lcssdecateam.weebly.comlcssdecateam.weebly.com/.../6/5/2/8652601/rms2008.docx · Web viewWeimar, TX: Culinary and Hospitality Industry ... Ethics are morals or the basic principles

2008 DECA Ontario ProvincialsTest 952 FRENCH CONNECTION EVENT 1

RMS

1. The ABC retail chain is the only retailer that has written permission to use a national football team's logo on plastic drink cups. This is an example of a(n)

A. limited joint venture contract. C. product trade-name contract. B. nonexclusive licensing agreement. D. exclusive licensing agreement.

2. What type of facility simply holds goods until they are needed?A. Storage warehouse C. Assembly department B. Distribution center D. Fulfillment house

3. For which of the following markets would producers use a short channel of distribution:A. Baby boomers C. Local consumers B. Generation X D. Senior citizens

4. Tying agreements are considered legal except whenA. an intermediary is free to carry competing products.B. the supplier alone can provide the products.C. the supplier employs full-line forcing without allowing competing products.D. a company has just entered the market.

5. To make sure products are available when customers want them, a retailer should coordinate promotion withA. distribution. C. segmentation.B. transportation. D. communication.

6. What might result if a manufacturer wants prompt payment for goods, but the retailer wants to defer payment for as long as possible?

A. Illegal activity C. Limited varietyB. Increased risk D. Channel conflict

7. Which of the following is not a tool that people use when participating in discussions:A. Sharing a personal experience B. Pointing out missing information C. Building on someone else's comment D. Helping the group summarize what's been said

8. A message from the company president to all retail employees concerning a change in insurance coverage is a form of __________ communication.

A. upward C. staff B. informal D. lateral

9. Which of the following would most benefit from a customer-service mindset that helps to reduce complaints and increase profits:

A. Employees C. Customers B. Retailers D. Competitors

10. The first step in handling a retail customer's complaint is toA. make certain that what you promised is done.B. listen to what the customer has to say.C. analyze what can be done to remedy the situation.D. determine if the solution is agreeable to the customer.

11. Which of the following items require priority processing:A. Basic stock C. Durables B. Perishables D. Staple goods


12. Arranging to repair an expensive lamp for a customer is one way that a furniture store mightA. generate additional profit. C. salvage damaged items. B. handle seasonal merchandise. D. process returned products.

13. A store ordered merchandise for a special sale that the manufacturer shipped via UPS a few weeks ago. What should the manufacturer do for the store if the merchandise has not arrived and the sale is scheduled to take place in four days?

A. Ask the UPS driver when s/he comes tomorrow to determine the location of the goodsB. Get a shipping code number so that the store can ask UPS to trace the shipmentC. Check the UPS computer system to determine the location of the goodsD. Talk with the shipping employees to determine if they know the status of the shipment

14. Reserve stock gets its name from the fact that it isA. available as replacement stock. C. kept at a manufacturer's location. B. reserved for special customers. D. ordered just as it is needed.

15. What should a retailer take into consideration when ordering goods to maintain inventory levels?A. Excise tax C. List priceB. Lead time D. Net profit

16. Calculate inventory shrinkage if a music store's opening stock value is $21,150, it has purchased $6,425 in stock, had net sales transactions of $14,230, and the periodic stock count is $12,815.

A. $530 C. $625B. $510 D. $645

17. When retailers provide information about an available product, customers are more likely toA. buy the product. C. request a payment plan. B. ask questions about the product. D. put the product on layaway.

18. Which of the following is an example of equilibrium price:A. Price $500; Demand 300; Supply 300 C. Price $300; Demand 500; Supply 400B. Price $600; Demand 200; Supply 400 D. Price $400; Demand 400; Supply 300

19. Selling goods and services to customers in their homes is an example ofA. producing. C. discounting. B. wholesaling. D. retailing.

20. Sandra has been caught taking items from her employer, Hudson's Hardware Store, without paying for them. This is an example of __________ business risk.

A. natural C. capitalB. human D. economic

21. In which of the following situations would consumers' purchasing power decrease:A. Interest rates decrease from 9% to 8%.B. State income-tax rates decrease by 1/2%.C. Pay raise is 4% and inflation rate is 6%.D. Employer matches contributions to retirement plan.

22. A deficit in the balance of trade decreases theA. gross domestic product. C. consumer buying power.B. cost of production. D. federal minimum wage.

23. A primary factor that a retailer must consider when expanding its business into a foreign market is the country'sA. start-up costs. C. financial objectives. B. economic system. D. forecasting policies.


24. Because Sharon thinks of herself as an industrious retail manager who develops creative ideas, has a pleasant personality, and works well with customers, Sharon has a positive __________ herself.

A. self-concept of C. career goal for B. moral opinion of D. code of ethics for

25. Being enthusiastic can increase yourA. happiness. C. skills.B. problems. D. stress.

26. One of the reasons you should listen to criticism carefully is that it shows that youA. know you have made a mistake. C. don't have any questions.B. believe the criticism is valid. D. take the criticism seriously.

27. Which of the following statements about change in the retail work environment is true:A. Retail employees usually can refuse to make changes they don't like. B. A retail employee often can change the behavior of coworkers. C. Retail employees accept change better if it is unexpected. D. Being receptive to change helps retail employees to be successful.

28. A person who wishes to express empathy should consider facial expression as a factor thatA. conveys indifference. C. can be important. B. doesn't matter. D. won't be noticed.

29. Which of the following techniques helps to build trust in negotiations:A. Show respect by actively listening C. Always have an answer ready B. Provide a lot of documentation D. Share information that may be threatening

30. Not liking conflict of any kind and avoiding it at all costs are _____________ being assertive.A. advantages of C. methods of B. reasons for D. barriers to

31. It is important for retail employees to contribute their ideas to the work team, even when they think their ideas may not be accepted, because this

A. demonstrates commitment to the team's goals.B. ensures that the team will be objective.C. prevents disagreements among team members.D. helps the team to make a good decision.

32. One way money functions in society is that it helps people communicate a retail product's A. value. C. market. B. income. D. attributes.

33. What type of accounting method is a bookstore using if it records sales as they happen, even if no money changes hands then?

A. Income C. Credit B. Cash D. Accrual

34. Which of the following should a store owner list individually on a bank deposit slip:A. Checks C. CoinsB. Currency D. Charges

35. One way that discount stores often use current employees during the process of orienting new employees is asA. trainers. C. managers.B. interviewers. D. evaluators.


36. Why do retailers gather marketing information?A. To fill data banks C. To use in decision makingB. To participate in market research D. To establish information systems

37. A retailer that publishes marketing information but ignores pertinent data and misuses statistics often compromises itsA. credibility. C. elasticity.B. confidentiality. D. availability.

38. How does marketing research help a home-improvement retail chain to implement the marketing concept?A. By identifying consumers' wants and needs C. By solving the retail chain's problems B. By setting goals for the retail chain D. By preventing financial losses

39. In order to make marketing decisions that will help them to remain competitive, discount stores often monitor their competitors' __________ activities.

A. management C. financialB. personnel D. promotional

40. Which of the following data-processing methods is done quickly and does not require retailers to manually handle raw data:

A. Voice networking C. Cyber-optingB. Computer keyboarding D. Optical scanning

41. April and Mark are making plans to open a home decorating boutique in an expensive upscale mall in the suburbs. They plan to advertise their shop and put on fund-raising events for charity. Which of the following would be the most appropriate product for them to offer at such events:

A. $20 wall hanging C. $30 tablecloth B. $15 floral arrangement D. $475 crystal vase

42. Customers in cold climates who need snow shovels and snow blowers are an example of which of the following market segments:

A. Psychographic C. BehavioralB. Geographic D. Occupational

43. What is one factor that the Cost Cutter Discount Store chain considers when identifying promotional activities to include in its marketing plan?

A. Wage regulations C. Inventory systemB. Safety issues D. Costs involved

44. The purpose of the marketing planning process is to balance the internal strengths and weaknesses of a furniture store with its external

A. opportunities and threats. C. costs and expenses.B. products and resources. D. goals and objectives.

45. Which of the following should be considered when preparing a sales forecast for a pet-supply store:A. Staff turnover C. Payroll expensesB. Security reports D. Economic conditions

46. An electronic planning device that many retail employees use to keep track of their activities is an example of aA. time-management tool. C. web-based program. B. communication system. D. presentation application.

47. One of the advantages to retail chains of using spreadsheet software is its ability toA. store information. C. create visuals.B. do calculations. D. write brochures.


48. Melanie is putting a copy of each valuable business record in a building far away from her lamp store. She is practicing which part of disaster planning?

A. Keep potential lawsuits in mind C. Store information off site B. Establish a system for record keeping D. Computerize valuable business information

49. One reason the trend of rewarding loyal customers is becoming so popular in the retail industry is because itA. promotes the use of gift certificates. C. eliminates merchandise returns. B. reduces the number of complaints. D. builds long-term relationships.

