Intro to Business Class Flashcards

Questions and Answers

What is form utility?

Specialization of jobs to increase productivity

Availability of goods at convenient locations

Transferring ownership of goods from seller to buyer

Changing raw materials to make them more useful (correct)

What does ownership utility satisfy?

Wants by transferring ownership easily

What is place utility?

Availability of goods at convenient locations

What characterized the production era?

Specialized jobs and assembly line introduction Signup and view all the answers

What should the focus be during the marketing era?

Consumer satisfaction Signup and view all the answers

What is value in the context of business?

A customer's assessment of benefits relative to costs Signup and view all the answers

What does customer relationship management involve?

Collecting and managing data for the right customer Signup and view all the answers

What is a characteristic of limited relationships in business?

Providing help lines for customer inquiries Signup and view all the answers

What is a full partnership relationship in business?

A close ongoing relationship with large-chain stores Signup and view all the answers

Customer loyalty is about lower production costs.

False Signup and view all the answers

What defines a well-chosen target market?

Size, profitability, accessibility, and limited competition Signup and view all the answers

What is the target market?

A specific group of customers focused for marketing efforts Signup and view all the answers

What is a promotion strategy?

Combination of personal selling, advertising, and publicity Signup and view all the answers

What does the marketing mix consist of?

Product, place, promotion, and pricing strategies Signup and view all the answers

On what do business buyers base purchases?

Specifics rather than personal judgment Signup and view all the answers

What is the step after asking for opinions on laptops?

Evaluate alternative laptops Signup and view all the answers

What is cognitive dissonance?

Buyer discomfort caused by postpurchase conflict Signup and view all the answers

What do UNO Pizzeria and LensCrafters have in common?

Mix of goods and services Signup and view all the answers

What is an actual product?

The physical good or service that supplies the desired benefit Signup and view all the answers

What must businesses focus on for raw materials?

Quantity and brand Signup and view all the answers

What does cannibalization refer to?

Sales of a new product cutting into existing products Signup and view all the answers

What slows the rate of diffusion?

Customer lack of awareness about the product Signup and view all the answers

What does a high diffusion rate indicate about an Apple iPhone?

It is highly observable Signup and view all the answers

What is the relative advantage of an innovation?

The degree it appears superior to existing products Signup and view all the answers

What is marketing promotion?

Techniques to communicate product information to consumers Signup and view all the answers

What is publicity?

Information distributed to the public through the media without payment Signup and view all the answers

What is word of mouth?

Consumer-to-consumer communication about products Signup and view all the answers

What do trends in technology create for promotion?

Threats and new opportunities Signup and view all the answers

What is integrated marketing communication?

A management concept for unified marketing communications Signup and view all the answers

What is a viral web campaign?

A must-have for company advertising Signup and view all the answers

Publicity is less credible than advertising.

False Signup and view all the answers

What is closing in sales?

Making a purchase Signup and view all the answers

What does follow-up entail in sales?

Actions taken before sending the product out Signup and view all the answers

What are channels of distribution?

Routes products take from production to consumption Signup and view all the answers

What does a distribution strategy plan?

Delivering the right product to the right person at the right time Signup and view all the answers

What is service utility?

Adding value by providing fast and friendly service Signup and view all the answers

Non-store retailers are growing faster than at the beginning of the decade.

False Signup and view all the answers

What are the challenges of non-retail stores?

Couple of days delivery and security issues Signup and view all the answers

What is multi-level marketing?

System where salespersons recruit assistants to collect commission Signup and view all the answers

What is every-day low pricing?

Value-oriented pricing strategy with continuous low prices Signup and view all the answers

What is penetration pricing?

Charging a low initial price to reach the mass market Signup and view all the answers

What are important factors about business?

Matching competition and competing on other factors Signup and view all the answers

What is loss-leader pricing?

Selling a product below customary price to attract customers Signup and view all the answers

What is prestige pricing?

Charging a high price to promote a high-quality image Signup and view all the answers

What is product strategy?

Decisions about goods or services a firm will offer Signup and view all the answers

What is marketing mix 2?

Planned mix of controllable elements in a marketing plan Signup and view all the answers

What does being secretive about ideas allow in primary data?

Ideas flow vertically to people Signup and view all the answers

What does a management accountant do?

Prepare reports and analyze financial information within an organization Signup and view all the answers

What is accounting?

Recorded, organized, and analyzed financial information Signup and view all the answers

What is a certified public accountant (CPA)?

Doesn't have to do an internship Signup and view all the answers

What does a certified public accountant do?

Design accounting systems and update accounting procedures Signup and view all the answers

What does GAAP stand for?

Generally Accepted Accounting Principles Signup and view all the answers

What is a balance sheet?

A financial statement reporting assets, liabilities, and equity Signup and view all the answers

What are assets?

Economic resources owned by a firm Signup and view all the answers

How do you calculate total assets?

Adding liabilities and owner's equity Signup and view all the answers

Where do you look for a firm's debt?

Balance sheet Signup and view all the answers

What is cash in accounting?

First listed on the asset sheet Signup and view all the answers

What are the two broad sources of financing?

Owners and non-owners (lenders) Signup and view all the answers

What are current liabilities?

Liabilities due within a short time, usually within a year Signup and view all the answers

What is the equation for firm worth?

What is owed minus what is owned Signup and view all the answers

Where do you look to find a firm's profit or loss?

Income statement Signup and view all the answers

What is an income statement?

A financial statement showing revenue and expenses Signup and view all the answers

What is profit?

Difference between revenue and expenses Signup and view all the answers

What is revenue in accounting?

First listed on the income statement Signup and view all the answers

What is managerial accounting focused on?

Primarily focused inward for the benefit of the company Signup and view all the answers

What are dividends?

Earnings distributed to stockholders Signup and view all the answers

Who are stockholders?

Owners of a corporation Signup and view all the answers

Companies always pay dividends to stockholders.

False Signup and view all the answers

What is common stock?

Most basic form of ownership in a company Signup and view all the answers

What is a capital gain?

The amount by which the selling price exceeds the purchase price Signup and view all the answers

Who do preferred stockholders receive dividends over?

Common stockholders Signup and view all the answers

What is a bond?

A debt security with periodic payments Signup and view all the answers

What is maturity in the context of bonds?

Exact date when the principal must be paid Signup and view all the answers

What is the coupon rate?

Interest rate paid to bondholders Signup and view all the answers

What is diversification in investing?

Buying several different investment alternatives to spread risk Signup and view all the answers

What is professional management?

The reason investors buy mutual funds Signup and view all the answers

Study Notes

Utilities in Business

Form Utility: Enhancing raw materials or components to create more useful products.
Ownership Utility: Simplifying the transfer of goods and services from sellers to buyers for a hassle-free purchase experience.
Place Utility: Ensuring goods and services are available in convenient locations for customers.
Service Utility: Adding value by offering quick and friendly service and educating customers on product use.

Historical Marketing Eras

Production Era: Focus on specialization of jobs leading to increased productivity; introduction of assembly lines.
Marketing Era: Emphasis on consumer satisfaction as the primary focus of marketing efforts.

Market Valuation Concepts

Value: Customer's perception of benefits versus costs to determine product worth.
Customer Relationship Management: Process of collecting and applying data to improve customer interactions.

Target Market Strategies

Well-Chosen Target Market: Defined by size, profitability, accessibility, and limited competition.
Target Market Definition: Specific demographic group targeted for marketing initiatives.

Marketing Approaches

Promotion Strategy: Combination of personal selling, advertising, publicity, and promotions to drive purchases.
Marketing Mix: Blend of product, place, promotion, and pricing strategies to facilitate beneficial exchanges.

Consumer Behavior

Cognitive Dissonance: Discomfort felt by buyers following a purchase, leading to regret or second-guessing.
Buyer Behavior: Decisions based on specific criteria rather than personal bias.

Product Management

Actual Product: Tangible items or delivered services fulfilling customer needs.
Cannibalization: New product sales adversely affecting existing product sales.
Rate of Diffusion: The speed at which a new product is adopted by consumers; often slowed by lack of understanding.

Marketing Tactics

Publicity: Free, credible information distribution about a product or organization through the media.
Word of Mouth: Informal exchanges of information about products and experiences between consumers.

Pricing Strategies

Every-Day Low Pricing: Consistently low pricing strategy that conveys value.
Penetration Pricing: Initially low product pricing to gain market share.
Loss-Leader Pricing: Pricing products below typical costs to attract customers, hoping for additional purchases.
Prestige Pricing: Setting high prices to maintain a luxury image.

Financial Principles

Accounting: Organized recording and analysis of financial activities for various stakeholders.
GAAP: Set of guidelines that govern accounting practices.
Balance Sheet: Snapshot of assets, liabilities, and owner's equity at a specific date.
Income Statement: Document that details revenue and expenses over a fiscal period.

Investment Concepts

Common Stock: Basic form of ownership in a company that includes voting rights.
Preferred Stock: Offers dividends before common stock; appeals to risk-averse investors.
Bonds: Debt securities offering periodic payments; characterized by maturity dates and coupon rates.

Risk Management

Diversification: Strategy of investing in various assets to mitigate risk.
Professional Management: Expertise in managing mutual funds; attracts investors seeking risk-reducing strategies.

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Description

Test your knowledge with these flashcards covering essential concepts in Intro to Business. From various forms of utility to different production eras, this quiz will help reinforce your understanding of key business principles. Perfect for students looking to enhance their studies!