which a job has a substantial impact on the lives or work of others in the company.

 

Job simplification attempts to increase task efficiency by breaking the job into simple steps and assigning people to perform each of those steps.

 

Job simplification is an effective strategy for managers who want to achieve job enrichment.

 

Job enlargement is the strategy of assigning employees to different jobs within the organization on a regular basis.

 

Job enlargement attempts to enrich jobs by combining a series of tasks into one challenging and interesting assignment, as opposed to simplifying the job.

 

Job rotation attempts to make a job more interesting and motivating by moving employees from one job to another.

 

As part of their open communication strategy, management should reward upward communication, even if it is negative.

 

Open communication is a verbal strategy. It does not involve listening.

 

Open communication strategies include the removal of physical barriers such as separate offices.

 

As a motivational technique, open communication is enhanced when management provides several opportunities for employees to congregate and share ideas.

 

Special parking areas, dining rooms, and restrooms set aside for executives are barriers to open twoway communication within an organization.

 

By the time they graduate from high school, most people have received ample training to develop good listening skills.

 

To implement self-managed teams, managers at most companies must reinvent work.

 

The first step in any motivational program is to establish open communication among employees in order to encourage teamwork and cooperation.

 

Teamwork tends to occur naturally within business organizations regardless of the plans or actions of managers.

 

In order to encourage teamwork among managers and employees, top management must create an organizational culture that allows autonomy, decentralizes authority, and rewards good work.

 

As a motivational technique, letting employees know they’ve done a good job is not as powerful as providing them with a bonus.

 

Progressive managers are rewarding good work in all kinds of ways including family trips, informal events at work, and just letting everyone know when someone does a good job.

 

When asked why they change jobs, nearly 80% of those surveyed said they felt a lack of appreciation.

 

Managers who believe job enrichment can effectively improve motivation would try to give employees a significant degree of freedom and flexibility in scheduling their work and in determining the procedures they use.

 

The key to achieving task identity is to design jobs that demand the use of many different skills.

 

Job simplification is an extension of the ideas of Frederick Herzberg.

 

Feedback helps enrich a job by satisfying an employee’s esteem needs.

 

One way for a firm to improve motivation of employees is to establish special rest rooms, dining areas, and parking areas for top executives.

 

If managers want to retain their employees, a good strategy may involve mentoring them for more senior roles in the organization and provide opportunities for job advancement.

 

According to the Adapting to Change box, one out of five workplaces blocks access to Facebook on company computers, citing a waste of company time.

 

The Spotlight on Small Business box asserts that it is impossible for small businesses to offer intangible benefits for its employees.

 

Fast Track Corporation moves employees from one job to another on a regular basis in order to improve motivation. Fast Track’s strategy is job enlargement.

 

Management at the local Hottie Potatee, a potato bar with all the fixings, is trying to improve task efficiency by breaking down jobs into simple steps and assigning each step to a different worker. The key benefit of this approach is that it is one of the most effective ways to achieve job enrichment.

 

Ellen supervises several employees in the accounting department of a large corporation. She makes it a priority to give her subordinates direct and clear information about their job performance. Ellen’s efforts are likely to improve worker motivation.

 

David is the president and chief executive officer of Baxter National Bank. He wants to encourage more open two-way communication among the bank’s employees and managers. One of the most important things David can do to achieve this goal is to become a good listener.

 

During the first year at the Millennium Company, management trainees spend two months in each of six different departments, where they have the opportunity to learn skills in each functional area, and also to decide where they have the best match. Job rotation is a motivational strategy used by contemporary organizations.

 

At Blastoff.com, a web-based auction headquartered in upstate New York, when employees are at the company’s main office, they do not expect to necessarily sit at the same desk everyday. They may decide to situate in a projection room, in a temporary soundproof room, or in one of several lounge areas in the building. They may locate next to someone outside of their functional area. Blastoff management believes that breaking down barriers fosters more communication and innovation, and makes jobs more interesting.

 

Brandon’s manager often tells his employees “there isn’t a lot of time for chit-chat on the job. If you want to give us your opinion, as a believer in open communication, I’ll gladly give you your chance to speak your mind, on your way out!” This manager is up to date on the purpose of the exit interview, as an important source of feedback for companies. Open communication always begins at this juncture.

 

Regardless of cultural background, most employees respond the same way to motivational approaches.

 

High-context cultures tend to jump right in and get work done without worrying about developing close work relationships.

 

In a high-context culture, relationship building is motivational.

 

In a low-context culture, employees are less likely to place emphasis on relationship building. They want to jump right in and get the job done.

 

Even if there are cultural differences across the globe, reward preferences do not vary across cultures.

 

If rewards are an important part of an international firm’s motivational strategy, consideration should be given to adjusting rewards for cultural preferences.

 

Most Gen X managers are likely to be flexible and good at collaboration.

 

Members of Generation X tend to be more independent and need less feedback than members of older generations.

 

As a group, Gen Yers tend to be impatient, skeptical and image driven.

 

Members of Generation Y tend to be adaptable, tech savvy, and tolerant.

 

Gen Xers are difficult to motivate because they lack ambition.

 

Gen Xers and Gen Yers will be more tolerant of change than Baby Boomers.

 

Motivation is largely the result of external rewards and punishments.

 

Gen Zers grew up post-9/11, in the wake of the Great Recession and amid countless reports of school violence.

 

Gen Xers, Millennials, and Gen Zers often expect change and may find the lack of change questionable.

 

It is important when dealing with today’s culturally diverse workforce that managers maintain a consistent motivational approach for everyone.

 

If you want to understand what motivates Gen X workers, it might be a good idea to study the personal experiences that this group shared, such as stay-at-home moms and dads that worked very steady nine-to-five jobs, with hardly any fear of layoffs.

 

When studying the differences in generations, it is fair to say that many ideas that each group shares result from common experiences during the first 10 years of life.

 

As Gen Zers are starting to enter the workforce, they are likely to be less cautious and unmotivated to make improvements in the world around them.

 

As indicated in the Reaching Beyond Our Borders box, the pool of employees is more diverse than ever. Therefore, it is essential that companies must strive to develop cultural intelligence among its management staff to avoid possible culture clashes.

 

Lisa is a Gen Xer who has just been promoted to a management position. If she is like many of her generation, one of Lisa’s biggest problems is likely to be her inflexibility and difficulty at working collaboratively with other employees.

 

Anthony is putting together an employee group to help add new technology to his company’s existing products. He is seeking employees who are comfortable with new technologies, and who are flexible, adaptable, and have a strong sense of commitment to their work. Many of his company’s Millennial employees probably would meet these criteria.

 

Blake was asked by his team leader to explore and evaluate the best ways to communicate with customers online. Although Blake is relatively new to the company, and is not well versed on the entire product line, he is a Millennial, which makes him overall well suited to knowing how people find things in common with others in an online environment.

 

The personal satisfaction people feel when they have done a job well is a(n) __________ reward.

 

Rewards that come from someone else in recognition of good work are _________ rewards.

 

_________________ was the father of scientific management.

 

One of the elements essential to Frederick Taylor’s approach to improving worker productivity was:

 

Frank and Lillian Gilbreth developed the principle of _________, which said that every job could be broken down into a series of elementary motions.

 

______________ was the dominant strategy for improving worker productivity during the early 1900s.

 

A basic idea of ___________ was to conduct time-motion studies to find the best way to perform each task, then teach people to use these methods.

 

Frank and Lillian Gilbreth thought that every job could be broken down into a series of elementary motions that they called:

 

Weldon Taskman has just successfully negotiated a new long-term sales agreement with a major client. The personal satisfaction Weldon has about his efforts is his _______ reward.

 

Maureen’s supervisor was so impressed by her work that he named her the employee of the month. This praise from her supervisor is an example of a(n) _________ reward.

 

According to the principles of scientific management, the best way to improve productivity is to:

 

At Qliktech, the company CEO, Lars Bjork, honors employees who demonstrate the company’s core values. Qliktech holds a summit each year, where it selects and awards one employee in each of several values categories that include (1) challenge; (2) move fast; (3) be open and straightforward; (4) teamwork for results; and (5) take responsibility. Rather than posting core values someplace everyone passes by each day, the CEO finds that providing _________ rewards once each year provides the message to all employees that these are important values.

 

New employees at Throneberry Manufacturing are carefully trained to use the most efficient production methods. They are then placed on an assembly line and expected to perform the same task day after day, using the methods they were taught. The work is boring, but the pay is good. Throneberry’s approach is consistent with the principles of:

 

Wally Tormach is a professional house painter. During busy periods, he often hires college students as helpers on his jobs. Wally tells his helpers that he has determined the most efficient way to paint a house and he expects them to follow his instructions exactly. Wally’s approach is consistent with the ideas of:

 

Which of the following statements is the best description of how scientific management viewed employees?

 

The Hawthorne studies concluded that worker motivation:

 

The Hawthorne studies were conducted by ____________ and his colleagues from Harvard University.

 

The original goal of the Hawthorne studies was to determine:

 

The tendency for people to behave differently when they know they are being studied is known as the:

 

The Hawthorne studies found that employees in the experimental group:

 

The findings of the Hawthorne studies led researchers to look more closely at how ____________ could lead to better productivity.

 

The most important impact of the Hawthorne studies was that it:

 

In the Hawthorne studies, employees were involved in the planning of the experiments. This caused employees to:

 

Which of the following statements about worker motivation is most consistent with the findings of the Hawthorne studies?

 

Dr. Mo T. Vadar, a professor of psychology at a respected university, is planning a study of the factors that affect the motivation of employees. Dr. Vadar is concerned that the results of his experiments may be misleading because employees in an experimental group tend to behave differently when they know they are being studied. This concern shows that Dr. Vadar is aware of the:

 

Which of the following statements would Elton Mayo have most likely made soon after concluding his Hawthorne studies?

 

The concept that a hierarchy of human needs could be used to explain motivation was developed by:

 

Maslow was mainly concerned with explaining how:

 

According to Maslow, a higher-order need:

 

Maslow classified the needs for basic items such as food, water, and shelter as:

 

Maslow called the needs people have for security at work and at home:

 

In Maslow’s hierarchy of needs, the desire for love and acceptance would fall into the category of:

 

Maslow would classify the need for recognition from others and for self-respect as _________ needs.

 

In Maslow’s hierarchy, __________ needs refer to the desire to reach one’s fullest potential.

 

The need __________ would be classified as a social need.

 

Maslow placed _________ needs at the highest level of his hierarchy.

 

When Elaine accepted a position with Cannon Corporation in Dallas, Texas, she felt uneasy. She was new to the area and new to this company. However, she was pleased that her new job offered her the opportunity to play on the company volleyball team. She quickly made new friends and, through her new friends, learned about the city. Apparently, her new job satisfies Elaine’s ________ needs.

 

Jackie had been very pleased with her part-time job at a local convenience store until a recent incident occurred. During Jackie’s shift, the store was burglarized. Although no one was hurt, Jackie now feels uneasy and fearful during her late night shift. She is so nervous and worried that she is having a hard time concentrating on her work and is thinking about quitting. Management needs to be aware of Jackie’s unmet _______ needs.

 

John dropped out of school after the ninth grade and now must support himself though he has few skills. He is a part-time employee at a small retailer earning the minimum wage. John would like to earn more, but hasn’t been able to find a better job. He is having a hard time paying his rent and utility bills and has quit eating breakfast to try to save on his food bills. John is having trouble meeting his:

 

Abraham Maslow thought that once needs at one level of his hierarchy were met:

 

According to Maslow’s Hierarchy of Needs theory, which of the following would be an issue that requires the fulfillment of a lower-order need?

 

Julie has worked for the Healthy Nut Bread Company for several years. Recently, management recognized her as one of the company’s best employees. Her co-workers respect and admire her, and she feels good about herself. According to Maslow, the type of needs that are likely to motivate Julie in the future are:

 

Maalem is a refugee from Ethiopia who has none of the basic necessities Americans take for granted. He lives in an overcrowded tent in a refugee camp. He is often hungry and thirsty because food is scarce in the camp and the main water supply is polluted. According to Maslow, Maalem will be motivated to satisfy his ___________ needs, before addressing other concerns.

 

When Anna’s manager sees her coming through the front door, he is greatly relieved. He knows that the tasks he has planned for the day will not need to be adjusted. Anna’s work productivity and performance on the job are very good. Recently, however, her ability to get to work on time has affected her job performance. Anna’s supervisor has documented a number of unrelated health issues that have prevented Anna from being at work on time. Which of the following views would Maslow likely share with Anna’s supervisor?

 

Milo currently has a good job and can afford a decent apartment and plenty of food. Due to significant political unrest and recent street violence in his town, he is considering uprooting himself and applying for a visa to move to another country. According to Maslow, Milo’s concern reflects a desire to satisfy his:

 

Than Wok emigrated from his war-torn country to the U.S. almost two years ago. He recently found a job working on an assembly line at a major computer manufacturer. Than left his friends and family behind when he came to the United States. He is lonely and hopes that his fellow employees will accept him so that he can build some lasting friendships. According to Maslow, Than wants to satisfy his:

 

Although the overall unemployment rate during the past recession hovered between 9 and 10%, the unemployment rate for Millennials was much higher. As this generation struggled to find employment, they were often compelled to continue to live with their parents. Due to current economic concerns, this younger generation was struggling to fulfill ___________________.

 

Melody has worked as a secretary at Consolidated Freight Handling for 10 years. Although she earns a good salary and has made friends at work, she has been passed over for promotion twice and feels that no one appreciates her abilities and skills. Melody is concerned with satisfying her:

 

Marla always strives to excel in her career. Several years ago, she finished college, finally achieving a Ph.D. Although she works as an educator and has a secure position at an urban college, she does not hold a faculty position at a prestigious university. It is obvious to her colleagues that Marla is unsatisfied with her position at work. She constantly gives co-workers subtle reminders of her superior academic credentials and only participates in work activities where she will assume a leadership role. Analyzing Marla’s situation using Maslow’s hierarchy of needs, which of the following needs are unmet?

 

Several advocacy groups in the U.S. monitor firms that do business with sweatshops in developing nations. These watchdog groups are concerned about human rights abuses in foreign factories, often citing unsafe and unclean working conditions. Recently, business experts have shed new light on this issue, stating that these factories that do not meet the standards of developed nations are still perceived by their workers as a better way of life than what they had before because these employers offer steady wages. According to Maslow, these workers are motivated to satisfy which of his hierarchy of needs?

 

Jacob recently returned from a tour of duty in Iraq, where he served with the U.S. Army’s 1st Infantry Division. Sitting at the kitchen table in his parents’ home, he listens to his mom spend several hours making plans for a Caribbean cruise with her new group of friends. He hears about his sister’s recent promotion at work, and about his Dad winning the “Innovator of the Year” award at his company. He reflects back on the lives of the people he has just left, their nightly fears of mortar attacks, their need to boil the drinking water on a daily basis, and the children that flocked around him begging for something to eat. As he concentrates on his business management text, he finds himself analyzing his present and past environment in terms of Maslow’s hierarchy of needs theory. He concludes that:

 

_____________ studied how the characteristics of the job itself affected worker motivation.

 

Herzberg’s research identified several ___________ factors that did not necessarily motivate employees if they were increased, but could cause employees to become dissatisfied if they were missing or inadequate.

 

Herzberg found that factors that provided the highest level of motivation were mostly associated with:

 

Herzberg found that good pay:

 

According to Herzberg, a sense of achievement, earned recognition, and interest in the work itself were all:

 

Herzberg’s research found that the factor that ranked highest as a motivator was:

 

According to Herzberg, job-related factors that motivated workers to work harder and more productively had one thing in common:

 

Herzberg’s research found that safe working conditions and good pay:

 

According to Herzberg’s views, which of the following strategies would be most likely to result in a higher level of worker motivation?

 

Which of the following is not considered one of Herzberg’s strategies for creating enthusiasm at work?

 

While Maslow’s research categorized a person’s needs in terms of higher-order and lower-order needs, Herzberg’s research recognized that:

 

According to Herzberg, the difference between motivators and hygiene factors is:

 

According to Herzberg, which of the following groups of motivational factors would give employees the most satisfaction?

 

Tyler earned his construction management degree last May and landed his first job as a field engineer with a well-known company that provides maintenance and repair for oil and chemical companies. During his first week on the job, he expressed enthusiasm for what he heard from other employees. Although he would be traveling to many job sites during the first five years, many of his new colleagues remarked on the opportunities for growth and promotion and added responsibilities if he persevered with this company. If Herzberg were ranking the job factors that provide satisfaction for this young graduate, he would refer to these as:

 

Charlie, the CEO of Collier Chemical, likes to boast that his company offers the highest salaries in the industry, has excellent working conditions, and has clear and consistent company policies. Yet he admits his workforce is not highly motivated. Herzberg’s research suggests that Collier Chemical is having difficulty motivating its employees because it focuses on:

 

JP Pharmaceuticals has redesigned many jobs to make the work more interesting and challenging. The company encourages its employees to further their education by reimbursing them up to $5,000 per year for tuition and related expenses. JP also recognizes worker achievements at a company picnic each spring and a company party in December. Talented employees are given promotions and added responsibilities. These policies suggest that management at JP Pharmaceuticals is using the findings of:

 

________ used the terms Theory X and Theory Y to describe different attitudes managers have about employees.

 

Douglas McGregor described two very different sets of managerial attitudes about employees, which he called:

 

Theory ___ managers see employees as having a general dislike for work and an unwillingness to accept responsibility.

 

Theory ____ assumes that the average person likes work, and has a relatively high degree of imagination and creativity.

 

Theory Y managers prefer:

 

William Ouchi called the management approach typically used by Japanese firms:

 

_________ is the term William Ouchi used to refer to the management approach typically used by firms in the United States.

 

To be competitive, ____________ recommended that American firms adopt a new management style that was a hybrid of the approaches used by Japanese firms and those used by American firms called _______.

 

_________ blends Japanese and American management practices into a hybrid approach which calls for long-term employment, collective decision making, and individual responsibility for the outcome of decisions.

 

Theory X managers are likely to believe that:

 

Theory Y managers would:

 

Which of the following is a characteristic of Type J management?

 

Which of the following is a characteristic of Type A management?

 

An important criterion that helps to determine the type of management style (Type A, J, or Z) that works best for firms is:

 

UCLA management professor William Ouchi’s Theory Z embraced which of the following management ideals?

 

Chase believes that most of his subordinates dislike work and would avoid it if possible. He also believes that his employees have little, if any, ambition, and that the only way to motivate them is by using threats and punishment. Chase views are consistent with ___________ management.

 

Kendra believes that if she leaves her employees unsupervised for a few minutes they will do nothing but slack off. She is known as the “Dragon Lady” (at least behind her back) for the harsh criticism and punishment she disburses whenever an employee makes an error. Kendra is a __________ manager.

 

At High Stakes International, employees tend to work with little direct supervision since employees are considered trustworthy and committed. Management’s expectation for employee creativity is high. The management at High Stakes reflects ____________ attitudes about employees.

 

William Ouchi believed that a pure Type J approach to management would not work in the United States because it:

 

At Solar Concepts, Inc., employees are promised long-term employment and are involved in decision making. The employees follow a somewhat specialized career path and have individual responsibility for results. Solar Concept’s approach is an example of:

 

In Silicon Valley, California, it is not unusual for highly skilled employees to stay at one company for about three years. These specialized employees have a mind-set for rapid promotion. They believe that they have only themselves to blame if these high goals are not met. William Ouchi would categorize the management style that these employees operate under as:

 

At Groovy Rags, a trendy retail store, manager Eon Forcer doesn’t waste any time thinking about whether the employees on his shift get their breaks at a reasonable time. In fact, he claims he is hard pressed to determine which one has “worked hard enough” to even deserve a break. Earlier today, Eon remarked, “I’ve never met one that likes this job! They’re only biding their time and here for the money.” Eon’s managerial style would be classified as _______.

 

While Rachel, a psychology major at the local university, worked frantically at her job at Groovy Rags in anticipation of the regional manager’s visit, her department manager Eon Forcer had an interesting word with her: “Don’t worry Rachel, when I first started, I made $7.25 an hour too. It gets better!” Rachel shook her head as she reflected on how little Eon knew about what motivated her to seek perfection at this job. As she continued to neatly stack those pocket tees, she thought, “If the regional manager has the same attitude as this guy, I’m looking for another job.” Rachel would prefer to work with a ___________ manager.

 

In analyzing the differences among Theories X, Y, and Z managers, it is appropriate to assess that:

 

Reflecting upon the differences in Type J and Type A work environments, which of the following statements is fundamental to Type J?

 

____________ is based on the notion that setting ambitious but attainable goals will improve motivation and performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions.

 

Management by objectives was developed by:

 

The purpose of management by objectives is to:

 

________ is a system of goal setting and implementation that involves a cycle of discussion, review, and evaluation of objectives among top and middle managers, supervisors, and employees.

 

Management by objectives is most effective in organizations that:

 

________ means to work with a subordinate, doing part of the work if necessary.

 

________ means acting as a resource to a subordinate by teaching, guiding and making recommendations, without actively doing any of the subordinate’s work.

 

According to __________ the amount of effort employees devote to a task depends on their expectations of the outcome.

 

According to Victor Vroom, which of the following questions is an employee likely to ask before deciding to exert his or her maximum effort toward completing a task?

 

Researchers David Nadler and Edward Lawler suggest that in order to use expectancy theory to improve worker motivation, the first thing managers should do is:

 

According to expectancy theory, the amount of effort employees exert on a specific task depends on their:

 

_________ theory is based on the idea that managers can use both rewards and punishments to motivate employee behavior.

 

Reprimands, pay reductions, and suspensions are all examples of:

 

Equity theory states that employees will perform well if they:

 

According to equity theory, employees are likely to ask:

 

The basic principle of equity theory is that employees try to:

 

Inequity in the workplace is likely to result in:

 

Equity judgments are based on:

 

A problem with equity judgments is that employees often ________ their own contributions to the success of a business.

 

According to goal-setting theory, in order for goals to enhance motivation and performance they must be:

 

One implication of goal-setting theory is that goals should be:

 

A central characteristic of management by objectives is that:

 

One of the reasons management by objectives is an effective way to implement the ideas of goal-setting theory is that it:

 

Which of the following statements would a proponent of management by objectives likely make?

 

Which of the following would be most closely tied to the idea that employee motivation requires that the rewards for completing a task are sufficient to justify the effort?

 

Expectancy theory suggests that managers attempting to improve employee performance would be well advised to:

 

A key idea in reinforcement theory is that:

 

According to equity theory, which of the following statements is most accurate?

 

The best remedy for staving off perceptions of inequity is:

 

Dane works as a sales representative for the Better Butter Company. He is about to meet with his manager to review his progress toward meeting the sales objectives they agreed to at the beginning of the year. Dane likes the fact that managers at Better Butter listen to their subordinates’ ideas and get everyone involved in setting goals and objectives. Dane’s experience suggests that Better Butter is utilizing:

 

Becca is a manager in the credit department for 3STAR Motors. Joe Greene is a new employee in her department. While Joe has been learning his job, Becca has provided him with guidance by offering advice, encouragement, and instructions. However, she is careful to let Joe do the actual work, even if he struggles a bit. Becca’s approach to getting Joe up to speed indicates that she is:

 

Paul Blocker is the offensive line coach for a university football team. He wants his players to report to fall practice in good shape. Coach has set challenging fitness standards that the linemen should have no problem achieving if they work hard during the summer. He knows his players hate running wind sprints so to encourage them to work out during the summer he announced that any player who passes the fitness test at the beginning of fall practice will be allowed to skip sprints for the first two weeks of practice. Coach Blocker’s approach to motivation is consistent with:

 

Which of the following problems would indicate that a manager failed to apply the basic concepts of expectancy theory?

 

Lynn is in charge of a nursing shift at a hospital. She wants to improve the motivation and performance level of the nurses under her direction. According to expectancy theory, one element of an effective motivational strategy is to:

 

Which of the following is the best example of extinction as the term is used in reinforcement theory?

 

Matt works for a sports marketing firm. He feels that he has been treated unfairly by the organization. He helped three other employees organize a series of successful street hockey tournaments in different regions of the country. While the other employees were given a bonus and corporate recognition, his efforts were ignored. According to equity theory, Matt is likely to respond by:

 

As a manager, Charlene works hard to ensure that employees are treated fairly, yet she still gets feedback that indicates that some employees don’t believe she is fair. This problem most likely results from the fact that:

 

Brett manages a sales force that sells laboratory supplies to companies and university science labs. He wants to implement a reward program for high performance. Any rep whose territory bills over $500,000 in sales will win a trip for two to a Caribbean island. Last year the high billing territory made $400,000 in sales. As his outside consultant on the rewards program project, you suggest that he ask around to make certain that this is something the reps would enjoy. Your other advice is:

 

You are a graduate teaching assistant in the biology department at Fairview University. You have several graduate student friends who have graduate appointments in the business department and the English department. While everyone’s compensation and employee benefits are exactly the same, your department requires you to always show up and tutor students at least four hours each day and to serve on one university committee each semester. Graduates students at the other departments are not required by their management to follow these rules. Lately, you are doing your best to limit your daily obligation to 2½ to 3 hours each day. The motivational theory that most closely correlates with your actions is:

 

As the marketing director for Chipper’s Golf Resort, you are making plans for the annual golf tournament, and trying to decide on dollar prizes. After learning that in past years, you successfully raised in excess of $25,000 through registration fees and sponsorship, the general manager wants to make the top prize $10,000. His exact words were, “We can attract some great talent at that level!” At your morning meeting, you inquire: “Can we afford to announce a $10,000 prize at the expense of losing out on a portion of the registration fees if some of our past participants decide not to enter the tournament?” You explain to the general manager that if you set the prize too high, several better than average golfers in the area will find it to be “out of their league” and will be unmotivated to participate and spend the money. Your analysis of the situation is reasonable according to __________.

 

Herzberg’s research indicated that employees are motivated by job content. Contemporary managers focus on _____________ by increasing the significance of the job, and even providing the employee with important feedback.

 

Managers who advocate job enrichment focus on creating jobs with:

 

________ emphasizes motivating the worker through the characteristics of the job itself.

 

___________ is the characteristic of work concerned with the degree of freedom, independence and discretion an employee has in scheduling work and determining procedures.

 

The characteristic of work that is concerned with the amount of direct and clear information employees receive about performance is called:

 

The degree to which a job has a substantial impact on the lives or work of others in the organization is referred to as:

 

__________ is the degree to which a job requires doing a task with a visible outcome from beginning to end.

 

The practice of moving employees from one job to another to make work more interesting is called:

 

___________ attempts to increase task efficiency by breaking down jobs into simple steps and assigning people to each of those steps.

 

Job ___________ combines a series of tasks into one assignment that is more challenging, interesting, and motivating.

 

The first step toward establishing open communication within an organization is to:

 

As companies restructure to create greater efficiencies in their operations, there is a greater opportunity for _____________ where management combines specialized tasks in one job, asking employees to broaden their scope of responsibilities.

 

As a contemporary manager, your employees will be motivated to provide you with important feedback if:

 

As a contemporary manager, your employees will perceive that their opinions are more valued if:

 

The major benefit of open communication in a company setting is:

 

Which of the following practices would fail to result in more open communication?

 

Which of the following practices would be most consistent with the views of scientific management?

 

Ramon works at Chicago Medical Instruments. His job was recently redefined so that he now has more flexibility in the hours he works and more say in the procedures used on the job. This suggests that Chicago Medical Instruments is trying to change Ramon’s job so that it has more:

 

Ramona works for a large Colorado ski equipment warehouse. In the past, her only chance to learn how she was doing on the job came during fairly superficial performance reviews with her boss twice a year. The company recently implemented a policy designed to give Ramona and other employees detailed information about their job performance on a monthly basis. This suggests that the ski equipment retailer now provides Ramona and her co-workers with more:

 

Every month Sam Tabor is assigned a different job at Russo & Daughters Financial Consulting. Sam enjoys the task variety and finds that switching jobs on a regular basis keeps the work from becoming boring. Russo & Daughters is using a technique known as job:

 

At Boss Motorcar Company, employees are grouped into teams. Each team is responsible for assembling an entire automobile. Boss gives each team freedom and flexibility to decide how to divide up the work. The company keeps the employees informed about how their cars are selling, and even shows them the comments customers make about quality and performance on customer satisfaction questionnaires. Boss Motorcar Company is using a strategy of:

 

Until recently, TrueTime International produced personal computers on an assembly line with each worker performing only one simple task. Three months ago, the company began allowing individual employees to assemble entire computers, test all of the components, and even install the software that TrueTime includes with each of its computers. TrueTime’s new production method is an example of:

 

As the new general manager at Backstreet Books, Chloe wants the sales associates to perceive her style as open and friendly. Which of the following would not be helpful to her cause?

 

At one of the new campuses of Wild Oak Community College, administrative staff members are trained on a number of jobs including general student registration procedures, advising, counseling, computer support, and faculty assistance. Although Christy usually registers students and Sam usually advises students, they can easily switch roles and help each other out during busy times. They can also be called into a classroom to assist an instructor troubleshoot a computer issue. Unlike other colleges where lines are long and students must come back several times in order to be served, at Wild Oak, you never hear someone say, “It’s not my job!” This campus has successfully implemented ___________.

 

After several years of higher education, Tom and Zoe Dash were awarded their Ph.D. degrees and found jobs at a university, where they plan to work in research labs. Tom’s lab is very large with at least 15 research faculty like himself and 25 graduate students whose benches are all together on one side of the laboratory. Zoe’s lab is similar in size, but graduate student benches are interspersed with faculty. From the very beginning, Tom was referred to as Dr. Dash by the graduate students. Zoe and the graduate students in her lab are on first-name basis. As a student of management, which of the following statements would you consider good advice to the managers (also known as the principal investigators) of these labs?

 

Jerry Stead is the chairman of Ingram Micro, a technology provider with 13,000 employees. He answers his own phone line to take calls from employees and declares that if the company is doing something right he loves to hear about it. He also wants to know if there’s something they should be doing differently. Jerry Stead is building teamwork by:

 

Motivational formulas are:

 

In a high-context culture:

 

In a low-context culture:

 

Generation X employees are likely to:

 

A strength of Generation X managers is likely to be their:

 

The generation born between 1980 and 1995 is known as Generation:

 

As a group, Millennials tend to be:

 

Even across generations, motivation is likely to:

 

Baby Boomers as managers need to understand that:

 

When reflecting upon the newer generation, each older generation says the same thing:

 

In order to understand how to motivate the various generations, we need to understand each generation’s preferred mode of communication. Look at the following chart and fill in the blank cell.

 

Which of the following statements about cultural differences in the workplace is most accurate?

 

When it comes to motivating Millennials and Gen Xers, it is important for managers to know that they have a few things in common. One important likeness is:

 

If “fun and stimulation” are rated as important job criteria by Millennials, which of the following might be a way to motivate this generation?

 

Which of the following statements about high-context cultures reflects how managers in this type of culture might operate?

 

Which of the following descriptions more appropriately reflects the way that Gen Xers prefer to communicate at work?

 

A college graduate with a degree in psychology, Diana is in no hurry to find a job. In fact, she has elected to continue her education until she decides on the type of career she would like to pursue. Although she really likes some aspects of marketing, social work and social causes also appeal to her. Having worked part-time in a small business during college, she also thinks that working in her own business, independent of the control of others, may also be the way to go. Diana is typical of:

 

Alex, an employee at Green Spaces Irrigation Systems, is pleased that his old supervisor Wally retired. “Wishy” Wally, as the crew used to call him, seemed like a pretty nice guy, but seldom let Alex know if installations were adequate until something went wrong. The new supervisor starts each day with reviewing yesterday’s successes and challenges, and gives everyone opportunity to voice their concerns. One of the best assets of __________ managers is their ability to provide timely feedback and to understand that employees want regular performance reviews.

 

On the long flight back from South Korea, Aaron had plenty of time to reflect upon the challenges of his business trip that took him to four Asian countries. His goal to sell his company’s state-of-the-art bicycle pump to several foreign firms certainly could have gone better. Although the 10 companies he visited didn’t turn him down, only one agreed to place an order. Representatives from one Indonesian firm and two Chinese firms asked him when he planned to come again! As Aaron reviewed his memories and notes, he pondered, “Didn’t they realize the expense of these international trips?” Aaron is experiencing:

 

According to McGregor, Howie’s views of his employees suggest he is a ____________ manager.

 

Currently, jobs at Idle Time Gaming are broken into small individual steps, and each employee is assigned to perform a different step in an effort to achieve task efficiency. This technique is known as job:

 

John Noble speculated that Howie really didn’t know much about his employees, including the types of rewards that they found meaningful and whether they personally felt that if they worked hard, they could achieve a reward. Noble’s thoughts referred to:

 

Before ending the meeting, John Noble informed Howie that he would be sending out an e-mail to all employees asking for suggestions as to how the jobs could be restructured to improve productivity. As Howie walked back to the production site, he shook his head, “Is Noble from a different planet? Does he really think our workers have a clue?” Unlike Noble, Howie does not realize that:

 

Human resource management is the process of deciding the number and types of people your business needs, and then, recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals.

 

Human resource management is receiving increased attention because the shift from traditional manufacturing industries to service and high-tech manufacturing industries requires workers to have more technical job skills.

 

Recruiting is relatively easy today because qualified labor is so plentiful.

 

Today, human resource management is viewed as a clerical function of keeping personnel records and processing payroll.

 

The human resource function has become so critical that it is now a concern of all managers.

 

The human resource manager’s job is easier today than it was in the past because a growing percentage of the workforce is highly educated and well-prepared for jobs in the contemporary business environment.

 

The reason industries such as robotics and biotechnology have grown rapidly in recent years is that the United States has a surplus of highly educated and experienced workers available for employment in these fields.

 

One of the challenges facing today’s human resource managers is a shift in the age distribution of the labor force, including aging baby boomers, many of whom are deferring retirement.

 

Today’s workers have an increased demand for benefits tailored to their individual needs.

 

Today’s workers place a lower priority on leisure time than they did in the past.

 

One challenge faced by today’s human resource managers is the fact that workers overseas often work for lower wages and are subject to fewer laws and regulations.

 

Today’s workers tend to be very loyal, as evidenced by declining turnover rates in most industries.

 

Underemployed workers present a challenge for human resources managers. These are people who are working beyond their capabilities.

 

The appropriate term for employees whose skills and knowledge go beyond their current work environment and work responsibilities is underemployed workers.

 

Very few experienced employees have skills and knowledge that are considered to be at a higher level than what they use at their jobs.

 

It is challenging for HR managers to deal with a declining economy that results in a short-term preference for part-time and/or temporary employees and a trend to outsource jobs, even though there are skilled employees who are willing to work.

 

The growing importance of human resource issues has led most firms to expect only their human resource specialists to tackle HR issues.

 

HR is focused on issues directly related to a person’s job and with things that happen at work, as opposed to concerns that may affect one’s work such as eldercare and childcare, but are not directly related to work.