50. What is the first step in following up on an order?A. Determine whether the supplier has accepted the order. B. Determine whether the supplier has made changes in the order. C. Check for discrepancies between the original order and the received order. D. Visit the vendor personally.

51. A local office-supply store conducts its closing proceduresA. during the lunch hour when most bank deposits are made. B. after the last customer has left and the doors have been locked.C. when sales personnel have completed the physical inventory counts. D. after a security check has been conducted and before the evening shift begins.

52. What should home-improvement stores do to help employees follow instructions for the use of equipment and machinery?

A. Require hand washing C. Install sprinkler system B. Display first aid posters D. Provide training

53. In what type of centralized retail buying does a central buying authority arrange an initial assortment of merchandise to be shipped to individual stores?

A. Concentrated buying C. Price-agreement planB. Warehouse-and-requisition plan D. Dispersed buying

54. Visual inspection is used to monitor inventory levels in many retail stores. For example, hardware stores often place stock cards on pegboards with stock numbers and descriptions for each item displayed. The stock cards specify the number of items to be kept in stock. The amount to reorder will most likely depend on

A. the amount of shelf space in the store. B. the perpetual inventory records of the store.C. the difference between the number on hand and the specified number to be stocked.D. the physical inventory records of the store and the selling price of the merchandise.

55. If a discount retail chain considers possible future problems during the process of developing a project plan, the discount retail chain might be able to

A. schedule employees. C. negotiate contracts. B. control costs. D. eliminate resources.

56. Your body language affects how you present yourself in terms of your nonverbal cues and theA. level of productivity at work. C. manner in which you carry yourself.B. ability to maintain a healthy weight. D. way you manage your clothing budget.

57. Which of the following is an appropriate goal of orderly and systematic behavior:A. Being identified as an organized person C. Keeping everything in perfect order B. Becoming a more effective person D. Setting an example for other people

58. Which of the following is an example of a business situation in which retail employees might need to use problem-solving skills:

A. A pet-store employee agrees to work overtime to complete a project. B. A manager asks a gift-shop employee to be a mentor to a new hire. C. A new hardware-store employee suggests changing an established procedure. D. A supervisor gives a senior bookstore employee a superior evaluation.


59. In order to decide which tasks are most important and the order in which the tasks are to be completed, planners can use the

A. GDP Factor. B. ABC Principle. C. RH Factor. D. XYZ Principle.

60. A source of employment information that can be used free of charge by everyone is a public employment agency, which is operated by

A. the government. C. local businesses.B. the school system. D. private employers.

61. Which of the following statements would be the best way for a job applicant to end an interview:A. "Ms. Collins, if you have any more questions, please give me a call."B. "Ms. Martin, I know that I can do this job, and I would like to have it."C. "Mr. Maxwell, what did you say is the reason that this job is open?"D. "Mr. Murray, I'd be happy to have this job, if you can't find anyone else."

62. Which of the following is one of the main reasons why retail businesses participate in trade shows:A. To promote community events C. To look for new merchandise B. To attend social functions D. To visit new locations

63. Which of the following indicates a retailer classified by ownership type:A. Direct marketing C. Franchise B. Convenience store D. Conventional supermarket

64. A pricing tactic used by some retailers that might be unethical is one thatA. confuses customers. C. offers rebates.B. advertises discounts. D. is competitive.

65. In which of the following situations are retail competitors involved in price fixing:A. Agreeing to offer the same discounts C. Pressuring customers to buy B. Selling items below cost D. Charging different prices for the same items

66. Which of the following is true of a retailer's pricing objectives:A. They must be adjusted from time to time. C. They are chosen for the life of the business.B. They must be changed each fiscal year. D. They are not affected by changing circumstances.

67. Which of the following is a factor that a gift shop should consider during the product/service management process:A. Transportation C. Recruitment B. Depreciation D. Competition

68. To reduce lag time between order and delivery and to adjust sizes, styles, and colors of its furniture collections in response to actual sales, a major retail chain uses __________ with its foreign manufacturers.

A. scanner systems C. electronic data interchange B. buyer's intuition D. global distribution centers

69. When Devon had an idea for a new lawn mower option based on an existing lawn mower, the new lawn mower is called a(n)

A. brainstorm. C. model replacement. B. substitute. D. intangible item.

70. Retail chains that build a reputation for carrying out the terms of their warranties and guarantees generally have higher sales and more repeat customers, which results in

A. increased profits. C. unclear standards for the business. B. decreased feedback from customers. D. a business-oriented focus.

71. Under which of the following circumstances might a retail chain decide to eliminate a certain item from its product mix:A. Product complements other products. C. Product's reputation is positive. B. Product's sales are in decline. D. Product is similar to competitors' products.


72. Which of the following is an example of a retail business positioning a product based on the product's features and benefits:

A. Emphasizing capabilities and durability C. Describing similarities within a product lineB. Advertising price line and quality D. Promoting characteristics available from competitors

73. A brand name that carries the label of the wholesaler or retailer who sells it is called a __________ brand.A. private B. fighting C. family D. national

74. A planning tool used by retailers to maintain supplies of their best sellers is aA. basic stock list. C. model stock plan. B. never-out list. D. merchandise assortment plan.

75. A hardware store expects monthly sales of $176,450, markdowns equaling 3% of sales, and employee discounts equaling 2.5% of sales. Calculate the hardware store's planned reductions if it also expects $550 in shortages.

A. $10,254.75 B. $9,704.75 C. $8,176.00 D. $11,137.00

76. When deciding what merchandise to buy, what factor is a retailer considering when it analyzes how well the goods will fit the needs of its customers?

A. Adaptability B. Transferability C. Suitability D. Discountability

77. Last year, a toy store sold 720 bicycles and is experiencing a 10% increase in sales this year. If the store expects a 14% increase next year, how many bicycles should it buy to meet demand?

A. 821 B. 893 C. 903 D. 931

78. The ultimate intent of effective promotion is toA. achieve a desired outcome. C. conduct marketing research. B. put pressure on consumers. D. promote the price of goods/services.

79. Which of the following kinds of paid promotion is most likely to be used to promote the entire retail chain as a business:A. Personal selling C. Publicity B. Sales promotion D. Advertising

80. An advantage in using the Internet to promote products is that a retailer can usually A. reduce traditional publicity efforts. C. track the users' viewing and purchasing habits. B. increase annual sales volume by ten percent. D. create a loyal customer base.

81. When a government issues a cease-and-desist order to a retail advertiser, it is an example of a legalA. appropriation. B. arbitration. C. remand. D. remedy.

82. Why is the Internet considered to be a type of interactive media?A. Multiple computer networks cooperate together to make the Internet possible.B. Information travels through the Internet to get to consumers.C. Many people talk on the telephone while chatting on the Internet.D. The user controls the flow of information.

83. A print advertisement for a hair formula that covers gray hair includes a picture of a man before using the product and after using the product. This illustration is focusing on the

A. product's features. C. product itself.B. product in use. D. benefits of the product.

84. A direct mail campaign is often more successful when the retail advertiser verifies that the information that it has about recipients, or the target market, is

A. accurate. B. extensive. C. conventional. D. unusual.

85. One of the important functions of visual merchandising is toA. simplify unit inventory control. C. use cooperative advertising funds. B. make selling easy for retail sales associates. D. support the image of the retailer.


86. Which of the following color choices is most likely to attract customers' attention to a small sign on an interior display of a pet-supply store:

A. Orange letters on a yellow background C. Red letters on a white backgroundB. Dark blue letters on a light blue background D. White letters on a gray background

87. What type of display arrangement might a store use in order to promote the sale of a variety of discounted items?A. Unit B. Mass C. Open D. Wall

88. One reason it is important for appliance stores to coordinate their promotional activities is to reinforce theA. publicity. B. advertising. C. sales effort. D. print media.

89. The reason a department store often plans a specific display theme to use throughout the store is to create a certainA. mood. B. pattern. C. flow. D. layout.

90. Maggie is in the market for a new stove, and Jan recommends Appliance World because she has purchased three different appliances there and the company backs up its promises. This is an example of which benefit of customer service?

A. Profit motive B. Reputation C. Spirit D. Convenience

91. Jack has been the owner/operator of a suburban retail store for 20 years. Many of his customers have done business with Jack since the beginning. This fact indicates that Jack has been successful in

A. offering good service. C. promoting his business.B. building a clientele. D. selecting marketing strategies.

92. Which of the following is a way that selling policies often benefit the salesperson:A. Improved profitability C. Extended working hoursB. Expanded responsibilities D. Increased job satisfaction

93. Which of the following is an example of a salesperson's misrepresenting a retail display product in a way that may be illegal:

A. Stating opinions about products C. Providing product informationB. Offering products for low prices D. Exaggerating product capabilities

94. What type of product information can a salesperson obtain by talking to customers?A. Type of product warranty C. ConstructionB. Ways of using the product D. Availability

95. When Tyra walked into Riley's Home-Improvement Store, a salesperson smiled at her and wished her a good day. This is an example of what phase of the selling process?

