CHAPTER 2: MASTER TEST BANK

2-131 SALES REVENUE GOAL APPLICATION

GM’s original first-year __________ goal for the Volt was 10,000 units, although the product was well into its second year before reaching that level.

a. profit

b. market share

c. sales

d. customer satisfaction

e. survival

2-132 MARKET SHARE KNOWLEDGE

Market share refers to

a. the ratio of the profit of the firm to the total profits of all firms in the industry, excluding the firm itself.

b. the ratio of the profit of the firm to the total profits of all firms in the industry, including the firm itself.

c. the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, excluding the firm itself.

d. the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.

e. the ratio of the profits of all firms in an industry to the profits of the firm.

2-133 MARKET SHARE GOAL KNOWLEDGE

The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself, is referred to as [a]

a. sales proportionality.

b. marketing metric.

c. industry potential.

d. contribution margin.

e. market share.

2-134 MARKET SHARE KNOWLEDGE

Market share is the ratio of sales revenue of the firm to the total sales revenue of all __________, including the firm itself.

a. firms in the industry

b. firms in the competitive set

c. firms in the WTO

d. product groupings

e. domestic firms in a country

2-135 MARKET SHARE GOAL APPLICATION

If Dr. Pepper plans to grow its proportion of the flavors segment of carbonated soft drink industry to 45%, it has set a(n) __________ goal.

a. sales proportionality

b. company sales

c. industry potential

d. contribution margin

e. market share

2-136 QUALITY GOAL COMPREHENSION

A firm may have a goal to offer its customers the highest __________, as Medtronic does with its implantable medical devices.

a. innovation

b. quality

c. service

d. value

e. warranty

2-137 QUALITY GOAL APPLICATION

Complaints about Microsoft’s Xbox video game consoles began immediately after its introduction. These complaints ranged from missing parts to incorrect programming. Microsoft should have should adopted a more rigorous __________ goal.

a. profit

b. sales revenue

c. customer satisfaction

d. employee welfare

e. quality

2-138 QUALITY GOAL APPLICATION

Toyota had some difficulty recovering from a recall crisis from a couple of years ago when it was forced to recall about 6 million vehicles due to variety of problems, most notably one with the accelerator pedal. To “polish” its brand, it implemented stricter __________ goals to improve the safety and reliability of its vehicles.

a. profit

b. sales revenue

c. customer satisfaction

d. quality

e. employee welfare

2-139 QUALITY GOAL APPLICATION

Motorola invented the Six Sigma program that sets as a goal no more than one defect in one million parts manufactured. This is an example of a(n) __________ goal.

a. profit

b. sales revenue

c. quality

d. market share

e. employee welfare

2-140 CUSTOMER SATISFACTION GOAL COMPREHENSION

Customers’ perceptions are of vital importance to an organization. Customer __________ can be measured with surveys or by the number of customer complaints an organization receives.

a. satisfaction

b. welfare

c. lifetime benefit

d. value

e. responsibility