 

Robotek International is a rapidly growing firm specializing in the production of sophisticated robots. One of the major problems Robotek is likely to face is a shortage of qualified workers.

 

Rick is in his early sixties. A few years ago he had planned to retire by the time he was sixty, but when the time came, he decided to continue working. In fact, not only is Rick still working, he has no intention of retiring or setting a time when retirement might occur. Rick’s decision to keep working into his late sixties is unusual in today’s labor market.

 

Elise is the manager in the finance department for a company that competes in a service industry. If her company is like most contemporary firms, Elise will leave almost all aspects of human resource functions to specialists in the human resource department.

 

Last year Adam lost his job as a skilled welder at an automobile assembly plant. After looking for work for several months, he finally accepted a job as an unskilled laborer at a local nursery. Although he is pleased to have work, Adam feels that his new job doesn’t use his skills to their full potential. Adam is an example of an underemployed worker.

 

In one year’s time, James developed gall bladder problems and needed surgery; he became a single parent; he willingly moved his older mom in to live with him in order to avoid placing her in a nursing home; and he unexpectedly tore his rotator cuff playing softball during the summer. Overall, these are not considered circumstances that impact job performance because they fall outside of the workplace. HR managers need only be concerned with how James performs when he is at work.

 

The federal government has minimized its role in human resource management.

 

Title VII of the Civil Rights Act of 1964 prohibits discrimination in hiring, firing, or compensation, based on race, religion, creed, sex, or national origin.

 

The Civil Rights Act of 1964 did not do enough to discourage discriminatory practices in the workplace.

 

Congress has given the Equal Employment Opportunity Commission broad powers to issue guidelines for acceptable employer behavior concerning employment opportunities.

 

The effectiveness of the EEOC has been limited because Congress never gave it any authority to enforce its mandates.

 

Affirmative action programs are the least controversial method of correcting job inequities created by past discrimination.

 

Reverse discrimination is the term the EEOC uses to refer to activities designed to “right past wrongs” that resulted from discrimination against women and minorities.

 

The Civil Rights Act of 1991 gave victims of discrimination the right to seek punitive damages from the firms that discriminated against them.

 

Although the purpose of affirmative action was to “right past wrongs” against minorities, subsequent laws were passed to reverse earlier decisions that required some industries to maintain employment quotas when it came to the hiring of minorities.

 

Recent federal law clearly and strongly supports the notion that companies must use strict employment quotas to correct for past discriminatory actions.

 

The concept of “reasonable accommodations” means that all workers should be treated in the same manner.

 

Most firms have trouble implementing the structural changes required by the Americans with Disabilities Act.

 

In their efforts to accommodate disabled workers, most firms experience difficulties with cultural changes, more so than with structural changes.

 

The Age Discrimination in Employment Act only prevents discrimination against employees who are over the age of 65.

 

The Age Discrimination in Employment Act permits age limits in professions where it can be established that ability to perform the job declines significantly with age.

 

One way human resource managers can keep current on human resource legislation and rulings is to read current business literature such as The Wall Street Journal and Business Week.

 

When it comes to human resource management issues, the federal government generally has taken a “hands off” approach since the early 1960s.

 

The Americans with Disabilities Act protects people who are born with physical disabilities, exclusively, but not those who acquire disabilities later in life.

 

The Americans with Disabilities Act protects qualified persons from discriminatory hiring practices, but does not require employers to provide suitable accommodations in the workplace, or opportunities for promotion. This is left to occupational safety laws.

 

Ruth Gray is a manager who takes pride in her ability to be fair and impartial. She treats all workers the same way, and evaluates them all using the same standards. Ruth is likely to have difficulty with the adjustments needed to accommodate disabled workers.

 

Sonny Skies is in his late fifties and loves his work as a pilot for a major airline. He wants to continue working for many more years. The Age Discrimination in Employment Act provides Sonny with the right to keep his job as long as his company is financially sound and he does not commit a felony.

 

Sean works for a large discount retailer. His wife works for a large bank with several branches. After recently adopting a child, the couple agreed that each would take six weeks of leave from work in order to care for the child. According to the Family and Medical Leave Act, one, but not both, are eligible for leave.

 

Zorn Enterprises hired several qualified soldiers returning from Afghanistan with hearing impairment to rehab its recently acquired apartment complexes. As a growing business, it is abiding by the law as currently stated. It is not required to adapt the work site to help these soldiers hear and communicate better with each other.

 

Mario and Marla are web development professionals for a popular high-tech company. Due to injuries Mario sustained while serving in the Army Reserves, upon his return the company provided him and other returning soldiers with ergonomic desks and chairs that accommodate wheel chairs and bad backs. Although Marla is hearing impaired, the company does not need to consider providing her with a headset that magnifies sound because she is the only employee out of 200 requiring this accommodation.

 

Ramona is a recent HR hire for a security firm that hires retired law enforcement officers to provide security for retail malls across the nation. Her supervisor was impressed with Ramona’s knowledge of current laws with respect to hiring practices, but asked her to quickly get up to speed on compensation and training laws. This is a reasonable request if Ramona plans to stay in the HR field.

 

Like all management, human resource management begins with planning.

 

The first step in the human resource planning process is to prepare a job analysis for each available position within the firm.

 

One purpose of a human resource inventory is to determine whether the labor force is technically up-to-date and well trained.

 

The result of a job analysis is a written document called a human resource inventory.

 

When you collect information about a particular job title, including how the job is performed and what it takes to perform the job, you are conducting a job analysis.

 

A job analysis consists of creating two documents called a job inventory and a performance appraisal.

 

A job specification is a statement of the job itself, while a job description is a statement about the person who does the job.

 

A job specification identifies the minimum qualifications a person must have to fill a particular job.

 

A job description identifies and describes the type of person who should perform the job, including important qualifications such as deduction, skills, and experience.

 

Human resource planning involves the assessment of both the future demand and the future supply of the various types of labor needed by the organization.

 

The first four steps in human resource planning all lead to the final step, which is the development of a strategic human resource plan.

 

The second step in human resource planning consists of conducting job analyses. Through observation and research, the manager will collect information on the kinds of things that each job title performs and how they are performed, as well as the skill and knowledge requirements for doing the job.

 

Job analysis helps a manager answer the question: “How many workers in my organization have this particular skill?”

 

Essentially, the steps of the human resource plan require the HR professional to (1) take inventory of the type of workers (including the skills of the workers) that the business already has, in order to determine if it has the most up-to-date workforce for its needs; he/she then proceeds with (2) analyzing each job; (3) forecasting the firm’s requirements for various job titles; and (4) making a determination of the future supply of skilled labor available to meet the demands of the business. Lastly, the HR professional (5) develops a human resource strategic plan.

 

Chris Schubert is a human resource manager with the Night Owl Publishing Company. He just finished creating a document that describes what editors do at their jobs. The study Chris has completed is known as a human resource inventory.

 

Lanie wants to know how many workers in her company have certain specialized skills and have received training to update their qualifications within the past year. She could use a human resource inventory to help her find this type of information.

 

As an HR manager, Erin is assigned to updating all job descriptions and job specifications for her company. Erin will begin by collecting information about each job title, as well as learning about the kinds of activities and responsibilities that go with each job. After she thoroughly analyzes a job, she will write the job description and job specifications for that job.

 

Toni is interested in a position that has opened up at her firm, but she wants to find out more about the type of work and responsibilities involved in the job. A document that would have the information she wants is the job specification.

 

CareerBuilder.com has posted a variety of sales management positions. Some require the manager to have five to ten years of experience and preferably a master’s degree in a field of science. These requirements are part of the job specification.

 

The Administrative Assistant II position at Idle Time Gaming, Inc., performs word processing and spreadsheet development for two vice presidents, and other secretarial duties as needed. Other job responsibilities include maintaining the office operations budget, receiving guests, and supervising two clerical positions. These tasks are part of the job description for this position.

 

Helen is a human resource manager for a firm that is planning to switch to a more sophisticated production method. As an HR manager, one of Helen’s duties will be to forecast the demand for the type of labor needed to implement the new method.

 

Recruitment is a set of activities undertaken for attracting qualified people, at the right time.

 

Because of the continuous flow of potential employees into the labor market, recruiting usually is the easiest task for a human resource manager to accomplish.

 

Union rules and company policies can make the recruitment process more difficult.

 

When recruiting, human resource managers must attract people who not only have the right skills, but also fit in with the corporate culture, and work well under the company’s leadership style.

 

According to the Spotlight on Small Business box, small businesses usually find recruitment easier than large firms.

 

An advantage of hiring from within is that it improves employee morale.

 

External recruitment sources are usually cheaper to use than internal sources.

 

Transfers and promotions are internal sources used by human resource managers to fill recruiting needs.

 

According to the Spotlight on Small Business box, one way that a small business can attract qualified employees is to hire its customers.

 

Public and private employment agencies and college placement offices are internal sources used by human resource managers when they are recruiting employees.

 

When recruiting employees, human resource managers focus primarily on the skills and training of the people they are recruiting, and work on determining “fit” after the hiring process has occurred.

 

Advertisements in trade journals, private and public employment agencies, college placement offices, and trade associations are internal sources for recruitment.

 

Temporary help services, job fairs and the Internet are external sources for recruitment.

 

According to the Spotlight on Small Business box, small businesses have an advantage over large businesses when it comes to recruiting good talent for two reasons: they can afford to pay better; and they already have great employees who recruit for them.

 

Rob is the human resource manager for a medium-sized corporation. He understands the value of hiring from within to fill positions whenever possible. This means that Rob relies extensively on promotions, transfers, and recommendations from current employees to find qualified employees.

 

As the HR manager at a small business, John handles most of his firm’s recruiting efforts. Because John recruits for a small business he has a distinct advantage over larger competitor firms when it comes to finding the right people to fill his firm’s needs.

 

The What’s Hoppin’ Co. is about to diversify into an entirely new market. This move will create the need for several new positions in the production and marketing departments. However, the production technologies and the marketing environment in this new market are very different than in What’s Hoppin’s traditional market. The company is likely to rely on external sources to fill many of the positions created by its diversification.

 

Charlie plans to hire three outside sales professionals for his small nonprofit organization that operates out of a suburb of Chicago. The new recruits know that after a three-month period, only one will remain. He is using a method of recruitment called part-time, temporary employment.

 

Selection is the process of gathering information and deciding who should be hired, under legal guidelines, for the best interests of the individual and the organization.

 

The cost of recruiting, processing, and training a new entry-level employee is significant, and sometimes exceeds the annual salary earned by the employee.

 

The amount most businesses spend on selecting and training workers is relatively low.

 

Because current legal guidelines limit the types of questions that can be asked, completed job application forms contain very little useful information about job candidates.

 

Job applications can ask about educational background and past job experience.

 

Staff members from the human resource department seldom take part in initial screening interviews, but often participate in the follow-up interviews of top job candidates.

 

Automated software already exists that will review information provided by an applicant and e-mail a report to a manager with a recommendation as to whether the applicant should be interviewed.

 

During an interview, a manager should be careful not to ask the applicant about his or her family or other non-job-related questions.

 

Trial periods are an effective method of reducing the firm’s turnover costs.

 

Most firms today are checking the backgrounds of job applicants more carefully than they did in the past.

 

Services now exist that allow firms to perform quick background checks of potential employees.

 

Employment tests should focus on general job skills rather than skills that are related directly to the job.

 

It is not uncommon for companies today to test their employees and job applicants for drug use.

 

Part-time workers, seasonal workers and independent contractors are all examples of contingent workers.

 

The most common reason for hiring contingent workers is that they improve worker morale.

 

Though temporary workers are employed in most sectors of the economy, almost none have been hired to fill manufacturing jobs.

 

It is not unusual to find persons with a variety of skills and skill levels serving as contingent workers. Contingent workers in the U.S. are usually under 25 years of age and may include independent contractors, middle management positions, and even college students who only want to work during the summer months.

 

All states in the U.S. require pre-employment physical exams for select groups of applicants.

 

The Adapting to Change box explains that your online profile on sites like Twitter, Facebook, and LinkedIn will have little to do with whether or not you are selected for a job.

 

Garrett works in his firm’s human resources department. He is responsible for designing a new job application form for his firm. The questions Garrett includes on the new form should avoid broad questions about the applicant’s beliefs, culture and family background, and should focus instead on factors such as the applicant’s work experience, education, and career objectives.

 

HR manager Rob Ryan is very concerned about the high cost of labor turnover at his firm. A good way for his firm to eliminate high turnover costs is to establish a policy of hiring workers for trial periods.

 

An HR manager at a large company interviewed several candidates for a position opening at her firm. Based on her interviews, she assesses that one candidate looks particularly promising. She will recommend a second interview between this candidate and the manager who will supervise the new employee.

 

Tri-Cities Printing wants to expand its services into new markets, but to remain competitive it needs to keep its costs low. If it is like most firms, one way Tri-Cities can save a lot of money is by reducing the time and effort it devotes to the selection of employees.

 

Sun Valley Produce finds it needs more workers during harvest times than at other times of the year. Hiring contingent workers could be an efficient way for Sun Valley to meet its temporary employment needs.

 

Employee training focuses on short-term skills, while employee development focuses on long-term abilities.

 

Besides increasing productivity, a good training program can increase a firm’s retention rates.

 

A recent study has shown that the most effective way for most firms to improve worker productivity is to increase expenditures on machinery and equipment.

 

One purpose of employee orientation programs is to initiate new workers to the organization’s policies, practices and objectives.

 

Vestibule training is the most fundamental type of training available.

 

New technologies are assisting off-the-job training and creating more cost-effective methods for on-the-job training, when the job requires learning more intricate skills.

 

On-the-job training is best suited for jobs that are easily learned or require the employee to perform repetitive physical tasks.

 

Over the next ten to fifteen years, most firms will discontinue apprenticeship programs as changes in technology make this type of training obsolete.

 

In recent years, firms have expanded off-the-job training to include personal development subjects such as time management, health and nutrition, and language.

 

Online training gives employers the ability to provide consistent content that is tailored to specific employee training needs.

 

Vestibule training attempts to precisely duplicate both the methods and conditions of a real world job.

 

Job simulation is used to train astronauts, airline pilots, and ship captains.

 

The strategy of giving managers assignments in a variety of departments in order to expose them to different functions is called apprenticeship training.

 

The process of training and educating employees to become good managers, and then monitoring the progress of their managerial skills over time, is called management simulation.

 

Most management training programs include methods such as on-the-job coaching, understudy positions, and off-the-job courses and training.

 

Networking is the process of establishing and maintaining contacts and using those contacts to develop strong relationships that serve as informal development systems.

 

A mentor is a manager who supervises, coaches, and guides selected lower-level employees, and generally acts as their organizational sponsor.

 

Students can benefit from networking in college even before they take their first full-time job.

 

Women usually find it easier than men to obtain mentors and engage in networking.

 

Minority groups have made great strides in creating networking associations. For example, Black Enterprise Magazine sponsors networking forums.

 

The U.S. Supreme Court has ruled that women cannot be barred from “men only” clubs, where business contacts are often made and business activity occurs.

 

Grooming women and minorities for management positions creates fewer hiring opportunities for white men.

 

Firms spend time and money to train new employees so that they will work productively over the short term. Development activities such as assigning mentors and creating networks have long-term implications for employees and firms.

 

Distance learning training is gaining in popularity among all firms because employees can log-on to company tutorials at a time convenient to them and acquire the same training information as everyone else.

 

While efforts to train and develop women and minority managers appeal to many firms on the basis of legal and moral considerations, from an economic standpoint, they are rarely cost effective.

 

Keep on Truckin’ School for Truck Drivers is proud of its training methods. Before its students are ever allowed on the road with a big rig, they are taught safe driving techniques with the help of sophisticated, computerized equipment that comes as close as possible to duplicating real driving conditions, right down to the sights, sounds, bumps and vibrations experienced on the road. Keep on Truckin’ is using a training method known as job replication.

 

Reggie is learning to be a carpenter by working alongside experienced carpenters. After one more year of successful training, his union will classify Reggie as a journeyman. Reggie is participating in an apprenticeship program.

 

Hector is receiving training in maintaining and repairing assembly line robots at a school that uses equipment very similar to that used on his new job at Blast Off Technologies. His classroom training is called vestibule training.

 

Iris Bloom accepted a management position at the Sustainable Plant Life Corporation. In order to give her an appreciation of the different functional areas of her new company, she is required to spend six weeks in each of five different functional areas of the company, including production, research and development, accounting, marketing, and the HR management department. This type of training is known as contingency employment.

 

Jim currently holds the position of assistant manager in his firm’s credit department. He works closely with a more experienced manager to learn how to perform all of the functions involved in credit management. Jim believes he will soon be experienced enough to take over a senior position in his department. Jim has the benefit of serving as an understudy.

 

When Sally Miller was hired to a lower-level management position at Zinwick and Associates, she was introduced to Wendy Hopper, and told that Wendy would be her mentor. As a mentor, Wendy will coach and guide Sally, introduce her to the right people, and be her organizational sponsor.

 

Several years ago, Drew’s company sent him to Massachusetts Institute of Technology for an intensive program of leadership and business communication training. Although expensive, the firm was committed to investing in the development of key employees for the purpose of retention and promotion. This type of managerial development is known as off-the-job courses and training.

 

A performance appraisal is an evaluation in which the performance level of employees is measured against established standards to make decisions about promotions, compensation, additional training, or firing.

 

The primary reason that companies do performance appraisals is to improve worker performance.

 

Establishing performance standards is a crucial step in the performance evaluation process.

 

Most experienced workers have a clear idea of what is expected of them even if managers do not communicate their expectations explicitly.

 

Because of legal implications, managers should not use the results of performance appraisals to make decisions about promotions and compensation.

 

Performance standards should be understandable, measurable, and reasonable.

 

A performance appraisal provides an opportunity for employees to make suggestions about how a particular task could be better performed.

 

The last step in the performance appraisal process is to discuss the results with the employee.

 

Performance appraisals are very useful for new, inexperienced workers and first-line managers, but have little value for top management.

 

Top-level managers can benefit from having their performance evaluated by subordinates.

 

An employment appraisal may include a 360-degree review, which is an appraisal that includes job-related and non-job-related comments from a range of employees.

 

A 360-degree review will include the opinions of an employee’s subordinates, as well as those above him/her in the organization structure, and those who work alongside the employee in comparable positions.

 

The main reason firms conduct performance appraisals is to establish a formal record of job performance that will protect them from lawsuits filed by unhappy workers.

 

One drawback of performance appraisals is that they cannot be completed for top management because there is no one above this level of management to carry out and evaluate the results.

 

Even employees who work on a busy production floor need performance appraisals. If the manager cannot conduct a closed-door appraisal session, the supervisor should conduct these wherever he/she can find room.

 

Due to the secret nature of performance standards, employees are only permitted to review these standards at the time when they receive their appraisal.

 

Early in the year, manager John Jacobs set reasonable, understandable, and measurable performance standards and communicated these standards clearly to all team members. Because of these efforts, he should be prepared for the next step in the appraisal process.

 

When she met with John to discuss his performance appraisal, Regina noted that John had difficulty with managing his time on certain projects. One drawback of a performance appraisal is that it does not allow for feedback during the evaluation process.

 

Mollie Herndon is an office manager at Beaux Neaux Legal Services. The company’s top management recently announced it was adopting a 360-degree review process as part of the performance appraisals of its office managers. Once this policy goes into effect, Mollie can expect her evaluations to include feedback from both the managers above her and the employees she supervises.

 

When Andrew administered the performance appraisals for his employees at California Canines, a producer of upscale clothing and accessories for pets, he made certain that he allowed at least one hour for each. He met with each employee in his quiet office, and gave each an opportunity to prepare a self-improvement program. His goal was to make each process a positive experience for the employee. Andrew carried out the suggestions of experts in performing effective performance appraisals.

 

The marketing manager at Cool Rags, Inc., was very critical of the way one of the distribution analysts was handling negotiations with a manufacturer in Malaysia. On a number of occasions, she thought the discussions could have resulted in more of a win-win situation. In order to follow correct procedures, the manager made notes on these issues and decided to wait until the performance appraisal, eight months down the road, to discuss the situation with the analysts. If Cool Rags has a formal performance appraisal process in place, this is the best approach to this situation.

 

Companies compete with other firms for good employees.

 

Compensation is one of the main marketing tools a firm uses in its efforts to attract qualified employees.

 

Airlines, banks, hospitals and many other service organizations are so labor intensive that the cost of labor is their primary cost of operations.

 

The long-term success of a firm often depends on its ability to control employee costs and optimize employee efficiency.

 

One objective of a carefully managed compensation and benefit program is to retain valued employees.

 

The Hay compensation system gives managers the flexibility to adjust pay for workers to reflect the value of their contribution to the firm.

 

Blue collar and clerical workers are normally paid a salary.

 

In an ongoing study, Jay Schuster concluded that the best way to compensate members of a team is to base each member’s pay on her or his individual performance.

 

Skill-based pay is a method of compensating teams in which base pay is raised when team members learn and apply new skills.

 

An advantage of a skill-based system of pay for compensating teams is that such a system is easy to apply and administer.

 

Expenditures on fringe benefits have declined as a percentage of total payroll costs over the past several decades.

 

Fringe benefit payments account for about 30 percent of payroll costs today.

 

Employees sometimes prefer increases in fringe benefits rather than increases in wages or salaries, because many fringe benefits are not subject to taxes.

 

On-site haircuts and free breakfasts are examples of soft benefits some firms provide for employees.

 

A fringe benefits plan that allows employees to choose the benefits they want up to a certain dollar amount is known as a soft benefit plan.

 

Many firms are now contracting with outside companies to administer their employee benefits plans.

 

According to the Reaching Beyond Our Borders box, human resource managers will be able to count on the superiority of American business practices as they help manage a global workforce.

 

One objective of a carefully managed compensation plan is to keep labor costs low. In order to achieve this objective, a firm should strive to keep wages, salaries and benefits at or below the compensation levels of its competitors.

 

According to the Reaching Beyond Our Borders box, companies must consider a number of compensation-related issues for employees who work abroad. These may include currency conversion issues, special concessions such as travel and housing allowances, differences in health care standards in different countries, and even vacation benefits.

 

Recent trends suggest that the best way for firms to control labor costs is to focus on limiting the growth of wages and salaries rather than controlling fringe benefits.

 

The reason that companies use the gain-sharing pay system and the skill-based pay system to compensate teams of employees is that both are closely tied to profit performance.

 

Highly compensated executives sometimes prefer fringe benefits such as club memberships, company cars, and more vacation time, as opposed to higher salaries because most often these benefits are not taxable income.

 

Some firms have found that employees prefer cafeteria-style benefit plans. For these plans, the employees vote on the benefits that they prefer, and only those benefits receiving the highest votes are offered to employees.

 

As a salesman, Ron’s pay is based on a percentage of his total sales. This type of pay arrangement is known as a commission.

 

When Tim joined Alamo Scientific as a sales manager, part of his sign-on bonus included the opportunity to buy up to 500 shares of the company’s publicly traded stock at $10 per share, during the first three months of employment. The stock was trading on the NASDAQ exchange for $22 per share. Tim’s new company was offering a dividend reinvestment plan.

 

Employees at The Eastern Eagle newspaper are paid according to the Hay system. Ralph and Steve do the same type of work and report to the same supervisor. Ralph has worked at the newspaper for 14 years while this is Steve’s third year. The supervisor believes Steve is the more enthusiastic and hardworking of the two. Under the Hay system, Steve will probably earn more than Ralph.

 

The Amabala Corporation is reorganizing to make more extensive use of teams. The company plans to continue paying its workers based on their individual performance. This approach is likely to maximize the success of the team by encouraging all team members to exert their best effort.

 

Employees at MAX Card, a worldwide credit card business, are criticizing the company’s fringe benefits package because it forces all employees to accept the same benefits regardless of differences in their personal needs. In fact, they even offer some soft benefits such as an on-site day care that over 80% of the employees are too young or too old to use. MAX should consider a cafeteria-style benefits plan.

 

Examples of soft benefits that a firm might offer are: onsite medical physician services, and exercise centers.

 

Flextime plans are popular with employees because they allow them to work fewer hours while still earning the same income.

 

A common feature of flextime plans is the establishment of core times when all employees are expected to be at their job stations.

 

Flextime plans are particularly well suited for workers on an assembly line.

 

In a compressed workweek, employees work more hours each day, but work fewer days each week.

 

Almost 13 million U.S. workers now work from home at least one day a week.

 

Allowing employees to work from home can actually save employers money by reducing their need for office space.

 

Job sharing has received a great deal of attention in recent years as more women with small children have entered the labor force.

 

Job sharing tends to increase absenteeism and tardiness, because part-time workers are not as dedicated and loyal as full-time workers.

 

A disadvantage of job sharing is that it requires a firm to hire, train, motivate, and supervise more employees.

 

Most companies that have tried job sharing have concluded that the extra cost of hiring and training additional workers outweigh its benefits.

 

Hot desking means sharing a desk with another employee.

 

Most employees who use flextime prefer to work independently of others. In order to accommodate this preference, businesses permit them to clock in and out as they wish, as long as they put in the necessary 40-hour work week. On some days, they may arrive at 6:00 a.m., while on other days they may decide to come in at noon.

 

Akiko works for a company that allows her to choose when she begins and ends her workday, as long as she works a required number of hours and is at her job station at certain specified core times. Akiko’s company is using a compressed workweek plan.

 

Olivia’s company announced that it is going to implement a compressed workweek schedule. If Olivia takes part in this plan, she will be allowed to work fewer hours each week, as long as she completes all assignments.

 

Melville Bank is about to implement a job-sharing plan. The bank is likely to find that scheduling workers for peak periods will become easier as the result of this policy.

 

Managers at a local bank are discussing the absentee problems they are experiencing at their westside location. Although the workers do a good job and serve customers well when they are on the job, they tend to report to work late at least two days each week, and often want to leave early. Job sharing might be a good staffing arrangement for the managers to consider.

 

The Hottie Potatee potato bar franchise chain does not permit employees at corporate headquarters to work flextime schedules. The CEO communicated with employees and explained that shift workers at the corporate-owned potato bars cannot reasonably work that way and in order to keep things fair, he prefers that the corporate employees work regular hours from 8:00 a.m. until 5:00 p.m. or from 1:00 p.m. to 11:00 p.m., which is the other regular shift where they need staff. Workers at fast food operations do not have the opportunity for flextime schedules because they must be at work prior to the store’s serving hours and usually after the store closes. They cannot plan their own schedule, but must comply with the hours that management needs help.

 

Central Communications, a company that provides phone, Internet, and television services for residential customers, experienced poor customer call care ratings with its overseas call center service. As a recent business student, you would suggest that Central implement home-based call agents. This will cost them a little more in office space and benefits, but it will certainly increase its customers’ perception of their service.

 

Internal promotions are a cost-effective way of filling positions within a firm because the employees filling the position are already familiar with the organization’s culture and procedures.

 

Transferring an experienced worker to a new position at the same level within an organization can be an effective way to motivate the worker to remain with the company.

 

The employment at will doctrine maintained that a firm could only fire a worker if it could demonstrate just cause.

 

In recent years, many companies have avoided hiring permanent workers during periods of growth by using temporary employees and outsourcing some of their functions.

 

A golden handshake refers to the severance pay that is offered to a worker that is laid off when the firm downsizes.

 

Exit interviews by a third party can be an effective way for a firm to prevent future losses of valuable employees.

 

Recent court cases include drug-addicted employees who claim their addiction is an illness, and therefore, they are protected from wrongful discharge under the American with Disabilities Act.

 

The prevalence of flatter corporate structures in recent years has increased the number of workers that firms promote.

 

Management is turning to a strategy of offering more lateral transfers due to the fact that many companies are operating under a flatter organization structure.

 

The doctrine of employment at will means that employees must be allowed to keep their jobs as long as they are willing and able to perform their required duties. Under this doctrine, employers can only fire or lay off an employee if the firm is in serious financial difficulty or the employee is grossly incompetent or has committed a felony.

 

The golden handshake is a popular method of firing or dismissing senior members of your workforce.

 

Marketing manager Sam Woodall has worked for Family Care Pharmaceuticals for 36 years. He fondly remembers the “good old days” when he could fire a worker for just about any reason. He feels that today’s laws and regulations limiting his ability to fire workers undermines his authority and forces him to keep employees that don’t measure up to his standards. Sam’s views suggest he would favor working in a state that implements the policy of employment at will.

 

Top managers at Unifaze Corporation have decided that the company must downsize, but are concerned about the effect the reduction in employment will have on the morale of the remaining employees. One way top management could keep morale from suffering would be to establish an early retirement program.

 

Liz hired Max Maxwell right out of college. Max had brought a lot to the plate at the Brooklyn Sporting Goods firm where Liz served as Marketing Director over the baseball, basketball, and hockey lines. Yesterday, Max submitted his resignation after only one year on the job, and disclosed that he is leaving sporting goods and taking a job in Canada where he will be marketing a hockey arena. Liz is beside herself and has decided to personally conduct an exit interview. In evaluating this situation, you agree that Liz is probably the best person to conduct this interview.

 

Barney’s company creates promotional campaigns for other businesses. He just learned that the firm lost the Lisle Account, a long-standing customer. In the short term, this will significantly reduce the need for several creative writers and web content developers the company has on staff. As he prepares to call each employee in for dismissal, Barney reviews the best way to approach this inevitable task. He decides that it is best not to tarnish the image of the company so rather than tell each that they lost an important account, he will blame the need to reduce the workforce on new technology the firm is implementing and his personal evaluation of their work. He also plans to offer a two-month severance payment, as long as each signs a no-compete agreement good for one year. In that way, he may be able to call them back if new accounts emerge. All of these strategies are considered good procedures that would surely avoid “wrongful discharge lawsuits.”

 

_____________ is the process of evaluating human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals.

 

The ultimate resource of a firm is its:

 

One of the key functions of human resource management is:

 

Today, human resource management has become so important that in many firms it has become:

 

__________ workers have a higher skill level than their current job requires.

 

The changes in the American business system that have had the most dramatic impact on the workings of the free enterprise system are the changes in:

 

In coming years, high-tech growth areas such as computers, biotechnology, and robots are likely to experience a:

 

Which of the following statements best describes the current view of the role of human resource management within a firm?

 

Which of the following is a challenge that is facing the human resource managers of today?

 

Which of the following statements about human resource management opportunities and challenges is most accurate?

 

Which of the following statements about human resource management opportunities and challenges is most accurate?

 

When John lost his job as a highly skilled craftsman at a metal working shop, he searched for a good job for several months before finally accepting a position as a maintenance worker at a local community college. He is happy to have a job, but frustrated by the fact that he had to settle for a job that did not take full advantage of his skills. John is a(n):

 

Frank is a human resource manager at a major corporation. If Frank’s company is like most firms today, which of the following statements about his job is likely to be the most accurate?

 

Title VII of the Civil Rights Act of 1964:

 

The _______________ was created by the Civil Rights Act of 1964, and has since become a formidable regulatory force in the administration of human resource management.

 

Probably the most controversial program enforced by the Equal Employment Opportunity Commission concerns:

 

The Civil Rights Act of 1991:

 

The ____________ protects individuals over the age of 40 from discrimination based on age with respect to issues such as hiring, promotions, job benefits, and assignments.

 

Employers must verify that employment candidates are eligible to work in the U.S. as mandated by the:

 

The Family and Medical Leave Act:

 

An important U.S. government organization charged with setting human resource management guidelines is:

 

According to U.S. business law, accommodation means:

 

Recently, businesses have experienced debate over ___________, the practice of discriminating against a dominant or majority group of persons. This situation occurs when businesses must adhere to employment laws that were designed to correct previous discrimination against minority groups.

 

The Equal Employment Opportunity Act gave the Equal Employment Opportunity Commission the authority to:

 

If your company is selling its products or services to the U.S. government, you should study human resource law that pertains to:

 

Which of the following statements about how current HR law views disabilities is accurate?

 

One of the most important responsibilities for professionals in the human resources field is:

 

Ben, a 44-year-old middle manager at a well-known advertising firm, just lost his job. The company downsized due to a significant loss of clients during the last recession. Although Ben’s work was considered exemplary in many ways, and his staff had won awards with their creative work, the company decided to let Ben go instead of another middle manager who was a minority. In a business setting, we call this occurrence _________________.

 

Which of the following statements is the most accurate description of the impact the Americans with Disabilities Act of 1990 (ADA) has had on businesses?

Most firms are finding that some accommodations required by ADA are more difficult to implement than the structural changes.

 

Minnie A. Dent is completing her thirtieth year as a bus driver. Her company recently told her that she would be required to retire within the next two years because she had reached the age limit for mandatory retirement. Minnie wants to fight this ruling based on a claim of age discrimination. Which of the following statements about this case is most accurate? According to the:

 

Laura Benitez was hired as a management trainee by Simulex Corporation through a special program designed to “right past wrongs” by giving females and minorities greater opportunities for employment and advancement. The program is enforced by the Equal Employment Opportunity Commission. Laura was hired through a(n) ____________ program.

 

During her annual review, Rhonda admitted to her supervisor that she is more productive in a quieter environment. The openness of her office setting and the recent increase in staff that came to her for training made it difficult for Rhonda to process as many insurance claims in one day as she had accomplished in the past. The supervisor agreed to move Rhonda’s desk to the back of the office, and create a barrier with plants. The supervisor would take a more active role in training new employees, so they would not be coming to Rhonda with questions. In HR, we refer to this action as creating ________________.

 

In 2008, Congress passed the Americans with Disabilities Amendments Act. What was the scope of the changes?

 

As new parents, Sean and Molly applied for family medical leave to care for their new infant son. According to U.S. law, Sean and Lindsey:

 

The first step in the human resources planning process is to:

 

The last step of the human resource planning system is to:

 

A(n) __________ is prepared as part of the human resource planning process, and indicates the characteristics and qualifications of the organization’s labor force, thus helping the firm determine whether its employees are technically up-to-date and adequately trained.

 

A __________ is a two-part process. One part explains what an employee would actually do at various jobs.

 

A job analysis results in two written statements. They are:

 

A ____________ is a statement that identifies the minimum qualifications required of a worker in order to perform a specific job.

 

A job ___________ is a statement that identifies the objectives of a job, the type of work to be done, the responsibilities and duties that are associated with the job, the working conditions, and the relationship of the job to other functions.

 

After preparing a job analysis, the next step in the human resource planning process is to:

 

The ________, which is developed from the previous four steps of the human resource planning process, addresses how the firm will accomplish a wide array of human resource functions such as recruiting, selecting, training and developing, appraising, compensating, and scheduling its employees.

 

A human resource inventory is designed to reveal whether:

 

As part of the HR planning process, the manager begins by assessing the current labor situation at his/her company. Essentially, this means:

 

Which of the following is an essential element of a job description?

 

Which of the following statements identifies a key difference between a job description and a job specification?

 

When creating a job description, the HR manager may include:

 

The overall purpose of the five-step human resource planning process is to:

 

As Connor scanned the employment opportunities on the website of a well-known online recruiting company, he speculated that he might not qualify for some of the jobs. Connor was concerned that his educational credentials and skills might not be compatible with the ________ for many of today’s available jobs.