A. Discovering client needs C. Establishing relationships with customersB. Prescribing solutions to needs D. Reaffirming the buyer-seller relationship

96. "Do you want interior or exterior paint?" is an example of a question that deals with the product'sA. brand name. B. style. C. materials. D. intended use.

97. Customers pay sales tax to businesses for the purchase of most goods and services, and then the businessesA. pay the tax to the government. C. keep the tax as profit.B. use the tax to expand operations. D. give the tax to local charities.

98. In which of the following situations do furniture stores often provide free delivery to customers:A. Items being delivered are small. C. Customers live out of town. B. Purchase exceeds a certain price. D. Purchase is made with a credit card.

99. A retailer's gift-wrapping area should be well organized in order toA. enable wrappers to complete the job quickly. C. assure wrappers that customers will be satisfied.B. enable wrappers to earn tips for their work. D. remind wrappers of the appropriate materials to use.


100. A catalog retailer's order processors read back the information to the customer at the end of the telephone call in order to give the customer the opportunity to __________ the information.

A. cancel B. explain C. repeat D. correct



1. DExclusive licensing agreement. This is a written agreement that grants a licensee the sole licensing rights to products or information (e.g., logo, copyrighted material, or patented products) by the owner (licensor) of the material. A nonexclusive licensing agreement means that the licensee has written permission from the licensor to use licensed material but is not the only licensee that has that right. A joint venture is an arrangement that involves two or more businesses entering into a relationship by combining complementary resources such as technology, skills, capital, or distribution channels for the benefit of all parties. The relationship is usually short-term or for a single project or transaction. Product trade-name refers to a franchise arrangement based on an independent sales relationship between a franchisor and franchisee to stock and sell a specific line of goods. It is also known as a dealership or exclusive distributorship.

SOURCE: BL:003SOURCE: BA LAP 7—Own It Your Way

2. AStorage warehouse. Storage warehouses are used only as places to store products. They may be private or public. Distribution centers are warehouses that provide storage, fill orders, and deliver them. Distribution centers are usually owned by the businesses that use them. An assembly department does not hold goods but puts parts together to form a final product. A fulfillment house is not a storage facility.SOURCE: CM:001SOURCE: DS LAP 1—Distribution

3. CLocal consumers. A short channel can be used when the potential customers are few and/or located close together. The baby boomer, senior citizen, and Generation X markets have many potential customers who are widely dispersed.SOURCE: CM:003SOURCE: MB LAP 3—Channels of Distribution

4. CThe supplier employs full-line forcing without allowing competing products. The practice of full-line forcing by a supplier is designed to ensure that intermediaries acquire new products and make available to customers a suitable range of products. Suppliers requiring channel members to purchase their entire line to obtain any of their products is a type of tying agreement and is legal as long as competitive brands are also allowed to be carried. Tying agreements are legal when the supplier alone can provide the products and when a company has just entered the market.SOURCE: CM:005SOURCE: Pride, W.M., & Ferrell, O.C. (2000). Marketing: Concepts and strategies (2000e)

[pp. 366-367]. Boston: Houghton Mifflin.


5. ADistribution. Promotion helps to create demand for products while distribution makes those products available. Retailers coordinate distribution with promotional activities to make sure that sufficient quantities of advertised products are available when customers want to buy them. If a retailer plans to promote a certain item, the retailer must make sure than an adequate supply will be on hand to meet consumer demand. Retailers may lose customers if they promote certain items that are not available because they failed to make the necessary distribution arrangements. Transportation is the act of moving items from one place to another and is only one aspect of distribution. Segmentation involves dividing something, such as a total market, into smaller, more specific groups. Communication is an exchange of information in which the words and gestures are understood in the same way by both the speaker and the listener.SOURCE: CM:007SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 367).

New York: Glencoe/McGraw-Hill.

6. DChannel conflict. Channel conflict occurs when there are differences among members in the same channel of distribution. One of the causes of channel conflict is the purchase terms. For example, manufacturers often want prompt payment for goods, but intermediaries (e.g., retailers) often want to defer paying the manufacturers for as long as possible. The manufacturers and the intermediaries must be able to resolve the conflict in order to distribute the products. The manufacturer and the retailer disagreeing about payment does not result in increased risk, limited variety, or illegal activity.SOURCE: CM:008SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an

e-commerce world (7th ed.) [pp. 371-372]. Mason, OH: South-Western.

7. ASharing a personal experience. Discussion tools for contributing in an open-minded way include: asking questions, building on someone else's comment, volunteering a new idea, pointing out missing information, and helping the group summarize what's been said. You may indeed share a personal experience, but it is not a discussion tool.SOURCE: CO:053SOURCE: QS LAP 29—Put In Your Two Cents

8. CStaff. Messages for all retail employees are considered staff communication. This is a form of downward communication in which information is presented to retail employees by management. Upward communication occurs when retail employees present information to management. Informal communication is the unofficial exchange of information among members of an organization. Lateral, or horizontal, communication involves the exchange of information among retail employees on the same level.SOURCE: CO:014SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)

[pp. 250-251]. Cincinnati: South-Western.

9. BRetailers. Reduced complaints, repeat business, and greater profits are normally the results when a retail business has a customer-service mindset. Employees may benefit by receiving promotions or raises. Benefits to the customers would include having a more satisfactory shopping experience. Competitors would not benefit from another retail business practicing a customer-service mindset.SOURCE: CR:004SOURCE: HR LAP 32—Customer-Service Mindset


10. BListen to what the customer has to say. You must first know what the complaint is before you can handle it. Only by listening to the retail customer can you assess the situation in order to follow through with further action. Then you can develop a remedy that is agreeable to the retail customer. You should always follow through with your promises.SOURCE: CR:010SOURCE: HR LAP 23—Handling Customer Complaints

11. BPerishables. Retailers should check incoming shipments for any items that require immediate handling. Perishables require priority processing because they are items that are capable of spoiling, decaying, or dying. Basic stock and staple goods are frequently purchased goods that retailers keep on hand continuously because the demand for them is constant. Durables are tangible items which should last a long time.SOURCE: DS:085SOURCE: Ninemeier, J.D. (2000). Management of food and beverage operations (3rd ed.)

[pp. 255-259]. Weimar, TX: Culinary and Hospitality Industry Publications Services.

12. DProcess returned products. In some situations, returned products can be repaired which satisfies customers because they might prefer to keep the items. Arranging for repairs is one way that furniture stores process returned items such as expensive lamps. Many items are sold with some type of guarantee that they will operate correctly for a certain period of time. If they malfunction during that time, stores arrange for repairs. Repairing the items is a service to customers, but also benefits the store because it does not have returned merchandise that it cannot resell. If the damaged item cannot be repaired, a store might send it to salvage. Stores do not arrange for repairs to handle seasonal merchandise or to generate additional profit. Usually, the repairs are free to the customer.SOURCE: DS:009SOURCE: Dunne, P., Lusch, R., & Griffith, D. (2002). Retailing (4th ed.) [pp. 463-464]. Mason,

OH: South-Western.

13. CCheck the UPS computer system to determine the location of the goods. UPS maintains a computer system and provides its customers with software that enables them to check the status of shipments. By accessing the system, the manufacturer would be able to find out the exact location of the goods and when they will be delivered. Checking the status of deliveries or tracing lost shipments is a service that manufacturers should provide to their customers. Asking the UPS driver or talking with shipping employees will not help to determine the status of the shipment. Manufacturers should obtain delivery information for customers rather than giving them a code to trace the shipment themselves.SOURCE: DS:088SOURCE: Johnson, J.C., Wood, D.F., Wardlow, D.L., & Murphy, P.R. (1999). Contemporary

logistics (7th ed.) [pp. 176, 235-236]. Upper Saddle River, NJ: Prentice Hall.

14. AAvailable as replacement stock. Reserve stock is stock that is kept in a stockroom or warehouse and routed from those locations to the selling floor. It is used to replace forward stock as that stock is sold from the selling floor. Reserve stock is regular stock which may or may not include items held for special customers. Reserve stock is not usually kept at a manufacturer's location.SOURCE: DS:015SOURCE: About.com. (n.d.). Reserve stock. Retail glossary of terminology: Reserve stock.

Retrieved November 15, 2007, from http://retailindustry.about.com/od/abouttheretailindustry/l/blterm_r.htm


15. BLead time. Lead time is the amount of time that passes between placing an order and receiving the stock. Retailers should take into consideration the lead time when ordering goods to maintain an adequate inventory level. If retailers know that the lead time is long, they should order well in advance so they can avoid depleting the inventory. An excise tax is a special government tax on certain items. The list price is a producer's suggested price for a product. Net profit is money remaining after operating expenses are subtracted from gross profit.SOURCE: DS:023SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)

[pp. 356-357]. Upper Saddle River, NJ: Prentice Hall.