 

Steve is gathering information about the names, ages, education, specialized skills, and capabilities of all of his firm’s employees. The information Steve is acquiring suggests he is working on a:

 

Mario’s business was growing at a steady rate, but he knew he could do better! In order to capture more business, he would have to hire a few more sales professionals to sell into new markets. As he pondered his staffing needs, his sister who worked in HR informed him that he needed to do a job analysis before hiring. Which of the following would be a logical part of a job analysis for a sales position?

 

Hillary is a human resource manager with Golden Years Elder Care Services. The company is considering offering some new services, and she wants to know how many current employees have certain types of skills and training to adequately perform the new services. A document that would help Hillary answer this question is the firm’s:

 

Kandew Electronics requires all employees who work as research specialists in its electrical engineering department to have a minimum of a bachelor’s degree in electrical engineering (BSEE). This educational requirement would most likely be stated in the job _________ for this position.

 

Ben is an HR manager at Claymont Communications. Which of the following tasks would he perform as a part of the human resource planning process?

 

Markus believes that due to changing technology the minimum skill level that his company is requiring for computer-intensive jobs should be increased to include knowledge and experience in higher-level programming applications. These new requirements would be reflected in _______________ for various jobs at his company.

 

Jack is a project manager for a large construction company. Each day his job requires him to prepare detailed reports of the progress of current projects assigned to him. Since this responsibility is something that he does on a regular basis, the HR professional for his company would list it as part of the ______________ for Jack’s project management position.

 

By doing a quick, one-minute search, an HR specialist determined who in her company knew programming language C++. The specialist used the company’s database to retrieve the information; however, this information should also be part of the HR planning process, as found in _____________.

 

_________ is the set of activities for obtaining the right number of people at the right time in order to select those who best meet the needs of the organization.

 

CareerBuilder and Monster are examples of:

 

Promotions and transfers are __________ sources available to human resource managers in their recruiting efforts.

 

Advertisements, public and private employment agencies, and college placement bureaus are all ________ sources that human resource managers can use in the recruiting efforts.

 

According to the Spotlight on Small Business box, which of the following strategies can be used to attract qualified employees to work for a small business?

 

Which of the following strategies is used by a human resource manager to fill an open position from within the company?

 

Which of the following is an external recruitment source?

 

Which of the following reasons makes the recruiting job more challenging?

 

It is sometimes advantageous to hire from within because it ________.

 

Which of the following statements about recruiting is most accurate?

 

Sally is a human resource manager with Weldun Cooking Supplies who needs to recruit sales professionals to fill several positions within her company. Sally is likely to rely on external recruiting sources if she:

 

As a human resources professional for a large company, David is involved with the ___________ process. His goal is to find the right number of qualified people at the right time. He will screen a qualified pool of candidates and send these individuals forward to others in the firm who will make the final selection decision.

 

Andrew took a job with a company that strives to market several new consumer products each year. Prior to this position, he worked in a research lab at a university where he studied nanotechnology. He accepted the new position because the salary was significantly above what he previously made. Within a month’s time at the new job, his manager began to have reservations about bringing him on board. Andrew seemed to prefer to work independently of others, and when he did interact with his new colleagues, he passed along subtle reminders of his extensive and superior academic credentials. From a recruitment standpoint, this situation serves as an indication of:

 

When determining the human resources needs for a well-known engineering firm, the HR director realized that the company lacked a critical mass of engineers under the age of 30. The company could not afford to get caught short in this competitive business climate. An important recruitment strategy for the HR director’s department was to start attending college fairs as well as considering hiring interns. We define his recruitment efforts as developing relationships with _____________.

 

Charlie is the director for a small nonprofit company that provides jobs for disabled Americans. One of his most time-consuming responsibilities is finding companies that are willing to hire his company to perform tasks such as bulk mailings and other small jobs that his employees can do in a reasonable amount of time. He needs to recruit an outside sales representative who can dedicate time to meeting with other firms and selling the services of the nonprofit operation. Charlie’s nonprofit is similar to a small business with a small amount of funds dedicated toward such a sales position. Under the circumstances, which of the following strategies may be a suitable approach to finding a good sales representative?

 

When managing your human resources, _____________ is the process of deciding who should be hired, under legal guidelines, to serve the best interests of the individual and the organization.

 

The first step in the selection process is:

 

During the employee selection process, the screening interview is often conducted by:

 

One way firms have made the application process more efficient and effective is by:

 

One of the main complaints made by critics of employment tests is that these tests:

 

A _________________ is a check of a potential employee’s work record, academic record, credit history, and recommendations.

 

As an important step in the human resource selection process, which of the following will expedite the process of conducting background investigations and promises to get suitable results?

 

According to the American with Disabilities Act, which of the following is not an appropriate screening tool?

 

_____________ workers do not have the expectation of regular, full-time employment.

 

The selection process may include a(n) _____________, where employment is only guaranteed for a specified period of time, until either a permanent offer is extended or the employee is discharged.

 

Employment testing:

 

Jolie is a human resource manager who is currently involved in selecting employees. Which of the following activities is Jolie most likely to be working on in her present assignment?

 

Pre-employment physical examinations are:

 

Once the job description and job specifications were written for a new marketing assistant position in his department, Lance called his HR specialist to proceed with the next step in the process of making a successful hire. After providing a timeframe for qualified persons to apply for the job, the next step in the selection process is best described as:

 

Which of the following statements about contingent workers is most accurate?

 

Which of the following is a valid statement about contingent workers?

 

What is an advantage of hiring contingent workers?

 

Betty Roosevelt is a human resource manager with Avondale Industries. Her current assignment is to revise and update Avondale’s employment testing procedures. Betty should:

 

Crocker Enterprises conducts thorough background investigations of its prospective employees. The purpose of such investigations is to:

 

Mallard’s Department Store typically sells over a third of all its merchandise in the last two months of the year. Management has found that it must hire __________ workers during this period of increased business to supplement its permanent employees.

 

Which of the following workers would be the best example of a contingent worker?

 

Danielle relies on summer earnings to fund her next year at the university. When she tried to get her old high school summer job back at local Cool Rags Clothier, she learned that the manager no longer hires college students during the summer months. Which of the following strategies do you recommend that Danielle pursue?

 

In just a few short weeks, Jake would arrive back in the states from his semester abroad. He was already in a temp agency’s database from the previous summer, when he spent 8 weeks working for an accounting firm. Jake will again try to hire on as a ___________ during the summer months. The company that hired him last summer typically hires several college students each year, mainly because they have good computer skills, and the company does not need to offer college students benefits.

 

The purpose of ____________ is to increase an employee’s ability to perform productively.

 

Online training courses are sometimes also called:

 

The first step in establishing training and development programs is to:

 

____________ introduces new employees to the organization, their fellow workers, their supervisors, and to the policies, practices, and objectives of the firm.

 

In a(n) ______________ an inexperienced worker learns by working alongside an experienced employee to master the skills and procedures of a craft.

 

A worker who successfully completes an apprenticeship program earns the title:

 

______________ is the easiest kind of training to implement, when the job requires simple tasks and/or is repetitive.

 

Shadowing is another term used to refer to ____________.

 

Computer and robotics training is sometimes performed in a nearby classroom-type setting. We refer to this near-the-job-training as ____________.

 

__________ is a type of training that duplicates the exact combination of conditions that occur on the job.

 

Off-the-job training:

 

___________ is the process of training and educating employees to become good managers and then developing their managerial skills over time.

 

Corporate managers who supervise, coach, and guide lower-level employees and serve as their organizational sponsors are called:

 

__________ is the process of establishing and maintaining contacts with key managers in one’s own organization and in other organizations, and using those contacts to establish strong relationships that serve as informal development systems.

 

A management training program that gives managers assignments in a variety of departments in order to expose them to different functions within the organization is called:

 

Selected employees who work as assistants to higher-level managers and participate in managerial functions are given such titles as:

 

Which of the following statements describes the relationship between employee training and employee development?

 

According to information in Chapter 11, which of the following is not one of the three steps HR managers use as part of training and development?

 

A major purpose of employee orientation programs is to:

 

Job rotation helps lower-level managers prepare for higher-level positions by:

 

Women often have more trouble finding mentors than men because:

 

With the advent of more sophisticated technology, employers who operate locally and globally and want all employees to receive the same training may opt for ____.

 

Which of the following statements about networking is the most accurate?

 

As companies continue to develop women and minorities for management positions, they:

 

It’s good strategy to develop women and minorities for management positions because:

 

Chris is a member of the carpenters’ union who recently achieved the classification of journeyman. This means that Chris:

 

When Zoe began her Ph.D. program at Vanderbilt University, she was immediately assigned to a female ________ who would serve as a coach and guide to shorten the learning curve and help Zoe meet the right people who could enhance her career. Her program also required _________, where she would spend four to six weeks in different labs, gaining experience and exposure to a variety of research in her field of study.

 

Corporate HR for Backstreet Books knows that sexual harassment in the workplace is a serious issue. In order to provide consistency in its effort to train employees about sexual harassment, HR management created ___________. Employees have a flexible time period when they can log-on and receive exactly the same training as employees in all of the company-owned and –managed bookstores.

 

Bob says he has achieved his “dream job.” As an engineer for a major defense systems company, he is responsible for using sophisticated airplane and weaponry equipment that creates the exact conditions that a professional may experience if he/she uses the equipment in a real-life situation. He spends several hours each day performing __________.

 

At Washington Seat Belt Industries, new workers are immediately assigned to jobs. They learn by doing the actual work and by watching longer-term employees. This company uses a policy of:

 

Julie Daniels recently became a member of the Plumbers Union. She has been told she will work with John Weimeister, a skilled and experienced plumber, for at least three years in order to learn all of the skills and techniques of her craft. This type of training is referred to as:

 

Before American Road Builders, Inc., permits its new employees to operate the heavy equipment it uses to build roads, it sends them to a nearby classroom where they learn the safe and proper way to work with all of the tools and equipment they will use when they perform their jobs. American Road Builders is using a training technique known as:

 

Greg, a control room engineer at Tri-State Power, Inc.’s nuclear power plant regularly practices handling emergency situations in a computerized mockup that duplicates the sights, sounds, and experiences of a real control room under emergency conditions. Tri-State uses _______ to train its engineers.

 

Jake accepted a management trainee position at Opelika Resorts, a real estate development company. Corporate management believes Jake has potential to move into a top management position within the organization. They have begun assigning Jake to a different department every few months so he can obtain the broad perspective needed by top managers. This company is using ______________ to develop Jake’s management skills.

 

Julie Jahn recently began working in an entry-level management position. She has already shown great promise, so the company has decided to groom her for an upper-level position. Christine Scheid, one of the more senior women managers in the company, has agreed to help Julie by introducing her to the right people, and by providing her with the guidance and advice she needs to be successful within the firm. Christine is acting as Julie’s:

 

If you aspire to become a sous chef, you will pursue several types of training and development. Your __________ will include learning how to perform as a line chef, as you work your way through pastry, grill, pantry, and sauté. The only way you will learn the variations in the line jobs is to experience them! As a(n) _______, you will work alongside another sous chef for a few years in order to learn how to juggle all the middle-management type of activities expected of this professional. Your ____________ training will be extensive, as you go to culinary school, attend a community college, and/or take management classes to help you learn to minimize conflict in the kitchen as well as improve the productivity of those you manage.

 

The _____________ is an evaluation of the performance level of employees against established standards to make decisions about promotions, compensation, additional training, or firing.

 

The first step in the performance appraisal process is to:

 

The last step in performance appraisal is to:

 

A newer form of performance appraisal is called the ___________ because it encourages feedback from all around the employee including those who report to him/her.

 

The purpose of a performance appraisal is to:

 

The information contained in performance appraisals helps managers:

 

Unlike a traditional performance appraisal, a 360-degree review:

 

Which of the following statements about performance appraisals is the most accurate?

 

A department manager evaluated the performance of her subordinates as part of a performance appraisal process. If she follows the six-step appraisal process, the next step is:

 

Managers at Wrise & Schein want to make sure their decisions about compensation, promotions and firings are based on sound information that meet legal requirements. One way to achieve this objective would be to:

 

Jorge hates to do performance appraisals of his subordinates because he always struggles when he has to evaluate their performance. In order to make the actual performance evaluations a better experience for all, Jorge should:

 

Managers at the Allerton Bank get a performance appraisal one time each year. The bank uses a relatively new evaluation process that provides feedback about performance not only from superiors but also from subordinates and other managers at the same level. This type of evaluation is known as a(n):

 

As a project manager for a large construction company, Kevin decided to make the performance appraisal process as painless as possible for his crew. He spent a considerable amount of time creating performance standards he felt were reasonable, and after six months’ time, he scheduled individual appointments with each worker to discuss strengths and weaknesses and areas that needed improvement according to the standards he privately set. Some employees were sent to vestibule training, and one even got a promotion with additional compensation. What did Kevin fail to do correctly?

 

For many types of service organizations such as hospitals, banks and airlines, the primary cost of operations is:

 

Workers who are paid a __________ receive a fixed compensation weekly, biweekly, or monthly.

 

Salespeople often are paid a _______ based on a percentage of their sales.

 

Blue-collar and clerical workers who punch a time clock typically are paid a(n):

 

The __________ system is a pay system that is based on job tiers, with each tier having a strict pay range.

 

The two most common compensation methods for teams are:

 

Although the skills learned do not always translate into profits for the company, ______ pay rewards the growth of both the individual and team participation.

 

A common way of compensating teams is a ___________ system, in which bonuses are based on improvements over a previous performance baseline.

 

Sick-leave pay, vacation pay, pension plans, and health plans that provide additional compensation to employees are called:

 

Today, fringe benefits account for approximately ______ percent of total payroll costs.

 

Many firms now offer their employees ___________ benefits, such as on-site haircuts and free breakfasts, which help employees maintain a balance between work and family life.

 

A fringe benefit plan where employees choose the package of benefits they want up to a certain dollar amount is called a __________ plan.

 

A major advantage of a piecework pay system is that it:

 

A problem with the Hay system of compensating workers is that:

 

Which of the following statements about team pay is the most accurate?

 

When workers are a part of a team their compensation should be:

 

According to the material in the Reaching Beyond Our Borders box, which of the following statements about working with employees from different countries is most accurate?

 

Companies place a considerable amount of attention on compensation plans because:

 

Human resource managers at Tri Max, Inc., want to encourage teamwork and are looking for a better way to compensate members of teams. One approach they are considering is a skill-based system. Which of the following statements about this type of pay system is most accurate?

 

Tyrone recently earned his license to sell real estate in Indiana, and has interviewed with several agencies in an attempt to find a job. All have told him that his income will be based on a percentage of his real estate sales for the month. Tyrone will be paid:

 

Dana is a supervisor at a small manufacturing plant. Her pay starts at $635 per week. Dana is paid on a(n):

 

Dan works for ElekTek, a firm producing sophisticated electronic equipment used in state-of-the-art security systems. Dan is happy to see that the value of ElekTek’s stock has reached $47 per share, because certain employees (including Dan) have the opportunity to buy a given number of shares of its stock for $30 per share for the next year regardless of how high the market price goes. ElekTek is offering some employees a:

 

This year, International Accountants, Inc., implemented a new benefits system that gives employees the flexibility to choose among different benefit options, as long as the total cost of the benefits does not exceed a certain amount. The type of benefits package offered to International Accountants employees is a(n):

 

The most likely reason a firm would pay its sales representatives a commission rather than a salary is that it wants to:

 

This is Anne’s year! She finally broke through the “glass ceiling”—meaning she has reached an executive-level position with her company, with a salary upward of $200,000. Recently a competitor firm has approached her offering her $15,000 less in salary, but the job would come with an upgraded car, memberships in two country clubs of her choice, an additional two weeks paid vacation with use of the company’s villa in Jamaica, and paid financial counseling. With respect to compensation, Anne:

 

A ___________ plan gives employees some ability to adjust hours when they work, as long as they work the required number of hours.

 

The time when all employees must be present in a flextime plan is referred to as:

 

A __________ allows workers to work the full number of hours per week in fewer days.

 

A disadvantage of flextime plans is that they often:

 

In a _____________ arrangement two part-time employees fill one full-time job.

 

Companies are utilizing home-based workers as ______, shifting away from the expense of maintaining in-house operators or less qualified offshore operators.

 

Although there are advantages and disadvantages to home-based workers for both the employer and employee the disadvantages to employer, employee, and society in general can be summarized as:

 

A major characteristic of a compressed workweek is that:

 

A firm that wants to reduce its office costs, broaden its base of available talent and improve job satisfaction could achieve all of these goals by:

 

Which of the following statements about home-based work is most accurate?

 

At a large law firm, Gina works daily as a secretary from 9:00 a.m. until 1:00 p.m., when she is replaced by Cassie who works from 1:00 until 5:00 p.m. The arrangement Gina and Cassie have at the law firm is known as:

 

At Friendly Financial Consulting, employees are allowed to choose what time they start each work day, as long as they arrive between the hours of 7:00 a.m. and 10:00 a.m. They must be on the job from 10:00 a.m. until noon and from 1:00 p.m. until 3:00 p.m. They are required to work a total of 8 hours each day, so the earlier they arrive, the earlier they can leave. This is a ___________ system.

 

Humphrey Communications uses a flextime plan; however, all employees must be on the job from 10:00 a.m. until 2:00 p.m. These hours are referred to as the:

 

Walmart stores in northern Illinois have gone to a _________, where management works four 10-hour days, and has four days off.

 

Steely Percussion Inc. briefly tried to implement a flextime system, only to abandon it after a few months. Which of the following is the most likely reason Steely would drop its flextime plan?

 

Tony is an office manager with a financial company. His company recently announced that it will soon implement a flextime plan. Under this new system, Tony is likely to find that:

 

Steve works in purchasing for the Department of the Army on the east coast. He arrives at work at 6:00 a.m. and leaves by 3:00 p.m. He enjoys this schedule because he is an early riser. A disadvantage to the government in allowing Steve to use flextime is:

 

Janelle spends three hours each day working as an online customer service representative for an online retailer. She can choose her own hours, within reason. The job works out well for her since she has a new baby that she cares for much of the day. The retailer does not provide her or the other 200 customer service reps with workspace, which constitutes a sizeable cost savings for the company. Janelle participates in a popular work strategy known as ______________.

 

Two advantages of using ___________ to fill open positions are: (1) it improves the morale of current employees, and (2) the person filling the position is already familiar with the organization’s culture and procedures.

 

One implication of today’s flatter corporate structures is that:

 

If a firm wants to know why valuable employees are leaving the company, it will conduct __________.

 

The _______________ doctrine states that employers have as much right to fire workers as the workers have to leave the company voluntarily.

 

A(n) __________ is a financial incentive a firm offers to encourage employees to accept an early retirement offer.

 

A reason workers tend to receive fewer promotions than in the past is that:

 

Which of the following statements about early retirement is most accurate?

 

One of the reasons many firms have chosen to use temporary employees rather than rehire full-time employees is that:

 

A firm would implement a policy of holding exit interviews if it wanted to:

 

Frank has thirty years of service as a manager for his company. He remembers when managers had almost complete freedom to fire workers. Frank thinks this is only fair. “After all,” Frank points out, “workers quit whenever they get a better offer. Shouldn’t managers have as much freedom to fire workers as the workers have to quit?” Frank’s comments suggest that he believes in the doctrine of:

 

The Krandall Corporation wants to reduce its labor force, but is concerned about the impact downsizing will have on its remaining employees. One policy that might allow Krandall to reduce its labor force without adversely affecting morale is to:

 

While talking with a group of family and friends, Jeanne mentions that she was offered an impressive golden handshake by her employer. Which of the following statements is she most likely to make next?

 

Janie worked in the student bookstore of a community college. The store was quite large and offered a variety of items besides books and school supplies. Although she liked the retail atmosphere, there was little opportunity for advancement because the three persons in management positions were doing well in their jobs and not planning to retire very soon. When the college opened a new branch, Janie seized the opportunity to be reassigned to the new location and manage the smaller operation. Her change was not a promotion, it was considered a(n) ____________; however, it served to improve her morale because she was performing more tasks and had greater responsibility than at the previous bookstore.

 

The creative director at Image First Promotion Company got word yesterday that the firm lost the Hottie Potatee account. As Hottie was its second best customer, the director must quickly perform damage control and unfortunately dismiss two creative writers and one web development content provider. As he prepares to call each of them to his office and perform the dismissals, he decides to make one final call to the company HR manager to make certain that he is doing and saying the right things. The HR manager will disagree with which of the following statements?

 

Mini-Case

Dee Pozitt had been the assistant HR director at Fleesum Financial Services for a bit more than a year when the company’s HR director was injured in a sky-diving accident. Because of his injuries the director would be unable to work for several months. Howie Fleesum, the company’s CEO, decided to name Dee the acting director of human resources. Though she had been at the firm for a shorter period of time than most other managers, he felt that her position as the director’s assistant had given her insights into the company’s human resource issues that the other managers lacked. He also was very impressed by the glowing performance appraisal Dee recently received from the director, her peers, and even subordinates. Before accepting the position as acting director, Dee made sure that Mr. Fleesum recognized her authority to implement some major changes in policies she and the director had been planning before his accident. The changes were intended to make the company more responsive to the needs of employees, thus improving morale and reducing worker turnover. Although Dee was sorry the director was injured, she was pleased that Mr. Fleesum had confidence in her and was willing to give her the authority to implement important new programs. The only aspect of her opportunity that worried her was the resentment and hostility she sensed from a few of the older, more experienced managers. One of the most hostile coworkers was a fellow named Mort Gage. Dee decided she had better talk to Mort and find out why he was so upset.

 

Before the director’s accident, Dee had worked with him to devise a plan that would allow each employee to select the fringe benefits he or she wants up to a certain dollar amount. The type of plan Dee and the director developed is known as a(n):

 

Dee wants to give Fleesum’s employees more freedom to schedule when they begin and end their work days. Her plan still requires employees to work eight hours per day, but allows them to start as early as 7:00 a.m. or as late as 9:00 a.m., and leave as early as 4:00 p.m. or as late as 6:00 p.m. Her plan also requires all workers to be on the job between 9:00 a.m. and noon, and between 2:00 p.m. and 4:00 p.m. The type of plan Dee wants to implement is known as a:

 

Dee’s performance appraisal allowed the director to evaluate her performance, but also allowed peers and subordinates to provide feedback as well. This type of appraisal is called a(n):

 

Fleesum recently began using cross-functional teams. Dee wants to make sure the teams collaborate effectively, but also wants to avoid stifling individual initiative. One method she could use to achieve this goal would be to:

 

Throughout most of American history, the relationship between managers and employees has been fairly smooth.

 

Historically, managers were less concerned about productivity and more concerned with friendly relations with coworkers.

 

One of the things that labor is interested in is fair and competent management.

 

A union is an employee organization that has the main goal of representing its members in employee-management negotiation concerning job-related issues.

 

Even in their infancy, the main goal of most labor unions was to provide members with increased management power.

 

Labor unions played a major role in establishing minimum wage laws, child-labor laws, and improvements in job safety.

 

Today labor unions have seen a revitalization of support and union membership has increased significantly.

 

Most historians view the increase in union membership in the United States as an outgrowth of the transition from an industrial economy to a service economy during the middle part of the 20th century.

 

Some business observers contend that the previous success of labor unions is a reason for the decline of labor unions.

 

The presence of formal labor organizations in the United States dates back to the late 1700s.

 

Some contend that the main reason membership in labor unions has declined in recent years has been the passage of anti-labor legislation in the late 1980s that guaranteed all employees of a firm the same wages and benefits whether they joined a union or not.

 

The Knights of Labor was the first truly national labor organization in the United States.

 

A craft union is an organization of skilled specialists in a particular craft or trade.

 

A union that consists of members who are all skilled specialists in a particular trade is called an industrial guild.

 

The Knights of Labor, the first national labor organization, offered membership to all working people, including employers.

 

The first national labor organization, the Knights of Labor sought to gain enough political power to restructure the entire U.S. economy.

 

Samuel Gompers was the most important leader of the American Federation of Labor during its early years.

 

The AFL (American Federation of Labor) was initially intended to be a single craft union.

 

During its early years, the AFL tried to expand as rapidly as possible by recruiting both skilled and unskilled workers.

 

In its early years, the AFL (American Federation of Labor) limited its membership to skilled workers.

 

Membership in industrial unions was strictly limited to skilled craftspeople.

 

John L. Lewis broke with the American Federation of Labor (AFL) in 1935 over membership issues and formed a rival group known as the Congress of Industrial Organizations (CIO).

 

The initial objective of the American Federation of Labor (AFL) was to provide union membership to workers in all industries.

 

Today, more than 55 national and international labor unions are affiliated with the AFL-CIO.

 

For 20 years, the CIO was a major rival of the AFL in the contest for leadership of the labor movement.

 

In 1955, after the passage of the Taft-Hartley Act, the AFL and CIO merged to create the AFL-CIO.

 

Union membership is likely to rise in the coming decade, because the same economic and political conditions that gave rise to unions in the late 19th and early 20th centuries are now reappearing.

 

A major difference between early labor organizations in the United States and today’s labor unions is that the early labor groups often were temporary organizations that disbanded after achieving a short-range goal, while today’s unions are permanent organizations.

 

The Knights of Labor and the American Federation of Labor were actually very similar in their aims, tactics, and membership. The only major difference was in the effectiveness of their leaders.

 

The Industrial Revolution slowed the growth of unions by creating a rapidly rising standard of living for most workers.

 

Outspoken critics of today’s labor unions believe that these organizations have lost their focus. They contend that they no longer represent the rights of workers, as much as they are concerned with the vitality and strength of the union itself.

 

Abraham was an unskilled worker who toiled 10 hours a day on an assembly line during the early and mid-1930s. His hours were long, his wages were low and his working conditions were unsafe and unpleasant. Abraham would probably be more sympathetic to the views of John L. Lewis than to those of Samuel Gompers.

 

The Zendor Corporation operates a manufacturing plant in Bellridge. The work is arranged in an assembly line and is performed by semiskilled and unskilled workers. These workers are looking into obtaining union representation. The type of union they would belong to would be classified as an industrial union.

 

The growth and strength of organized labor has always depended on one thing: the state of the economy.

 

The Norris-LaGuardia Act made it more difficult for unions to legally recruit new members.

 

A yellow-dog contract required workers to agree not to join a union as a condition of their employment.

 

The Norris-LaGuardia Act prohibits firms from requiring workers to agree not to join a union as a condition of their employment.

 

Samuel Gompers believed that collective bargaining was likely to be an ineffective way for unions to achieve their objectives.

 

The National Labor Relations Act gave labor the legal justification to pursue collective bargaining and other key labor issues.

 

The process by which a union is recognized by the NLRB as the authorized bargaining agent for a group of workers is called collective bargaining.

 

Once a union is certified to represent a group of workers, decertification is not a consideration or future possibility.

 

Collective bargaining is the process whereby union and management representatives negotiate a labor-management agreement, or contract, for workers.

 

The Wagner Act established the first minimum wage for workers.

 

One goal of the Landrum-Griffin Act was to clean up union corruption.

 

The Norris-LaGuardia Act prohibited courts from issuing injunctions against nonviolent union activities.

 

The National Labor Relations Act gave employees the right to form and join labor organizations and the right to engage in activities such as strikes and boycotts.

 

The Taft-Hartley Act strengthened unions by giving them the right to engage in featherbedding and secondary boycotts.

 

The Taft-Hartley Act allowed states to pass laws that prohibited compulsory union membership.

 

The Taft-Hartley Act gave more power to management.

 

A card check is a method of openly soliciting signatures in favor of the organization of a union.

 

Under the Wagner Act, the National Labor Relations Board can establish a labor union in an organization if it finds evidence of substantial labor abuse within that organization.

 

The NLRB (National Labor Relations Board) has created procedures that union advocates must follow in order to organize a union at a place of business. The multi-step procedure culminates with a secret vote by the employees of the organization.

 

The NLRB oversees the decertification of unions. An employer (the company owners) can petition and seek the signatures of 30% of the employees in order to decertify the union - in other words, officially, the union could no longer represent the employees in any bargaining negotiations.

 

Union representatives currently prefer secret ballot voting because they do not want to intimidate employees into voting for a union by asking them to outwardly sign a card check in favor of unions.

 

Jenna is a member of a union team that is negotiating with management to obtain a labor contract for the workers represented by the union. Jenna is involved in contract arbitration.

 

During an interview with Zytex company representative, Hillary was told that Zytex faces intense competition and management believes that the only way the company can survive is to have a nonunion workforce. Therefore, all workers Zytex hires must sign an employment contract stating that they agree not to join a union while they work for Zytex. This requirement by Zytex is illegal in the United States.

 

The workers at the Kerriton Company are unhappy with the way their union has been representing them. The Wagner Act allows these workers to take away the union’s right to represent them through a process known as decertification.

 

Jake remembers his grandfather telling him about going to work at 16 years of age in the coal mines of southern Illinois. In order to get the job, he had to agree to a yellow-dog contract. Essentially this meant he would only get the job if he agreed not to join a union.

 

Last week, Angie was approached by two of her coworkers during the lunch break pressuring her to sign a card check in favor of organizing a union. The card check is currently a NLRB (National Labor Relations Board) approved method of finalizing unionization.

 

The main objectives of organized labor, better wages and shorter hours, have remained remarkably stable over time.

 

During the 1970s, the primary objective of most labor unions was to gain additional pay and benefits for their members.

 

During the 1980s unions became increasingly concerned with the issues of job security and union recognition.

 

The AFL-CIO was a major supporter of the NAFTA agreement to expand trade and commerce among the nations of the United States, Canada, and Mexico.

 

The AFL-CIO has supported offshore outsourcing as a method of increasing work opportunities for union members.

 

Wage rates, hours of work, employee benefits, and job rights and seniority are issues covered in a typical negotiated labor-management agreement.

 

A union security clause in a labor-management agreement stipulates that employees who benefit from a union must either officially join or at least pay dues to the union.

 

The negotiated labor-management agreement clarifies the terms and conditions under which labor and management agree to function over a specified period of time.

 

Under a closed shop agreement, workers must agree not to join a union in order to keep their jobs.

 

Until passage of the Taft-Hartley Act, under a closed shop agreement, a company could only hire workers who already belonged to a union.

 

Under a union shop agreement, workers must belong to a union before they can be hired.

 

The Taft-Hartley Act made the union shop agreement illegal in all states.

 

A union shop agreement is illegal in states that have passed right-to-work laws.

 

In an agency shop agreement, workers who do not belong to the union must pay a union fee or pay regular union dues.

 

Under an agency shop agreement, only union members are represented at the bargaining table.

 

Under an open shop agreement, workers have the option to join or not join a union, if one is present in the workplace.

 

Unions in Europe historically have held more influence in the workplace than unions have in the United States.

 

According to the “Reaching Beyond Our Borders” box in Chapter 12, global labor movements are forming to emphasize the setting of global labor standards.

 

A grievance is a charge by managers that the union is not abiding by the terms of the negotiated labor-management agreement.

 

The sources of many grievances include overtime rules, promotions, layoffs, and job assignments.

 

The vast majority of grievances filed by union members are negotiated and resolved by shop stewards and supervisory managers.

 

A bargaining zone is the time period during which a third party is used to reach agreement on union disputes.

 

A mediator has the power to impose a binding settlement on labor and management.

 

Arbitration is an agreement to bring in an impartial third party to render a binding decision in a labor dispute.

 

Many of the negotiated labor-management agreements in the United States call for the use of an arbitrator to end labor disputes.

 

Arbitration and mediation are alike in that both involve an impartial third party to help in the negotiation process. The differences in these two approaches is that an arbitrator’s decision is binding - both parties agree to this on the front end; a mediator encourages the two conflicting parties to continue to negotiate and may make suggestions in pursuit of a resolution.

 

In the past, a variety of professionals have served as mediators. If a labor dispute were to breakout between the management at an auto manufacturer and the local union that represents workers at the auto manufacturing plant, it would be highly unusual for a university professor who has studied labor relations to be asked to mediate. The disputing parties would save his time for something more serious like arbitration.

 

Mississippi has passed a right-to-work law, which means that union shops are illegal in the state.

 

Winona was recently hired to work at a production plant for Additup Manufacturing. When hired, she was told she must join the union at the plant within 90 days in order to keep her job. Winona is employed in an agency shop.

 

Marina works for a company in which a union is recognized as the bargaining agent for the workers who perform her type of job. However, under the arrangements at her company, Marina is not required to join the union, nor is she required to pay any fees or dues to the union. Marina works under an agency shop agreement.

 

Miko began working for a company that operates under an open shop arrangement. Under this type of arrangement, Miko must join the union at her company within 90 days or she will lose her job.

 

Labor and management at the Brookwood Company have reached an impasse in their efforts to negotiate an acceptable labor-management agreement. The two sides have agreed to bring in an arbitrator. If the arbitrator issues a ruling that the union does not like, it can veto the decision.

 

Ashleigh has played a number of supporting roles on TV sitcoms. In her last role, she understood her contract to obligate her to perform in 22 episodes for a stipend of $500 per episode. After completion of 11 episodes, Ashleigh became ill and was unable to complete the episodes in a timely manner. The studio claimed that Ashleigh broke her contract and they are not obligated to pay her. She is confident that an impartial third party will view her circumstances as exceptional and will rule that she be reimbursed for the 11 performances. She has agreed to mediation.

 

Jian is a well-known professor of labor relations at a major university. She recently was asked by representatives of labor and management at a nearby corporation to help them resolve a disagreement that threatened to cause a breakdown in negotiations. If Jian agrees to help, her role will be to encourage both parties to continue negotiating and to offer constructive advice and suggestions, but she will not have the authority to render a binding decision. Jian’s role is that of a mediator.

 

Regina teaches at a local college. As a full time employee, she belongs to an organized union that represents teachers. She recently filed a grievance against her Dean claiming that the Dean prevented her promotion due to the fact that Regina’s academic credentials are from a university that the Dean does not personally feel is properly accredited. As a first step to resolving the conflict between the Dean (considered a management level position) and the instructor, the union will support Regina by bringing in the national union officer to negotiate with the University’s Chancellor (similar to the CEO for a company).

 

Management at Enomoto Enterprises has assigned Alberto to work at two different facilities, which will require him to commute an extra 25 miles on the days he must work at both plants. Alberto believes that the negotiated labor-management agreement requires the company to reimburse him for the extra mileage he has to drive. Management disagrees. Alberto has decided to file a charge that management is not abiding by the terms of the negotiated agreement. Alberto’s complaint is called a grievance.

 

A Lockout is a tactic utilized by unions when collective bargaining breaks down.

 

The strike historically has been the most powerful weapon unions use to achieve their objectives in labor disputes.

 

A boycott occurs when workers collectively refuse to go to work.

 

Strikes have been an effective way of settling labor disputes without violence and bitterness.

 

Postal workers and other employees of the federal government who provide important services are allowed to form unions, but are denied the right to strike.

 

The “blue flu” refers to a situation in which union members (like firefighters) who are not allowed to strike refuse to work by calling in sick.

 

A cooling-off period is when workers in a critical industry return to their jobs while the union and management continue negotiations.

 

In a primary boycott, a union encourages its members and the general public not to buy the goods and services produced by a firm involved in a labor dispute.

 

In 1996, the U.S. Supreme Court ruled that primary boycotts are illegal.

 

Tactics used by management when collective bargaining breaks down include injunctions and lockouts.

 

The most potent weapon currently available to management when collective bargaining breaks down is the use of yellow-dog contracts.

 

The Supreme Court ruled in 1938 that employers had the right to hire strikebreakers.

 

A common tactic of management in labor disputes is the use of secondary boycotts.

 

The use of strikebreakers did not become a common management tactic used in labor disputes until the 1980s.

 

Workers who are hired to do the jobs of striking workers until the strike is over are called “scabs” by the union.

 

A court order directing someone to do something or to refrain from doing something is called a judicial citation.

 

Hiring strikebreakers to replace striking workers was historically a common management tactic during labor disputes, but it is seldom used today.

 

The Taft-Hartley Act authorizes the U.S. president to ask for a cooling-off period to temporarily prevent a strike in a critical industry.

 

Courts will issue an injunction against union tactics only if management can show a “just cause” to restrict the union tactic.

 

The lockout is the most common tactic used by management today to deal with labor management disputes.

 

Unions have used givebacks as a tactic to increase membership of a culturally diverse workforce.

 

The largest labor organization in the U.S. is the National Education Association (NEA).

 

Membership in labor unions has grown steadily over the past 50 years.

 

A key to the future growth of unions will be their ability to adapt to a labor force that is becoming more culturally diverse.

 

In recent years, many unions have granted concessions on working conditions and wages in order to save jobs.

 

One way the Teamsters Union plans to increase membership is by reaching out to women in traditionally non-union occupations like health care.

 

The unions of the 21 st century are likely to be quite different from those in the past.

 

In the future, unions are likely to leave training and recruitment of workers to management, and focus instead on encouraging those workers to join the union.

 

In the next few years, unions are likely to find that they must adopt a tough, confrontational approach in order to get what they want from management.

 

According to “Spotlight on Small Business,” in Chapter 12 many private-practice physicians have embraced unionizing as a means to collective bargaining with managed health care organizations.

 

The Taft-Hartley Act gives the president the power to require striking workers in any industry to return to their jobs for a cooling-off period while representatives of management and the union continue to negotiate.

 

Bellandro Bay Brewery union representatives and the company’s management have reached an impasse. Going forward, the union has planning an organized strike and other tactics to put pressure on management where it will be most effective. Union supporters are being encouraged to avoid purchasing Bellandro’s products. Now union leaders have contacted a variety of stores that stock Bellandro’s Beer informing them that union members and other supporters will stop shopping at any store that continues to carry the brewery’s beer until the dispute is resolved in the union’s favor. This tactic against stores that carry Bellandro’s Beer is called a primary boycott.

 

Striking union workers are picketing near the entrance of the Bellandro Bay Brewery plant where they normally work. The workers are acting peacefully and have not threatened anyone entering or leaving the company or damaged any property. Bellandro’s management is seeking an injunction to prevent the workers from picketing. The courts are unlikely to issue an injunction under the current circumstances.

 

Workers at the West Fenton plant of Malzone Industries have gone out on strike. Management believes it could continue operating the plant during the strike by hiring replacement workers. If the company hires nonunion workers to continue its operations, it will be violating a recent Supreme Court ruling that declared hiring replacement workers as a violation of the Wagner Act.

 

Employees were striking at the London Met University last year. Very few students were crossing the picket line. In fact, the city’s postal employees refused to deliver mail there claiming that they were honoring the strike for their fellow service union members. The Postal employees were participating in a voluntary secondary boycott.

 

In the Making Ethical Decisions box, students are asked to consider what they would do if they had the opportunity to be employed as a strikebreaker, at a company where friends and family were currently out of work and on strike. If they choose to do so, they are immediately hired as full-time workers.

 

After adjusting for inflation, the average CEO compensation is actually a little lower now than it was in 1960.

 

The disparity in salaries is clearly reflected in the fact that in 2007, the average CEO compensation for a major company was $12.8 million, compared to a little more than $35,000 that the average worker was compensated.

 

CEOs only earn high salaries and bonuses when their companies earn substantial profits.

 

The late Peter Drucker, one of 20 th century’s leading management consultants was very critical of the exorbitant compensations that some CEOs were getting.

 

Despite their high pay, most CEOs work far fewer hours per week than the average employee in their companies.

 

Comparable worth is concerned with making sure that women get paid as much as men when they do the same jobs.

 

The Equal Pay Act of 1963 required companies to provide equal pay to men and women who perform the same job.

 

The concept of comparable worth holds that people who do jobs that require similar levels of education, training and skills should receive equal pay.

 

Today, a woman usually receives a salary that is equal to approximately 79% of her male counterpart.

 

The law protects both women and men from sexual harassment.

 

The number of sexual harassment complaints filed with the Equal Employment Opportunity Commission has leveled off since 2000.

 

In 1997, the Supreme Court ruled that same sex harassment is prohibited by sexual harassment laws.

 

Although workers and managers often know that their firm has a policy against sexual harassment, they seldom have a clear understanding of what the policy actually says.

 

“Quid pro quo” sexual harassment occurs when a person’s conduct creates an offensive, hostile, or intimidating work environment that adversely affects the job performance of some other employee.

 

If you work for a foreign company doing business in the U.S., you are subject to the same sexual harassment laws as anyone working in the U.S.

 

Because of the need to cut costs, fewer large U.S. companies now provide some sort of child-care for their employees than ten years ago.

 

Small firms often offer innovative child-care programs as a way of competing for qualified employees.

 

On-site child-care remains the only acceptable way for firms to meet the child care concerns of their employees.

 

The number of households that face the burden of caring for one or more elderly parents has increased significantly over the past decade.

 

In recent years federal programs such as Medicare and Medicaid have greatly reduced the financial burden on families faced with caring for elderly adults.

 

Over the next decade costs associated with elder care are likely to have a much smaller impact on businesses than child-care costs.

 

Elder care costs are likely to remain a major issue for businesses for many years.

 

The spread of AIDS within the U.S. has declined in recent years.

 

Alcohol and drug abuse are serious workplace issues but they involve far fewer workers than AIDS does.

 

Alcohol is the most widely used drug in the workplace.

 

Today, over 70% of all companies require some type of drug testing.

 

The high cost of illegal drug use in the workplace has resulted in a rise in the number of firms that test employees and job applicants for drugs.

 

According to the Occupational Safety and Health Administration (OSHA), the third leading cause of job-related fatalities is homicide.

 

One in six violent crimes that are committed in the U.S. occur in the workplace.

 

Many companies do not provide any formal training for dealing with prevention of violence in the workplace.

 

Since violence in the workplace rarely results in severe injury, it is likely not to be much of a problem in the future.

 

Due to threats of violence at work, some states have passed laws permitting companies to seek temporary restraining orders on behalf of their management.

 

Although the general public often sees the compensation of CEOs of major U.S. corporations as being much too high, the pay and benefits these top executives receive is actually quite similar to what is earned by top executives in other countries with market economies.

 

According to the Legal Briefcase box associated with Chapter 12, we can cite several examples where CEOs in the U.S. received significantly large exit compensation packages even though the profit performance of their firms under their watch was rather meager to very poor.

 

According to the Legal Briefcase, “Paying for Incompetence”, businesspersons understand that the capitalist system has no choice but to tolerate huge disparities between a CEO’s salary and a regular employee.

 

According to the Legal Briefcase box from Chapter 12 that highlighted the exorbitant salaries of some past company CEOs: When it is all said and done, restructuring compensation packages to be more equitable is in the hands of the companies themselves.

 

Reece discovered that a male coworker is paid $1.50 per hour more than she is even though they have the same job title, have similar qualifications, and have been employed the same length of time. Unfortunately for Reece, it is legal for the hospital to pay different salaries to different workers who perform the same job.

 

Marco is the newly appointed CEO of the Sine of the Times Corporation. The board of directors approved an attractive stock option package as part of his total compensation. From this information, you would assume that one of the board’s objectives is to stabilize the value of Sine of the Times’ stock by preventing it from rising or falling more than a small percentage.

 

Although child-care concerns have become a pressing issue for many employees, most firms have been unable to find acceptable solutions to these concerns.

 

Brantwell, Inc. is a forward thinking company planning to implement a program to help its employees provide care for their elderly parents. According to recent trends, Brantwell’s new program should result in future cost savings.

 

Robert and Jenny are co-workers who enjoy flirting with each other while at work. They both view their actions as harmless fun, as do the other employees in their office. Their flirtation does not offend the other workers or make them feel threatened or uncomfortable. Nevertheless, under current criteria, both Jenny and Robert could be found guilty of sexual harassment.

 

Rose is a human resources manager for a rapidly growing corporation. The firm recently hired one hundred new workers, ten of whom were involved in workplace accidents soon after they were hired. It was determined that alcohol usage was the cause of these accidents. Top management has asked Rose to do a better job in screening potential workers for alcohol abuse to avoid this in the future. Rose should point out that in fact the ten percent of the recent-hires with alcohol issues is actually much lower than the overall percentage of employees with alcohol issues that are involved in industrial injuries and fatalities in the U.S.

 

Recently a disgruntled employee walked into a large grocery chain’s mid-west distribution center and opened fire on his fellow workers. He killed or injured several people before being killed by the local police. The grocery chain is very concerned about the threat of workplace violence in the future. One way to deal with this threat is for management to hold focus groups to invite employee input. Another way is to make certain that the company hires managers with good interpersonal skills.

 

A(n) ________ is an employee organization that represents workers in employee-management bargaining over job-related issues.

 

The presence of formal labor organizations in the United States dates back to the:

 

According to business observers, which of the following is a reason for labor’s decline?

 

The union movement in the United States was an outgrowth of the economic transition caused by the:

 

Labor unions were largely responsible for:

 

__________ are workplaces with undesirable, and often unsafe and oppressive working conditions.

 

The purpose of the earliest recognized labor unions in the U.S. was:

 

The first national labor organization in the United States was the:

 

Membership in the Knights of Labor was:

 

The main goal of the Knights of Labor was to:

 

In a(n) ________, all of the members are skilled specialists in a particular trade.

 

__________ provided dynamic leadership for the American Federation of Labor during its early years.

 

The AFL was concerned primarily with:

 

In its early years, the AFL’s strategy was to:

 

The CIO (Congress of Industrial Organizations) organized unskilled and semiskilled workers into:

 

The __________ was set up as a federation of many separate craft unions.

 

The leadership of _____________ was instrumental in bringing about the merger between the American Federation of Labor and the Congress of Industrial Organizations in 1955.

 

In the early years, there were power struggles among the larger national unions. Leaders recognized that there was power in numbers. After the passage of the Taft-Hartley Act in 1947,

 

The Industrial Revolution was characterized by a(n):

 

Critics of labor unions argue that unions are no longer needed to protect workers from abusive and unfair treatment because:

 

A major reason John L. Lewis and his followers broke with the AFL and formed the CIO was that:

 

The departure of the Service Employees International Union (1.8 million members strong) from the AFL-CIO:

 

The AFL originally was a federation of craft unions that did not attempt to organize industrial unions. The main reason for this strategy was that:

 

Historically, the ______________ strengthened the labor unions, while the _____________________ supported management’s efforts.

 

Antonio received specific training to become an electrician. He belongs to a union with other skilled electricians. Antonio belongs to a(n):

 

Geraldo works on the assembly line for a major automobile manufacturer. He was hired for the job without any specific training or skill. Geraldo joined a union with other assembly-line workers who perform a variety of jobs that do not require a highly specialized skill. Geraldo belongs to a(n):

 

Which of the following statements is the most accurate assessment of the historical role of the AFL in the labor movement? In its early years the AFL:

 

Samuel Gompers believed that ___________ was the key to attaining a fairer share of the economic pie for American workers.

 

The two major influences on the growth of unions in the U.S. were:

 

The _________ Act established the National Labor Relations Board.

 

__________ is the process by which a union becomes recognized by the National Labor Relations Board as the bargaining agent for a group of employees.

 

____________ is the process by which a group of workers legally take away a union’s right to represent them.

 

_____________ is the process by which representatives of a union meet with representatives of management to negotiate a contract for workers.

 

The ______________ was established by the Wagner Act to oversee labor-management relations.

 

The first federal minimum wage was established by the:

 

The _____________ outlawed the use of yellow-dog contracts and prohibited courts from issuing injunctions against nonviolent union activities.

 

At one time, as a condition of employment, the employer could make the employee sign a statement prohibiting the worker from joining a union. This was called a(n):

 

The __________ guaranteed the rights of individual union members when dealing with their union.

 

Which of the following acts gave more power to management in its relations with organized labor?

 

The Taft-Hartley Act:

 

The ___________ guaranteed union members the right to nominate candidates for union office and participate in union meetings.

 

One goal of the Landrum-Griffin Act was to:

 

The NLRB (National Labor Relations Board) consists of:

 

The Wagner Act is best described as a(n):

 

John belongs to a labor union. He believes a few key people run the union by meeting secretly and making decisions without informing other members or allowing them to fully participate in the meetings. If John’s suspicions are correct, the union is violating provisions of the __________ Act.

 

The Labor-Management Relations Act (or Taft-Hartley Act) can be best described as a law which:

 

The primary purpose of collective bargaining is to:

 

Two important provisions concerning the certification or decertification process administered by the NLRB (National Labor Relations Board) are:

 

During the 1920s and early 1930s the Dallas Sheet Metal Shop was able to prevent workers from forming a union by requiring them to sign an employment contract in which they agreed not to join a union as a condition of employment. Dallas was making use of:

 

Steven is part of a team of union members that is meeting with representatives of his company’s management in an effort to negotiate a labor contract for the workers his union represents. Steven is participating in a process known as:

 

Bob believes that management is treating him unfairly because of his efforts to organize a vote for union representation. Which organization should Bob contact to report his concerns?

 

Which of the following statements about collective bargaining is most consistent with the views of Samuel Gompers?

 

Union leaders at the Baadfathe Corporation are furious. Although the union’s certified by the NLRB, its negotiating team has had little success in getting management to meet with them to work on a new labor contract. In fact, during the last 3 months, the management team has agreed to meet only twice, once on a weekend, and the other time after 8:00 p.m. Even during those two meetings, the management team was unwilling to offer serious proposals. Baadfathe’s management team should review the legal rights of union members to participate in collective bargaining, as provided under the:

 

During the lunch break at Secure Seat Belt Corporation, Ben’s friend Dan was enthusiastic about the Employee Free Choice Act. According to Dan, if congress passes this legislation,

 

During the 1970s, the primary objective of most labor unions was to:

 

During the 1980s, unions became increasingly concerned with the issues of:

 

Over the past several decades unions have:

 

The __________ sets the tone and clarifies the terms and conditions under which labor and management agree to function over a specific period of time.

 

The AFL-CIO was __________ the Central American Free Trade Agreement (CAFTA).

 

The AFL-CIO was a major __________ of the NAFTA agreement passed by Congress in 1994.

 

Under ________, workers are not required to join the union, but those who do not join are still required to pay a union fee or regular dues to the union.

 

According to the “Reaching Beyond Our Borders” box in Chapter 12,

 

Under a(n) ___________ shop agreement, workers must belong to the union before they are hired.

 

The justification for dues or fees paid by nonunion members to the union in a(n) _________ shop is that the union represents all workers in collective bargaining, not just those who belong to the union.

 

In a(n) __________ shop, workers do not have to belong to a union before they are hired, but they must join a union within a specified period (usually 30, 60, or 90 days) in order to keep their job.

 

If a union is present in a firm that has a(n) _________ shop arrangement, workers may join the union if they wish, but they are not required to join or pay a union fee in order to keep their jobs.

 

A(n) ___________ is a union official who works permanently in an organization and represents employee interests on a daily basis.

 

Closed shops were declared illegal by the:

 

___________ is the use of a third party to encourage labor and management to continue negotiating in an effort to settle a labor dispute or achieve a mutually acceptable labor-management agreement.

 

The process of bringing in an impartial third party to render a binding decision in a labor dispute is referred to as:

 

If management and union officials cannot resolve a grievance, a(n) _________ is asked to listen to the arguments of each side and to make a decision that both sides will have to comply with.

 

Which of the following topics is generally covered in a negotiated labor-management agreement?

 

Union shops are illegal in the state of North Carolina. This means that North Carolina:

 

In a union shop:

 

The key difference between an agency shop agreement and an open shop agreement is that in an agency shop:

 

A key difference between a mediator and an arbitrator is that:

 

A grievance is:

 

Labor unions and management hope to resolve issues through collective bargaining. Each side comes to the table with a range of options they are willing to consider - some more appealing than others. All options that each will consider fall within the _________________.

 

Hector is philosophically opposed to unions. “Why should I be required to join an organization I don’t agree with, or pay a fee to support it financially?” he asked some of his buddies who belong to the union. “I thought this was a free country, but I don’t feel very free when I’m told that I’ll lose my job if I don’t join the union. It just isn’t fair.” Hector’s comments suggest he favors a(n) __________ shop arrangement.

 

Amie was recently hired at Kreigmeister Industries as a repairperson. She was informed that if she chose not join the union representing her fellow repair workers, she would still have to pay a fee to the union. Apparently, Kreigmeister operates under a(n): 

 

In the late 1930s management at Bodenger Industries agreed to hire only those workers who were already members of the Steelworkers Union. Bodenger had agreed to a type of arrangement known as a(n):

 

At the Grenchit Corporation the union and management have not been able to reach a mutually satisfactory agreement on a grievance. The two sides have agreed to bring in a(n) _________ who will examine the evidence and arguments on both sides and issue a binding decision.

 

Anna believes that her manager violated the terms of the negotiated labor-management agreement when he required her to report to work on a holiday. She has discussed her concerns with her shop steward and he agrees with her. It is likely the steward will encourage Anna to:

 

You’ve been on your lunch break for less than 45 minutes when your boss orders you to return to work immediately or be docked an hour’s pay. You complain that the current labor contract specifies a full hour for your lunch break and you still have over 15 minutes left. Your boss stands firm on his order for you to return to work. Under protest, you return to work, but plan to file a grievance. The first step you should take is to contact a(n):

 

Dr. Kwan, a professor at a local university, has been working with the union leaders and management at Empire Corporation to help the two sides resolve differences over desired wage levels for a new contract. First, he met with each side privately to determine any common ground for agreement. For the past week, he has worked with representatives from each side to promote communication and compromise at the bargaining table. Dr. Kwan is a(n):

 

Yogi believes that an agency shop is the most desirable union security arrangement. Which of the following statements would be most likely to represent Yogi’s views?

 

According to information contained in the “Reaching Beyond Our Borders” box in Chapter 12, U.S. unions,

 

Art B.Traytor, a member of the American Arbitration Association and longstanding faculty member of the business school of a large university is heading out on the next plane for Detroit, Michigan where he will serve as an arbitrator between members of the United Auto Workers union and management of a major auto manufacturer. His responsibilities will deal with:

 

As a management executive left the meeting between his team and the company’s union representatives and headed straight for the CEO’s office, he reviewed where things seemed to breakdown. Union reps came to the table with three different offers to resolve the insurance and vacation benefits problems laborers were experiencing. Management offered its own resolutions - two different ones, to be exact. The problem was that a bargaining zone did not emerge. Neither side was willing to consider each other’s alternatives. As he reached the CEO’s door, he was ready to concede that the negotiations were probably headed to ________________.

 

Historically, the most potent union tactic when collective bargaining efforts break down has been the:

 

When union members who have a dispute with a company walk around outside the firm’s place of business carrying signs and talking to the media and public about their concerns, they are using a tactic known as:

 

A(n) __________ occurs when a union encourages its members and the general public not to buy the products of a firm involved in a labor dispute.

 

A(n) ___________ is a court order directing someone to do something or to refrain from doing something.

 

Two of the most important tactics used by unions when collective bargaining efforts break down are:

 

A(n) ________ boycott is an illegal attempt by labor to convince others to stop doing business with a firm that does business with a company that is the subject of a primary boycott.

 

A(n) ___________ occurs when management temporarily closes a business to deny employment to workers.

 

At this time, the largest labor organization in the United States is the:

 

Despite a 1938 Supreme Court ruling allowing their use, ___________ were seldom used by management during labor-management disputes until the 1980s.

 

Under the provisions of the Taft-Hartley Act, the president can ask for a(n) ___________ to prevent a strike in a critical industry.

 

The __________ is a tactic police, firefighters, and other workers who are not legally allowed to strike sometimes use to express their frustration and displeasure with working conditions or pay.

 

In recent years some unions have granted concessions and given up benefits secured in earlier contract negotiations in an attempt to save jobs. These concessions are called:

 

___________ are workers a company hires to replace workers who are out on strike.

 

Since 1945, the unionized share of the workforce has:

 

According to the material in the “Spotlight on Small Business” box in Chapter 12, a relatively recent trend is for many __________ to join unions.

 

The emergence of ______________ has changed the nature of work and affected labor-management relations.

 

In recent years, many unions have begun to:

 

Which of the following tactics would management be most likely to use during a labor-management dispute?

 

The ability of unions to achieve key goals in the future will depend on their ability to:

 

One strategy unions must adapt in order to grow in the future is to:

 

Which of the following statements best summarizes the extent to which unions currently rely on strikes as a tactic when collective bargaining breaks down?

 

When workers go on strike, management is often compelled to keep the business operation running. If it is unable to achieve this on its own, management may:

 

The Making Ethical Decisions box titled, “When Do You Cross the Line?” discusses:

 

Almost overnight, several police persons, all members of the police force of the growing suburb of Mayberry called in sick. As the dispatcher took those calls – one right after the other, she speculated that there could be more to this story than she was hearing. In fact, she thought it might be related to the emotional banter she heard the night before in the locker room as several members of the force were leaving their shifts. The group was not happy with the recent changes in scheduling, the excessive over-time hours, and, management’s reluctance to begin negotiations on a new benefits package. She heard one person saying, “It’s time for a mental health day!” Although it is illegal for police to strike, they may be claiming to have ________.

 

The Food Source Grocery chain stocks the products of Vegi-Delite Food Company at all of their supermarkets. The Teamsters Union is currently involved in a labor dispute with Vegi-Delite. The union has already encouraged its members and the general public not to buy Vegi-Delite products. Now it is threatening Food Source with the possibility of a boycott if it continues to carry the Vegi-Delite line. The union is threatening Food Source with a(n):

 

A large number of striking workers are currently picketing at the plant entrance to a Memphis Tire and Rubber plant. Because the pickets have threatened people entering the plant and have vandalized some company property, Memphis’ management believes it has just cause to ask the courts for a(n) __________ placing limits on the number of pickets and their actions while picketing.

 

As reported in the New York Times in November, 2008, Ron Gettelfinger, President of the U.A. W. (United Auto Workers Union) testified with auto executives in front of the U.S. Congress, saying, “The U.A.W. can’t be the low-hanging fruitWhile we’re at the table, we’re asking that others come in and sacrifice as well.” Mr.Gettelfinger was referring to the several ___________ that the autoworkers’ union had agree to over the past few years in order to save jobs and particularly keep retiree benefits intact.

 

The “Spotlight on Small Business” in Chapter 12 discusses the medical profession and unions. Which of the following statements about the views of doctors and nurses is most accurate?

 

A few years back, west coast dockworkers were locked out of their jobs in 29 west coast ports. Because many consumer goods used in the U.S. are transported from Asia to the U.S. through these ports, the lockout could have damaged the U.S. economy and security if allowed to continue. The President ordered the dockworkers back to work and both sides were ordered back to the bargaining table. Which of the following statements is the most accurate conclusion about the outcome of the labor dispute between the dockworkers union and shipping companies on the west coast? The dispute between the dockworkers and shipping companies showed that: 

 

In July 2009, London Met University workers went on strike and formed picket lines to oppose management’s continued restructuring and the elimination of jobs. It was reported that London postal workers who belong to the Communication Workers Union refused to deliver mail to any building on the London Met campus, in respect of the picket lines and in honor of their fellow trade union members. Essentially, the courtesy that the postal workers gave to the striking employees was a:

 

When AT&T anticipated that 20,000 mobility workers were planning to strike to show their solidarity against concerns of unfair compensation, management was already calling staffing agents to temporarily employ persons to cover for striking employees. Traditionally, these workers are called ___________.

 

A comparison of compensation of CEOs in the U.S. with compensation of top executives in Canada and Europe indicates that:

 

According to one of the top management consultants of the past 40 years, the late Peter Drucker:

 

Over the past several decades, the compensation of CEOs of large U.S. corporations has:

 

In some European countries, companies practice co-determination. For example,

 

In the past, the compensation of chief executive officers of corporations was based on:

 

_____________ is the demand for equal pay for jobs requiring similar levels of education, training, and skill.

 

Women have become a __________ part of the labor force.

 

Today, women earn approximately ________ of what men earn, though the disparity varies considerably by profession and the level of education.

 

Studies conducted at the University of Michigan found that earnings of women graduating with baccalaureate degrees were:

 

____________ refers to unwelcome sexual advances, requests for sexual favors, and other unsolicited conduct of a sexual nature.

 

The number of sexual harassment complaints filed annually with the Equal Opportunity Commission:

 

Sexual harassment laws:

 

_________ sexual harassment refers to situations in which an employee’s submission to unwanted conduct is made either explicitly or implicitly a term or condition of employment or is used to influence employment decisions affecting the worker’s job status.

 

Harassment that creates an intimidating, or offensive work environment falls under the type of sexual harassment known as a(n):

 

Small businesses have found that child care programs:

 

As the workforce of the U.S. ages, a greater percentage of workers will have to concern themselves with:

 

According to Sandra Timmermann, Director of Met Life’s Mature Market Institute, the key job-related issue of the next decade will be:

 

From a work-related perspective, elder care providers may require _____________ as part of their job.

 

It is estimated that firms lose ___________ annually in productivity, absenteeism, and employee turnover due to caring for aging parents.

 

Drug problems among workers is costing the U.S. economy upwards of ______ in lost work, health care costs, and even crime and accidents.

 

The U.S. Department of Labor cites ________ as the third leading cause of job-related fatalities.

 

The national Institute of Health estimates that each drug abuser can cost an employer approximately __________ annually.

 

Which of the following is an effective way to deal with the growing threat of workplace violence?

 

In 1997, the Supreme Court rendered a decision on a case stipulating that sexual harassment law:

 

The subject” “Who pays for child care when the parent(s) works?” is

 

Which of the following is likely to remain a controversial labor-management issue in the future?

 

One of the major criticisms of executive compensation in the United States is that:

 

According to material in the “Legal Briefcase” box in Chapter 12, when chief executives of large companies retire or get fired they:

 

The fact that workers sometimes serve on the board of directors of European companies helps explain why:

 

Comparable worth primarily is concerned with:

 

Which of the following statements about drug users is a claim made by the National Institute of Drug Abuse?

 

On-site daycare facilities:

 

An assessment of elder care needs in the United States suggests that:

 

Paulo owns a few shares of stock in a large and diversified firm. He realizes that the CEO of the company is responsible for a multi-billion dollar business, but is upset with what he feels is excessive compensation for the chief executive officer, particularly since the firm has reported losses for the past two years. Paulo’s concerns are:

 

Exceptional Enterprises launched a program to evaluate the relative levels of skills, education, and training needed to perform various jobs. Based on the results of this evaluation, the firm intends to adjust pay scales so that jobs requiring similar levels of skills, abilities, and education will receive similar pay. Exceptional Enterprises’ program is an attempt to deal with the issue of:

 

Which of the following statements about the costs of elder care is most accurate?

 

As an employee of the human resource department of a major corporation, you are concerned about the potential costs of drug abuse. You are contemplating testing employees for substance abuse. Before adopting such tests, you should know that:

 

Tom Dash works as a researcher studying the effects of alcohol and drug abuse at a large research university on the east coast. The alcohol center’s mission statement reads, “Our mission is to conduct, coordinate, and promote basic and clinical research on the causes, prevention, and treatment of alcoholism and alcoholic disease.” Looking forward, which of the following statements are you likely to agree with?

 

Safe’nSwift Airlines implemented a program to curb workplace violence before it occurs. Under this program, the employees of Safe’nSwift can expect to:

 

Which of the following statements about sexual harassment is most accurate?

 

Last year, a retired schoolteacher moved her parents from Michigan to northern Illinois to live with her. For the past year, she was traveling two times each month to provide care for this eighty-six year old couple, including coordinating medical services and meals. In conversations with her family members, the teacher remarked, “If I were not already retired, I would have to quit my job to continue this way!” This retired teacher:

 

Mini-Case

The workers at Endrun Corporation are not affiliated with a union. Until recently, the workers felt they were well paid and treated fairly by the company, so they had little interest in seeking union representation. However, worker morale at Endrun has declined steadily since the board of directors fired the old CEO last year and replaced him with Ty Runt, a no-nonsense, autocratic manager with a reputation for cutting costs. As soon as he took over, Ty fired other members of the old top management team and replaced them with people who shared his views. Together, the new management team made a series of moves that did not sit well with Endrun’s workers. First, they announced changes in work procedures designed to speed up the production line. Many workers complained that the new methods cut corners and were unsafe, but management refused to listen. A few months after changing work methods, the company told workers that it was reducing their health benefits. This led to even greater worker unrest. Finally, just a few weeks ago, workers received word that the wages of all production line employees would be cut by 6 percent. Many employees felt this was the last straw, especially since the company’s board of directors recently approved big salary increases and more lucrative stock option plans for Ty and his management team. A spokesperson for the board explained that the raises were justified because of the management team’s “outstanding efforts to reduce costs, increase productivity, and improve the company’s profits.” Several disgruntled employees, led by Ima Striker and Boyd Cotter, now believe it is time to obtain union representation. Top managers at the company have hinted that workers who actively participate in the union campaign may be among the first workers laid off if the company decides to downsize. Ima and Boyd are not intimidated by these management threats. “I wish we didn’t have to do this,” Ima recently told many of her fellow workers at the plant. “But someone has to stop Ty Runt and his team from ruining our jobs.”

 

Ima, Boyd, and their fellow employees at Endrun work on an assembly line and do not have a specialized skill. If they are successful in their quest to set-up a union, they would probably be represented by a(n) ________ union.

 

The steps Ima, Boyd and their fellow workers must take to get the union legally recognized as the authorized bargaining agent are parts of the __________ process.

 

After gaining union representation, any workers with complaints regarding promotions, layoffs, and job assignments will file a(n) ________ with their shop steward.

 

The plant where Ima and Boyd work is located in Illinois, which does not have a right-to-work law. If the workers approve the union as their bargaining agent, Boyd wants to get the greatest union membership that is legally possible. Boyd is likely to push for a(n):

 

Ty Runt has always taken a hard line against unionization efforts. Two years ago, when workers at his previous company tried to obtain union representation, the company closed down the plant and refused to let employees work until they abandoned their efforts to form a union. This management tactic is called a(n):

 

If management tries to threaten or punish Ima and Boyd for their efforts to gain union representation, the two workers could ask the ____________ to investigate these unfair labor practices.

 

If management’s efforts did not disrupt everyone’s work life enough the company board of directors just awarded management with increased pay while cutting the workers pay. Which of the following issues promises to be a controversial labor-management issue?

 

The growth and strength of organized labor has always depended on one thing: the state of the economy.

 

The Norris-LaGuardia Act prohibits firms from requiring workers to agree not to join a union as a condition of their employment.

 

Samuel Gompers believed that collective bargaining was likely to be an ineffective way for unions to achieve their objectives.

 

Abraham was an unskilled worker who toiled 10 hours a day on an assembly line during the early and mid-1930s. His hours were long, his wages were low and his working conditions were unsafe and unpleasant. Abraham would probably be more sympathetic to the views of John L. Lewis than to those of Samuel Gompers.

 

Outspoken critics of today’s labor unions believe that these organizations have lost their focus. They contend that they no longer represent the rights of workers, as much as they are concerned with the vitality and strength of the union itself.

 

The Industrial Revolution slowed the growth of unions by creating a rapidly rising standard of living for most workers.

 

Last week, Angie was approached by two of her coworkers during the lunch break pressuring her to sign a card check in favor of organizing a union. The card check is currently a NLRB (National Labor Relations Board) approved method of finalizing unionization.

 

The AFL-CIO has supported offshore outsourcing as a method of increasing work opportunities for union members.

 

Jake remembers his grandfather telling him about going to work at 16 years of age in the coal mines of southern Illinois. In order to get the job, he had to agree to a yellow-dog contract. Essentially this meant he would only get the job if he agreed not to join a union.

 

Miko began working for a company that operates under an open shop arrangement. Under this type of arrangement, Miko must join the union at her company within 90 days or she will lose her job.

 

Marina works for a company in which a union is recognized as the bargaining agent for the workers who perform her type of job. However, under the arrangements at her company, Marina is not required to join the union, nor is she required to pay any fees or dues to the union. Marina works under an agency shop agreement.

 

Winona was recently hired to work at a production plant for Additup Manufacturing. When hired, she was told she must join the union at the plant within 90 days in order to keep her job. Winona is employed in an agency shop.

 

Arbitration is an agreement to bring in an impartial third party to render a binding decision in a labor dispute.

 

A mediator has the power to impose a binding settlement on labor and management.

 

A bargaining zone is the time period during which a third party is used to reach agreement on union disputes.

 

Mississippi has passed a right-to-work law, which means that union shops are illegal in the state.

 

In the past, a variety of professionals have served as mediators. If a labor dispute were to breakout between the management at an auto manufacturer and the local union that represents workers at the auto manufacturing plant, it would be highly unusual for a university professor who has studied labor relations to be asked to mediate. The disputing parties would save his time for something more serious like arbitration.

 

Arbitration and mediation are alike in that both involve an impartial third party to help in the negotiation process. The differences in these two approaches is that an arbitrator’s decision is binding - both parties agree to this on the front end; a mediator encourages the two conflicting parties to continue to negotiate and may make suggestions in pursuit of a resolution.

 

Many of the negotiated labor-management agreements in the United States call for the use of an arbitrator to end labor disputes.

 

Labor and management at the Brookwood Company have reached an impasse in their efforts to negotiate an acceptable labor-management agreement. The two sides have agreed to bring in an arbitrator. If the arbitrator issues a ruling that the union does not like, it can veto the decision.

 

The AFL-CIO was a major supporter of the NAFTA agreement to expand trade and commerce among the nations of the United States, Canada, and Mexico.

 

The workers at the Kerriton Company are unhappy with the way their union has been representing them. The Wagner Act allows these workers to take away the union’s right to represent them through a process known as decertification.

 

The strike historically has been the most powerful weapon unions use to achieve their objectives in labor disputes.

 

A Lockout is a tactic utilized by unions when collective bargaining breaks down.