16. A$530. To calculate inventory shrinkage, begin with the stock value from the previous physical count and add the amount of purchases made since then ($21,150 + $6,425 = $27,575). From that figure, subtract the total sales transactions to determine the value of perpetual inventory ($27,575 - $14,230 = $13,345). This figure is then compared with the periodic stock count; and if the current stock value is lower than the figure from inventory records, inventory shrinkage has occurred ($13,345 - $12,815 = $530).SOURCE: DS:026SOURCE: DS LAP 4—Inventory Shrinkage

17. ABuy the product. When retailers provide information about an available product, customers are more likely to buy the product. Providing information doesn't directly increase the number of questions asked during the buying/purchasing experience. And, providing information doesn't make payment plans and layaway requests more likely.SOURCE: EC:004SOURCE: EC LAP 13—Use It (Economic Utility)

18. APrice $500; Demand 300; Supply 300. The price at which buyers will buy all that sellers have to sell at that price is $500. The demand is 300, and the supply is 300. When the price is $300 or $400, excess demand exists. When the price is $600, excess supply exists.SOURCE: EC:006SOURCE: EC LAP 12—Price

19. DRetailing. Whenever a sale of goods or services to the ultimate consumer takes place, retailing has occurred. Retailing can take place anywhere —in a store, over the phone, by mail, on the street corner, in a customer's home, etc. Discounting is reducing the price of a good or service. Wholesaling is the process of buying goods from producers and selling them to retailers. Producing is the process of making goods and services.SOURCE: EC:070SOURCE: MB LAP 6—Business and Society

20. BHuman. An employee's theft and dishonesty are examples of human risks—chances of loss caused by human weaknesses and unpredictability. Natural risks are chances of loss from such natural causes as fires, perishability, earthquakes, or lightning. Economic risks are chances of loss due to changes in the market that force a lowering of prices, change of products, or even business failure. Capital risks are one kind of economic risk.SOURCE: EC:011SOURCE: EC LAP 3—Lose, Win, or Draw (Business Risk)


21. CPay raise is 4% and inflation rate is 6%. When the inflation rate is higher than the percent of raise that employees receive, the purchasing power of those employees decreases. This has a negative effect on the economy because the higher inflation rate means higher prices for goods and services. The pay raise that the employees received was less than the rate of inflation so employees lost purchasing power. They have less money to spend, and the goods and services they want cost more than their pay increase. When interest rates decrease, consumers' purchasing power usually increases. Consumers' purchasing power does not change if their employers match their contributions to a retirement plan. An decrease in state income-tax rates usually increases consumers' purchasing power.SOURCE: EC:081SOURCE: Arnold, R.A. (2004). Economics (6th ed.) [p. 180]. Cincinnati: Thomson/South-Western.

22. AGross domestic product. A trade deficit means that more goods and services are imported than exported. A trade deficit decreases the gross domestic product because the country spends more money buying goods than it makes selling goods to other countries. Consumer buying power is the cash and credit a consumer has available to spend. Federal minimum wage is set by law and is the lowest amount of hourly wages that a business may pay its employees. Cost of production is the total amount of money spent on costs of materials, labor, taxes, etc., to manufacture economic goods and services.SOURCE: EC:016SOURCE: EC LAP 4—Beyond US (International Trade)

23. BEconomic system. Many factors must be considered when a retailer plans expansions into international venues. The economic system refers to the method in which people make and spend their incomes. A country's economic system affects the way a retailer conducts business in the country. For example, a country with a command economy might have very strict regulations and tariffs for international businesses. The regulations and tariffs can dramatically affect the profitability of the business in the foreign market. Forecasting is a process that retailers use to estimate business activities (e.g., sales, revenues). Policies are the procedures used to achieve goals. A business that plans international expansion is more likely to consider its financial objectives than those of the foreign market. Start-up costs refer to all of the expenses involved in setting up a new business or introducing a new product to the market. SOURCE: EC:094SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 54-57,

84-86). New York: Glencoe/McGraw-Hill.

24. ASelf-concept of. Self-concept is the way you see yourself. It is the picture you have of yourself and involves your personal traits, skills and abilities, and the roles you play. Sharon has a positive picture of herself as an industrious, creative, caring, and friendly person. Career goals are objectives that people want to fulfill. Ethics are morals or the basic principles that govern your behavior.SOURCE: EI:016SOURCE: HR LAP 12—Self-Esteem


25. AHappiness. An enthusiastic attitude increases your personal happiness and satisfaction and will help you to enjoy life more. It should serve to reduce the amount of stress that you experience. Your enthusiasm may prompt your supervisor to increase your responsibilities, thereby improving the overall importance and quality of your work experience. Being enthusiastic will not increase your problems or your skills.SOURCE: EI:020SOURCE: HR LAP 20—Interest and Enthusiasm

26. DTake the criticism seriously. You should listen carefully to criticism, even though you may not like what you are hearing. The speaker thinks the criticism is valid and expects you to take it seriously. Listening carefully does not indicate that you know you have made a mistake, that you don't have any questions, or that you believe the criticism is valid.SOURCE: EI:003SOURCE: HR LAP 3—Handling Feedback

27. DBeing receptive to change helps retail employees to be successful. The retail business world is dynamic and constantly changing. To be successful, retail employees must be able to adapt to it. A retail employee cannot change others—the desire to change must come from within oneself. Retail employees accept change with less resistance if they are prepared for it in advance.SOURCE: EI:026SOURCE: HR LAP 8—Adjusting to Change

28. CCan be important. Facial expression is a form of nonverbal communication. It can be used to express empathy just as verbal communication does. For example, a smile can express friendly interest in others, or a thoughtful expression can indicate that the listener cares about what the speaker is saying. In some cases, the facial expression may make more impact than words. Facial expressions are important and will be noticed. Facial expressions do not always convey indifference.SOURCE: EI:030SOURCE: HR LAP 17—Empathy

29. AShow respect by actively listening. When negotiating, you often earn the other party's trust by actively listening to their point of view. This shows that you are interested in what is being said and that you want to reach agreement. It is not possible to have an answer for all questions. Documentation will not be convincing if you have not shown yourself to be trustworthy. Threatening people is not an effective negotiation technique.SOURCE: EI:062SOURCE: EI LAP 8—Make It a Win-Win (Negotiation in Business)

30. DBarriers to. There are barriers to being assertive even though being assertive is the way to go. For one, some people do not like conflict of any kind and often try to avoid it at all costs. They are afraid that being assertive will ruin friendships. They do not want to appear to be aggressive so they do not stand up for themselves. Not liking conflict of any kind and avoiding it at all costs are not reasons for being assertive, methods of being assertive, or advantages of being assertive.SOURCE: EI:008SOURCE: QS LAP 4—Speak Up


31. DHelps the team to make a good decision. Many retailers consider their employees as part of the work team. Work teams need the input of all the members (employees) in order to make good decisions. One member's thoughts may throw new light on the situation or present a solution that hasn't occurred to the others. Having each member contribute does not ensure that the team will be objective or demonstrate a commitment to the team's goals. Considering everyone's thoughts and ideas is more likely to create disagreements than to prevent them.SOURCE: EI:045SOURCE: HR LAP 26—Teamwork

32. AValue. Money is the most common medium of exchange in society. People exchange money for goods and services that they want. The price, or the amount of money a person is willing to pay for the retail product, communicates the retail product's value or worth. Income is money that resource owners receive for supplying goods and services. Market refers to the customers or potential customers who have an unfulfilled desire and are financially able and willing to satisfy that desire. Attributes are a retail product's characteristics.SOURCE: FI:060SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (p. 34). Tinley Park, IL:

Goodheart-Willcox.

33. DAccrual. The accrual method of accounting records transactions as they occur, even if no money changes hands. This method is used by many bookstores that offer credit. The cash accounting method records transactions when money changes hands. Income is money received by a bookstore from outside sources. Credit is the arrangement by which bookstore or individuals can purchase now and pay later.SOURCE: FI:085SOURCE: FI LAP 5—Show Me the Money

34. AChecks. Deposit slips for business accounts provide space on the back of the slip for the store owner to list individually each check received from a customer. The store owner writes down the number of each check and the amount before computing the total. A store owner lists only the total amount of currency and coins on a bank deposit slip. Credit card or store charges are not listed on bank deposit slips.SOURCE: FI:298SOURCE: American Bankers Association (2005). Today's teller: Developing basic skills (p. 49).

Washington: Author.

35. ATrainers. Discount stores often use current employees to help orient and train new employees. Current employees are familiar with the discount store's facilities and ways of operating. They can take new employees on a tour of the property, introduce them to coworkers, and explain certain basic procedures. Current employees can answer questions for new employees and help them to feel welcome in their new environment. Discount stores do not use current employees to interview, manage, or evaluate new employees during the orientation process.SOURCE: HR:360SOURCE: Jackson, S., & Schuler, R. (2003). Managing human resources through strategic

partnerships (8th ed.) [pp. 366-369]. Cincinnati: Thomson/South-Western.


36. CTo use in decision making. Marketing information is vital to the decision making, problem solving, and planning processes. Gathering information has become essential to the success of most retailers. It is not an exercise in market research intended merely to fill data banks or set up information systems.SOURCE: IM:001SOURCE: IM LAP 2—Marketing-Information Management

37. ACredibility. To protect its integrity, retailers should report findings in a truthful manner. By misrepresenting material, the retailer runs the risk of losing the public's trust. A loss of trust might lead to financial losses or closure for the retailer. Availability refers to the level of accessibility or the ability to obtain something. Confidentiality refers to the level of one's privacy. Elasticity is a term used to describe the economic condition of how changes in price affect changes in the amounts of products that are demanded and supplied.SOURCE: IM:025SOURCE: Churchill, G. (2001). Basic marketing research (4th ed.) [p. 65]. Mason, OH: South-

Western.

38. ABy identifying consumers' wants and needs. The marketing concept is a philosophy of conducting business that is based on the belief that all business activities should be aimed toward satisfying consumer wants and needs while achieving company goals. Marketing research helps the home-improvement retail chain to implement the marketing concept by providing it with information about what consumers want, need, and are likely to buy. Marketing research cannot solve a home-improvement retail chain's problems or prevent financial losses. The home-improvement retail chain sets its own goals, which may or may not be based on marketing-research information.SOURCE: IM:010SOURCE: IM LAP 5—Nature of Marketing Research

39. DPromotional. Promotional activities are all the special activities, such as advertising and contests, that discount stores use to attract customers and to increase sales. Stores want to keep track of the promotional techniques that their competitors are using to attract customers. If these promotional activities are successful, stores often decide to develop similar promotions in order to remain competitive. For example, if a competitor's buy-one-get-one-free promotion is increasing sales, a store might decide to use a comparable campaign. Stores do not monitor their competitors' personnel, financial, or management activities in order to make marketing decisions.SOURCE: IM:184SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p.

642]. Woodland Hills, CA: Glencoe/McGraw-Hill.

40. DOptical scanning. Optical scanning techniques allow raw data to be read electronically, often by bar codes. It translates the data into meaningful information. Computer keyboarding is a manual method of handling raw data. Cyber-opting and voice networking are not commonly used terms to describe marketing-information management methods.SOURCE: IM:062SOURCE: Shao, A. (2002). Marketing research: An aid to decision making (2nd ed.) [p. 404].

Mason, OH: South-Western.


41. D$475 crystal vase. A retailer's marketing strategies give direction to its goals and objectives. In this situation, the retailer is selecting a marketing mix that will create a specific image. The products the boutique offers need to be high quality, stylish, and expensive to fit properly in this marketing mix. The less expensive products do not fit the image created by the place and the promotion elements.SOURCE: MP:001SOURCE: IM LAP 7—Pick the Mix

42. BGeographic. Geographic segmentation groups people by the areas in which they are located. This includes customers in cold climates. Occupations are a basis for demographic segmentation. Psychographic segmentation groups people by lifestyles and personalities. Behavioral segmentation groups people by their response to a product.SOURCE: MP:003SOURCE: IM LAP 9—Have We Met? (Market Identification)

43. DCosts involved. An important part of a marketing plan is the promotional activities that the Cost Cutter Discount Store chain will use to inform, persuade, or remind customers of its products. When identifying these activities, the Cost Cutter Discount Store chain considers the costs involved because it has only a certain amount of money to spend on promotion. The Cost Cutter Discount Store chain wants to select the promotional activities that will reach the greatest number of potential customers for the most reasonable price. A marketing plan is concerned with promotional activities rather than safety issues, the inventory system, or wage regulations. However, these factors are an important part of the overall business plan.SOURCE: MP:007SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)

[pp. 647-650]. Woodland Hills, CA: Glencoe/McGraw-Hill.

44. AOpportunities and threats. The purpose of the marketing planning process is to balance the internal strengths and weaknesses of a furniture store with its external opportunities and threats. Products, resources, goals, objectives, costs, and expenses are internal factors that may be strengths or weaknesses.SOURCE: MP:008SOURCE: Longenecker, J.G., Moore, C.W., & Petty, J.W. (2003). Small business management:

An entrepreneurial emphasis (12th ed.) [pp. 42-43]. Cincinnati: Thomson/South-Western.

45. DEconomic conditions. Local and national economic factors may affect consumer demand for specific types of goods, thereby influencing actual sales volume. Economic forecasts, therefore, should be considered when forecasting sales. Payroll expenses are the costs of labor. Staff turnover is the number of people who have left a business in a given period of time. Security reports contain information pertaining to the physical security of the pet-supply store's premises and property.SOURCE: MP:013SOURCE: IM LAP 3—Nature of Sales Forecasts


46. ATime-management tool. Many retail employees keep track of their activities and organize their daily schedules by using an electronic planning device. This device is a time-management tool because it allows retail employees to plan their activities to be the most productive. Retail employees can enter information about future projects, deadlines, meetings, etc., and plan the best use of remaining time. An electronic planning device is not an example of a communication system, a web-based program, or a presentation application.SOURCE: NF:005SOURCE: Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (p. 359). New

York: Glencoe/McGraw-Hill.

47. BDo calculations. Retail chains often use spreadsheet software to organize and prepare financial documents, such as budgets and profit statements. One of the advantages of using spreadsheet software is its ability to do mathematical calculations. A retail chain can input columns and rows of dollar amounts or percentages, and the software will complete the computations accurately and quickly. Also, retail chains can change various figures to determine the effect a planned price increase would have on profit. Word-processing software is used to write brochures. Graphics software is used to create visuals. Database software is used to store information.SOURCE: NF:010SOURCE: Eggland, S.A., Dlabay, L.R., Burrow, J.L., & Ristau, R.A. (2000). Intro to business (4th

ed.) [pp. 214-216] Cincinnati: South-Western Educational.

48. CStore information off site. By putting copies of records in a building far away from her lamp store, Melanie is storing information off site—a part of disaster planning. Melanie has likely established a system already, since she has records to preserve. She may or may not choose to computerize her valuable business information. The records stored off site may or may not be used in a lawsuit in the future. Off-site storage is typically used to avoid hazards, such as fires and floods.SOURCE: NF:001SOURCE: NF LAP 1—Record It (Business Records)

49. DBuilds long-term relationships. The trend of rewarding loyal customers is becoming more and more popular in the retail industry because it tends to build long-term relationships. When retailers reward their best customers with special discounts, sales, cash-back offers, etc., they are thanking them for their business and reinforcing the relationship. Customers appreciate the rewards and often remain loyal customers in order to continue to benefit from the special programs. Rewarding loyal customers does not necessarily reduce the number of complaints or eliminate merchandise returns. Rewarding loyal customers does not promote the use of gift certificates.SOURCE: NF:064SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


50. ADetermine whether the supplier has accepted the order. The first step in following up a purchase order is determining whether the supplier has accepted the order. No purchase contract exists until the seller accepts the offer to buy. After determining if the order has been accepted, determine whether the supplier has made changes in the order or if there are any discrepancies in the order. It is only necessary to visit a vendor personally if there is a major problem with the order.SOURCE: OP:040SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 348-

349). New York: Glencoe/McGraw-Hill.


51. BAfter the last customer has left and the doors have been locked. Retailers generally check the floor and restrooms for lingering shoppers. Since cash drawers are counted and checked after store closing, personnel walk through the store to look for unauthorized individuals, lowering the risk of robbery. It is also the reason that store entrances are locked when conducting closing procedures. The security check is conducted during closing procedures, which is at the end of the evening shift. Bank deposits can be made at anytime. Unless the retail store closes at the lunch hour, closing procedures are not usually conducted at lunchtime. Although sales associates can conduct a physical inventory after closing, a detailed count is not usually done every day. Some closing duties might include inventory replenishment, putting merchandise back at the appropriate location, and straightening and organizing floor merchandise.SOURCE: OP:131SOURCE: Berman, B., & Evans, J.R. (1998). Retail management: A strategic approach (7th ed.)

[p. 418]. Upper Saddle River, NJ: Prentice Hall.

52. DProvide training. Depending on the type of business, employees may be required to use equipment and machinery that may be complicated to operate. To help employees follow instructions and use the equipment and machinery in a safe manner, it is often necessary for home-improvement stores to provide training. During training, employees learn correct operating procedures that will minimize the possibility of accidents or injuries. Displaying first aid posters or installing a sprinkler system will not help employees follow instructions for the use of equipment and machinery. Depending on the equipment or machinery, employees may be required to wash their hands before or after use.SOURCE: OP:006SOURCE: Ninemeier, J.D. (2000). Management of food and beverage operations (3rd ed.)

[pp. 274-275]. Weimar, TX: Culinary and Hospitality Industry Publications Services.

53. BWarehouse-and-requisition plan. This type of centralized retail buying is frequently used by multi-unit operations in buying basic items which are warehoused until requisitioned by the store manager. The price-agreement plan is a type of centralized retail buying in which a central buying authority takes responsibility for selecting vendors and merchandise, leaving store management to choose items for their stores from a listing of merchandise purchased by central buying. Concentrated buying strategies utilize only a few suppliers in the hope of gaining quantity discounts, lower transportation costs, and improved vendor relationships. Dispersed buying strategies spread purchases over many suppliers to allow for greater merchandise variety and to encourage competition between vendors.SOURCE: OP:015SOURCE: Monczka, R., Trent, R., & Handfield, R. (2002). Purchasing and supply chain

management (2nd ed.) [pp. 77-81]. Mason, OH: South-Western.

54. CThe difference between the number on hand and the specified number to be stocked. Although a visual inspection system is easy for stock clerks, a card system in small retail stores will assist the business in making quick decisions to reorder additional merchandise. Physical inventories are taken at least once each year but usually not often enough to assist in the reordering process. Perpetual inventory records may not be totally accurate due to mistakes during the receiving process or the checkout area. Shelf space is a factor in reordering goods only when storage or warehouse space is unavailable elsewhere. If demand for the product is high, the selling price will not influence the quality of goods reordered.SOURCE: OP:016SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 510-

512). New York: Glencoe/McGraw-Hill.


55. BControl costs. An effective project plan helps to control costs by considering potential problems that may arise. By addressing problems in the planning stage, a discount retail chain is able to develop a method of dealing with potential problems, which often eliminates the need to make costly changes while completing the project. Scheduling employees is a routine part of developing a project plan but does not involve considering future problems. Considering future problems does not help a retail discount chain to negotiate contracts or eliminate resources. SOURCE: OP:001SOURCE: DuBrin, A.J. (2003). Essentials of management (6th ed.) [pp. 114-115]. Mason, OH:

South-Western.

56. CManner in which you carry yourself. Body language includes gestures such as facial expressions, nervous habits (e.g., nail biting), and posture. Certain gestures generate impressions that suggest one's level of confidence or comfort in certain situations. For example, crossing the arms close to your body often indicates a feeling of defensiveness. Nonverbal cues can affect how others respond. The ability to maintain an appropriate body weight is a health issue. The ability to manage budgets and the level of work productivity are not considered nonverbal communication cues.SOURCE: PD:002SOURCE: PD LAP 5—Brand ME! (Personal Appearance)

57. BBecoming a more effective person. You should become organized in order to be more effective, not for the sake of organization. Keeping everything in perfect order is an unrealistic goal. You may become identified as an organized person or set an example for others, but those are side effects rather than appropriate goals.SOURCE: PD:009SOURCE: HR LAP 4—Orderly and Systematic Behavior

58. CA new hardware-store employee suggests changing an established procedure. Conflicts in hardware stores sometimes occur when new employees recommend changing the way that long-time employees have been operating. The long-time employees may resent a new person, who has little experience with the retailer, making suggestions that imply that the employees are not performing as well as they could. The long-time employees may feel threatened and put up barriers to prevent the new employee from succeeding. In this situation, the new employee and the long-time employees need to discuss the problem and find an acceptable solution. Managers often ask experienced employees to be mentors to new hires. An employee who agrees to work overtime is not creating a problem. An employee's evaluation is confidential and would not create problems with other employees.SOURCE: PD:077SOURCE: IS LAP 2—No Problem

59. BABC Principle. The ABC Principle is a time-management technique in which planners assign each task to an "A," "B," or "C" category according to the time needed to complete the task and its importance. Category "A" items are the most important and should be completed during workers' high-energy times. Category "B" items follow "A" items and can be used to provide relief from the concentration required by "A" items. "C" items are routine items that can be done during waiting time or free time. GDP, or gross domestic product, is a measure of the nation's economy. RH Factor is a medical term. XYZ Principle is a distractor.SOURCE: PD:019SOURCE: OP LAP 1—About Time


60. AThe government. Public employment agencies are operated by either the state or the federal government. Businesses provide these agencies with information about their needs for workers, and the agencies pass the information on to job seekers who inquire. Some schools do help students to find jobs, but this service is not open to everyone. Private employment agencies charge a fee for their services. They may collect from both the employers/businesses seeking workers and the workers who find jobs through their services.SOURCE: PD:026SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [p. 35].


61. B"Ms. Martin, I know that I can do this job, and I would like to have it." At the end of an interview, job applicants should let the interviewer know that they are interested in the job, that they can do the job, and that they want the job. This is similar to closing a sale-salespeople should ask customers to buy. In job-interview situations, applicants should ask interviewers to buy their services (labor). Mr. Murray will doubt the applicant's ability to do the job-is there someone better qualified? Ms. Collins should be able to ask all of her questions during the interview without having to call the applicant again. Mr. Maxwell will feel that the applicant had not been listening when the reason for the job opening was discussed earlier.SOURCE: PD:028SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp. 68-71].


62. CTo look for new merchandise. A trade show is an exhibition at which manufacturers and other businesses display their products. One of the main reasons why retailers attend trade shows is to look for new merchandise that they can sell. Retailers talk with the suppliers or potential suppliers to obtain product information and perhaps find unique new offerings to sell in their outlets. Retail businesses do not participate in trade shows in order to attend social functions, to promote community events, or to visit new locations.SOURCE: PD:036SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


63. CFranchise. Identifying a retailer as a franchise is a way of classification by ownership type. Identifying a retailer as a convenience store or a conventional supermarket is a way of classification by store-based retail strategy mix. Identifying a retailer as direct marketing is a way of classification by non-store-based retail strategy mix.SOURCE: PD:090SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)



64. AConfuses customers. A retailer that deliberately tries to confuse customers about the price of goods and services may be behaving unethically. Some pricing structures may be complex, which makes it difficult for customers to understand. As a result, customers usually are unable to figure out how to get a lower price and end up spending more than they should. This practice is considered unethical because customers don't have a fair chance to get the best price. Most pricing tactics are intended to be competitive. It is also common for retailers to advertise discounts and offer rebates. These tactics are not unethical.SOURCE: PI:015SOURCE: Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd

ed.) [pp. 327-328]. Boston: Irwin/McGraw-Hill.

65. AAgreeing to offer the same discounts. Price fixing is an illegal agreement between competing retailers as to a price or price range for products. Price fixing extends beyond merely agreeing on prices and also includes coordinating the amount of discounts and credit terms. When competitors that sell the same items agree to offer the same discounts, they are fixing prices. This exchange of information prevents customers from having a choice about what price they pay. Loss-leader pricing involves selling items below cost. Pressuring customers to buy is high-pressure selling. Charging different prices for the same items is not price fixing. SOURCE: PI:017SOURCE: Solomon, M.R., & Stuart, E.W. (2000). Marketing: Real people, real choices (2nd ed.)


66. AThey must be adjusted from time to time. As circumstances inside and outside the retail business change or the retail business changes its goals, pricing objectives may also need to be changed. There is no set time at which this may be necessary, such as at the beginning of each fiscal, or business, year.SOURCE: PI:002SOURCE: PI LAP 3—Factors Affecting Selling Price

67. DCompetition. Competition is the rivalry between two or more businesses to attract customer dollars. Product/Service managers should consider what their competitors are doing in order to compete with what is already on the market or to try to gain a lead in the market. Examining the competition helps gift shops to decide when the time is right to enter the market. Depreciation is a reduction in value of goods occurring over a period of time. Transportation is the act of moving anything from one place to another. Recruitment is the process of finding workers for a business.SOURCE: PM:001SOURCE: PP LAP 5—Product/Service Planning

68. CElectronic data interchange. EDI provides a nearly instantaneous system for the transfer of information. This linking system allows a business to scan the sale of an item at a point-of-sale terminal and send the resulting information directly to the vendor to be used to plan production and delivery in order to precisely match customer shopping. EDI replaces buyer's intuition with more precise and faster product management. Distribution centers are shipping centers for merchandise en route to the sales floor.SOURCE: PM:039SOURCE: Czinkota, M.R., & Kotabe, M. (2001). Marketing management (2nd ed.) [pp. 59-63].

Mason, OH: South-Western Publishing Co.


69. BSubstitute. Often, people think of new product ideas by altering existing products. The substitute item does not always replace the original item, but it provides the target market with another option that will still satisfy its needs and wants. For example, when making notes, people have their choice of using small notepaper or post-its, which are small notepads with an adhesive that sticks to objects. Brainstorming is a creative-thinking technique. A model is a small-scale representation of an item. Intangible products cannot be detected through the senses and are services that people perform rather than items people make.SOURCE: PM:127SOURCE: PM LAP 11—Unleash Your Oh! Zone (Product Idea Generation)

70. AIncreased profits. Retail chains that build a reputation for carrying out the terms of their warranties and guarantees generally have higher sales, more repeat customers, and greater profits. Establishment of clear standards for the retail chain is a business benefit concerned with better organization of the retail chain. Increased feedback from customers is a business benefit of warranties and guarantees concerned with customers' providing information about problems and needed product improvements. Retail chains should maintain a customer-oriented focus rather than a business-oriented focus. A customer-oriented focus for the retail chain is a business benefit from warranties and guarantees concerned with meeting the needs of the retail chain's market.SOURCE: PM:020SOURCE: PP LAP 4—Warranties and Guarantees

71. BProduct's sales are in decline. When a product's sales and profits decline, the product is considered to be weak. Such a product can become a financial burden to the retail chain and have a negative impact on the retail chain's image. A retail chain might decide to eliminate a certain item, such as a purple lampshade, if the item was not popular with customers and was not selling well. A retail chain would not eliminate an item if it complemented other products and had a positive reputation. Many retail chains sell items that are similar to the ones sold by their competitors.SOURCE: PM:003SOURCE: PP LAP 3—Product Mix

72. AEmphasizing capabilities and durability. There are several ways to position a product, and one is to emphasize the product's features and benefits. A feature is a characteristic of a product, such as its specific capabilities. A benefit is an advantage that consumers receive from using a product, such as durability. By emphasizing capabilities and durability, a business is positioning a product based on its features and benefits. Positioning a product according to features and benefits does not involve advertising price line and quality, describing similarities within a product line, or promoting characteristics available from competitors.SOURCE: PM:042SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2002). Marketing essentials (3rd ed.)

[pp. 559-561]. Woodland Hills, CA: Glencoe/McGraw-Hill.

73. APrivate. Private label goods are sold through retail stores and usually carry the name of the wholesaler or retailer, rather than the manufacturer. For example, Sears is the only retailer to sell the Kenmore brand of appliances, which are manufactured by Whirlpool Corporation. A family brand refers to all of the products produced by a manufacturer, such as Sunbeam. A fighting brand is a low-priced brand used to compete aggressively with other companies. A national brand product carries the name of the manufacturer.SOURCE: PM:021SOURCE: PM LAP 6—It's a Brand, Brand, Brand World! (The Nature of Branding)


74. BNever-out list. A never-out list is a list of a retailer's best sellers or its key items of merchandise. It is adjusted according to changes in consumer demand. A basic stock list is a list of minimum amounts of staple goods that should be on hand or reordered. A model stock plan is a list of items the retailer always keeps in stock. It details the specific styles, colors, etc. of categories of goods. Merchandise assortment is the products a business offers.SOURCE: PM:062SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 515).

New York: Glencoe/McGraw-Hill.

75. A$10,254.75. Planned reductions are the difference between the original price of goods and the final price. Reductions occur because of markdowns, discounts, and shortages. For example, if a hardware store marks down the price of items, the hardware store is accepting less for the items than originally planned. Giving employees discounts also reduces the final price, as do shortages caused by shoplifting. To calculate planned reductions, the hardware store first estimates the amount of sales. Then, the hardware store estimates the total percent of reductions (3% + 2.5% = 5.5%) and multiplies that percentage by the sales estimate ($176,450 x 5.5% or .055 = $9,704.75). Finally, the hardware store adds the expected amount of shortages to calculate planned reductions ($9,704.75 + $550.00 = $10,254.75).SOURCE: PM:063SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


76. CSuitability. A retailer looks at several criteria when deciding what merchandise to buy—not only the availability of merchandise but how well it will meet its customers' needs. A furniture retailer with an older, traditional, more upscale clientele probably wouldn't decide to buy trendy home decor items that would appeal to young college students. Deciding on merchandise to buy also includes evaluating adaptability, which refers to whether a supplier will make product changes to meet the needs of the retailer and its customers. Neither transferability or discountability are actual concepts that figure into the merchandise buying decision-making process.SOURCE: PM:260SOURCE: Newman, A., & Cullen, P. (2002). Retailing: Environment & operations (pp. 133-134).

London: Thomson Learning.

77. C903. When determining the number of bicycles to buy for next year, the toy store would consider last year's sales as well as sales so far this year. If sales are currently 10% higher than last year and the store expects an increase next year, it would plan to buy enough bicycles to meet anticipated demand. In this example, sales are increasing 10% this year over last year, which will amount to an additional 72 bicycles being sold (720 x 10% or .10 = 72; 720 + 72 = 792). If the store expects to sell 14% more bicycles next year, it must multiply the expected increase by the number that will be sold this year (792 x 14% or .14 = 110.8). Round up that number to 111 and add to the number of bicycles that will be sold this year to determine how many to buy for next year (792 + 111 = 903).SOURCE: PM:261SOURCE: Dunne, P., Lusch, R., & Griffith, D. (2002). Retailing (4th ed.) [pp. 320-329]. Mason,

OH: South-Western.


78. AAchieve a desired outcome. Promotion is the marketing function that communicates information about goods, services, images, and/or ideas to achieve a desired outcome. Promotion is not intended to put pressure on customers—rather it should catch attention, arouse interest, and create desire, in order to achieve a desired outcome. Marketing research can be conducted to determine the effectiveness of promotion; however, promotion is not done so that marketing research can be conducted. The price of an item is often included in promotions, but that is not the sole intent of promotion.SOURCE: PR:001SOURCE: PR LAP 2—Promotion

79. DAdvertising. Advertising is any paid form of nonpersonal presentation of ideas, images, goods, or services. It can be used to promote products or any kind of business (e.g., retail chains). Publicity is a nonpersonal form of promotion that is not paid for by the company or individual that receives it. Sales promotion is promotional activities other than advertising, personal selling, and publicity that communicate information about goods, services, images, and/or ideas to achieve a desired outcome. Personal selling is the form of promotion that uses planned, personalized communication in order to influence purchase decisions and enhance future business opportunities. Both sales promotion and personal selling would be more likely to be used in promoting products.SOURCE: PR:003SOURCE: PR LAP 1—Promotional Mix

80. CTrack the users' viewing and purchasing habits. Promotion refers to the various types of communications that marketers use to inform, persuade, or remind customers of their products. Technological advancements (e.g., Internet) have made it possible for a retail business to track its customers' (visitors') behavior in relation to their web-site hits, inquiries, and purchases. The ability to track this online information often helps the retail business to determine its customers' needs and preferences, and to determine the best way to meet these needs and preferences. Because other factors influence a retail business's success, using the Internet to promote products does not always increase annual sales volume or create a loyal customer base. Using the Internet as one method of promotion does not necessarily mean that a retail business should reduce its traditional publicity efforts.SOURCE: PR:100SOURCE: Semenik, R.J. (2002). Promotion and integrated marketing communications (pp. 312-

313). Mason, OH: South-Western.

81. DRemedy. In legal circumstances, a remedy is a resolution—a way to right a wrongdoing. When a government agency issues a cease-and-desist order, it is ordering the retail advertiser to stop running the advertisement until a hearing is held to determine if the advertisement is deceptive or unfair. Arbitration is a formal process in which a neutral third party makes decisions about a contract dispute. Remand refers to sending a legal case back to the court so a specific action can be taken. Appropriation refers to a legal action that relates to the invasion of privacy.SOURCE: PR:101SOURCE: O'Guinn, T.C., Allen, C.T., & Semenik, R.J. (2003). Advertising and integrated brand

promotion (3rd ed.) [pp. 134-135]. Mason, OH: South-Western.


82. DThe user controls the flow of information. With the click of a mouse button, people who surf the Web have control over which sites they want to visit and what they want to read. While people certainly can carry on multiple conversations over the telephone and via the Web at the same time, this is not a reason why the Internet is considered to be interactive. Just because information travels through an advertising medium (e.g., the Internet) to get to customers does not mean that it is interactive. For example, radio is passive because the listener cannot choose what songs are played. Computer networks do communicate with each other to make the transmission of information over the Internet possible, but the Internet is interactive because users make the ultimate decision of what that information will be.SOURCE: PR:007SOURCE: PR LAP 3—Ad-quipping Your Business (Types of Promotional Media)

83. DBenefits of the product. When an advertiser illustrates the positive results of using a product, the advertiser is focusing on the product's benefits. Showing someone actually using the advertised product is focusing on the product in use. An illustration of the product is focused on the product itself. Showing specific details, or features, rather than the product as a whole focuses on the product's features.SOURCE: PR:014SOURCE: PR LAP 7—Parts of Print Ads

84. AAccurate. Direct mail is a form of advertising in which the promotional medium comes to consumers' homes or businesses. A retailer uses direct mail to target its messages to very specific audiences. The retailer may use house (internal) mailing lists, external mailing lists that they purchase from brokers, or a combination of internal and external lists. Because direct mail is often an expensive way to promote a product, the retailer wants to make sure that the mailing list is accurate—that the names and addresses on the list are correct. Incorrect information often results in returned or undeliverable mail, which costs the retailer money. Mailing lists do not need to be extensive, conventional, or unusual.SOURCE: PR:089SOURCE: Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th

ed.) [p. 408]. Upper Saddle River, NJ: Prentice Hall.

85. DSupport the image of the retailer. Visual merchandising is another term for display. Each retailer has a certain image it wishes to portray to customers, and its displays should support that image. In some cases, displays do make selling easier for the retailer's sales associates, but that is not a major function. Visual merchandising is not paid for with cooperative advertising funds, and it does not simplify inventory control.SOURCE: PR:023SOURCE: Bell, J., & Ternus, K. (2002). Silent selling: Best practices and effective strategies in

visual merchandising (2nd ed.) [pp. 19-20]. New York: Fairchild.

86. CRed letters on a white background. Letters that stand out in sharp contrast to the background attract the most attention. The other color combinations provide less contrast between the letters and the background.SOURCE: PR:109SOURCE: Bell, J., & Ternus, K. (2002). Silent selling: Best practices and effective strategies in

visual merchandising (2nd ed.) [p. 37]. New York: Fairchild.


87. BMass. Mass displays involve an area crowded with products. Merchandise in a mass display is not arranged in any particular order, offers a wide selection, and often appeals to the customer who is looking for a bargain. This type of display is often used by discount stores that are using low prices or sales to attract customers. An open display makes it possible for customers to see into the store. Unit displays involve merchandise arranged in well-defined groups. In a wall display, merchandise is mounted on a wall.SOURCE: PR:047SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


88. CSales effort. Most appliance stores develop and coordinate promotional activities to reinforce the sales effort. They use a variety of activities, such as advertising and direct-mail marketing, to attract customers and encourage them to buy. Appliance stores know that it is easier to sell products if customers are aware of those products, and an effective way to create awareness is to coordinate promotional activities. Advertising and publicity are types of promotional activities. Stores often place advertising in the print media.SOURCE: PR:076SOURCE: Zikmund, W.G., & d'Amico, M. (1999). Marketing (6th ed.) [pp. 478-479]. Cincinnati:

South-Western College.

89. AMood. One reason for planning specific display themes is to create a certain mood, or atmosphere, throughout the store. The theme of the store-wide display often refers to a particular concept or activity. For example, a department store might plan displays that relate to a back-to-school theme or a summer vacation theme. All the displays throughout the store reflect that theme and help to create a mood that puts customers in the frame of mind to buy. The layout is the physical arrangement of the store. The pattern is the way that customer traffic is directed to flow through the store.SOURCE: PR:077SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


90. BReputation. This example shows that the business is building a loyal following and demonstrates a solid relationship by showing that it stands behind its products and cares about the customer. Customers often recommend businesses that provide good service, which also tends to build a positive reputation. Providing good customer service is essential in order for an organization to make a profit and stay in business. Spirit refers to the "can-do" attitude of employees in an organization. A critical aspect of customer service is putting the customer's convenience first.SOURCE: SE:076SOURCE: Ingram, T.N., LaForge, R.W., Avila, R.A., Schwepker, C.H., & Williams, M.R. (2001).

Professional selling: A trust-based approach (pp. 258-259). Mason, OH: South-Western.

91. BBuilding a clientele. A clientele is a body of customers upon which an organization can rely for considerable repeat business. The fact that Jack's customers have stayed with him for 20 years indicates that he has built a clientele. Jack may have built his clientele by offering good service, promoting his business, and selecting effective marketing strategies, but no evidence of that is given.SOURCE: SE:828SOURCE: SE LAP 115—Keep Them Loyal (Building Clientele)


92. DIncreased job satisfaction. Selling policies are general rules established by management to guide the personal selling effort and outline how things must be done. Selling policies benefit salespeople by providing a framework in which to make proper decisions and establish good relations with customers. Salespeople who have a clear understanding of how they are to perform usually experience increased job satisfaction. Selling policies often benefit the business by improving profitability. Selling policies do not expand salespeople's responsibilities or extend their working hours.SOURCE: SE:932SOURCE: SE LAP 121—Selling Policies

93. DExaggerating product capabilities. Salespeople should avoid exaggerating the capabilities of their products or promising more than the products can provide. An example of misrepresentation is promising that a product will increase profit by a certain amount. If a customer buys the product based on a salesperson's statement and the product does not generate the promised profit, the customer may sue the business. Misrepresenting products is illegal and may be costly to businesses if they are sued. Salespeople should be as factual as possible and provide exact product information to avoid misleading customers. It is not illegal for salespeople to state their opinions or boast that they offer the best service. Offering products for low prices is not illegal.SOURCE: SE:108SOURCE: Futrell, C.M. (1999). Fundamentals of selling: Customers for life (6th ed.) [pp. 89-94].

Boston: Irwin/McGraw-Hill.

94. BWays of using the product. By talking with customers, salespeople often are able to learn additional ways of using products. Customers use products regularly, know their advantages and disadvantages, and may have found ways of using them that are new to salespeople. Salespeople can use this information to sell the product to other customers. Salespeople should be the ones to give customers information about warranties, construction, and availability of products.SOURCE: SE:062SOURCE: Ingram, T.N., LaForge, R.W., Avila, R.A., Schwepker, C.H., & Williams, M.R. (2001).

Professional selling: A trust-based approach (pp. 165, 180-181). Mason, OH: South-Western.

95. CEstablishing relationships with customers. This is the initial contact the salesperson has with the customer. As Tyra enters the store, the first thing the salesperson does is make Tyra feel welcome and comfortable. Discovering client needs involves asking the customer questions in order to determine what they are looking for. Prescribing solutions to needs involves the salesperson offering solutions to satisfy the customers' needs. Reaffirming the buyer-seller relationship is the final step in the selling process in which the salesperson makes the customer feel confident in their purchase decision.SOURCE: SE:048SOURCE: SE LAP 126—The Selling Process

96. DIntended use. The salesperson is asking the customer where the paint is to be used, so the salesperson can recommend the appropriate paint that will meet the customer's needs. There is no reference in the question to style, brand, or materials.SOURCE: SE:111SOURCE: SE LAP 114—Questioning


97. APay the tax to the government. Sales tax is levied by the government on certain goods and services that customers purchase. It is an indirect tax because government does not collect the tax directly. The customer pays the tax to the business, which then pays it to the government. Sales tax is required by law; therefore, businesses may not use the money collected to expand operations, keep as profit, or give to local charities.SOURCE: SE:116SOURCE: Eggland, S.A., Dlabay, L.R., & Burrow, J.L. (2004). Intro to business (5th ed.) [pp. 150-

151]. Mason, OH: South-Western.

98. BPurchase exceeds a certain price. Furniture stores frequently provide free delivery to customers who purchase items that exceed a certain price. One reason for delivering costly goods is that they often are large and bulky and difficult for customers to carry. Also, stores usually make more profit on more expensive items so they are willing to pay to have these goods delivered. For example, a furniture store is more likely to provide free delivery to a customer who purchases an expensive sofa than to a customer who purchases an inexpensive lamp. Stores usually do not provide free delivery to customers who live out of town or who purchase small items. Paying with a credit card does not guarantee free delivery unless the item exceeds a certain price.SOURCE: SE:023SOURCE: Dunne, P., Lusch, R., & Griffith, D. (2002). Retailing (4th ed.) [pp. 464-465]. Mason,

OH: South-Western.

99. AEnable wrappers to complete the job quickly. Having the appropriate wrapping materials readily available in a well-organized work area makes the job easier. Wrappers should not need reminding about the materials to use. There is no way to ensure that customers will be satisfied. Wrappers do not always receive tips. Wrapping is a customer service for which some businesses charge a fee.SOURCE: SE:887SOURCE: SE LAP 105—Packing/Wrapping Merchandise

100. DCorrect. Making sure that the information in the customer's order is correct is an important part of the telephone order taker's job. Order processors usually repeat the information to the customer and ask the customer to confirm that it is correct. This procedure gives the customer the opportunity to verify the information or to change any information that might be inaccurate. The telephone order processor is the one who explains and repeats the information in the customer's order. Customers who place telephone orders usually do not cancel them unless the products they want are unavailable.SOURCE: SE:835SOURCE: Rokes, B. (2000). Customer service: Business 2000 (p. 62). Mason, OH: South-

Western.

Documents

lcssdecateam.weebly.comlcssdecateam.weebly.com/.../6/5/2/8652601/rms2008.docx · Web viewWeimar, TX: Culinary and Hospitality Industry ... Ethics are morals or the basic principles