 

Regina teaches at a local college. As a full time employee, she belongs to an organized union that represents teachers. She recently filed a grievance against her Dean claiming that the Dean prevented her promotion due to the fact that Regina’s academic credentials are from a university that the Dean does not personally feel is properly accredited. As a first step to resolving the conflict between the Dean (considered a management level position) and the instructor, the union will support Regina by bringing in the national union officer to negotiate with the University’s Chancellor (similar to the CEO for a company).

 

Jian is a well-known professor of labor relations at a major university. She recently was asked by representatives of labor and management at a nearby corporation to help them resolve a disagreement that threatened to cause a breakdown in negotiations. If Jian agrees to help, her role will be to encourage both parties to continue negotiating and to offer constructive advice and suggestions, but she will not have the authority to render a binding decision. Jian’s role is that of a mediator.

 

Ashleigh has played a number of supporting roles on TV sitcoms. In her last role, she understood her contract to obligate her to perform in 22 episodes for a stipend of $500 per episode. After completion of 11 episodes, Ashleigh became ill and was unable to complete the episodes in a timely manner. The studio claimed that Ashleigh broke her contract and they are not obligated to pay her. She is confident that an impartial third party will view her circumstances as exceptional and will rule that she be reimbursed for the 11 performances. She has agreed to mediation.

 

Management at Enomoto Enterprises has assigned Alberto to work at two different facilities, which will require him to commute an extra 25 miles on the days he must work at both plants. Alberto believes that the negotiated labor-management agreement requires the company to reimburse him for the extra mileage he has to drive. Management disagrees. Alberto has decided to file a charge that management is not abiding by the terms of the negotiated agreement. Alberto’s complaint is called a grievance.

 

The Zendor Corporation operates a manufacturing plant in Bellridge. The work is arranged in an assembly line and is performed by semiskilled and unskilled workers. These workers are looking into obtaining union representation. The type of union they would belong to would be classified as an industrial union.

 

The vast majority of grievances filed by union members are negotiated and resolved by shop stewards and supervisory managers.

 

The sources of many grievances include overtime rules, promotions, layoffs, and job assignments.

 

A grievance is a charge by managers that the union is not abiding by the terms of the negotiated labor-management agreement.

 

According to the “Reaching Beyond Our Borders” box in Chapter 12, global labor movements are forming to emphasize the setting of global labor standards.

 

Unions in Europe historically have held more influence in the workplace than unions have in the United States.

 

Under an open shop agreement, workers have the option to join or not join a union, if one is present in the workplace.

 

Under an agency shop agreement, only union members are represented at the bargaining table.

 

In an agency shop agreement, workers who do not belong to the union must pay a union fee or pay regular union dues.

 

A union shop agreement is illegal in states that have passed right-to-work laws.

 

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have a value for customers, clients, partners, and society at large.

 

The activities of marketers depend on what needs to be done to satisfy consumer wants and needs, in other words, helping the buyer buy.

 

In the evolution of marketing, the production era assumed an unlimited market.

 

The four eras of the evolution of marketing are (1) production, (2) selling, (3) advertising, and (4) stakeholder relationships.

 

The focus of the production era was on distribution and advertising.

 

The tremendous demand for consumer goods and services after World War II helped launch the production era of marketing.

 

In the production era the greatest marketing need was for distribution and storage.

 

During the selling era, businesses turned from an emphasis on production to an emphasis on selling.

 

The marketing concept has three parts: (1) a consumer orientation, (2) a service orientation, and (3) an advertising orientation.

 

In the evolution of marketing, the marketing concept era emphasized selling and advertising in an effort to persuade consumers to buy existing products.

 

The marketing concept emphasizes that everyone from the president of the firm to the delivery people should be customer oriented.

 

The marketing concept was used heavily by business when it was first suggested in the 1950s.

 

Customer relationship management (CRM) is the process of learning as much as possible about customers and doing everything you can to satisfy them.

 

The idea behind customer relationship management is to enhance customer satisfaction and stimulate long-term customer loyalty.

 

Because the marketing concept emphasizes a profit orientation, marketing has not been used successfully by nonprofit organizations.

 

The primary focus of marketing today is on selling and advertising.

 

During the early 1900s, businesses emphasized learning as much as possible about their customers and doing everything to satisfy them.

 

Outstanding service after the sale was a primary focus of businesses during the selling era.

 

After World War II, the tremendous demand for goods and services among the returning veterans allowed businesses to sell whatever they produced without having to worry about what the competition was doing.

 

It is the job of marketers today to persuade consumers to buy the goods and services those marketers have available to sell.

 

Social media is not having an effect on the emerging era of mobile/on-demand marketing.

 

The Seeking Sustainability box shows us that consumer relationship building can mean many different things. In this case, Campbell’s and the Food Bank of South New Jersey are showing their great examples of being socially responsible and promoting sustainability, two attributes consumers are seeking more.

 

The marketing efforts at Rotary Enterprises place a great deal of emphasis on marketing goods that will earn the firm a profit. This focus on profit orientation shows that Rotary has not yet adopted the marketing concept that emphasizes a customer orientation rather than a profit orientation.

 

Sales representatives at the HomeWork Helper Appliances Store work hard to develop a close relationship with their customers and to provide satisfaction even after the sale. These efforts by HomeWork Helper’s sales personnel are part of the marketing process.

 

Mike’s Auto Repair works hard to find out what customers want and how to best meet their needs. Based on feedback from customers, Mike now provides a written estimate before any work is done, offers a more comprehensive guarantee than competitors, and calls customers after servicing their cars to make sure they are satisfied. These efforts suggest Mike is applying the concepts of customer relationship management.

 

The McDonald’s Foundation is a nonprofit organization that helps underprivileged children. As a nonprofit organization, it should avoid performing marketing functions, since these functions are designed to help organizations earn a profit.

 

The main concern of the marketing mix is to please firm’s stockholders.

 

Placing a product in a location where people will buy it is part of the marketing mix.

 

Designing a want-satisfying product is part of the marketing mix.

 

Setting a price for the product or service is one element of the marketing mix.

 

The primary factors involved in the marketing mix are sometimes called the 5 intangibles of marketing.

 

The marketing manager’s job is to design a program that effectively combines the ingredients of the marketing mix.

 

The four elements of the marketing mix are product, production, price, and predictability.

 

Providing people with a description of a potential new good or service and asking if the idea appeals to them are key parts of the marketing process.

 

Concept testing involves placing a product in a place where consumers will buy it.

 

A test market refers to the people in a market that will be least likely to use the product or service the marketer is offering.

 

A brand name is generally thought of as part of the product.

 

Test marketing involves developing an accurate description of the product and asking people if the proposed product appeals to them.

 

The marketing process includes decisions about the best way to get the product to the consumer.

 

Setting prices higher than the competition can help create an image of quality.

 

Intermediaries are firms in the middle of a series of organizations that distribute goods from producers to consumers.

 

Promotion includes personal selling, publicity, and word-of-mouth efforts to persuade people to buy a firm’s goods or services.

 

Unlike advertising, which is part of the promotional component of the marketing mix, personal selling is considered to be part of the distribution function.

 

The last step in the marketing process often includes building a continuing relationship with customers.

 

Marketers are concerned with selling goods and services, and therefore are not involved in designing the products their firm will sell.

 

Marketing involves developing and promoting a firm’s products and allowing the firm’s purchasing department to make all distribution and transportation decisions.

 

The most important component of the marketing mix is the actual design and production of the product.

 

Getting the product from the producer to the consumer is a production-related process and not related to the marketing mix.

 

Marketing focuses on the pricing and distribution of want-satisfying products, as well as determining the best way to promote the products to consumers.

 

For safety’s sake, an organization should produce as many products as possible since customers are not a good source of informing the organization what they want to buy.

 

Marketing is a one-time activity, performed when a business is first established and introducing product in the market. Once a firm has fine-tuned its marketing activities, it can turn its attention elsewhere.

 

Apps, like WeReward, engage users by combining the most basic elements of social media. These apps are a great benefit to both customers and businesses. Customers get a special deal and businesses are able to get their names out to the friends of users. This is an effective form of promotion.

 

The marketing mix provides a detailed market analysis to determine opportunities and challenges as well as information needed to make good decisions.

 

Marketing research helps determine what customers have purchased in the past, what situational changes have occurred to change consumer preferences, and what consumers are likely to want in the future.

 

Effective marketing research involves listening to customers, employees, shareholders, and other stakeholders.

 

The first step in the marketing research process is to collect relevant data.

 

Secondary data should be gathered first because this type of information is less expensive to obtain.

 

Secondary data consists of information that has already been compiled by others and is published in journals and books or made available online.

 

A telephone or online survey is an example of primary data collection.

 

A focus group consists of a small group of people who meet, under the direction of a discussion leader, to communicate their opinions about an organization, its products, or other issues.

 

Marketers use very detailed surveys to gather secondary data.

 

The final step of the marketing research process involves selecting from several alternative strategies, and performing follow-up research to see if results were as expected.

 

Marketing research is a process that most firms complete once a year, in order to gather information for the firm’s budgeting process.

 

In the marketing research process, marketers should examine all the implications of alternative solutions before making a recommendation.

 

Marketing research needs to be an ongoing process at a firm since changes in the marketplace and among consumers is a continuous process.

 

Government publications, such as the Annual Survey of Manufacturers and Survey of Current Business, are reliable sources of detailed primary data.

 

The secondary data collected in the research process does not need to be carefully evaluated since it’s always collected from reliable secondary sources.

 

Because accurate and timely market information is vital to a firm’s success, businesses should budget whatever it takes to get the best data available.

 

Marketing research usually begins with secondary data because it is more accurate and more relevant than primary data.

 

Whenever available, marketers should rely exclusively on primary data because it is much more accurate than secondary data.

 

Eavesdrop Communications just finished a telephone survey of several of their current customers. They plan to conduct in-depth personal interviews with about twenty additional customers. Both the telephone survey and the interviews are sources of primary data for Eavesdrop.

 

Peggy, a fitness instructor at the local YMCA, has been invited by a publisher to meet with nine other people to discuss a new concept for a health and fitness magazine. A member of the publisher’s marketing staff will be at the meeting to guide the discussion and to record the participants’ comments and suggestions. If Peggy accepts the invitation, she will be participating in a focus group.

 

Environmental scanning is a green concept that involves the tracking of pollution generated by a firm and its impact on society.

 

The process of identifying the factors that can affect marketing success is called environmental scanning.

 

Population growth and changing demographics are two elements of a firm’s socio-cultural environment.

 

Consumer databases, blogs, and social networking are some of the technological factors that are used by marketers to develop goods and services.

 

Successful marketers adjust their product offerings as the level of economic activity changes.

 

The two major types of markets in business are the consumer market and the government market.

 

The business-to-business (B2B) market involves the marketing of goods and services to institutions that sell, rent, produce or supply goods to others.

 

When classifying a product as a consumer product or a B2B product, the primary factor to consider is the financial status of the buyer.

 

Price is the determining factor as to whether a good is classified as a consumer product or a B2B product.

 

The purchase of a cash register is likely a B2B product.

 

The consumer market consists of all the individuals or organizations that want goods and services in order to produce other goods and services to sell, rent, or supply to others.

 

A cup of yogurt is an example of a product that is always classified as a consumer good.

 

Products such as computers, telecommunications equipment, PDAs, and other manufactured or mass-produced items are always classified as B2B products.

 

As noted in the Reaching Beyond Our Borders box, as China reforms its one-child policy, the new policy will have a minuscule impact on businesses in the Chinese market.

 

Helen, a manager for Marshall Manufacturing, spends much of her time reviewing the global, technological, socio-cultural, competitive, and economic factors that can influence the success of her firm’s marketing efforts. Helen’s efforts indicate that she is involved with environmental scanning.

 

Market segmentation is the process of dividing a market into several groups whose members have dissimilar characteristics.

 

Selecting which groups an organization can serve profitably is called target marketing.

 

With careful attention to controlling costs and quality, businesses can successfully satisfy consumers with a standardized product for different markets.

 

Target marketing is a business strategy that focuses a firm’s marketing efforts toward a potentially profitable segment of a larger market.

 

Because consumers differ in age, educational level, income, and tastes, firms will be more likely to succeed if they target a segment of a market and develop goods and services specially tailored to that group.

 

Firms developing products for a narrow segment of a market are less likely to profitably satisfy that group’s needs.

 

Demographic segmentation divides a market into segments based on the customer’s location.

 

Psychographic segmentation involves dividing a market into segments based on lifestyle, values, attitudes, or interests.

 

Separating a market by the amount of the product consumed is known as volume segmentation.

 

The strategy of focusing on small but profitable market segments is called micro marketing.

 

One-to-one marketing refers to developing a unique mix of goods and services for each individual customer.

 

Travel agencies demonstrate a one-to-one marketing strategy when they develop unique vacation packages for individual customers.

 

One-to-one marketing is seldom used in B2B markets.

 

Mass marketing means developing products and promotions using little segmentation.

 

A basic principle of relationship marketing is that firms should concentrate on producing and promoting products that appeal to large groups of people.

 

Relationship marketing makes heavy use of media such as television, radio and newspapers, to convince large groups of customers to buy a standardized product.

 

Relationship marketing moves away from mass production and toward custom-made goods and services.

 

Relationship marketing is rather easy to implement in the B2B market but almost impossible to use in the consumer market due to the sheer size of the consumer market.

 

Firms adopting a relationship marketing strategy often establish a database of information about each customer.

 

Relationship marketing depends on understanding individual consumers and responding quickly to their wants and needs.

 

Consumer behavior is influenced by the attitudes, values, and ways of doing things that are passed from one generation to the next.

 

The set of values, attitudes, and ways of doing things that result from belonging to a certain ethnic, religious, or racial group is called that group’s cognitive dissonance.

 

Learning involves changes in an individual’s behavior resulting from previous experiences and information.

 

A reference group is society’s accepted values, attitudes, and ways of doing things that consumers have to learn.

 

Cognitive dissonance refers to the confusion and frustration people experience when they compare different products they rarely use before making a purchase.

 

In order to be successful, marketers avoid small market segments in favor of larger targets.

 

The purpose of market segmentation is to identify the features of a product that will appeal to as many customers as possible.

 

Using advances in technology to maintain databases of customer information is more important for firms involved in mass marketing than it is for those firms using relationship marketing.

 

In general, the broader the market a firm tries to serve, the better its chances of success.

 

The Adapting to Change box shows us that product reviews, like those featured on Amazon, are extremely powerful but sometimes are unreliable.

 

Melanie is a sales representative for a college textbook publisher. She spends a great deal of time visiting college professors who have already adopted one of her books for use in her classes. She makes sure they have all the supplements to the book they need and are informed about when new editions will be available. Melanie’s emphasis on keeping her existing customers satisfied is consistent with the philosophy of relationship marketing.

 

Top management at Prinze Auto Sales has decided to replace their traditional marketing approach with an approach that emphasizes relationship marketing. Under this new approach, Prinze’s salespeople will be expected to devote less time to current customers and a larger share of their time searching for new customers.

 

Click Computers has established a website where its customers can get the latest information about the company’s products, offer suggestions about improving products and service, and contact technical support via e-mail. The company has even added a chat function that allows customers to communicate with representatives. Click’s approach indicates that it is trying to utilize relationship marketing.

 

Jason bought an expensive new sports car last week. Immediately after the purchase, he worried that he paid too much, and that a less expensive model with better gas mileage would have been a wiser choice. Marketers refer to the doubts Jason is experiencing as post-purchase stress syndrome.

 

La Shawna is fascinated by celebrities. She often changes her dress, speech, and mannerisms in response to the latest trends in Hollywood. When big name stars publicly support a social cause, she tends to support it as well. La Shawna’s behavior suggests that people in show business are an important reference group for her.

 

B2B marketers include manufacturers, retailers, hospitals, and the government.

 

The B2B market involves fewer trades and fewer dollars spent than the consumer market because there are so many more consumers than there are businesses.

 

Marketing strategies used effectively in the business-to-business markets are exactly the same as strategies used by marketers in consumer markets.

 

In business-to-business markets, sellers rely on wholesalers and retailers to efficiently distribute their products.

 

The number of customers in business-to-business markets is quite large compared to the number of customers in the consumer market.

 

Buyers in the B2B market tend to make more rational decisions than buyers in the consumer market.

 

There is much more emphasis on personal selling in the consumer markets than in the B2B markets.

 

Business-to-business markets tend to be geographically concentrated.

 

Marketing goods and services to the B2B market relies more heavily on advertising than marketing efforts aimed toward the consumer market.

 

While most students find marketing an interesting and meaningful subject, one drawback of majoring in marketing is that it prepares students for only a narrow range of career options.

 

Jose has accepted a sales position at Business Solutions Corporation. Prior to this job, Jose worked in the electronics department of a retail store selling personal computers to consumers. In his new job at Business Solutions, Jose will sell personal computers to businesses. Despite the fact that the products sold to these two customer groups are quite similar, Jose is likely to find that purchasing decisions by buyers in the two markets will be influenced by different factors.

 

________ is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

 

Which of the following marketing eras refers to the time period from our country’s first settlers through the early 1900s?

 

The business philosophy of “produce as much as you can because there is a limitless market” is consistent with which of the following marketing eras?

 

Which of the following describes the marketing era immediately after the development of mass-production assembly lines?

 

During the ________ era, the prevalent business philosophy turned from an emphasis on production to an emphasis on advertising and selling.

 

The significant increase in consumer demand following World War II marked the beginning of the:

 

The __________ is based on three elements: (1) a customer orientation, (2) a service orientation, and (3) a profit orientation.

 

According to the _________ concept, a firm must (1) find out what customers want and provide it, (2) make sure everyone in the organization has customer satisfaction as an objective, and (3) provide goods and services that will earn a profit.

 

Firms that have adopted _________ seek to do more than simply sell a product; they seek to learn as much as possible about their customers in order to satisfy them with goods and services over time.

 

A ___________ orientation refers to the process of determining the wants and needs of buyers and then providing goods and services to meet or exceed their expectations.

 

Which of the following is a part of the marketing concept?

 

Which of the following statements is most consistent with today’s views on effective marketing?

 

Comparing the business practices of the 1950s to those of today indicates that today’s marketing managers:

 

Which of the following statements about marketing is the most accurate?

 

A key element of customer relationship management is to:

 

Blogging has brought Southern Nights Nursery a step in the right direction toward building relationships with its customers. The owner blogs his weekly recommendations to loyal followers and provides supplier sources for all kinds of rare and hard to find plants and shrubs. Customers provide other customers with reviews and comments about various plants they purchased through Southern Nights. As an extension of customer relationship management, this company is practicing __________.

 

A comparison of the marketing concept and customer relationship management indicates that customer relationship management:

 

As the campaign manager for a candidate for the U.S. Senate, Pete works to learn as much as possible about potential voters. With this information, he hopes to focus the campaign on the issues most important to voters. This represents:

 

The Bay Street Bakery has a respected following. When it moved the business to a famous resort area, it took a big risk; however, the owners were confident that its unique cookies and pastries would win customer raves. Fortunately, one of the members of the family business was convinced the bakery needed to stay in touch with its customers. While visiting the bakery, the business collected names and addresses in order to send messages about promotions and coupons to valued customers. Marketing professionals refer to this strategy as:

 

Which of the following strategies provides an example of the most current era whose principles today’s businesses are embracing?

 

While the four Ps help us remember the basics components of the ________, they don’t have significant relevance in the marketing process.

 

A firm’s marketing mix consists of 4 major components, which are generally referred to as the four:

 

A firm’s marketing mix refers to the combination of:

 

Marketers define a ________ as any physical good, service, or idea that satisfies a want or need.

 

Which of the following describes a process in which marketers present an accurate description of a new product to potential customers and ask if they find the idea appealing?

 

___________ is a process used to test consumer reactions about a product among potential users.

 

Which of the following describes a word, letter, or group of words or letters that differentiate the goods and services of a seller from those of competitors?

 

The last step in the marketing process often includes:

 

__________ consists of all the techniques sellers use to persuade consumers to buy their goods and services.

 

Which of the following would be considered part of a firm’s marketing mix?

 

Which of the following tasks would be included in the marketing mix?

 

Which of the following is part of the marketing process?

 

As a marketing manager for a retailer of lighting products, Lucinda will likely be involved in which of the following?

 

Bob has the responsibility for product development, pricing, promotion, and distribution of Hi-Vee Vitamins for children. Bob’s job would not involve:

 

Andre is a real estate agent who has an idea for a software program that will help perform real estate appraisals more quickly and more accurately. He has worked with a buddy who is good at programming to develop a detailed description of what the software will do and how it differs from existing applications. Now Andre has taken this description and shown it to a number of fellow real estate agents to see if his idea appeals to them. Andre is engaging in:

 

Several years ago, Canadian Sam Holman realized there may be a need for a stronger, more durable wood baseball bat. He went through the process of developing the SamBat, a maple bat of precise dimensions. He set a price with a reasonable margin, he decided to take special orders and sell bats directly from his garage, and he promoted the bat with sales calls to professional baseball camps, where ball players could sample the bat. In marketing terms, we recognize that Mr. Holman designed the _____________.

 

H2 O’Yeah has designed a water purification device that is drastically different and far superior to any product currently on the market. Although consumer response was positive to the idea of the new product, management wants to find out more before committing to full-scale production. The next step H2 O’Yeah’s marketing department is likely to take is to:

 

With help from the marketing department, engineers at Easy Electronics have designed a new type of cable modem that is easier to install in computers and more reliable than any cable modems currently in use. The marketing managers want to find a way to identify the new modem in the minds of consumers and differentiate it from less sophisticated products made by Easy’s competitors. An important part of this effort is likely to be the selection of a __________ for the new modem.

 

Which of the following terms involves the analysis of markets to identify opportunities and challenges?

 

Successful marketing researchers:

 

The first step in the marketing research process is to:

 

A firm gathers ___________ data by conducting surveys, interviewing customers, or mailing out questionnaires.

 

__________ consists of information that has already been researched by others and is published in journals or books, or has been made available online.

 

Exploring _________ data first helps marketers minimize marketing research costs.

 

A widely used technique commonly used for collecting primary data is:

 

Which of the following represents a technique used to obtain primary data?

 

A ________ group consists of a small group of people who meet under the direction of a discussion leader to discuss opinions about an organization, its products, or other issues.

 

Which of the following is considered a step in the marketing research process?

 

In the past, companies have designed intricate products that markets did not perceive any need for. They have aired promotional campaigns that have offended audiences. They have priced products out of reach of the target market. Marketing experts defend the importance of ________________, the process of gathering all sorts of information about customers and products in order to make informed decisions about the product, price, place, and promotion.

 

Mucho Tacos Restaurants, Inc., is a chain of restaurants featuring authentic Mexican cuisine in seven states. The company is looking into opening restaurants in additional markets and also wants to expand and to improve its menu. Which of the following is an example of secondary data the owners of Mucho Tacos might find useful?

 

Roosevelt Community College has experienced declining enrollment for the past three years. In the past the college has relied strictly on enrollment from newly graduated high school students. In order to identify other potential markets, Roosevelt Community College would benefit from:

 

As part of her responsibilities as a marketing manager, Jan has completed a review of data her department has gathered through telephone interviews, mail surveys and focus groups. Jan is disappointed because the research results strongly suggest that a product idea she helped develop is unlikely to be popular with potential customers. Jan should:

 

Good marketing research helps us identify what customers have purchased in the past and what they are likely to want in the future. Super Fun World is preparing to open its latest theme park in Shanghai. It will be collecting lots of information on what customers want while they are at the park. The marketing research company representing Super Fun might create original surveys with targeted questions that help it collect reliable information. This type of research is described by marketing professionals as the collection of _______.

 

____________ is the process of identifying factors that can affect marketing success.

 

The most important technological change likely to affect the marketing success of many firms is the:

 

One of the social trends that marketers must monitor to maintain their close relationship with customers is the:

 

People with unsatisfied wants and needs who have both the ability and the willingness to buy are:

 

The two major types of markets are the:

 

Which of the following describes individuals that want goods and services for personal consumption and have the resources to buy them?

 

The __________ market consists of individuals and organizations that want goods and services in order to produce goods and services or to sell, rent, or supply those goods to others.

 

The factor that determines whether a product is classified as a consumer product or an industrial product is:

 

Which of the following statements about the distinction between consumer goods and B2B goods is the most accurate?

 

Which of the following is the best example of a market?

 

Roberto is a marketing manager for Friendly Financial Services. He has been looking at a variety of factors, such as technological, socio-cultural and economic trends as well as competitive conditions. Roberto is confident that these factors will impact Friendly’s future marketing success. His efforts are an example of:

 

Green-Living Lawncare Systems, Inc., has enjoyed great profits for 15 years. When new-product development made it feasible for underground sprinkling systems to be installed at a reasonable price, the business skyrocketed. Recently, through ________________ the owner of Green-Living learned about a grass seed that only needs to be watered two times each year. This innovation could have serious consequences on healthy revenues and profits. The owner is analyzing the _________ environment in order to remain knowledgeable about new trends that may affect his business.

 

Which of the following refers to the process of dividing the total market into several groups with similar characteristics?

 

__________ marketing is the marketing of products to groups of customers a firm decides it can serve profitably.

 

A firm that uses __________ segmentation divides a market into groups based on values, attitudes, or interests.

 

A firm that uses ___________ segmentation divides a market into groups based on age, income, or level of education.

 

A firm that uses ___________ segmentation divides a market into groups based on life stage, race, or profession.

 

__________ marketing involves developing a unique mix of goods and services for each individual customer.

 

Which of the following refers to a marketing strategy in which the focus is on small but profitable market segments?

 

A ________ marketing strategy develops products and promotions designed to please large groups of people.

 

The goal of __________ is to keep individual customers over time by offering them new products that exactly meet their requirements.

 

Understanding consumers in marketing is considered so important that a whole area of marketing called _____________________ emerged.

 

One factor that influences the consumer decision-making process is ________, which refers to the set of values, attitudes, and ways of doing things passed from one generation to another in a given society.

 

A consumer’s decision-making process is influenced by his/her ________, consisting of those people who help shape the consumer’s beliefs, attitudes, values or behavior.

 

Which of the following correctly identifies the motivation of firms using a market segmentation strategy?

 

“Selling to everybody and listening to nobody” might be the result of a firm that uses a ________ marketing strategy.

 

Firms that adopt a relationship marketing strategy attempt to:

 

Which of the following is consistent with relationship marketing?

 

Firms adopting a relationship marketing strategy view technology as a(n):

 

Contacting customers after a sale to reassure them that they made the right decision is intended to offset:

 

Consumer decisions regarding the products they buy are often influenced by their nationality, religion, or ethnic origin. Marketers realize that the consumer decision-making process is impacted by the consumers’:

 

Nature’s Sun, a company that designs and manufactures clothing for active people, focuses their marketing efforts on people who participate in strenuous outdoor activities such as running and mountain climbing. For example, the firm advertises heavily in magazines for runners. Nature’s Sun is using _________ factors to segment its market.

 

Tasteequik Food markets one line of food products to consumers looking for meals that are very simple and quick to prepare. Tasteequik also offers another line of food targeted to people interested in low-fat, high-nutrition foods. Tasteequik’s strategy of dividing the market into groups that want similar things from the products they buy is an example of:

 

Cool People Publications focuses their marketing efforts on reaching African American teenage girls. The firm believes that they are positioned to profitably serve this group of consumers. Cool People utilizes the strategy of:

 

Which of the following represents an example of demographic segmentation?

 

Which of the following would best benefit the development of niche marketing?

 

All-Star Collectibles focuses its marketing efforts on high-income buyers of unique collectible items. The firm realizes that the number of buyers in this segment of the collectible market is small. However, they are confident that this approach will be profitable since these buyers will pay premium prices for their unique products and superior customer service. All-Star’s approach is an example of:

 

In an effort to increase profits, Yen Ching Chinese restaurant is attempting to appeal to a specific segment of the market by offering an all-you-can-eat buffet. These efforts, designed to identify specific groups that can be profitably served, represent an example of:

 

After years of using a mass marketing strategy, Digital Print Shops has responded to new competition from national chain stores by focusing on small market segments that have been ignored by their larger competitors. Digital believes that by offering these market segments personalized customer services it can attract a loyal group of customers willing to pay premium prices. Digital’s strategy to improve profits is known as:

 

As a marketing manager for Kitch-It-Tools, Jim is frustrated with the way his organization markets their kitchen utensils. Currently Kitch-It-Tools utilizes a strategy aimed towards the largest possible number of people, relying heavily on television and radio advertising. Jim complains that the firm is not listening to its customers and is in danger of losing many of them to firms that create a personal dialogue with their buyers. Presently Kitch-It-Tools practices:

 

Jeep recognizes that it has some customers who like roomy SUVs, while others like more compact versions. It also has customers who prefer off-road, sport-type vehicles. Jeep makes several models (such as Grand Cherokee, Liberty, Patriot, Compass, and Wrangler) to satisfy the different tastes and lifestyles of its customers. Grand Cherokee customers may want traditional SUV luxury, and seldom settle for anything other than leather interiors. Liberty customers might be described as sportier, and typically women. Wrangler customer characteristics may include a group that is seldom over 30 years of age, typically male, and have often served in the U.S. military. By recognizing differences in its customers, and using different characteristics to define its customers, Jeep is:

 

In an effort to increase customer loyalty, management at Pratt International has worked to create a personal dialogue with their customers. This dialogue will enable Pratt to offer products that exactly meet their customers’ needs and provide personalized service before and after the sale. Pratt International’s strategy illustrates:

 

By employing a relationship marketing strategy, Jocelyn found success as an entrepreneur. The goal of this strategy is to:

 

Which of the following is most consistent with a relationship marketing strategy?

 

Kelly buys only high-priced jeans and expensive sport shoes endorsed by her favorite entertainers. Also, her attitudes and values are shaped by specific statements made by these celebrities. She also supports causes and charities the celebrities endorse. This illustrates how consumer decision making is influenced by:

 

Which of the following is the best example of cognitive dissonance?

 

__________ marketers include manufacturers, intermediaries, institutions, and the government.

 

In terms of the number and dollar volume of transactions, the B2B market is __________ the consumer market.

 

Business-to-business markets tend to be:

 

The number of buyers in business-to-business markets is:

 

Compared to consumer markets, B2B markets:

 

Which of the following statements about the B2B market is true?

 

Holly is a sophomore in college considering a degree in marketing. She has asked several friends for advice and their comments are listed below. Which of these comments is the most accurate and likely to help Holly?

 

Hideki has just been transferred from a position in his firm where he dealt with the consumer market to a new job dealing with buyers in the B2B market. Which of the following correctly identifies a key difference Hideki is likely to observe between consumer markets and business-to-business markets?

 

After years of selling in the consumer market, Dave accepted a job as a salesperson for a firm that markets its products in the B2B market. As he considers his new responsibilities, it’s likely that he will:

 

Mini-Case

Callie is a successful executive who is also a fitness enthusiast. For years she worked out at Big Jim’s Gym, the only gym in her small hometown. However, she felt that the environment at Big Jim’s was too masculine, and discovered that her female friends agreed. They disliked the small, smelly locker room, and the limited selection of cardio equipment. Most of them eventually quit going to Big Jim’s. Callie talked to Jim Nasium, the owner of Big Jim’s, about things he could do to attract more women, but Jim had little interest in making any changes. “I’ve got all the business I can handle,” he told Callie. “Why should I spend a bunch of money to redecorate and add extra equipment? Besides, lots of the guys who work out here tell me they like the simple, no-frills atmosphere.” Frustrated by Jim’s indifference to her ideas, Callie began looking into the possibility of starting a club to appeal to young, well-educated women. After visiting gyms in other towns and talking to several friends to get ideas, she came up with a detailed plan for her club. She then described her ideas to women in the community to see how much interest there was in this type of facility. The extremely positive response encouraged her to go ahead with her plans. It took a while, but she ultimately obtained the financial backing to go into business. Callie calls her new health club ShapeUP. It offers a spacious and attractive locker room, better cardio equipment, a child care area so young mothers can have someone watch their toddlers while they work out, and exercise classes designed to appeal to young women. When a woman joins her club, Callie schedules a free session with a personal trainer who works with the new member to design a personalized workout program. Callie tries hard to keep close to her customers, sending them a monthly newsletter that includes a survey asking what they like and don’t like about ShapeUP. She wants to please her existing customers and keep them coming back. In fact, now that ShapeUP has a strong membership base, Callie believes it is more important to keep existing customers loyal than to attract new customers. In addition to the comments from her own customers, Callie also spends a lot of time tracking economic, social, and competitive trends in the gym industry, trying to identify factors that can affect the marketing success of her club. She subscribes to several journals that cover trends and report on research findings related to the business. She has found that these journals provide her with an inexpensive source of useful information.

 

When Callie wants to obtain information to research changes in her market or determine what her customers are likely to want in the future, she relies on the articles and data available in trade journals, feedback from surveys, and personal interviews of her customers. Which of the following statements about Callie’s sources of information is most accurate?

 

The fact that ShapeUP is designed to appeal to women of a certain age, education and income level, means that Callie is using:

 

When Callie developed a detailed description of her ideas for a gym and asked for feedback from women about the proposal, she was engaging in:

 

Which of the following statements about Callie’s marketing approach is most accurate?

 

When Callie attempts to identify economic, social, and competitive factors that could affect her success in the gym market, she is engaging in:

 

When consumers calculate the value of a product, they look at the benefits and then subtract the cost.

 

Successful businesses constantly monitor consumer wants and needs.

 

To satisfy consumers managers must learn to listen better than they do now and to adapt constantly to changing market demands.

 

Once an organization surveys the consumer’s wants and needs, has designed a group of products to meet those needs, and begun to market them in stores, the organization is assured of success.

 

Fast-food organizations must constantly monitor all sources of information for new product ideas.

 

McDonald’s prides itself on offering precisely the same menu around the world so that customers know exactly what to expect when they eat at a McDonald’s.

 

According to the “Spotlight on Small Business” box in Chapter 14, Let’s Dish and Dream Diners knew that even though its target market valued home-cooked meals and family time spent enjoying them they lacked the time to adequately prepare such meals.

 

Product development is a key activity in any modern business, anywhere in the world.

 

The “Spotlight on Small Business” box in Chapter 14 mentions Dream Dinners as a company that has succeeded by finding an unmet need and creating a satisfying total product offer.

 

From a strategic marketing viewpoint, a total product offer includes all of the tangible attributes of a good or service, and excludes any intangible attributes.

 

The image created by advertising is part of the total product offer of a product.

 

The reputation of the manufacturer and the retail store surroundings are considered part of the value enhancers of a total product offer.

 

Price, store surroundings, service, and brand name are all elements that consumers evaluate in a total product offer.

 

Successful marketers attempt to think like consumers and evaluate the total product offer as a collection of impressions created by all parts of the value package.

 

Store surroundings are an important part of the total product value package.

 

The critical component of a total product offer is always a low price.

 

Low prices can often help retailers create an attractive total product offer.

 

In evaluating a total product offer, value enhancers such as service, guarantees, reputation of the seller, etc. are as important to customers as the basic product.

 

A firm’s product line refers to all of the different geographic markets in which it sells the same good or service.

 

A single product line may contain several competing brands.

 

The term product line describes the combination of product mixes offered by a manufacturer.

 

A product line is a group of products that are physically similar or are intended for a similar market.

 

The several product lines that a company offers for sale make up that organization’s product mix.

 

While service providers offer product lines, they are unable to offer product mixes.

 

Whole grain breads, bagels, bread sticks, sandwiches, soup, and pastries are products that would be included in the product mix of El Trovodor’s Bread Company.

 

Car dealers realize that consumers focus exclusively on price and warranty.

 

A traditional McDonald’s and a McCafe (the outlet that sells premium coffee and pastries similar to a Starbucks) are examples of the McDonald’s Corporation product mix.

 

At Isuzu’s Appliance Store, all new products are offered with an extended service contract, as well as free delivery and installation. By offering these value enhancers, Isuzu’s has added to their total product offer.

 

Miller Light Beer, Maxwell House Coffee, Jell-O brand gelatin, Kraft Mayonnaise, and Marlboro Cigarettes, were all at one time products of the Philip Morris Company. These products represented a part of the product line Philip Morris offered.

 

A bank’s product line may include safety deposit boxes, car loans, and traveler’s checks.

 

The concepts of product lines and product mixes apply to marketers of products and services.

 

In order for product differentiation to be effective, real product differences must be identified so that one product is clearly better than others.

 

Marketers use pricing, advertising, and packaging to differentiate their products from competitors’ products even when actual differences are quite small.

 

Creative product differentiation can enable a small business to increase market share.

 

The most common classification of consumer goods and services is based on producer or manufacturer behavior in the market.

 

One common way of classifying consumer goods is based on consumer purchasing behavior.

 

The uniqueness of convenience goods and services stimulate consumers to make an extra effort to purchase them.

 

Convenience goods are products that the consumer wants to purchase frequently and with a minimum of effort.

 

The characteristics of specialty goods restrict their effective sale over the Internet.

 

Unsought goods and services fail to provide the benefits consumers expect.

 

Unsought goods and services are products consumers do not actively seek out for purchase on a regular basis.

 

The marketing efforts for convenience and specialty goods are essentially the same.

 

Shopping goods and services are purchased only after consumers compare value, quality, style, and price of competing goods and services.

 

Successful marketing of convenience and specialty goods require different marketing mixes.

 

Most consumers view specialty goods as having a variety of acceptable substitutes.

 

The classification of goods or services into a particular class depends on the individual consumer.

 

A shopping good for one consumer could be a specialty good for another consumer.

 

Specialty goods are often marketed through specialty magazines.

 

Some goods can be classified as either consumer goods or as industrial goods.

 

Industrial goods are sold in the B2B market.

 

As a promotional strategy, advertising is more important in the marketing of industrial goods than it is in the marketing of consumer goods.

 

Capital items are industrial goods that are expensive and last a long time.

 

Industrial goods and services are used to produce other products.

 

Accessory equipment consists of capital items that cost less and are shorter lived than installation items.

 

The two types of industrial goods are production goods and unsought goods.

 

Equipment maintenance and repair of equipment used by businesses is an industrial support good.

 

Paper clips, stationery, and other office supplies used by businesses are types of industrial support goods.

 

Mystic Beverages, a producer of soft drinks, wants to differentiate its products from those of other soft drink providers. To implement this strategy successfully will require Mystic to create tangible differences in the physical product it offers.

 

A pickup truck can be classified as either a consumer good or an industrial good.

 

Newspapers are sold daily in a wide variety of locations. This widespread distribution suggests that newspapers are classified as convenience goods.

 

Unsought goods and services are purchased on impulse and provide no added value to consumers.

 

Dutch owns and operates a small pizzeria that competes with a variety of other restaurants offering pizza on their menus. His largest competitors are large nationally known organizations. The small size of Dutch’s business prevents him from successfully utilizing a product differentiation strategy.

 

Since Kazam Cleaners offers home and office cleaning services no different from competitors, the company cannot utilize a product differentiation strategy.

 

Consumers are best served by providing specialty goods in convenient locations.

 

Gabe intends to visit a variety of retailers of sound equipment comparing features, quality, and prices of different brands at each store. This behavior indicates that for Gabe a sound system is a shopping good.

 

Stella strongly prefers a specific brand of gourmet coffee. Because there is only one store in her area that sells this brand, she makes an extra effort to purchase this item. Stella’s purchasing behavior indicates for her this product is a specialty good.

 

Thigpen Equipment Company sells used heavy construction equipment such as bulldozers and cranes. Thigpen’s products represent examples of an accessory equipment industrial good.

 

Beyonce Financial Services purchased several new personal computers and a sophisticated color laser printer for office use. These items would be correctly classified as accessory equipment.

 

Packaging is an important part of the total product offer.

 

One function of effective packaging is to attract the attention of consumers.

 

One function of effective packaging is to protect the goods inside during handling and storage, as well as deter product tampering and theft.

 

One function of effective packaging is to provide information regarding warranties, benefits, and uses of the good inside the package.

 

More than any other component of a total product offer, technology has reduced the importance of packaging.

 

Federal government legislation identifies the type of information that packaging must offer.

 

Changes in packaging can transform the product in the minds of consumers and open larger market opportunities.

 

While packaging innovations benefit the consumer, they have vastly increased the workload of retailers.

 

While the packaging of services has not yet captured the attention of businesses, technological improvements will likely create new opportunities.

 

The exclusive goal company expect of packaging is to protect the product from damage in transit.

 

In recent years, the packaging of products has been given a greater role in product promotion.

 

The trend towards self-service retailers has increased the importance of packaging.

 

As a result of increased advertising and well-trained salespeople, packaging is less important than in the past.

 

Regardless of changes in packaging, the total product offer remains unchanged.

 

While the Universal Product Code (UPC) improves efficiency at the retail check-out counter, it has increased problems in controlling inventory.

 

Healthy Pick designed a new type of packaging that significantly improves taste and texture of food when defrosted. Unfortunately, firms seldom find that improvements in packaging impact market share and profits.

 

A brand includes practically all means of identifying a product.

 

The purpose of a brand name is to establish an image of generic goods or services.

 

Brand names can significantly impact consumer perceptions of a product.

 

A trademark is a brand that has been given exclusive legal protection for both the brand name and the pictorial design.

 

The benefits provided by a brand name for a buyer include reduced search time, prestige, and quality assurance.

 

The U.S. legal system does not offer trademark protection.

 

Brand names help sellers with new-product introductions and create an opportunity for higher prices.

 

Dealer (private) brands are products that do not carry the manufacturer’s name, but rather carry the name of a distributor or retailer.

 

Chevrolet is an example of a generic name in the automobile market.

 

Manufacturers’ brands carry the brand name of the producers that distribute the products nationally.

 

Most manufacturers hope that their brand names will become a generic name.

 

Sales of generic products are decreasing because consumers prefer the higher quality of the nationally known brands.

 

The legal protection offered to an established brand name prevents that name from being used as a generic name for a product.

 

The use of price discounts and coupons may erode the commitment of consumers to brand names.

 

The best strategy for brand name manufacturers to respond to the challenge of generic goods is to use price discounts and coupons to price their products more aggressively.

 

A knockoff brand is a brand name that has lost its exclusive legal protection.

 

Brand equity refers to those factors that people associate with a specific brand name, such as awareness, perceived quality, and loyalty.

 

Brand loyalty refers to the degree to which customers are satisfied with a brand and are committed to further purchases.

 

Although their names are similar, brand loyalty and brand equity are unrelated.

 

When consumer loyalty reaches the point of brand insistence, the product becomes a specialty good.

 

Event sponsorship like the FedEx Orange Bowl football game helps improve brand awareness.

 

Price, appearance, and reputation can influence a consumer’s perceptions of quality.

 

Endorsements by sports or movie celebrities can help create a favorable brand association.

 

Brand association is the linking of a brand to other favorable images such as a celebrity or geographic location.

 

Brand managers have direct responsibility for all the elements of the marketing mix for a particular brand or product line.

 

Firms use brand managers or brand teams to give them greater control over both new-product development and product promotion.

 

Federal legislation requires that the brand name of a product clearly identify the manufacturer of that product.

 

Papa’s Market offers customers tissues, canned vegetables, napkins, and dishwashing detergent in basic packaging with no identified brand. These goods are popular with Papa’s cost-conscious shoppers because they are significantly less expensive than nationally known brand names. These types of goods are examples of generic goods.

 

Nailerman’s Hardware is a large chain of hardware stores that sells a line of tools under the Nailerman brand even though they were actually produced by another firm. Since the products are actually produced by another firm, using the Nailerman brand is an example of a knockoff brand.

 

Travelwell manufactures and sells luggage and briefcases. Their marketing research indicates that durability is the attribute that consumers most desire in their luggage and briefcases. Travelwell now emphasizes durability in all of their promotional efforts. This strategy is intended to build brand equity.

 

In the “Thinking Green” box in the chapter, one of the problems companies are facing is informing consumers about their commitment to environmental awareness in the labeling of their products.

 

Beth works for Champion Industries overseeing the marketing mix for the firm’s line of calculators. Beth serves as a brand manager for Champion Industries.

 

Brand managers are responsible for the marketing of a product after it has been developed and a clear promotional message has been identified.

 

New-product failures are most often caused by excessively high prices.

 

New products often fail because they don’t deliver to consumers their promised benefits.

 

Firms should listen to their suppliers for new-product ideas.

 

Employees, not the firm’s research and development department, are the number one source of ideas for new industrial products.

 

Product testing is designed to reduce the number of new product ideas that a firm works on at any one time.

 

In the new-product development process, product analysis is completed prior to the product screening stage.

 

It now takes about seven ideas to generate one commercial new product.

 

The product analysis stage of the new-product development process considers the sales forecasts and cost estimates of a new-product idea.

 

Concept testing involves taking a product idea to consumers to test their reactions.

 

Interactive Web sites are useful in the commercialization process for new products.

 

New-product commercialization includes promoting the product to distributors and retailers as well as developing strong advertising and sales campaigns.

 

SnackAttack has found that an effective technique to generate ideas for new consumer products is to carefully listen to employees and suppliers.

 

The key to success for U.S. firms operating internationally is to increase their efforts to maintain high quality while decreasing expenditures on new-product development.

 

“Create a better mousetrap and the world will beat a path to your door.” This statement is consistent with the idea behind the commercialization of products.

 

At the concept testing stage, factors such as packaging, branding, ingredients, etc. should be tested to ensure that a product is acceptable to potential consumers.

 

The product life cycle presents a theoretical model describing what happens to sales and profits for a class of products over time.

 

While the time in each stage may vary, all products progress through each stage of the product life cycle.

 

The four stages in the product life cycle are introduction, market, exchange, and disposal.

 

While some products remain in the introductory stage of the product life cycle for years, other products may go through the entire cycle in a few months.

 

Knowledge of the product life cycle model can help firms develop marketing strategies and anticipate market changes.

 

Successful firms maintain consistency in their marketing mix strategies throughout the product life cycle.

 

Profits peak during the maturity stage of the product life cycle.

 

While the product life cycle is a good theory, it’s not important for marketers to recognize what life cycle stage a product is in.

 

Successful businesses develop a mix of price, product, place, and promotion that is consistently applied throughout a product’s life cycle.

 

Some goods have a product life cycle that is completed in a shorter amount of time than other goods.

 

After several years as a brand manager for an established product, Pete has taken a job with a microbrewery. He is responsible for managing the marketing mix for a new product introduction. In his new job, Pete will find that while the products may be at different stages of the product life cycle, the marketing strategies will be essentially the same.

 

As consumers evaluate a product, price plays a small role.

 

A long-run pricing objective of almost all firms is to optimize profit.

 

Sometimes a firm will lower prices below their costs in order to build a customer base.

 

In order to achieve a social objective, firms use low prices to enable people with low incomes to buy their product.

 

Rebates and zero-percent financing are pricing strategies to create an image of status and exclusivity.

 

Consumer perceptions of product quality are affected by promotions and packaging, but not by the price of the product.

 

Successful firms coordinate pricing objective strategies with decisions regarding product design, packaging, branding, distribution, and promotion.

 

Successful firms always try to maintain consistency in the short-run and long-run pricing objectives.

 

Cost-based pricing adds a desired profit margin to the cost of producing a product.

 

In the long run the market determines what the price will be.

 

Target costing adds a profit margin to estimated cost of production to determine the optimal price.

 

Demand-based pricing is another name for cost-based pricing.

 

Target costing is a cost-based pricing strategy.

 

The target costing strategy establishes a selling price that consumers are willing to pay for a product, and then subtracts a desired profit margin to determine a target cost of production.

 

In the long run, the price of a product is determined by the cost of production and the length of the firm’s supply chain.

 

Competition-based pricing is a strategy based on what all the other competitors are doing.

 

Price leadership is a demand based pricing strategy.

 

Price leadership occurs when one or more dominant firms set pricing practices that other firms in the market follow.

 

The purpose of break-even analysis is to determine the lowest price a firm can charge and still be able to cover its costs of production.

 

Break-even analysis determines profitability of a firm at various levels of sales.

 

The break-even point is that level of sales where total revenues equals total costs.

 

Total fixed costs are those costs that change when the volume of production changes.

 

Variable costs are costs that change with the level of production.

 

A skimming price strategy involves a low pricing policy intended to attract price-sensitive customers from competitors.

 

A penetration strategy calls for a firm to charge low prices with the intent of attracting a large number of customers and discouraging competition.

 

Firms utilizing an everyday low pricing (EDLP) strategy establish a policy of special sales on a regular basis.

 

A high-low pricing strategy may condition consumers to avoid paying the regular prices by waiting for sale prices.

 

As the Internet grows in popularity, it is likely that more firms will adopt a high-low pricing strategy.

 

A pricing strategy that uses bundling groups two or more related products together.

 

Psychological pricing utilizes high prices to create the image of a high quality product.

 

Ultimately, the price of a good is determined by the interaction of supply and demand in the marketplace.

 

The key to demand-oriented pricing is the recognition that not all producers face the same costs of production.

 

Despite the fact that microeconomic theory places a great deal of emphasis on price, marketers often try to find ways to compete on product attributes other than price.

 

For most firms, price competition is the most important way to gain a competitive advantage over rivals.

 

Small firms often rely on non-price competition when competing against larger firms.

 

One way firms can gain a competitive advantage without relying on low prices is by developing close, friendly relationships with their customers.

 

The pricing objectives of a firm should be set independently of the other elements of their marketing mix.

 

Gill’s Gadgets establishes the price it charges for its products by determining the cost of production and then adding on a desired profit margin. Gill’s strategy is known as target costing.

 

Rather than having frequent special sales, Walt’s Warehouse has a pricing strategy that maintains lower prices than competitors all the time. Walt’s pricing strategy is known as everyday low prices (EDLP).

 

Carlotta owns and manages the Carlite Car Wash. She charges $8 per car wash. Her fixed costs are $600 per month, while her variable costs per car wash amount to $2. Carlotta must wash 60 cars to break even.

 

Shuichi owns and operates his own sushi bar. His fixed costs would include rent, insurance, and property taxes.

 

Pattie Bunz operates the Zestee Burgers restaurant. The cost of pickles, onions, buns, catsup, and meat patties would all be considered variable costs for her type of business.

 

Miranda is a marketing manager for a large manufacturer. Her boss has asked her to evaluate a new product idea. One of the things Miranda wants to determine is how much of this product her firm would have to sell in order to break even. In order to compute this break-even level of sales, she will need to know the price of the good, the total fixed costs, and variable cost of producing each unit.

 

Webster Industries is one of the first producers of a unique consumer product. The company has chosen a low price strategy, hoping this will enable them to quickly attract many customers while discouraging potential competitors from entering the market. Webster’s approach to pricing is a classic example of the skimming strategy.

 

Admiral Motors is the dominant firm in the auto market. When Admiral announces an increase in the prices of its automobiles, Chord and Frysler, the smaller firms in the market, usually quickly announce similar price increases for their own cars. This situation is an example of demand-oriented pricing.

 

Grandpa’s Burger Haven sells a medium soda for $1.50, a “Single Meat” burger for $1.99, and onion rings for $1.83. However if you buy the “Single Meat Meal” the price is $5.00. Grandpa’s is practicing price bundling with the “Single Meat Meal.”

 

Budd’s Floral Shoppe is located in a large town that has several other florists. The owner, Rose Budd, is likely to find that the presence of many larger competitors means that the only way she can survive is to charge rock bottom prices.

 

Community Catering Services, Inc. advertises that they are the “friendliest caterers in town.” Their prices are no lower than the rates charged by competing caterers, but they put a lot of emphasis on getting to know the needs of their customers. They tailor their efforts to meet these needs, providing a unique dining experience that exactly matches the customer’s expectations. Community Catering is likely to find that this approach is more effective in achieving its goals than the use of aggressive price-cutting.

 

When consumers calculate the value of a product, they:

 

Whether a consumer thinks a product provides the best value depends upon:

 

Restaurants, like other businesses, often find that the best way to succeed in the market is to:

 

The “Spotlight on Small Business” box in Chapter 14 suggests the product offered by Dream Dinners is the:

 

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

 

When people consider purchasing a good, they:

 

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?

 

The combination of product lines offered by a manufacturer is called the firm’s:

 

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

 

The best product development strategy for most firms is to:

 

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:

 

Which of the following is the best example of a product line?

 

Sweet Dream Confectioners uses the same ingredients as most other producers of chocolate candies. In fact, taste tests suggest that the candy itself, while quite good, isn’t much better than other well-known brands of chocolate. However, the company wraps its candies in expensive looking foil and places them in very attractive boxes. It promotes its products in advertisements as “the ultimate in chocolate experience.” Sweet Dream charges a much higher price than most competitors, but sales continue to grow. This success indicates that:

 

In evaluating colleges, students and parents are likely to judge a school:

 

The Procter & Gamble (P&G) Company produces bar soap, disposable diapers, deodorants, laundry detergents, cookies, cake mix, shampoo, shortening, and many other products. These products are part of P&G’s:

 

Borden, Inc. makes pasta, dairy items, and adhesives. These different types of products are referred to as Borden’s:

 

The Procter & Gamble Company is a major producer of bar soaps. In fact, Procter & Gamble produces Ivory, Camay, Lava, Safeguard, Zest, and Coast bar soaps that all claim a variety of benefits. These products are part of Proctor & Gamble’s __________ in bar soaps.

 

The Coca Cola Company produces Diet Coke, Diet Coke with Splenda, and Coke Zero along with a number of other flavors. These products are part of Coke’s:

 

According to the “Spotlight on Small Business” box in Chapter 14, Let’s Dish and Dream Dinners have become successful in their market by:

 

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

 

For small businesses, product differentiation:

 

Location is very important in the marketing of ________ because consumers desire to purchase these goods with a minimum of shopping effort.

 

Which of the following are products consumers buy after comparing quality, price, and style from a variety of sellers?

 

__________ goods appeal to consumers who are willing to make an extra shopping effort to acquire them.

 

__________ goods and services represent those products that consumers are unaware of or haven’t thought of buying.

 

Products that are used in the production of other goods and services are called ________ goods.

 

__________ consists of major capital equipment such as new factories and heavy machinery.

 

Computers, copiers, and fax machines used by businesses would be classified as:

 

Successful product differentiation:

 

Which of the following would a firm most likely use to differentiate its product?

 

Which of the following products would normally be classified as a shopping good or service?

 

Which of the following statements regarding convenience goods and services is accurate?

 

Which of the following products would be considered an unsought good or service by a typical college student?

 

Buccaneer Industries manufactures and markets expensive industrial cranes. This long lasting heavy equipment would be classified as a(n) __________ good.

 

“I Can’t Believe That It’s Medicine” is an advertising slogan for a new antacid. The manufacturer claims that their antacid works faster and tastes better than any competing brand. These claims are part of the firm’s strategy to achieve:

 

As restaurant chains that specialize in Mexican cuisine, Fernando’s and Carmelita’s offer similar items on their menus. However, Fernando’s restaurants are positioned in the market as elegant establishments with high prices. Carmelita’s restaurants, on the other hand, are located in middle-class neighborhoods, with a casual atmosphere that welcomes families with young children. The prices at Carmelita’s are in the moderate range. When evaluating the marketing strategies used by these restaurants, we can conclude that:

 

Entice-mint Breath Mints is a new brand of breath fresheners. The company realizes that product location is very important since consumers desire to buy this type product with a minimum of effort. Entice-mint mints represent a:

 

Suits for Success is a men’s clothing store in a large suburban shopping mall. The managers of the store know that their customers usually comparison shop, looking carefully at quality and price before deciding to buy. Armed with this information, Suits for Success carries quality clothing, offers competitive pricing, and friendly, helpful service. The target customers apparently view men’s suits as a:

 

Karen is a collector of fine art, particularly paintings. She has been looking for an original Lady Molly painting for months and has said that she is willing to go to extraordinary efforts to acquire this painting for her collection. Clearly this painting represents a __________ good for Karen.

 

Which of the following products would most likely be classified as a specialty good or service?

 

June lives in the southern part of Alabama where winters are normally fairly mild. Last January, during an unusually cold spell, the water pipes in her house froze and burst. She had to look in the Yellow Pages to find a plumber who was able to come out and repair the pipes the same day. Prior to the frozen pipes, the plumber’s services represented a(n):

 

Soprano Manufacturing acquired several pieces of expensive heavy machinery it intends to use in its operations. As an industrial good, this heavy machinery represents:

 

_________ is an important part of the total product offer for a product.

 

Today, packaging is:

 

A recent trend in packaging is:

 

In marketing today, packaging carries the added responsibility of:

 

The __________ on packages were intended to improve inventory control for businesses.

 

The trend away from personal salespeople to self-service in many retail outlets has caused firms to:

 

Attracting attention, describing contents, explaining benefits and identifying the uses of a product are all functions of:

 

The evaluation of packaging as a marketing function indicates that:

 

Which of the following statements about packaging is the most accurate?

 

Which of the following statements is the most accurate assessment of the role packaging plays in product offerings?

 

A __________ is a name, symbol, or design (or combination of these) that identifies the goods or services of one seller or group of sellers and distinguishes them from those of competitors.

 

A brand that has been given exclusive legal protection, such as the McDonald’s golden arches is a:

 

From the buyer’s perspective, which of the following is a benefit of a product with a well-known brand name?

 

Which of the following is a benefit of a brand name for a seller?

 

When a brand becomes commonplace and identified with a category of goods rather than the unique product of a specific manufacturer, the brand may become a:

 

Non-branded products that sell below the price of national brands, have very basic packaging, and are backed with little or no advertising are called:

 

Knockoff brands are ________ copies of national brand-name goods.

 

Brand __________ refers to the loyalty, perceived quality, and emotions people associate with a given brand name.

 

The degree to which customers are satisfied and are committed to future purchases of a desired brand is called:

 

The rainbow colored apple is Apple Computer’s:

 

The brand names that are used by producers that distribute products nationally are called:

 

Which of the following refers to how quickly or easily a given brand name comes to mind when a product category is mentioned?

 

When consumers reach the point of brand ________, the product becomes a specialty good.

 

Products that carry the name of a distributor or a retailer instead of the manufacturer’s name are called:

 

Brand __________ refers to the linking of a brand to other favorable images, such as a celebrity.

 

A ________ has direct responsibility for all the elements of the marketing mix for one brand or product line.

 

One reason many large consumer-product companies make use of __________ is to have greater control over new-product development and product promotion.

 

The use of the Folgers’s ________ allows customers to easily identify this product from other coffee products.

 

The Pillsbury Doughboy is an example of a:

 

A street vendor selling Rolex watches at ridiculously low prices approached Ted. Ted, however, was suspicious that the watches were illegal ________ brands.

 

Sears sells batteries under its own Diehard brand name even though another company actually produces these batteries. This is an example of a:

 

Many supermarkets carry plain packages that only identify the name of the product that is inside. For example, a label may read simply “peaches” or “green beans.” These goods represent:

 

Certain brand names, such as Kleenex and Xerox, fear they could become _________, because they are so commonly identified with a specific product category that consumers use these names to refer to any product in that category regardless of the manufacturer.

 

Some businesses use nostalgic ads to rekindle the memories and emotions of consumers to an earlier time and place. This technique of linking a brand name to a pleasant memory or favorable image is the goal of brand:

 

One of the reasons why companies create the position of brand manager is to:

 

The job performed by brand managers:

 

Anheuser-Busch/In Bev Company, Inc. has been given the exclusive right to the name Budweiser and is legally protected from others using this name by the __________ they hold.

 

Green Giant Green Beans, Chevy Corvette, Coca Cola, Dole Pineapple, and Peter Pan Peanut Butter are all examples of:

 

In the “Thinking Green” box in the chapter, it’s become apparent that many companies are:

 

Federated Grocery Stores operates a large chain of stores across several mid-western states. While Federated doesn’t actually produce any canned foods, it markets a line of foods under its own brand name that were actually produced by another company. Federated canned foods represent a:

 

An advertisement for the Xerox Corporation encourages customers to say, “Copy it” rather than “Xerox it”. This indicates that Xerox is fearful that its brand name might become a(n):

 

Business sponsorship of events, such as the Winston-Salem stock car races or NASCAR’s Nextel Cup Series, is intended to increase:

 

Using a sports or movie celebrity as a spokesperson for your product is an attempt to build favorable:

 

SneezeNoMore markets a group of similar products for people suffering from the common cold. The products in this line are sold under the brand name SneezeNoMore. The products differ mainly in the strength of the dosage and in whether they also contain additional medications to help the consumer sleep. As an employee of SneezeNoMore, Jill is responsible for the marketing mix for the company’s products. She is also involved in any major decisions concerning the development of new products that will be included in this product line. Jill serves as a(n):

 

As a manager at Excitement Foods, Mark is responsible for the firm’s Kool’nKreamy brand of ice cream. Recently, he approved a proposal to test market new ice cream flavors. He is also considering the possibility of lowering the price of the ice cream and initiating a new advertising campaign. Mark appears to be a(n):

 

A leading cause of new-product failure is:

 

Which of the following is considered a stage of the new-product development process?

 

__________ presents an idea for a new product to potential customers to test their reactions.

 

___________ is the stage of new product development that involves promoting a product to distributors, and developing advertising and sales campaigns in order to generate and maintain consumer interest.

 

The greatest source of ideas for new products is:

 

Product screening is designed to:

 

Which of the following is a relevant criterion for the product screening process?

 

“If you create a better mouse trap, the world will beat a path to your door.” This statement ignores the need for which step in the new-product development process?

 

As a brand manager, Ellen has proposed an aggressive advertising campaign that exaggerates the benefits of their newest product. While Ellen is convinced that this strategy will encourage consumers to try the product, her assistant strongly opposes the idea. Which of the following presents the best explanation for the assistant’s opposition to Ellen’s proposal?

 

Kathy works as a manager at Fantastic Fabricators. The innovative staff at the company is regularly encouraged to suggest ideas for new products. Since Cathy works in product screening, she:

 

The ____________ is a theoretical model that describes the sales and profit performance of a product class over time.

 

The product life cycle consists of __________ stages.

 

The stages of the product life cycle are:

 

The four-stage theoretical model that describes the evolution of a product from birth to death is referred to as the:

 

According to the product life cycle model, sales are expected to peak in the _________ stage.

 

According to the product life cycle model, profits tend to:

 

The product life cycle model helps marketers realize that:

 

Which of the following is a stage in the product life cycle?

 

As a product progresses through each stage of the product life cycle, successful marketers recognize that each stage requires:

 

When reviewing the product life cycle model, it is important to remember that:

 

Once a good or service nears the end of its product life cycle, the firm recognizes that:

 

Which stage of the product life cycle is characterized by rapidly rising sales, very high profit levels, and a growing number of competitors?

 

Which of the following is expected during the maturity stage of a product life cycle?

 

Which of the following is consistent with the introduction stage of the product life cycle?

 

During the ________ stage of the product life cycle sales reach a peak, profits are declining, and the number of competitors starts to decrease.

 

Which of the following is consistent with the growth stage of the product life cycle?

 

Which of the following is a characteristic of the decline stage of the product life cycle?

 

Currently, which of the following products would most likely be considered in the growth stage of the product life cycle?

 

Sales of cell phones in the United States are still increasing, but the rate of growth has slowed. Sales are expected to peak somewhat soon in the U.S. Based on this information, cellular phones are in what stage of the product life cycle in the U.S.?

 

Sales levels of Armstrong mountain bikes are rising rapidly, profits are very high, and a growing number of competitors are taking aim at Armstrong’s market lead. Based on this information, Armstrong mountain bikes are in which stage of the product life cycle?

 

Dewy, Cheatem, and Howe’s promotional efforts are intended to increase the public’s awareness of its new product’s benefits and uses. This effort is consistent with the ________ stage of the product life cycle model.

 

Which of the following is a popular pricing objective?

 

Pricing is:

 

Supermarkets and discount stores often advertise products at prices at or below their cost to attract people to the store. These products represent:

 

Producers often use ________ as a primary basis for setting prices on the goods and services they offer the public.

 

__________ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm.

 

A competition-based pricing strategy called __________ involves one or more dominant firms establishing the pricing practices that all competitors in an industry follow.

 

__________ is the process used to determine the profitability of a product at various levels of sales.

 

Costs incurred regardless of the number of units of a product that are produced or sold are called:

 

_______ costs are those costs that increase as the level of production increases.

 

The number of units of a product that must be sold for total revenue to equal total costs is called the:

 

At the break-even point:

 

Which of the following represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and attempts to discourage competitors?

 

_________ uses price points to establish prices that help create the impression that the product is less expensive than it is.

 

A skimming pricing strategy:

 

The _________ pricing strategy maintains low prices and avoids the use of special sales.

 

Department stores often use _________ pricing in which they have regular prices which are relatively high, but offer special sales where prices are set lower than competitors.

 

Charging high prices to earn large profits during a time when there is little competition represents a ________ strategy:

 

A competition-based pricing strategy in which all the competitors in an industry follow the pricing practices of one or more dominant firms is known as:

 

Which of the following strategies establishes a price based on the actions of rival firms?

 

The strategy of charging prices based on consumer demand rather than cost or a predetermined profit margin represents:

 

The Internet has ________ the intensity of price competition.

 

Which of the following product attributes is least emphasized on television ads?

 

Firms utilize ________ when they attempt to add value to their product by offering service after the sale, product demonstrations, or interactive customer Web sites.

 

One way a small firm can succeed against larger competitors is to:

 

One of the reasons marketers emphasize non-price differences in their competitive strategies is because:

 

Phil asks you to calculate the break-even point for his firm. You respond that you will need the following information:

 

As firms develop their marketing mix, it is important to remember that:

 

In the “Reaching beyond Our Borders” box in the chapter, Don Johnson, owner of gourmet chocolate company Choco-Logo, found out that in his market:

 

The cost of raw materials used to produce a good or service represent the firm’s ________ costs.

 

Phar-out Pharmacy will advertise a price of an over-the-counter drug at or below their cost. The intended goal of this loss leader strategy is to:

 

The strategy of first determining what the market is willing to pay, then subtracting a desired profit margin to determine a desired cost of production is called:

 

The formula for break-even analysis includes which of the following components?

 

The rent a firm pays each month for office space is an example of a(n):

 

Which of the following is a potential problem with a high-low pricing strategy?

 

American Building Products is the largest cement company in the Midwest. When the firm raised its prices by 8 percent, all of its competitors soon announced they too were raising their prices by 8 percent. It appears this industry is influenced by a ________ strategy:

 

The Internet allows customers to compare prices of many goods and services. This technology will likely:

 

Many products are promoted by emphasizing their key benefits, rather than setting the price lower than that of competitive goods. This emphasis on the product’s benefits illustrates a(n) _______ strategy.

 

Which of the following statements about non-price competition is most accurate?

 

Virtual Electronics is considering a strategy to charge a very high introductory price for their automobile video theater. After identifying that their rival firms did not carry this new product, they chose this pricing strategy to achieve maximum profits. Virtual Electronics has chosen a ________ strategy.

 

Barker Brothers Pens utilizes a strategy of low priced pens to attract customers and discourage competition. This represents a _______ strategy.

 

What does a break-even point of 100 units mean to a firm?

 

Jian has entered into a contract with the federal government to design a computer simulation model for training helicopter pilots. The contract calls for the final price to be set at a fixed percentage profit over and above her cost of production. This seems to represent a:

 

Helen is considering adding a rack of greeting cards to her product offerings at Litton Books Unlimited. Her fixed costs associated with adding the greeting cards would be $300. Variable costs per card are $1 each. The greeting cards will sell for $2 each. Helen’s break-even point would occur at ________ cards sold.

 

Felicia wants to know how many units she must sell to cover all of her costs. She indicates to you that her selling price is $20 per unit, her fixed costs are $6,000, and the variable costs per unit are $15. What is her break-even point?

 

Angie owns a small company that markets high quality office supplies to businesses. Angie faces stiff competition from some much larger firms like Office Depot. Which of the following competitive strategies would probably work best for Angie?

 

Operating in the southwestern states, Lancer Airlines hopes to avoid entering the price war that currently is taking place between several airlines on the east coast. The best strategy to avoid severe price competition is to:

 

Mini-Case

Gourmet Pets is an innovative competitor in the billion-dollar pet food industry. In fact, two of its products, Kitty Sirloin and McDog Tbone, each claim over a 30% share in their market segments. The company has done detailed research and discovered that, for a growing number of pet owners, the family pet serves as a “baby substitute.” These owners tend to pamper their pets, and are very discriminating in what they purchase. With this in mind, the company has put a great deal of effort into developing a new dog food: Prime Cuts. The new product is packaged in a resealable, microwaveable container and can be purchased in a variety of flavors (including Western BBQ, Teriyaki, Australian Outback, and Hickory Smoked.) Gourmet Pets promotes the product as far superior to “average” dog foods, even though the quality of meat and nutrient content of the food is virtually identical to many other brands. The company faces no competition in this market segment so it plans to charge a high price for the product.

 

The company currently markets McDog T-bone, Lapdog Lunchtreats, Rover’s Potroast, and Puppy Porterhouse in the dog food market. Prime Cuts will be an addition to the company’s ___________ in the dog food market.

 

Gourmet Pets hopes to use its special packaging and extensive advertising to create a perception in the minds of consumers that Prime Cuts is a superior product, even though the actual quality of meat used in the product is virtually no different from competing brands. The company is attempting to develop:

 

Prime Cuts was the brainchild of Karen Terrier who guided all the marketing efforts of the product. She selected each element of the marketing mix such as the package, brand name, pricing, promotion, and placement decisions. Karen obviously serves in the job of:

 

Gourmet Pets is interested in computing the break-even point for its new product Prime Cuts. The fixed costs of adding this product to the product line amounts to $20,000. Variable costs to produce one package of Prime Cuts are $2. Prime Cuts will sell for $6 per package. The break-even point would be:

 

Gourmet Pets feels its target market is more concerned with perceived quality than actual product cost. They also feel that the newness of this concept offers an opportunity to make high profits since they are the first firm to enter this market, so they face no direct competition. Their decision to charge a high price is consistent with the ________ strategy.

 

Organizations that assist in moving goods and services from producers to business and consumer users are called supply-side transition specialists.

 

Agents and brokers and wholesalers are types of marketing intermediaries.

 

Wholesalers are marketing intermediaries who sell goods or services to ultimate consumers.

 

A channel of distribution consists of the marketing intermediaries who join together to transport and store goods in their path from producers to consumers.

 

Brokers are marketing intermediaries that do not take title to the goods they help distribute.

 

Retailers are marketing intermediaries who sell to ultimate consumers.

 

Some manufacturers sell directly to consumers or businesses rather than relying on marketing intermediaries.

 

Agents are marketing intermediaries who take title to the goods they distribute and provide credit to customers who need it.

 

Manufacturers are usually able to perform marketing functions such as transporting, advertising, and storing, faster and more cheaply than marketing intermediaries.

 

One way marketing intermediaries improve marketing efficiency is by reducing the number of exchange relationships necessary to move goods through the channel of distribution.

 

Some economists would say that intermediaries add costs to the channel of distribution and need to be eliminated.

 

Marketers claim that intermediaries add value to the channel of distribution that outweighs the cost.

 

Marketing costs make up less than 25 percent of the total cost of the goods consumers buy.

 

The activities performed by most marketing intermediaries are not essential to the marketing process.

 

The best way to reduce the cost of goods is to eliminate marketing intermediaries from the distribution channel.

 

Marketing intermediaries have survived because they have been able to perform marketing functions more efficiently and effectively than a manufacturer or consumer could perform these functions.

 

The costs added by marketing intermediaries usually outweigh the value they create.

 

Jessica Talmadge is a real estate agent who brings together the buyers and sellers of houses and commercial property. Jessica helps the parties negotiate the terms and conditions of real estate sales, but she does not take title to the property, provide credit, or assume any risks associated with the exchanges she helps negotiate. Because Jessica provides only limited services, she is not a true marketing intermediary.

 

Sav-U-More Grocery Store sells a wide range of foods and household supplies to households in Miller’s Creek, a suburb of a large city. The store advertises that its prices are much lower than the prices charged by larger supermarket chains in the area. This low price approach means that Sav-U-More is a classic example of a merchant wholesaler.

 

Although Helpusell brings together buyers and sellers and helps negotiate exchanges, it does not actually take title to any of the goods being traded. Helpusell would be classified as an agent or broker.

 

Most marketing intermediaries have survived in the past because consumers were unaware of how much these companies add to the cost of distributing goods.

 

In the Spotlight on Small Business box in the chapter, Copart has found a ready market for its salvaged cars in the United States but has been unable to find a market globally due to distribution problems.

 

An effective channel of distribution does more than simply ensure that goods are transported efficiently from producer to buyer.

 

Marketing intermediaries must charge a price for the functions they perform. Thus, a surefire way to reduce distribution costs is to eliminate marketing intermediaries from the channel of distribution.

 

Currently, Halperin Electrical sells directly to thousands of industrial customers. Halperin could reduce the number of exchange relationships by including wholesalers in its channel of distribution.

 

Hartselle Home Products, Inc., manufacturers a variety of inexpensive household gadgets. The company has decided to cut costs by eliminating all of the marketing intermediaries who help distribute its products. Hartselle will be able to reduce its total marketing costs by eliminating the marketing functions these intermediaries perform.

 

To marketers, the term utility refers to the value added to goods or services by organizations when they make the product more useful or accessible to consumers.

 

Marketers provide a total of four types of utility: primary, secondary, marginal, and total.

 

Producers normally provide form utility, but retailers sometimes also provide this type of utility.

 

Marketing intermediaries concentrate on providing mainly form, time and place utility, while producers focus on the provision of possession, information, and service utility.

 

Delivery, installation, and follow-up services are the most common ways that marketing intermediaries provide information utility.

 

One way that marketers can provide utility is by making sure the good is available at a location that is convenient for consumers.

 

Marketers tend to concentrate on providing form utility, and rely on production workers, accountants and financial managers to provide other types of utility.

 

Salespeople can be important providers of information utility.

 

Form utility has become the most important utility provided by retailers.

 

A key way for traditional retailers to compete with direct marketing is by providing outstanding service utility.

 

Marketers normally provide form, time, place, information and service utility, but they are seldom involved in providing possession utility.

 

Providing buyers with credit terms such as “90 days same as cash” is a way marketing intermediaries can provide time utility to customers.

 

In today’s competitive market environment, traditional retailers will need to put more emphasis on providing form and place utility, and less emphasis on service utility.

 

Once the final customer has taken title to a good, marketing intermediaries no longer are involved in providing utility to the customer.

 

Jack Deck is a computer salesperson for a major retail electronics chain. When he advises customers to help them select a computer that will meet their needs, Jack is providing information utility.

 

Frank Crimmins was driving on Interstate 85 in eastern Alabama when he noticed he was running low on fuel. Frank was relieved when he found a gas station open at the next exit just 2 miles ahead. This is an example of the value place utility provides to a consumer.

 

Some marketing intermediaries make both wholesale and retail sales.

 

A retail sale is a sale to a consumer of products for his or her own use.

 

The sale of goods to a business purchasing the items for resale is a wholesale transaction.

 

A firm that makes wholesale sales cannot also legally make retail sales.

 

Merchant wholesalers do not take title to the goods they handle.

 

About 80 percent of all wholesalers are classified as merchant wholesalers.

 

The two main types of merchant wholesalers are storage wholesalers and distribution wholesalers.

 

Limited-function wholesalers are a type of merchant wholesaler.

 

Cash-and-carry wholesalers and drop shippers are both classified as limited-function wholesalers.

 

Rack jobbers furnish racks or shelves full of merchandise to retailers and keep title to these goods until they are sold.

 

Rack jobbers sell goods on consignment, splitting the profits from their sales with a retailer.

 

Although drop shippers own merchandise they have shipped to buyers, they do not actually handle, stock, or deliver this merchandise themselves.

 

Drop shippers are wholesalers that stock heavy or bulky items and transport them to retail stores.

 

Drop shippers are limited function wholesalers that typically put together many small shipments to form a single larger shipment.

 

Cash-and-carry wholesalers are limited-function wholesalers that serve mostly smaller retailers with a limited assortment of products.

 

The main difference between agents and brokers is that agents perform a wide array of marketing functions while brokers only negotiate exchanges between buyers and sellers.

 

As long as they do not represent competing products, manufacturer’s agents can represent more than one manufacturer in a given sales territory.

 

A key distinction between agents and brokers is that agents tend to maintain long-term relationships with the people they represent whereas brokers are hired on a temporary basis.

 

A sales agent is an agent who represents the interests of the consumer in a particular territory when negotiating terms of purchases made directly from a producer.

 

A full-service wholesaler will provide suppliers with market information they can’t afford or can’t obtain themselves.

 

Wholesalers may provide market information and business consulting services.

 

Larry and Dale Ingram solicit orders for lumber from area wholesalers and retailers specializing in building supplies and arrange to have the orders shipped directly from nearby logging companies. Larry and Dale operate as drop shippers.

 

Henry Hart supplies shelves of inexpensive plastic toys to grocery stores, supermarkets, and drug stores. He keeps title to the goods until they are sold and then splits the profits with the retailer. Henry works as a drop shipper.

 

Barbara Dixon operates a small business out of her home. She makes a trip to a local Riteprice Office Supply about once a month to buy computer and office supplies for her business. The prices at the Riteprice are very low, but it does not offer credit or delivery services. Riteprice is a cash-and-carry wholesaler.

 

Merrill helps growers of fresh fruits and vegetables negotiate sales to food processing companies. However, once he has helped negotiate the transaction, he does not maintain a long-term relationship with the growers. Merrill is an example of a sales agent in this market.

 

Melanie is a broker who has just helped negotiate a major deal. As a broker Melanie can expect to earn a fixed amount of profit for her efforts regardless of the dollar value of the contract she negotiated.

 

Retail organizations employ more than 11 million people in the U.S.

 

Discount stores, department stores, supermarkets, and specialty stores are all among the major types of retail stores.

 

Department stores offer a wide variety of products that are sold in separate departments.

 

Warehouse clubs compete with enhanced service to customers and seldom try to compete on price.

 

Discount stores compete in the retail market mainly on the basis of price.

 

A category killer is an extremely successful product that kills the sales of other products in its category in a retail store.

 

Specialty stores use a wide variety of products in one product category as their key competitive tool.

 

Category killer stores tend to compete mainly on the basis of carrying a wide array of products, superior service, and low prices.

 

Warehouse clubs are usually smaller than supermarkets.

 

Discount stores and department stores sell different brands of products that are usually priced about the same.

 

Exclusive distribution is the use of only one retail outlet in a given geographic area.

 

Candy, gum, cigarettes, and popular magazines are usually distributed using a selective distribution strategy.

 

A distribution strategy that puts the product into as many retail outlets as possible is known as an intensive distributive strategy.

 

Producers of shopping goods such as furniture, appliances, and clothing usually rely on an exclusive distribution strategy.

 

An advantage of a selective distribution strategy is that consumers are able to find a popular product at a wide variety of retailers.

 

Retailers that participate in an exclusive distribution strategy will have a strong incentive to carry a large inventory of the good and provide exceptional service to customers.

 

In order to succeed in today’s tough economic times all retailers must compete with low prices.

 

Words 4 Hire is a nationwide chain of stores that offers such a huge selection of paperback and hardback books at such competitive prices that small local bookstores have a hard time competing with them. Words 4 Hire is best classified as a discount store.

 

Saul-Mart is the name of a new chain of discount stores. A major part of Saul-Mart’s competitive strategy is likely to be based on keeping its prices lower than those of other types of retailers.

 

Soundworthy Stereo is a producer of high quality speakers and stereo components. The company sells its products through a few preferred retailers in any geographic area. Soundworthy uses a selective distribution strategy.

 

The main difference between selective distribution and exclusive distribution is the number and type of market segments the firm chooses. In a selective strategy, a variety of profitable niche markets are selected, while in an exclusive strategy one specific market segment is targeted, and all others are excluded.

 

The Newsville City Press is a daily newspaper serving a city with a population of just over 200,000. The publishers have placed vending machines for their paper throughout Newsville and its suburbs. They also sell their papers at most of the supermarkets, convenience stores, bookstores, and drug stores in the area. The Newsville City Press uses an intensive distribution strategy.

 

The owners of the TriCities Mall recently renovated the mall’s interior. Much of the interior of the Mall was made to look like scenes from famous movies. The mall also hired employees to dress like characters from these movies. There are many types of shops in the mall, including six different jewelers, however only one jeweler carries the very expensive Romex brand of watch that appeals to customers who are looking for status in their jewelry. Romex is practicing exclusive distribution by placing its brand in only one store in a given area.

 

Firms that rely on electronic retailing are almost guaranteed success because they give companies easy access to literally millions of consumers all over the world.

 

Electronic retailing is selling goods and services over the Internet to the final consumer.

 

Because of delivery issues and problems with communication, Internet sales are predicted to decline to $150 billion by 2008.

 

Some Web sites are trying to improve their service by providing assistance from a real person.

 

A large number of traditional retailers have developed online sites in recent years, giving customers a choice of shopping techniques.

 

Traditional retailers that have begun using the Internet to supplement their physical stores are finding that the Internet not only provides a new way to sell goods, it also requires a new system to distribute goods.

 

Telemarketing is the sale of goods and services by telephone.

 

Vending machines are used primarily to sell goods where consumers have little interest in convenience.

 

Mall owners tend to like kiosks because they create a marketplace atmosphere.

 

One drawback of kiosks is that their high overhead costs result in low profit margins.

 

Direct selling is a distribution strategy that makes extensive use of the Internet and telephone.

 

Because so many people work outside the home and aren’t at home during the day, companies that use direct selling are sponsoring parties at workplaces to sell their products.

 

In multilevel marketing, salespeople not only sell the product, they also recruit other people to sell the product.

 

In multilevel marketing “upliners” recruit “downliners” and receive a commission on the sales their downliners make.

 

The major disadvantage of multilevel marketing is that the high entry cost for most sellers means that only relatively wealthy individuals can use this approach.

 

Although there have been some unethical firms involved in multilevel marketing, this form of retailing remains quite successful.

 

Direct marketing involves having a salesperson visit the customer’s home or place of business.

 

A major advantage of direct marketing is that it is a very convenient way for consumers to shop.

 

Telemarketing, catalog sales, and online shopping are all examples of direct marketing.

 

In the battle between electronic retailers and traditional “bricks and mortar” retailers, the electronic retailers seem to have all of the advantages needed to emerge as the clear winners.

 

Many firms that want to use an intensive distribution strategy would find vending machines an attractive method of selling their goods.

 

Fancy Feet sells high quality socks and stockings by sending catalogs to customers and offering them a toll-free telephone number so that they can call in their orders 24 hours a day any day of the year. Fancy Feet uses telemarketing.

 

Direct selling has all but disappeared as a major form of nonstore retailing because the trend toward two-income households means fewer opportunities for selling in the home.

 

In multilevel marketing, salespeople have little incentive to recruit new salespeople, because the new salespeople may compete against them and reduce their income.

 

Chris Cole is a salesperson for Green Scene Lawn Care products. Chris’ job requires him to sell Green Scene products, but he is also expected to recruit more salespeople for the company. He will earn a commission on all of the sales earned by the salespeople he recruits. Green Scene is using a retail distribution strategy known as multilevel marketing.

 

An important reason for the popularity of direct marketing is that many people enjoy developing a personal relationship with a salesperson that comes directly to their home or place or work.

 

Traditional retailers can stay competitive with online retailers by being part of a unified system of distribution.

 

There are four specific types of channel systems available to companies that tie firms together in a unified way.

 

In a corporate distribution system one firm owns all of the organizations in the distribution.

 

Corporate distribution systems consist of several independently owned intermediaries, all of them organized as multinational corporations.

 

A problem with the corporate distribution system is that the manufacturer has very little control over the operations of the retailers and other marketing intermediaries in the system.

 

Franchise systems, wholesaler-sponsored chains, and retail cooperatives are all forms of contractual distribution systems.

 

One advantage of a franchise system of distribution is that it results in a consistent level of quality and service.

 

In retail cooperatives, the members of the distribution system are bound to cooperate by a contractual agreement.

 

Wholesaler-sponsored chains consist of stores that are all owned by a single corporation.

 

Retailers agree to cooperate with producers in administered distribution systems because the producers provide extensive marketing services to the retailer for free.

 

In an administered distribution system, retail stores manage all of the marketing functions at the retail level.

 

The entire collection of organizations that move goods and services from the source of raw materials to the final consumer is referred to as the supply chain.

 

Because supply chains are so complex, firms have found it difficult to outsource supply chain management.

 

The process of managing the movement of raw materials, parts, work in progress, finished goods, and related information through all of the organizations involved in the supply chain in a timely manner is called multi-modal management.

 

Supply chain management manages the movement of relevant information as well as the movement of parts and finished goods through all organizations involved in the supply chain.

 

Supply chain management not only deals with the movement of materials, parts, and finished goods, it also manages the return of goods and recycling of materials when appropriate.

 

Imaginex Toys, Inc. produces toys designed to stimulate the imaginations of young children. In order to control all of the marketing operations, Imaginex owns all of the organizations in the channel of distribution for its toys, including a chain of Imaginex retail stores. The approach taken by Imaginex is known as an administered distribution system.

 

Even though all of the hardware stores that operate under the name of Hardie’s Hardware are independently owned and managed, they have signed an agreement to participate in chain promotions, and cooperate as a unified system of stores. The Hardie’s Hardware stores are using a distribution system known as a wholesaler-sponsored chain.

 

Hi! Notes Card Shops has been approached by Novel Teas, a producer of herbal teas and exotic spices. Novel Teas wants to sell its products in the Hi! Notes stores under an administered distribution system. If Hi! Notes accepts Novel Teas proposal, it will perform many marketing services for the tea maker in exchange for a flat fee.

 

Lazee Ladd Furniture obtains materials from several suppliers and uses these materials to produce its goods. It relies on several marketing intermediaries to help it distribute the furniture. Together, Lazee Ladd, its suppliers, and the marketing intermediaries are all part of a supply chain.

 

In the Reaching Beyond Our Borders box in the chapter, Coca-Cola found out that more than 80 percent of the developing world’s customers buy products from very small entrepreneurs rather than larger stores.

 

For a supply chain to be efficient, all of the activities must be performed by organizations that are owned by the manufacturer.

 

Denise Shipman works in the marketing department of a major manufacturing firm. She spends a great deal of time trying to coordinate the movement of materials, parts, finished goods, and information through all of the organizations involved in the distribution process. These activities suggest that Denise’s job responsibilities focus on supply chain management.

 

Logistics involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption.

 

With the current emphasis on product development, pricing, branding, and promotion, the physical distribution of materials and goods is no longer a major concern of marketing.

 

Trade compliance systems help marketers manage problems with the process of moving goods through customs.

 

Materials handling is that part of logistics that deals with moving goods within the warehouse, from the warehouse to the production floor, and to various work stations along the production process.

 

Inbound logistics is concerned with the flow of finished products from the manufacturer to the final consumer.

 

Inverted logistics is the term used for the activities involved in bringing products back to the producer due to defects or for recycling of materials.

 

Third-party logistics is the term used to describe the use of outside firms to help move goods from here to there.

 

Logistics is concerned with the flow of information as well as with the flow of goods.

 

The basic transportation service criteria are speed, cost, dependability, flexibility, frequency, and reach.

 

In the U.S. the largest percentage of goods is shipped by truck.

 

Water transportation is the least expensive way to send goods overseas.

 

Water transportation has declined to the point where it now accounts for a very small part of transporting goods.

 

Water transportation has benefits and drawbacks; for example it is inexpensive but slow.

 

A value of shipping by truck is that trucks can deliver small shipments to remote locations.

 

When truck trailers are placed on rail cars to travel long distances, the process is known as leapfrogging.

 

Pipelines are used primarily to transport water, petroleum, and petroleum products.

 

Pipelines move liquid products very efficiently and can even move products like coal.

 

Railroads are an energy-efficient mode of transporting many types of goods.

 

Although air transport currently accounts for only a small percentage of all shipments, it has become a critical mode in many industries.

 

The air freight industry is starting to focus on global distribution.

 

The use of multiple modes of transportation to complete a single long-distance movement of freight is known as multi-carrier shipping.

 

Services that specialize in intermodal shipping are known as intermodal marketing companies.

 

A freight forwarder breaks one large shipment into multiple small shipments so that it can be transported by trucks or aircraft with limited cargo capacities.

 

Some freight forwarders offer warehousing and customs assistance.

 

There are three major types of warehouses: centralized, dispersed, and mode-specific.

 

A distribution warehouse stores products for relatively long periods of time.

 

Seasonal goods are kept in storage warehouses.

 

Suppliers to large retailers like Target and Wal Mart may soon be required to use RFID tags when shipping products to these companies.

 

Because some of its key suppliers have been late with their shipments of materials and parts, Marnex Enterprises has had to shut down its manufacturing plant for several hours twice in the past week. These difficulties indicate that Marnex has done a poor job in managing its inbound logistics.

 

Clay Gates is a distribution specialist who has been looking at ways to improve the flow of parts and materials from his company’s warehouses to the production line, and the movement of work in process throughout the company’s factories. These efforts suggest that Clay’s primary interest is in improving his company’s inbound logistics.

 

Corinne is a marketing manager who specializes in logistical problems. In her position, Corrine is likely to focus mainly on managing the flow of goods, and leave issues about how to manage the flow of information to managers in other areas of marketing.

 

Zintelle, Inc. is a large manufacturing firm. It has recently reached an agreement with an intermodal marketing company to significantly reduce the cost of shipping its finished goods to some major business customers. This agreement will help Zintelle reduce the costs associated with outbound logistics.

 

An increase in energy prices would encourage shippers to rely more on rail transportation.

 

Freight forwarders are particularly useful to large firms who must ship very large quantities on short notice.

 

The use of pipelines should decline in the future because this mode is suitable only for shipping petroleum.

 

According to the Thinking Green box in the chapter, buying products from local producers is the real key to reducing carbon footprints.

 

Small-timers, Incorporated is a small manufacturer of charm bracelets that include watches as well as keepsake items and trinkets. The company seldom has shipments large enough to be transported cost-efficiently by filling an entire truck or railcar. Smalltimers could benefit by relying on a freight forwarder to help it distribute its goods.

 

The main difference between storage warehouses and distribution warehouses is that storage warehouses are relatively small, specialized facilities used to store one particular type of good for short periods while distribution warehouses are large facilities used to store a wide variety of goods for longer periods of time.

 

Childress Manufacturing wants to ship a large quantity of its goods across the country. They have contacted Grunwell Shipping, Inc. to find out what the shipment would cost. Grunwell has shown Childress how a combination of barges, trains, and trucks could be used to complete the shipment at low cost. Grunwell’s strategy is an example of intermodal shipping.

 

Qwikship is a new delivery company that wants to compete against FedEx and UPS in the United States, Canada, and Mexico. One of the keys to Qwikship’s success will be the ability to establish large storage warehouses at a few key locations throughout North America.

 

Those organizations that assist in the movement of goods and services from producer to industrial and consumer users are known as:

 

A(n) ____________ consists of the marketing intermediaries that transport and store goods as they move through their path from producer to final user.

 

A _________ is a marketing intermediary that sells products to other organizations.

 

A __________ is a marketing intermediary that sells to ultimate consumers.

 

A (n) _________ is one type of marketing intermediary that brings together buyers and sellers and assists in negotiating an exchange, but does not take title to the goods.

 

Marketing intermediaries:

 

About __________ of the cost of things we buy are marketing costs that go to pay for distribution costs of intermediaries.

 

In the distribution process, the largest percentage of the retail price goes to:

 

Which of the following statements about channels of distribution is most accurate?

 

The primary difference between retailers and wholesalers is that:

 

Which of the following statements about marketing intermediaries is true?

 

Nina Corby owns a card shop in a small shopping center where she sells cards produced by a national company. Nina sells to final customers, so she is a(n):

 

Patrick Bolger is convinced that his product idea has tremendous potential. He has decided to produce the product himself, but plans to use other firms who specialize in storing and transporting to help him move the product along its path to the final consumer. These specialists Patrick uses will be part of his:

 

Suppose that eight bakeries each tried to sell their products directly to seven supermarkets. The total number of exchange relationships that would be established is:

 

Mark A. Teer believes he has found a surefire way to save money. He advises his friends, “Buy direct from the manufacturer. Any time intermediaries get involved, you’ll pay a higher price. After all, every intermediary involved in the marketing process must charge enough to earn a profit.” Mark’s advice:

 

Robbie Veath brings together buyers and sellers of used heavy construction equipment, and helps them negotiate the terms of the sale. However, Robbie never actually takes title to any of the equipment himself, nor does he provide any financing for the buyer. Robbie is acting as a(n):

 

In the Spotlight on Small Business box in the chapter, Copart’s process of salvaging cars doesn’t end until:

 

Sharp Focus Cameras is facing intense competitive pressure. Top marketing managers are looking for ways to cut costs. They are considering a plan to cut distribution costs by eliminating marketing intermediaries from the channel of distribution. If Sharp Focus carries out this plan, it is likely to find that:

 

__________ is the value or want-satisfying ability that is added to products by organizations that make the product more useful or accessible to consumers.

 

__________ utility is usually provided by producers rather than marketers.

 

The types of utility commonly provided by marketing intermediaries include:

 

When marketing intermediaries perform the steps necessary to transfer ownership from one party to another, they are providing _________ utility.

 

Placing ads in newspapers and having knowledgeable salespeople to answer customers’ questions are ways marketing intermediaries can provide:

 

One way a store selling high-def televisions might add ________ utility is to provide convenient delivery and set up to customers.

 

Marketing intermediaries add ________ utility to products by having them available when consumers want them.

 

_________ utility adds value to goods by having them available where people want them.

 

Retailers who have stores at convenient locations are trying to add value by:

 

One way traditional retailers have maintained customers in the face of increasing competition from online sellers and other direct markers is to place more emphasis on providing _________ utility.

 

Marketing intermediaries can provide _________ utility by offering customers affordable credit, free delivery, and product guarantees.

 

Stores that remain open 24 hours a day, seven days a week are providing _________ utility to their customers.

 

WeddingChannel.com is an Internet company that helps people with the complex task of planning a wedding. Multiple vendors are recommended for things like flowers, caterers, wedding gowns, and more. Through Wedding Channel a couple can establish a website that acts as a registry. Once the couple is married, the website directs them to another site having to do with beginning married life. What type of utility (utilities) is this website providing to its users?

 

E-Gadgets is a chain of electronics stores that specializes in devices and gadgets incorporating cutting-edge technologies. The company has more than 170 stores located in large cities throughout the Southeast and Midwest. E-Gadgets has chosen the locations of its stores so that most customers living in upper middle class and wealthy neighborhoods can get to an E-Gadgets store in less than 15 minutes. E-Gadgets is providing its customers with:

 

Hottaire Heating and Cooling offers customers who buy air conditioners and furnaces free delivery and low installation charges. The company also offers a free follow-up inspection of the new equipment one month after it is installed. These services are ways that Hottaire provides its customers with __________ utility.

 

Which of the following statements about service utility is most accurate? Service utility is:

 

At Stockman’s Butcher Shop the butchers will hand cut steaks to the thickness their customers specify and trim off the excess fat. This extra service provides ________ utility.

 

____________ wholesalers are independently owned and take title to the goods they handle.

 

The two basic types of merchant wholesalers are:

 

___________ are merchant wholesalers who perform all of the distribution functions.

 

Marketing intermediaries that solicit orders from retailers or other wholesalers and have the products delivered directly from the producer to the buyer are known as:

 

___________ are limited-function wholesalers who furnish shelves full of merchandise to retailers who sell these items on consignment.

 

Limited-function wholesalers that mainly serve small businesses by selling them a limited assortment of goods are known as:

 

Unlike merchant wholesalers, ___________ never actually own the goods they help to distribute.

 

__________ may represent several producers in a specific territory, as long as they do not represent competing products.

 

The main way __________ differ from agents is that they do not develop long-term relationships with the buyers or sellers they assist.

 

Paper ‘N More sells a variety of office supplies to small businesses and local offices. The fact that it sells only to other firms and not consumers indicates that Paper ‘N More engages only in:

 

Which of the following activities would a drop shipper be most likely to perform?

 

Which of the following statements provides the most accurate distinction between an agent and a broker? Agents:

 

Rita Sauer stocks several local supermarkets and discount stores with Luminaire Cosmetics. She sets up displays of various cosmetic products carrying the Luminaire brand name, and sells the goods on consignment, sharing any profits on the sales with the retailer. Rita is a:

 

Comstock Coal Distributors does not mine coal itself. In fact, the firm does not even store or handle coal. Instead, Comstock solicits orders for low sulfur coal from other firms, then purchases the required amount from suppliers and directs them to ship the coal to its customers. Comstock is a:

 

Which of the following would be classified as a limited-function wholesaler?

 

Which of the following would be the best example of a broker?

 

Discount stores, supermarkets, and department stores are all common types of:

 

A(n) __________ sells general merchandise directly from the manufacturer at a discount; items may be discontinued or have certain product flaws.

 

The most likely type of utility that’s provided by convenience stores is:

 

Discount stores owe much of their success to a competitive strategy based on:

 

Retailers such as jewelry stores, shoe stores, and bicycle shops are:

 

A __________ offers a huge selection of one type of product (such as books, toys, or sporting goods) to dominate that category of goods.

 

A firm that wants to distribute its products as widely in a market as possible would use a(n) ___________ distribution strategy.

 

A(n) ___________ distribution strategy distributes a product through only a preferred group of retailers in a given area.

 

A(n) ______________ distribution strategy uses only one retail outlet in a given geographic area.

 

Producers of snack foods (such as candy bars or potato chips) are most likely to use a(n) _____________ distribution strategy for their products.

 

___________ would probably be distributed using an intensive strategy.

 

Which of the following firms would be most likely to use a selective distribution strategy for its products?

 

Producers who use an exclusive distribution strategy for their products can expect retailers who carry the products to do which of the following?

 

Sportstors, Inc. operates a chain of very large stores that offer an incredible selection of sporting goods at very competitive prices. When Sportstors opens its first store in a geographic area, smaller sporting goods stores almost always experience a noticeable drop in sales. Sportstors stores can be classified as:

 

Tammy Knowles is the publisher of “New Woman Magazine,” which is a publication targeted to Gen Y women. Because it is a small, new publication, some of the larger bookstores, convenience stores and newsstands are not agreeing to distribute the magazine. Tammy is very concerned by this trend, because she believes that her publication, like most magazines, needs ____________ distribution in order to succeed.

 

Delacroix Shoes produces top-quality high-fashion shoes, designed for the person concerned about style. Delacroix gives only a few preferred retailers in a given market area the right to market its product. Delacroix Shoes uses:

 

Lazario Motor Car Company produces some of the most luxurious and expensive cars in the world. The company typically authorizes only a single dealership to sell its cars in certain major metropolitan areas. In less populous areas, Lazario authorizes a single dealer for an entire state or region. The manufacturer of Lazario automobiles is using a(n) ___________ distribution strategy for its product.

 

___________ means selling goods and services to ultimate consumers over the Internet.

 

___________ is the sale of goods and services by telephone.

 

Vending machines are most often used to sell:

 

Mall owners like to have __________ located along the walkways of their malls, because they create a marketplace type of atmosphere.

 

Companies who send salespeople to customers’ homes or places of work are making use of __________ selling.

 

In _____________, salespeople are independent contractors who not only sell the product, but also recruit additional salespeople.

 

In multilevel marketing, independent contractors who sell a product can increase their own incomes by recruiting _________ to also sell the product.

 

In the terminology of multilevel marketing, downliners:

 

Direct mail, telemarketing, and catalog sales are all common examples of:

 

Any marketing method that directly links manufacturers or intermediaries with the ultimate consumer could be classified as:

 

The characteristic that all forms of direct marketing have in common is that they:

 

In multilevel marketing, salespeople have an incentive to:

 

In the terminology of multilevel marketing, which of the following statements about the relationship between upliners and downliners is most accurate? In multilevel marketing,

 

Which of the following statements identifies a key advantage of direct marketing? Direct marketing:

 

Which of the following assessments of electronic retailing is most accurate?

 

Which of the following statements about kiosks and carts is the most accurate?

 

Sports Coasters sells good quality athletic wear by sending its customers a catalog nine times a year. The company has no retail stores, but offers a toll free order number that operates 24 hours a day, 365 days a year. Sports Coasters sells using a technique known as:

 

Which of the following is an example of a consumer making a purchase through a direct marketing arrangement?

 

Bunny Babbett has just become an independent contractor selling the products of Tweethouse, a firm that makes elaborate (and expensive) birdhouses and bird feeders. Bunny was recruited to the firm by Sylvester Katt, who already sells the Tweethouse products as an independent contractor. Sylvester told Bunny that both he and she would receive a commission on every item she sold. He also pointed out that she could boost her income significantly by recruiting more people to sell the products, because she would receive a commission on her recruits’ sales. The arrangement described by Sylvester suggests that Tweethouse is using:

 

In a(n) ____________ distribution system all of the organizations in the channel of distribution are owned by one firm.

 

In a(n) __________ distribution system the producer manages all of the marketing functions at the retail level.

 

Franchise systems are one type of __________ distribution system.

 

McDonald’s, KFC, Baskin-Robbins, and AAMCO all make use of the __________ form of contractual distribution system.

 

In a(n) ___________, independently owned and managed stores sign an agreement to use the same name, participate in chain promotions, and cooperate as a unified system.

 

Taken together, all of the organizations that move goods from the sources of raw materials to ultimate consumers is known as a(n):

 

__________ manages the movement of raw materials, parts, work in progress, finished goods and related information throughout the supply chain, as well as managing the return of goods when necessary and the recycling of goods when appropriate.

 

A common trait of corporate distribution systems, administered distribution systems, contractual distribution systems and supply chains is that they all:

 

One thing that franchise systems, wholesaler-sponsored chains and retail cooperatives have in common is that they are all:

 

In administered distribution systems, retailers:

 

Which of the following statements about wholesaler-sponsored chains is most accurate? In a wholesaler-sponsored chain all stores:

 

Which of the following activities is most likely to be performed by someone responsible for supply chain management?

 

Kumquat Computers is a major computer manufacturer that also owns all of the organizations in the channel of distribution for its computers, including a chain of Kumquat Direct retail stores. Kumquat is using a:

 

TasteBest Spice Company was unable to get retailers to agree to a contractual arrangement to cooperate in the distribution process, so it took over all of the marketing functions for its products at grocery stores. The grocers like this arrangement because TasteBest provides outstanding marketing support for its products. TasteBest is using a(n) _________ system to distribute its products.

 

Millie Woods owns and operates a World of Food grocery store. Although her store is independently owned and operated, she has signed an agreement with over seventy stores in the Midwest to use a common name, participate in chain promotions, and cooperate with other stores in the chain. Millie’s store is part of a(n):

 

In the Reaching Beyond Our Borders box in the chapter, soft drink producers like Coca-Cola have found that:

 

Rodney Halpern works in the marketing department of a major manufacturing firm. Much of his job involves managing the movement of materials, parts, and information from suppliers to his firm. He tries to coordinate these flows with his firm’s factory processes and assists with the efficient movement of finished goods to final consumers. These activities suggest that Rodney’s job responsibilities focus on:

 

_________ involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.

 

__________ brings raw materials, packaging, other goods and services, and information from suppliers to producers.

 

__________ deals with moving finished products and information to business buyers and ultimate consumers.

 

When firms manage the return of goods from consumers either because they are defective or for recycling purposes, they are involved in:

 

__________ is the term used to describe the use of outside firms to help move their goods through the supply chain.

 

Currently, in the United States the greatest volume of goods and services is shipped by:

 

____________ put many small shipments together to create a single large shipment that can be transported more cost-efficiently to the final destination.

 

Pipelines are used primarily to transport:

 

_____________ shipping is the term used when truck trailers are transported on rail flatcars.

 

_____________ shipping uses several different modes of transportation to complete a single long-distance movement of freight.

 

The highest-cost transportation method is:

 

The two basic types of warehouses are:

 

__________ warehouses are used to gather and redistribute products.

 

__________ warehouses are used to hold products for a relatively long time.

 

Logistics is concerned:

 

The part of logistics that is most concerned with the flow of goods as well as work in process within the manufacturing firm is:

 

Compared to rail transportation, one of the advantages of shipping by truck is that trucks:

 

Compared to railroads and trucks, the biggest advantage offered by air transport is that it is:

 

Items such as snow skis, lawnmowers, and other highly seasonal items are often held in ___________ warehouses during the months they are not in demand.

 

Which of the following activities would be most closely associated with inbound logistics?

 

Mardelay Industries has discovered a defect in one of its products that may result in injury to users. The company believes it must quickly develop and implement a recall program. It is likely that Mardelay soon will be placing a great deal of emphasis on:

 

Marketing manager Connie Smythe is concerned that her firm is doing a poor job of managing the movement of finished products to the final consumer. If Connie is right, her firm should work to improve its:

 

Jen Carter is trying to find ways to improve her firm’s movement of materials and goods from its warehouse to the factory floor. Jen is looking into ways of making her firm’s __________ more efficient.

 

In the Thinking Green box in the chapter, news stories reporting the benefits of keeping the carbon footprint low clearly show:

 

Marcia Baker ships orchids and other perishable flowers from her greenhouses near San Francisco, California to florists thousands of miles away in cities such as New York, Boston, and Philadelphia. Since the flowers must reach the florists as quickly as possible, the best mode of transportation for Marcia to use would be:

 

Which type of wholesale organization would be most useful to a small manufacturer that has shipments that are too small to fill a truck or railcar?

 

Loundes Enterprises loads its products into truck trailers, then loads the trailers onto ships to transport long distances. Once the ship reaches the port nearest the final destination, the trailers are unloaded and hauled to their final destination by truck. Loundes’ practice of transporting truck trailers on ships is known as ____________ shipping.

 

Kidder Manufacturing wants to ship a large quantity of its goods across the country. They have contacted Wayback Shipping, Inc. to find out what the shipment would cost. Wayback has shown Kidder how it can arrange to use a combination of barges, trains, and trucks to complete the shipment at a low cost. Wayback’s strategy is an example of:

 

Mini-Case

“We’ve got a number of important issues to discuss today,” began Dee Stribyute as she opened the weekly marketing manager’s meeting for Lite Bite Foods. Lite Bite is a producer of low fat, low calorie snack foods. The other managers attending the meeting were her two top assistants, Mark Etter and Rhea Taylor. 

“First, sales were hurt last year when we had to recall our almond chocolate bars because of concerns about contaminated ingredients. We’ve got our work cut out for us to recover from that setback. Many stores quit carrying our products, and even the ones that continued to do so put less emphasis on displaying and promoting them. We’ve got to get our products into as many stores as possible. Consumers shouldn’t have to go all over town trying to find our snacks. We also need to make sure that our products are displayed and promoted in a way that attracts attention.” Dee looked at her assistants, and saw that they seemed ready to make some proposals. However, she decided to get another important issue out on the table before stopping to discuss solutions, so she continued with her comments. “The other big concern is the cost of moving our goods. Distribution costs are a major part of the overall cost of selling our goods. What can we do to make the flow of products from our kitchens to our ultimate consumers more efficient?” Having laid out her concerns, Dee sat down at the head of the table, saying to her assistants, “O.K. guys, I’m ready for suggestions.”

 

The need for Lite Bite to recall its almond chocolate bars suggests that it had to be very concerned with:

 

Dee’s comments about the need to get Lite Bite products into additional retail outlets suggests the company wants to use a(n):

 

Dee’s suggestion that the company needed more control over the way its products were displayed, priced, and promoted prompted a lot of discussion. Mark suggested that the company should manage these marketing functions for its products at the retail outlets. Mark appears to be suggesting that Lite Bite use a(n):

 

Currently, Lite Bite uses a lot of intermediaries to help distribute its products. Collectively, the organizations that participate in getting finished goods from Lite Brite to the ultimate consumers of its products are all part of the:

 

After listening to all of the challenges and issues, Rhea said she wanted to propose a more sweeping change. “Mark has already suggested doing some of the retailer’s job for them. I say go even further—let’s just do away with all of the intermediaries. We can perform all of their functions ourselves,” she said. She went on to explain that, “Since we won’t have to deal with intermediaries, my suggestion is bound to simplify the distribution process and cut costs dramatically.” Rhea’s suggestion:

 

As a component of the promotion mix, advertising includes each of the activities marketers use to inform people about products and persuade them to participate in an exchange.

 

A firm’s promotion mix refers to the combination of different promotional tools used to persuade consumers to participate in an exchange.

 

Integrated marketing communication simplifies the marketing process by replacing personal selling with extensive use of advertising to create a positive brand image.

 

Integrated marketing communication combines all the promotional tools into one comprehensive, unified promotional strategy.

 

Integrated marketing communication combines each element of the promotional effort to create a unique message for a product sold in different markets.

 

Creating a unified positive image of a company in the public’s mind is the end result of effective integrated marketing communication.

 

Combining a firm’s promotional tools and resources to create a positive brand image is the goal of integrated marketing communication.

 

The promotional budget will clarify how much can be spent on advertising and personal selling.

 

The first step in creating a promotional campaign is to define the objectives for each element of the marketing mix.

 

The last step in creating a promotional campaign is to evaluate the effectiveness of each element of the promotional mix.

 

The development of a unified promotional strategy that uses each element of the promotion mix to create a favorable brand image is the goal of a primary promotional process.

 

Phil’s activities as a salesperson for Marquette Publishing are part of Marquette’s promotion mix.

 

A firm’s promotion mix consists of its pricing and distribution strategies.

 

After adopting integrated marketing communication, Madison Furniture puts less emphasis on public relations, sales promotion, and personal selling, and concentrates on advertising designed to provide a uniform message to all markets.

 

When developing the promotional campaign for a new product, the first step for a firm is to identify their target market.

 

Marla has developed a new advertising message for one of her firm’s new products. She has sent copies of the ad to all of the salespeople in the firm and asked them to stress the benefits mentioned in the ad when they call on their customers. Finally, the ad includes a free sample coupon to encourage people to try this new product. She is attempting to create one positive, unified brand image for the new product. Marla is practicing brand communication.

 

Depending upon the promotional campaign, advertising may include paid and nonpaid forms of non-personal communication.

 

Trade advertising is advertising to consumers by manufacturers to encourage them to try their products.

 

Institutional advertising creates an attractive image for an organization rather than for a product.

 

Advocacy advertising is advertising that supports a particular view of an issue such as gun control.

 

When a manufacturer advertises to wholesalers and retailers in an attempt to encourage them to carry its products, it is engaging in institutional advertising.

 

The purpose of institutional advertising is to create an attractive image for an organization.

 

Advertising provides the public with free TV and radio programs.

 

Newspapers, radio, and the Yellow Pages are especially attractive to local advertisers.

 

Advertising helps to cover the production costs of newspapers and magazines.

 

The major complaint with advertising is that it provides no real benefits to the public.

 

Free TV and radio broadcasting is made possible by advertising.

 

Advertising on the Internet has become the number one medium and ranks ahead of newspapers and network television, based on total advertising expenditures.

 

Television (broadcast and cable) and direct mail are the top two advertising media when ranked by total expenditures.

 

Internet advertising is rapidly growing and now ranks third in terms of total advertising expenditures.

 

Direct mail, broadcast and cable television, and newspapers are the top three advertising media when ranked by total expenditures.

 

The number one advertising medium in terms of total dollar expenditures is newspapers.

 

Because TV advertising is so expensive, it is less popular than in the past, it now ranks sixth in total advertising expenditures.

 

Direct mail is usually the best advertising medium to reach specific target markets and ranks number one in overall advertising expenditures.

 

A 30-second Super Bowl commercial costs about $3 million, but given the audience for its telecast is considered an effective advertising purchase.

 

Magazine advertising main strengths are high visibility, repeat exposures, and basically very low cost.

 

One problem with newspaper advertisements is that they have a short life span.

 

Radio advertising has certain shortcomings but offers businesses an opportunity to reach a specific target market.

 

A TV program made to look like a television show but devoted exclusively to promoting goods and services is called an infomercial.

 

The popularity of infomercials has declined in recent years.

 

According to the “Thinking Green” box in Chapter 16, some marketers have found that promoting their “green” efforts can help give them a competitive advantage.

 

When marketers advertise on a big online search engine like Yahoo or Google, they can reach the people they most want to reach.

 

One of the benefits of advertising on the Internet is that it provides a way to link firms and customers so that they can learn more about each other.

 

Interactive promotion allows customers and companies to work together to create mutually beneficial exchange relationships in an ongoing dialogue.

 

Online advertising allows advertisers to see how many people have clicked on an advertisement and how much of it the potential customer has read or watched.

 

The Internet has changed the emphasis of promotion from “promoting to” customers to “working with” customers.

 

The Internet allows firms to listen to customers’ wants, track their purchases, provide them with better service, and more access to information.

 

The purpose of interactive promotion is to create a monologue that convinces customers to act quickly.

 

When it comes to reaching global markets, evidence supports the conclusion that the “one size fits all” approach to promotional mix design is best.

 

Global advertising can save companies money in research and ad design.

 

The primary emphasis of advertising today is to move from regional approach in global markets to a total globalist approach.

 

When advertising in global markets it is important to remember that brand names and promotional campaigns can often be translated differently from what the marketer attempts to say.

 

Green Space is an organization concerned about preserving forests and wilderness areas. They hope to raise the public’s awareness regarding this issue. Green Space can communicate their concern by utilizing advocacy advertising.

 

Advertising reaches a national audience more effectively than it communicates with a local market.

 

Pat’s Pie Pantry generates significant word-of-mouth advertising by delighting their customers with delicious pies. Word of mouth represents the use of advertising.

 

Mailing ads to nearby residents helps grocery stores reach their target market with information of special sales. This represents direct mail advertising.

 

Magazines such as People, Sports Illustrated, and Business Week pay for much of the cost of producing their publications by selling advertising space in the magazines.

 

Informing consumers about goods and services represents advertising’s only benefit to society.

 

The use of infomercials represents an effective use of advertising dollars.

 

Businesses pay using product placement to have their products prominently displayed in a TV episode of Friends or a feature movie.

 

Garden.com uses interactive promotion by allowing customers to chat with each other online about gardening.

 

It is important to design promotional efforts specifically for individual countries since sometimes the brand is not appealing in the targeted country. For example, a Japanese company tried to use English words to name a popular drink and called it Pocari Sweat.

 

Personal selling involves the face-to-face presentation and promotion of goods and services.

 

Persuading others to buy your product represents the only goal of effective selling.

 

Effective selling involves helping others to satisfy their wants and needs.

 

Since personal selling involves face-to-face contact with customers, salespeople make little if any use of technology in performing their jobs.

 

Personal selling in the B2B market represents a relatively inexpensive method of promoting a firm’s products.

 

The average cost of a single sales call to a potential B2B buyer is expensive costing as much as $400.

 

Personal selling involves more than presenting the product and closing the deal. Other activities include the search for new prospects and follow-up services after the sale.

 

Closing the sale represents success for the salesperson and the final step in the selling process.

 

Validation refers to the process of determining whether a potential customer has the need for a product, the authority to buy, and the willingness to listen to a sales message.

 

A good salesperson requires product knowledge about their firm’s product and the product offered by competing firms.

 

The first step in the selling process involves prospecting for potential customers and choosing those most likely to buy.

 

The purpose of a trial close in the selling process is to learn as much as possible about customers and their wants and needs.

 

The B2B selling process may take a long time before a deal is finalized therefore gathering information about the customer before you approach them is critical.

 

B2C salespeople spend more time prospecting their customers than do B2B salespeople.

 

After-sale follow-up is an important but often neglected step in B2C sales.

 

The B2C selling process has fewer steps than the B2B selling process.

 

In evaluating personal selling it is safe to conclude that it represents a form of individualized advertising.

 

The hallmark of an effective salesperson is the ability to complete a sale as soon as the sales presentation is completed.

 

Questions and objections from customers following a sales presentation indicate that a salesperson that was poorly prepared for his/her presentation.

 

Anita enjoys her job as a salesperson for a store that sells high quality entertainment systems. As an effective salesperson, Anita is expected to help her customers resolve any doubts they might have before the sale, and follow up to ensure that the customer is satisfied after the sale.

 

To be successful, salespeople find that their job responsibilities extend far beyond just closing the sale.

 

Effective salespeople push hard to finalize a sale as soon as they finish their presentation. Otherwise, the customer has time to come up with objections that will make the sale more difficult to close.

 

Bob is a salesperson for a firm that markets products in a B2B market. His wife, Sally, is a salesperson for a retail store selling top quality electronics goods. While Bob is likely to be successful using follow up after the sale, Sally should avoid this approach.

 

After her sales presentation. Whitney asks her customers what color they prefer and if they would like to pay by credit card. She hopes that these questions will help the sales process move beyond the customer’s questions and objections. With limited time, Whitney is utilizing a trial close to help finalize the sale more quickly.

 

Jose is a salesperson for a firm that sells and leases heavy construction equipment. This equipment is very expensive, and is highly specialized. Jose spends a great deal of time learning about potential customers’ needs, then uses his knowledge of the Internet to locate exact specifications of equipment offered by all the major producers in the industry. Armed with this information, Jose is able to identify the best equipment for each job. Jose has completed the pre-approach stage of the selling process.

 

As customers walk into Phat Pat’s clothing store, they are greeted by a salesperson who asks the question, “May I help you?” Studies indicate that this is an effective opening in the B2C sales process.

 

As one of the tools included in a firm’s promotion mix, public relations is intended to earn public understanding and acceptance.

 

Effective use of public relations includes an evaluation of public attitudes and the execution of a program to earn public acceptance.

 

An effective public relations department regularly listens to and communicates with the public.

 

An effective public relations program informs the public that the firm is responsive to their needs.

 

To be effective and maintain its independence, the public relations department should avoid establishing close relationships with the media, community leaders, and other corporate stakeholders.

 

Using effective public relations involves establishing a dialogue with customers so that information can be exchanged and trust can be developed.

 

Successful PR departments find that listening to the public is not enough. They have to tell the public that they are being responsive.

 

Public relations departments work closely with media, avoiding the time consuming effort of interacting with individual customers.

 

Using effective public relations requires listening to the public and developing policies that reflect the public’s interest.

 

PR firms find that their services can be enhanced and improved by listening to the public in different forums including the Internet.

 

Publicity is often referred to as the talking arm of public relations.

 

Unlike other promotional tools, such as advertising and personal selling, publicity is free.

 

Compared to effective comparative advertising, publicity is generally considered less believable.

 

One fact that marketers must keep in mind is that publicity can be either positive or negative.

 

Compared to advertising, publicity offers a firm greater control over when and how often the message is communicated.

 

Publicity works and if often used only if the media finds the information interesting or newsworthy.

 

The first step in the public relations process is to ensure that everyone in the organization understands the firm’s position on key issues. With this information widely available, efforts can be made to persuade the public of the firm’s virtues.

 

As a manager for a firm that produces a variety of recreational equipment and sporting goods, Kevin is convinced that his firm markets the safest, highest quality equipment in the entire industry. Recent studies from the Consumer Product Safety Commission support his position. Kevin feels that the best way to create an image of high quality, safe products is to develop an extensive advertising campaign. Kevin realizes that publicity lacks the credibility that advertising can generate.

 

Businesses always welcome publicity because it presents the name of the firm and its products to the public for free.

 

While the Greedy Corporation legally harvests trees in national forests, this activity is particularly unpopular with environmentalists and tourists. The best strategy to respond to this criticism is to ignore the complaints or views of the public and design an aggressive ad campaign emphasizing the jobs and economic benefits created by their logging operations.

 

Maryland Chemical demands complete control over any message communicated to the public regarding their products. The most efficient element of the promotion mix to achieve their desired control is publicity.

 

Sales promotion involves the long-term strategies firms use to enhance their image by listening to the public.

 

Sales promotion programs can be used as a means to generate employee enthusiasm.

 

Coupons, contests, and sampling are examples of sales promotion activities.

 

Internal sales promotion programs are targeted to reach the firm’s internal auditors as well as external customers.

 

Internal sales promotion efforts include training for salespeople and participation at trade shows where salespeople can meet potential customers.

 

Internal sales promotion efforts target salespeople and employees that handle customer complaints.

 

The use of coupons and sales contests represent internal public relations and sampling activities.

 

The most effective sales promotion programs target customers, rather than employees and marketing intermediaries.

 

Trade shows represent sales promotion programs designed to create product enthusiasm from distributors and dealers.

 

Virtual trade shows are not effective at promoting tangible goods therefore they promote services rather than tangible products.

 

It’s just as important to generate employee enthusiasm about a product as it is to attract potential customers.

 

Sampling represents a quick and effective way to demonstrate a product’s superiority at the time when consumers are making a purchase decision.

 

As a salesperson for an electrical contractor, Greg is included as part of the target audience for sales promotions from his own company.

 

Because customers eventually lose interest, businesses achieve the best results when they use sales promotion activities on a limited and irregular basis.

 

Effective sales promotion efforts focus exclusively on external audiences such as dealers and consumers, since they ultimately decide the fate of a product.

 

Sales promotion efforts such as trade shows aimed at distributors and dealers are intended to generate their enthusiasm for a firm’s products.

 

When Pepsi introduced its FruitWorks product line during spring break in Panama City, Florida and South Padre Island, Texas it gave out free samples and provided free rides on Pepsi trucks. Pepsi was practicing event marketing.

 

Anything that encourages people to talk favorably about an organization may be effective word-of-mouth promotion.

 

A number of businesses utilize a strategy that pays people to generate favorable word-of-mouth promotion.

 

Viral marketing describes everything from paying people to say positive things on the Internet to schemes where consumers get commissions for directing friends to specific websites.

 

The popularity of the Internet has severely reduced the importance and effectiveness of word-of-mouth promotion.

 

Multilevel selling schemes that reward consumers for directing other consumers to specific websites represent an example of viral marketing.

 

A testimonial represents communication from a customer that praises a firm’s products.

 

While testimonials effectively promote products to new customers, they are not effective in reaching existing customers.

 

Online chat rooms and bulletin boards offer opportunities for positive and negative word-of-mouth promotion.

 

Any word-of-mouth promotion that puts a company’s product in the public’s attention is good promotion.

 

A blog is an online diary that looks like a Web page but is easier to create and update by posting text, photos, or links to another site.

 

There are millions of blogs on the Internet today but the number of new blogs seems to have peaked meaning blogs will decrease steadily over the next few years.

 

Podcasting is a means of distributing audio and video programs but these programs can only be seen and heard using technology such as an Apple iPod.

 

Podcasting enables independent producers to create self-published, syndicated “radio shows.”

 

The popularity of the Internet enables companies to decrease their emphasis on traditional promotional tools such as TV advertising.

 

New technology allows marketers to promote products to consumers through cell phones using text messaging.

 

Even though advances in mobile media present some interesting opportunities, marketers expect that traditional promotions such as T.V. advertising will dominate promotional efforts over the long term.

 

According to the “Spotlight on Small Business” box in Chapter 16, for small entrepreneurs like Amy Scherber of Amy’s Bread in New York, it’s best to forget about promotion and focus your efforts on becoming a low-cost producer to compete in a competitive market like breads.

 

In the evaluation of the promotion, it’s best to establish a promotional strategy that can reach multiple targets rather than developing a separate promotion mix for each target group.

 

Personal selling provides the most efficient element of the promotion mix for a firm attempting to reach a large, homogeneous group of consumers.

 

In evaluating the promotion mix, it’s fair to say that large organizations are best reached through personal selling.

 

Sampling, coupons, discounts and other sales promotion efforts are promotional tools used to motivate people to buy now rather than later.

 

A pull strategy utilizes consumer demand for a product to motivate retailers and wholesalers to actively market the product.

 

Push strategies target consumers with sales promotion and heavy discounting that are designed to create a strong demand for the product.

 

The objective of a push promotional strategy is to move a product through a distribution channel by offering incentives to wholesalers and retailers to stock and sell the merchandise.

 

The Internet provides an effective medium for consumers who pick their products from online outlets or who do online comparison shopping.

 

A pick economy is a research term meaning the selection of global markets that a company randomly decides to target for its goods and services.

 

While word of mouth represents an effective promotional tool, the need for face-to-face communication limits its usefulness.

 

Motivated by the disrespectful treatment he received at a department store, Karnell shared his bad experience on an Internet chat room. He encouraged others to follow his lead and not patronize that store. Karnell’s statements represent word-of-mouth promotion.

 

Best Pick, a home electronics superstore, knows the value of reassuring their current customers that they made the right choice when they decided to give Best Pick their business. Testimonials would be an effective promotional activity to confirm the purchase decisions of Best Pick’s customers.

 

Payola Promotions has offered to give Lisa free tickets to a concert it is promoting in return for Lisa’s agreement to share her positive experience with others on Internet chat rooms. The concert tickets Lisa receives represent swag.

 

Woody’s Vitamins utilizes the Internet to market their products. Currently, they offer existing customers a commission if they successfully direct a friend to buy from the Woody’s website. This program represents an example of what’s referred to as underground relationship promotions.

 

A recent study reveals that regardless of the product or target market, mobile media is not a promotion mix tool that works efficiently.

 

Muscleup promotes its liquid protein drink directly to consumers through television ads, infomercials, and newspaper coupons. The company is making use of a push strategy to reach their customers.

 

Nordic Track utilizes newspaper and TV ads designed to motivate potential buyers to seek out their product. This represents a push promotional strategy.

 

To execute an effective promotional strategy, firms are required to choose between a push strategy and a pull strategy.

 

Advertising the newest Harry Potter movie during Saturday Night Live on TV is an example of a pull strategy being used by the film’s producers.

 

James Erler likes to search online for values at sites like Drugstore.com and do online comparisons of what he thinks are the best products for him at the right price. James would be a consumer active in using a pick economy.

 

The total systems approach to marketing combines a firm’s promotional efforts for the exclusive satisfaction of the firm’s consumers.

 

The goal of __________ is to inform and remind people in a target market about specific products, eventually persuading them to participate in an exchange.

 

The combination of advertising, personal selling, public relations, and sales promotion activities traditionally used by an organization represents its:

 

________ combines all the promotional tools employed by a firm into one comprehensive and unified promotional strategy.

 

A promotional campaign begins by:

 

The traditional promotion mix for a firm consists of the:

 

Creating a positive brand image by using all the promotional tools in a comprehensive, unified promotional strategy is called:

 

Nightbrite Company’s ________ relies heavily on advertising, personal selling, and a limited use of product sampling.

 

Massachusetts Manufacturing has redesigned its promotional strategy. The company now utilizes a system that combines all the elements of their promotion mix to create a more responsive organization providing a consistent message. Massachusetts Manufacturing has adopted a(n):

 

The management of GamesPeople designed a comprehensive strategy that unifies advertising, personal selling, public relations and sales promotion activities creating a consistent message. This effort to promote a positive brand image represents a(n) ________ program.

 

_________ refers to any paid, non-personal communication through various media by organizations and individuals who are in some way identified in the message.

 

The total annual expenditures on advertising in the United States:

 

Advertising to wholesalers and retailers by manufacturers to encourage them to carry their products is called:

 

When an organization uses advertising to create an attractive image for itself, this type of advertising is called:

 

________ advertising encourages wholesalers and retailers to carry the products of a specific manufacturer.

 

________ advertising supports a particular view or position on an issue.

 

The advertising medium that accounts for the largest share of total advertising expenditures is:

 

In terms of total dollars spent, the number one and two advertising media are:

 

One advantage of magazine advertising is that:

 

In evaluating the best advertising medium to reach a specific target market the clear choice is:

 

The effectiveness of direct mail advertising suffers from:

 

The effectiveness of magazine advertising is reduced by its:

 

Which of the following is a major strength of direct mail advertising?

 

Which of the following refers to the practice of paying to have a product appear favorably in a TV show or movie?

 

Infomercials provide the opportunity for:

 

TV programs devoted exclusively to promoting goods and services are called:

 

__________ changes the relationship between buyers and sellers from a monologue to a dialogue in which information is shared to create mutually beneficial exchanges.

 

Gardening.com is an online retailer of garden products. By allowing communication between gardeners and experts via its website, Gardening.com is using:

 

Advertisers like online advertising because:

 

Which of the following offers the greatest potential for meaningful interaction between buyers and sellers?

 

Companies can implement global marketing by developing a product and promotional strategy that:

 

The evidence supports the position that promotional efforts specifically designed for individual countries produce:

 

Future promotional efforts will likely be:

 

In their advertisements, Luther Pharmaceuticals asks consumers to judge their product, Ache-Free, against a well-known competitor’s product to see that Ache-Free provides superior pain relief. This represents:

 

Which of the following is an advantage of magazine advertising?

 

Which of the following media enables firms to quickly change their advertising message?

 

Which of the following represents the primary purpose of a firm using institutional advertising?

 

Firms with a very limited advertising budget would be very unlikely to use ________ advertising.

 

Which of the following helps explain the popularity of infomercials?

 

In the “Thinking Green” box in the chapter, companies such as Mars Drinks North America and First Global Express have found that:

 

Which of the following statements is the most accurate?

 

Carolina Insurance wants to create a more interactive approach to advertising in order to build strong relationships with their customers. Which of the following represents the preferred advertising medium to achieve their goal?

 

Indiana Processing promotes its services through Mechanical Engineers Today, a trade magazine that charges Indiana Processing and other companies $5000 per page for ______________ to help offset the magazine’s publishing costs.

 

Which of the following statements is the most accurate?

 

Which of the following statements about global advertising is most correct?

 

Evidence indicates that the best promotional strategy for firms operating globally is:

 

Interactive promotion:

 

Which of the following is required to build meaningful relationships with customers?

 

When marketing to consumers in the global, it’s important for companies to remember that promoting products:

 

The Hispanic and Asian populations in the U.S. are growing rapidly. To effectively reach these groups marketers should:

 

________ refers to the face-to-face presentation and promotion of goods and services. This also includes searching for prospects and providing follow-up services.

 

The average cost of a single sales call to a potential B2B buyer in the U.S. is expensive and could cost about:

 

People with an unmet need, the authority to buy, and the willingness to listen to a sales message represent a firm’s:

 

In the seven step B2B selling process, the selection of potential customers is known as:

 

After prospects have been identified and qualified, the next step in the selling process is __________. This step requires the salesperson to learn as much as possible about the potential customers’ wants and needs.

 

The approach step of the selling process attempts to:

 

The final step of the selling process involves:

 

The purpose of a __________ is to move the selling process toward an actual product purchase.

 

In B2C sales the salesperson does not spend a great deal of their time:

 

A review of the personal selling process indicates that selling is:

 

“You never get a second chance to make a good first impression,” captures the importance of the __________ step in the selling process.

 

Bethany just finished making a sales presentation to a major prospect. In the next step of the selling process, Bethany will likely be:

 

As a new salesperson for a textbook publisher, Kylie is creating a list of professors that decide what texts their schools use. She plans to email these schools to determine what texts they are currently using and if they plan to adopt a new text. Identifying those decision makers that are willing to consider one of her texts is called:

 

After completing his sales presentation, Jerald’s client expressed her concerns and questioned some of the details of the sales proposal. An effective salesperson would:

 

Which of the following statements is the most accurate?

 

As a salesperson in the B2B market, Patty regularly calls on clients to stay informed of their needs or problems. Her objective is to develop solutions to meet their needs and resolve their problems. The Internet allows Patty to track products in the supply chain and to learn about pricing and promotions that would be of interest to her clients. When Patty works with her existing clients there is no need for the __________ step of the B2B selling process.

 

The activity that evaluates public attitudes, changes policies and procedures in response to the public’s requests, and executes a program of action and information to earn public understanding and acceptance is called:

 

__________ refers to any information about a product or an organization that is communicated to the public through the media and is not paid for or controlled by the sponsor.

 

Compared to advertising, publicity offers the advantage of greater:

 

A major responsibility of the public relations department is to:

 

Compared to other promotional tools, publicity:

 

One way to see that publicity is handled well by the media is to:

 

Lenora just finished writing a news release regarding a new product developed by her firm. She intends to email the message to local radio stations and newspapers in hopes that they will find the information newsworthy and run a story about the product. Lenora’s efforts represent the firm’s:

 

Today’s public relations departments:

 

A good public relations program recognizes that the:

 

Consumer research indicates that the public is very concerned about underage drinking. In response, Texas Brewing Company has created a website providing parents with information to help avoid underage drinking in their families. The firm also provides materials to retailers to help train their employees to avoid sales to minors. Publicizing these efforts:

 

Bonnie faces the challenge of developing the promotion mix for a new business. Given the uniqueness of the new products and a very limited budget, Bonnie confronts a creditability problem. She realizes that the promotional messages of an unknown firm may be met with skepticism. Bonnie should consider:

 

The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities, such as trade shows, event sponsorships, and contests, is known as:

 

Effective sales promotion activities target:

 

A __________ allows B2B buyers to see products on the Internet 24 hours a day, 365 days a year without having to leave their office.

 

The most important internal sales promotion efforts are directed toward:

 

Which of the following is a consumer sales promotion activity?

 

Which of the following is a B2B sales promotion activity?

 

To generate enthusiasm about a good or service, sales promotion:

 

At a recent sporting event, a local beer distributor gave free beverage mugs to all adults with a paid admission. This is an example of:

 

Chip Off The Old Block is a new chocolate chip cookie created by the Arizona Cookie Company. To generate interest for this new product, the company sent a free package of six cookies to selected homes along with a 50-cent coupon. Arizona Cookie’s activities represent:

 

Which of the following statements is most accurate?

 

___________ encourages people to tell other people about goods or services they have enjoyed.

 

The free tickets, backstage passes and merchandise firms give to people who agree to hype products through Internet chat rooms are called:

 

__________ refers to such tactics as paying people to say good things about a product on the Internet or setting up multilevel selling schemes that reward people for directing their friends to a company’s website.

 

A _________ is an endorsement from a customer praising a firm’s product.

 

An online diary that looks like a Web page but is easier to create and update is called a(n):

 

The distribution method for audio and video programs via the Internet that lets users subscribe to a number of files or feeds is called a:

 

Successful firms realize that each target group requires:

 

The strategy of directing advertising and sales promotion toward consumers to stimulate them to request the products from their local retailers is called a:

 

The use of promotional tools to persuade wholesalers and retailers to stock and sell merchandise represents a:

 

Miss Kitty’s Chocolate Corral is located in an out-of-the-way small shopping center. However, the company enjoys outstanding business because satisfied customers share their delightful experiences at Miss Kitty’s with their friends and relatives. Miss Kitty’s apparently benefits from positive:

 

Woodson Productions gives young adults free tickets to concerts it promotes if they agree to go into an Internet chat room and share their positive experience with others. The free tickets Woodson provides represent:

 

Independent producers can create self-published syndicated “radio shows” using:

 

Companies that adopt a pull strategy target their promotional efforts toward:

 

The primary purpose of a pull strategy is to:

 

The primary purpose of a push strategy is to:

 

Firms utilizing a total systems approach to marketing design their promotional mix to meet the needs of:

 

The total systems approach to marketing emphasizes communication with which of the following groups?

 

Slapstick Films advertises their movies on TV programs their target market of 21-30 year olds typically watch. Slapstick Films believes the best way of reaching its customers is through a: ________ strategy.

 

Professor Beenthere shared with his students the wonderful experience he had at a local Asian restaurant. He described the location in relation to campus and encouraged his students to give it a try. The professor’s comments represent:

 

Registration in Professor McNick’s classes reaches maximum enrollment quickly. Students register immediately online just to insure their seat in her class. One student summed it up, “Everyone’s heard she is the best teacher on campus.” Professor McNick’s classes benefit from:

 

After receiving poor service from her car insurance company, Wendy made her complaints public by placing them on the Internet. This is another form of:

 

Mo’s Movies markets DVD and Blue Ray movies via the Internet. The company recently adopted a new program that offers their current customers free DVDs if they encourage their friends to visit Moe’s Movies website. This promotional program represents:

 

In the Spotlight on Small Business box in the chapter, Amy Scherber of Amy’s Bread has found that success in her business is:

 

Budliter has a new ad campaign for its product. In an effort to determine whether consumers like the ad and characters it created, Budliter is monitoring __________, or online diaries for mention of their campaign.

 

The Maryland Department of Travel and Tourism promotes tourism in the state by sending travel agents and bus tour companies information about the state’s many attractions. The hope is that by stimulating interest in tour and travel agents, they will in turn encourage their customers to visit Maryland. This example represents a ________ promotional strategy.

 

In the Reaching Beyond Our Borders box in the chapter, Publicis Groupe, a traditional advertising agency that ranks as the fourth largest ad agency in the industry, found that:

 

CarGo uses its Web page to target car parts stores and car owners and tell them of the benefits of using their long lasting spark plugs. CarGo apparently uses the Internet:

 

Wee Be Irish produces authentic Irish gifts and clothing. Wee Be Irish uses a good deal of television advertising and sales promotion activities to attract consumers to retail shops in search of its brand. Wee Be Irish utilizes a ________ strategy:

 

The total systems approach to marketing suggests that:

 

Mini-Case

The Xer-Wise Corporation manufactures and markets high quality home exercise equipment. The firm has just developed a new piece of equipment that top executives believe will be a big seller if promoted correctly. The new product uses a system of adjustable weights that can be arranged in various ways to allow the user to perform exercises that tone all major muscle groups. Additionally, unlike other strength building machines, this equipment also incorporates a recumbent bicycle to provide a complete aerobic workout. The entire piece of equipment is easy to assemble, and when not in use it can be folded into a compact unit that is easy to store. A group of fitness experts have tested the equipment and have provided rave reviews. Company executives believe that this product, called the MuscleMaster, will appeal to busy young adults living in relatively small apartments. Melody Fitt and Tom Trym have been assigned the responsibility of developing a promotion mix for this product. The team of Fitt and Trym is convinced that they can develop a successful promotion mix for this 

 

Before they look at specific promotional tools, Melody and Tom agree that they want a promotion mix that is both comprehensive and unified. They want to use all of the promotional tools at their disposal to create a consistent message that promotes a favorable product image. Melody and Tom want to implement a(n):

 

Due to the unique nature of this product, Tom and Melody have decided to develop a half-hour TV program to demonstrate the benefits of the MuscleMaster. It is hoped that this __________ will provide a great start in the market.

 

Tom and Melody are considering the extensive use of ads in fitness magazines and a direct mail campaign targeted at people who have bought other products made by Xer-Wise. Since these messages are geared directly to customers, it is clear that Tom and Melody want to implement a _________ strategy.

 

Tom and Melody have decided to work together to write a news release that describes the benefits of MuscleMaster and cites the rave reviews of the fitness experts who have already tried the equipment. They intend to send the release to a list of columnists who write in fitness magazines or have health and fitness columns in newspapers, hoping that some of these writers will include information about the MuscleMaster in their articles. Tom and Melody hope to utilize:

 

Xer-Wise markets and promotes its products to consumers over the Internet. Melody and Tom are considering a more aggressive approach to generate enthusiasm for the MuscleMaster over the Internet. They have discussed offering young adults free T-shirts and special discounts on Xer-Wise equipment if they will agree to hype the benefits of the MuscleMaster in Internet chat rooms. They are even considering setting up a program in which customers get commissions for directing friends to the Xer-Wise website. If they adopt these strategies, Tom and Melody would be utilizing: