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2005 DECA Ontario December ProvincialsTest 855 FOOD MARKETING (MANAGEMENT LEVEL) 1

1. Which of the following is an effect that the growth of international trade has had on the food marketing industry:

A. Increased independence C. Decreased optionsB. Increased competition D. Decreased availability

2. Which marketing function can remind customers of items that they want to purchase?A. Distribution C. FinancingB. Product/Service management D. Promotion

3. A produce buyer who purchases celery and carrots to replace depleted inventory is placing aA. reorder. C. back order. B. production requisition. D. line requisition.

4. When selecting vendors, a supermarket chain considers the available discounts and dating terms. If the supermarket chain is buying goods worth $3,250, how much will it save by choosing the vendor that offers a flat discount of 6% plus terms of 3/15, net 30?

A. $292.25 C. $228.35 B. $237.95 D. $286.65

5. An important business function that tracks the flow of money into and out of the business isA. purchasing. C. budgeting. B. accounting. D. forecasting.

6. What do many businesses do with the money they have accumulated as a result of periods of positive cash flow?

A. Buy personal items C. Reinvest the fundsB. Spend all available cash D. Purchase excess inventory

7. Planning, organizing, leading, and controlling are the major functions ofA. marketing. C. management.B. budgeting. D. business.

8. Some supermarkets provide customers with the opportunity to check out and pay for their groceries with limited cashier assistance. This is an example of

A. self-scanning. C. smart cards.B. online grocery shopping. D. electronic shelf labels.

9. Which of the following types of fraud is most likely to be committed by an unscrupulous competitor:A. Point-of-sale C. PilferageB. Robbery D. Computer

10. When opening the grocery store for the day, the first employee to arrive should look forA. vendors waiting to deliver. C. the security alarm switch. B. customers who are in a hurry. D. suspicious vehicles nearby.

11. The grocery store clerk in the frozen foods department regularly checks the temperature of the display freezers, stocks the freezers up to the load line, and rearranges the frozen foods after customers make selections. Why is it important for the clerk to perform these tasks?

A. To maintain order in the freezer B. To prevent the frozen foods from thawing C. To keep the freezer clean D. To remove frozen foods from the freezer

Copyright © 2006 by Marketing Education Resource Center®, Columbus, Ohio


12. To control the salmonella bacteria, supermarket deli workers shouldA. thaw frozen food on the counter before cooking. B. serve raw seafood items as samples. C. prepare foods using raw eggs. D. thoroughly cook all foods from animal sources.

13. Which of the following situations is an example of a business violating the Equal Pay Act:A. Paying a higher wage to women who have many years of seniorityB. Paying bonuses to men for accomplishing specific sales goalsC. Paying a different wage to men and women doing comparable workD. Paying a different wage to men and women doing the same work

14. Employees often use simple written reports to provide managers with __________ information.A. in-depth C. routine B. analytical D. extensive

15. Which of the following is the beginning step in preparing a complex written report:A. Outline the text. C. Organize materials.B. Gather information. D. Define the purpose.

16. What do managers need to develop to conduct an effective staff meeting?A. Timed debates C. Strict rulesB. Formal motions D. Good agendas

17. Which of the following is confidential information that would be unethical for a supermarket employee to provide to others without permission from the supermarket:

A. Posting of available positions C. Well-publicized expansion plansB. List of employees who will be promoted D. Dates of an upcoming special sale

18. What type of utility does distribution help to create by transporting products from the producer to the location where customers want to buy them?

A. Possession C. Form B. Time D. Place

19. A food marketing display business sells the products it produces through its own catalog, which is a form of ___________ distribution.

A. middleman C. direct B. indirect D. industrial

20. A cereal producer paying a substantial fee to a supermarket to get the supermarket to carry the producer's new cereal is an example of a

A. buying procedure. C. slotting allowance.B. promotional strategy. D. marketing plan.

21. Which of the following is an example of a measurable customer-service goal that many food producers set in order to facilitate the distribution process:

A. Fill orders within a specified amount of timeB. Organize warehouse to handle ordersC. Prepare orders for shipmentD. Develop a procedure for invoicing orders quickly

22. One of the steps in the receiving process is to compare the items listed on the delivery receipt with the items listed on the

A. dummy invoice. C. receiving log.B. purchase order. D. bill of lading.


23. A supermarket receiving manager who opens and inspects one out of every five incoming cartons to assess the contents is conducting a __________ check.

A. direct C. randomB. quality D. blind

24. What system facilitates a supermarket's ability to process orders for its customers very quickly?A. Consignment distribution C. Convenience goodsB. Direct selling D. Electronic data interchange

25. Which of the following would be the best way to ship grain from producers to food processing companies:A. Water C. Rail B. Air D. Truck

26. Merchandise with a short shelf-life should be routed to the selling floorA. as quickly as possible. C. after items with long shelf-life.B. whenever convenient for stock workers. D. within a week of delivery.

27. One reason why it is important for supermarkets to maintain adequate inventory levels is to avoid __________ needed goods.

A. paying taxes on C. stockpilingB. running out of D. depreciating

28. A system that keeps track of inventory according to the actual number of items of stock is known as __________ inventory control.

A. unit C. periodicB. perpetual D. dollar

29. Using the following inventory information, determine which of the quarters has the highest percentage of inventory shrinkage:

1st quarter 2nd quarter 3rd quarter 4th quarterSales in Units 100,000 150,000 200,000 350,000Inventory Shrinkage 3,500 4,500 5,000 10,500

A. 3rd quarter C. 1st quarter B. 2nd quarter D. 4th quarter

30. Horizontal conflict occurs among channel members that are __________ of the channel.A. on different levels C. at a low levelB. at the same level D. on high levels

31. What do many grocery stores do with excessive quantities of items that are not selling well?A. Return to vendor for credit C. Move to another location B. Warehouse until demand increases D. Lower prices for quick sale

32. A candy store is open six days a week and has annual sales of $540,000. What is the store's average inventory in dollars if it has a stock turnover rate of nine?

A. $70,000 C. $85,000B. $60,000 D. $90,000

33. Who decides how the economic questions will be answered in a communist command economy?A. Venture team C. Businesses B. Individuals D. Government


34. What are the legal documents that certain businesses must obtain in order to operate?A. Copyrights C. PatentsB. Monopolies D. Licenses

35. The basic ways of dealing with business risk are toA. prevent or control, transfer, retain, or avoid the risk.B. accept or reject, transfer, decrease, or carry the risk.C. reduce or eliminate, estimate, identify, or reveal the risk.D. eliminate or avoid, transfer, estimate, or plan for the risk.

36. A worker who is just beginning to learn an occupation is called a(n)A. mediator. C. apprentice.B. journeyman. D. arbitrator.

37. What category of people does the federal government leave out when it calculates the rate of unemployment?

A. Full-time students C. Part-time workers B. Unemployed job seekers D. Full-time employees

38. Which of the following is one way that businesses use marketing information:A. To change economic trends C. To develop new products B. To revise credit policies D. To prepare sales invoices

39. Grocers often ask for the customer's zip code at the checkout counter to obtain immediate information about

A. how much customers can pay for products.B. how often customers visit the business.C. a geographic area for a direct-mail campaign.D. the average age of customers.

40. Which of the following is information about customers that supermarket chains often monitor in order to make pricing decisions:

A. Credit rating C. Buying behavior B. Personal character D. Supplemental income

41. Marketing strategies are designed and implemented for the overall purpose ofA. achieving planned goals. C. changing the image of the business.B. improving management techniques. D. increasing business profits immediately.

42. Market segmentation can benefit supermarkets by helping them toA. make operational changes. C. reduce production costs.B. market products efficiently. D. appeal to the general population.

43. Why should a grocery store evaluate its internal environment when changes are occurring in its external environment?

A. To revise pricing C. To remain competitive B. To update advertising D. To improve distribution

44. What is a potential opportunity a manager might identify in a SWOT analysis?A. Strong research and development C. Management turnoverB. Falling trade barriers D. Risk of takeover


45. Calculate a business's sales forecast for next year based on the following information: 90% of the 500 current customers say they will buy again next year and spend an average of $750. Thirty of the competitor's customers say they will buy and spend an average of $500.

A. $337,500 B. $350,000 C. $352,500 D. $375,000

46. If a gourmet food store's sales forecast is too low, the result may be that itA. will purchase too much stock. C. may be short of working capital.B. will need to lower its prices. D. may budget too much for promotion.

47. The marketing objectives that Jiffy Food Mart develops for its marketing plan should lead to a(n)A. decrease in costs. C. increase in sales.B. increase in prices. D. decrease in taxes.

48. Which one of the following is a method that a manager might use to control marketing planning:A. Behavioral displacement C. Operating delaysB. Environmental monitoring D. Gamesmanship

49. The ultimate goal of a marketing audit is to improve a grocery store's marketingA. research. B. information C. mix. D. performance.

50. The most positive words to use in selling areA. brand names. B. customers’ names. C. credit terms. D. technical terms.

51. Supermarket chains should view negotiation as a way toA. get something done. C. get the action they want.B. build strong relationships. D. keep negative people quiet.

52. You are a cashier at a supermarket and are confronted by a youthful-looking customer trying to purchase tobacco products. Which of the following would be acceptable as a legal form of identification:

A. Social Security card C. Credit cardB. Debit card D. Driver's license

53. Employees who work in stressful environments for long periods of time often experienceA. prejudice. B. burnout. C. abuse. D. conflict.

54. When supermarket employees receive training and orientation on the work site under the close supervision of their immediate supervisor, the training method is called __________ training.

A. programmed-instruction C. apprenticeshipB. vestibule D. on-the-job

55. Which of the following approaches should a manager take in dealing with a legitimate employee complaint:

A. Ignore the complaint as long as possibleB. Allow the complaint to work itself out C. Identify the cause(s) of the complaint D. Wait until the complaint becomes a grievance

56. Changes in a bakery's sales volume or sales revenue will not affect the bakery's __________ costs.A. semivariable B. operating C. variable D. fixed

57. What are the three primary characteristics of an effective control system in supermarket chain?A. Responsive, flexible, and transferable C. Relevant, intangible, and rigidB. Suitable, understandable, and timely D. Rigid, economical, and reactionary


58. You are developing the company budget for Horton Food Systems and need calculate the amount to allocate for salaries and wages based on the following information: one employee at $54,000 per year, two employees at $35,000 per year, one employee at $22,500 per year, and three part-time employees who each work 1,250 hours a year at $7.50 per hour.

A. $145,750 C. $174,625B. $163,270 D. $182,425

59. To control payroll expenses, a local butcher hires four part-time employees to work 20 hours each week for $11.50 an hour rather than two full-time employees at a salary of $575 each per week. Calculate the amount the butcher shop will save during a two-week pay period.

A. $460 C. $310B. $230 D. $190

60. Which of the following statements is true regarding business plans:A. Lending institutions do not usually require loan applicants to submit a business plan.B. The operating plan details information regarding the business's services.C. Owners often use business plans as a tool to help them achieve their objectives.D. A corporation is the only legal form of business ownership that should develop a business plan.

61. Which of the following is an example of a routine decision:A. Picking a new roommate C. Ordering pizza for dinnerB. Choosing a career to pursue D. Selecting which car to buy

62. What do people usually take into consideration when identifying occupations that they want to pursue in life?

A. Personal conduct C. Mental health B. Natural talent D. Social attitude

63. In which of the following would a separate department most likely be responsible for establishing prices for the business:

A. Small bakery C. Local butcher shop B. Independent grocer D. Supermarket chain

64. When a natural disaster occurs in a certain part of the country, a food distribution company refuses to raise the prices of its products, which are in high demand. The business is being

A. socially responsible. C. legally reasonable.B. economically unsound. D. politically correct.

65. If all the grocery stores in one community agree to carry the same goods, offer the same discounts, and accept only certain credit cards, they are involved in

A. price fixing. C. price advertising.B. unit pricing. D. deceptive pricing.

66. When selecting a method for setting prices, a supermarket chain usually considersA. demand-based pricing only. B. cost, demand, and competition-based pricing.C. cost and competition-based pricing.D. cost-based pricing only.

67. Most grocery stores receive the bulk of their income from the sale of goods and services. This income is known as

A. dividends. C. capital.B. sales revenue. D. return on investment.


68. The marketing function that involves developing a product mix in response to market opportunities isA. product/service management. C. the product life cycle.B. product implementation. D. the marketing mix.

69. When a food manufacturer uses its product wrapping to state its corporate views on controversial issues such as use of growth hormones in animals, it is engaging in an ethical practice called

A. provocative branding. C. political lobbying.B. environmental labeling. D. cause packaging.

70. What product would most likely be subject to a governmental grading process prior to distribution?A. Athletic footwear C. CD playerB. Canned fruit D. Lawn mower

71. The way in which a gourmet food store makes changes in the amount or type of goods or services it offers is known as its

A. product positioning. C. promotional mix.B. product-mix strategy. D. marketing strategy.

72. Which of the following categories of food has a high sales volume and usually is placed near the entrance of the grocery store:

A. Frozen C. ProduceB. Seafood D. Cereal

73. When a butcher shop positions its products by highlighting particular features or attributes, what element of the marketing mix is being used?

A. Product C. Price B. Place D. Promotion

74. A distinctive symbol, design, or group of letters that cannot be spoken is known as aA. brand mark. C. brand. B. trade name. D. trade character.

75. Management can create a positive work environment by encouraging cooperation among a supermarket chain's

A. external customers. C. vendors.B. internal customers. D. lawyers.

76. In grocery stores, wide aisles, attractive signage, and comfortable customer-service areas are examples of __________ that create customer satisfaction.

A. environmental factors C. traffic patternsB. decorating techniques D. interior accessories

77. A small gourmet food shop's logo should be developed by a graphics designer so that it will beA. legally protected. C. professional looking. B. short and easy to pronounce. D. complex and abstract.

78. As the owner of Friendly Food Mart, you must calculate stock turnover rate for the quarter from the following information: January inventory, $50,000; February inventory, $61,000; March inventory, $69,000; ending inventory, $50,000; and net sales for the quarter, $110,000.

A. .55 C. 1.8B. 1.9 D. .54


79. Which of the following defines the term open-to-buy:A. An amount of money available for purchasing merchandiseB. A method of indicating specific buying informationC. A buying plan based upon comparative sales figuresD. An amount of credit extended by manufacturers to food retailers

80. What amount of frozen pizzas would a grocery store probably buy for the next year if sales of frozen pizzas have been increasing by 7% each year and last year's pizza sales totaled $398,650?

A. $418,582.50 C. $426,555.50B. $422,569.25 D. $430,542.25

81. Grocery stores typically make the highest gross margin on brands with a __________ label.A. private C. genericB. national D. corporate

82. Which of the following activities are included in sales promotion:A. Personal selling and follow-up C. Press releases and publicity B. Coupons and rebates D. Public relations and outdoor ads

83. Promotions that are often criticized are those which make false claims about products. These are examples of __________ promotion.

A. fearful C. manipulativeB. deceptive D. offensive

84. Which of the following is an example of a socially responsible promotion:A. Describing recent renovations C. Explaining business policiesB. Announcing upcoming sales D. Supporting worthwhile causes

85. Which of the following is often a characteristic of deceptive advertising:A. Compares several brands C. Restricts free speechB. Violates right to privacy D. Gives a false impression

86. An advertising section that is printed by the advertiser and delivered to a magazine or newspaper to be included in the publication is referred to as a(n)

A. tear sheet. C. insert. B. tabloid. D. classified.

87. Franklin's Gourmet Cheese Shop wants to provide readers of its print advertisement with a strong sales message about its goods and services. To achieve this objective, Franklin's Gourmet Cheese Shop will need to develop effective

A. body copy. C. white space.B. tag lines. D. illustrations.

88. A pyramid arrangement containing canned fruit stacked evenly from a large base to a small center peak creates a display that has

A. originality. C. variety. B. proportion. D. imagination.

89. While tearing down a food display, supermarket employeesA. usually remove permanent lighting fixtures and place them in storage.B. should determine if any of the components can be used in future displays.C. need to discard all the elements or props that appeared in the display.D. try to evaluate how long it will take to build the next display.


90. Which of the following is a reason that food marketers often use bulk produce displays:A. Bulk displays are less expensive.B. Bulk produce looks fresh longer.C. Losses caused by customer handling are reduced.D. Produce can be marked individually with price labels.

91. An overall reason that an organic food store needs a promotional plan is to help itA. identify its primary target market. B. get the most benefit from its promotions.C. choose between a push and a pull strategy.D. determine its marketing objectives.

92. Which of the following departments would work together to coordinate a supermarket chain's promotional activities:

A. Personnel and advertising C. Display and advertisingB. Credit and advertising D. Credit and display

93. Determine whether the following statement is true or false: When planning a grocery store display, the first step is to select a theme for the display.

A. True, merchandise should be chosen to support the theme.B. True, the theme is more important than the merchandise.C. False, merchandise to be displayed should be chosen first.D. False, the theme is not important in planning displays.

94. One month prior to a major holiday, Gina's Gourmet Grocery mails a newsletter with recipes appropriate for the festive occasion. This is an example of

A. free publicity. C. food promotion. B. affiliate marketing. D. capital investment.

95. One of the main reasons salespeople try to provide quality customer service is to develop __________ with customers.

A. follow-up techniques C. long-term relationshipsB. substitute-selling strategies D. problem-solving methods

96. Food distribution salespeople who promise their retail customers that profits will increase by a certain amount if they buy a specific product may be guilty of

A. incentive selling. C. sales puffery.B. misrepresentation. D. discrimination.

97. Many grocery stores sell a line of inexpensive, unbranded merchandise. These products are known as __________ brands.

A. middlemen C. nationalB. private D. generic

98. Which of the following statements is true about the selling process:A. Its steps can be performed in any order.B. It is used only in retail sales.C. It is complex.D. It is the same across industries, products, and customers.

99. A certificate that offers a certain amount of money off the purchase price of specified items is aA. coupon. C. refund. B. markdown. D. rebate.


100. One reason that a grocery store sales manager might evaluate the sales volume of a specific product is to

A. measure customer loyalty in terms of overall reorder sales.B. determine if the item should be eliminated from the product line.C. evaluate the company's overall financial status.D. rate the relationship between sales personnel and their customers.

2005 DECA Ontario December ProvincialsTest 855 FOOD MARKETING (MANAGEMENT LEVEL)

11

1. BIncreased competition. The growth of international trade has allowed food marketers from around the world to sell their products to all countries. The result is an increase in competition between food marketers. Today, customers have the option to purchase a wide variety of foods from other countries. Therefore, domestic food producers need to work harder to remain competitive. They continually strive to offer innovative products that appeal to customers' changing tastes and sell them at prices that compete effectively with products from other countries. The growth of international trade has increased the availability of food products and provided customers with more options. However, the growth of international trade has also led to the growth of large chains of food marketers which has significantly reduced the number of independents.SOURCE: BA:067SOURCE: Kahn, B.E., & McAlister, L. (1997). Grocery revolution: The new focus on the consumer

(pp. 7-8). Reading, MA: Addison-Wesley Educational.

2. DPromotion. Through the use of promotional methods, such as visual merchandising, customers can be reminded of items that they want to purchase. Product/Service management enables businesspeople to decide what combination of goods or services the company will produce or provide. Financing is a business function that involves understanding the financial concepts used in making business decisions. Distribution enables marketers to have adequate supplies of goods in the right place at the right time.SOURCE: BA:004SOURCE: MB LAP 2—Marketing Functions

3. AReorder. A purchase order is written documentation that a company provides to its suppliers. It outlines specific items, prices, and delivery dates for desired goods. A reorder is an order that is placed for the same items that have previously been ordered to replenish items that have been used or sold. Back orders are items that vendors do not have available for shipment at the time the customer requests the goods. Production and line requisitions are not terms generally used in the purchasing environment.SOURCE: BA:073SOURCE: Wolfe, M.G. (1998). The world of fashion merchandising (pp. 308-309). Chicago: Goodheart-

Willcox.

4. D$286.65. When selecting vendors, supermarket chains often consider the available discounts as well as the dating terms. Supermarket chains often choose the vendor that offers the best discount and the most lenient dating terms as long as the quality of the merchandise is comparable. In this situation, the vendor is offering a flat discount of 6% ($3,250 x 6% or .06 = $195). Subtract the discount from the original price to determine the discounted price ($3,250 - $195 = $3,055). Then, if the supermarket chain pays the invoice within 15 days, it will save an additional 3% ($3,055 x 3% or .03 = $91.65). To calculate the total savings, add the flat discount and the amount saved by paying early ($195.00 + $91.65 = $286.65).SOURCE: BA:010SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 421].

Woodland Hills, CA: Glencoe/McGraw-Hill.

5. BAccounting. Companies are in business to make a profit, and in order to do that they must keep track of the flow of money. Accounting is the system that businesses use to monitor how much money they spend compared to the amount of money they earn. Purchasing is a marketing function that involves the planning and procedures necessary to obtain goods and services for use in the operation of a business or for resale. In marketing, forecasting is the process of predicting future sales. Budgeting is the process of planning how to spend available funds.SOURCE: BA:014SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)

[pp. 383-384, 387, 389]. Cincinnati: South-Western.

Copyright © 2006 by Marketing Education Resource Center®, Columbus, Ohio

Test 855 FOOD MARKETING (MANAGEMENT LEVEL) — KEY 12

6. CReinvest the funds. Smart businesses reinvest some of the money left over during periods of large positive cash flow back into the business. Many businesses take advantage of positive cash flow to make improvements in the company or to put aside some funds to cover expenses during slow times. Businesses would not use excess funds to buy personal items. Smart businesses do not spend all available cash, but save some for emergencies. Purchasing excess inventory is not a good use of extra funds because the products might not sell quickly and the business will have storage costs.SOURCE: BA:016SOURCE: MN LAP 60—Cash Flow

7. CManagement. It is management's responsibility to plan the work that needs to be done, to organize efforts to carry out that work, to provide leadership, and to control the firm's efforts to meet its goals. The functions of marketing include: distribution, marketing-information management, pricing, product/service management, promotion, and selling. Marketing and management are two of the functions of business. Budgets are tools that managers use in managing a business's finances.SOURCE: BA:022SOURCE: BA LAP 6—Manage This!

8. ASelf-scanning. Some supermarkets have self-service capabilities that allow customers to complete their sales transactions with little, if any help from store cashiers. The process allows the customers to scan the items, bag the goods, and pay for their purchases by using electronic equipment. Cashiers are available to take checks, answer questions, and ring up items that need weighing (e.g., produce). Self-scanning often saves the customer time. Online grocery shopping does not occur in the supermarket. Electronic shelf labels display prices and other information electronically. Smart cards have an embedded computer chip and can be used for electronic payments or as gift cards.SOURCE: BA:078SOURCE: Food Marketing Institute. (2005). Food retailers offering more takeout, self-scanning, fuel

pumps, drive-thru pharmacies and other services for convenience-driven consumers. Retrieved October 24, 2005, from http://www.fmi.org/media/mediatext.cfm?id=631

9. DComputer. A competitor who is willing to commit fraud can benefit by stealing information from a business's files, such as ideas or designs for new products, promotional plans, and personal information about executives. Pilferage is theft of small sums of money or inexpensive items. Robbery is theft that involves the use of force, violence, or fear. Point-of-sale fraud attempts to cheat a business at the time of purchase.SOURCE: BA:041SOURCE: RM LAP 4—Security Precautions

10. DSuspicious vehicles nearby. Many grocery stores have employees arrive early before the store is open for business. To be safe when opening the grocery store, the first employee to arrive should look for suspicious vehicles nearby or in the parking lot. In many cases, there is no reason for other cars to be nearby, particularly if the grocery store will not open for another hour or so. If there are suspicious vehicles nearby, an employee may want to wait until other employees arrive before opening the store. Employees who are responsible for opening the grocery store for the day should know the location of the security alarm switch. Customers may arrive a little early to be the first ones in the grocery store if they are in a hurry. However, they will not arrive long before the grocery store opens. Grocery stores usually schedule deliveries for certain times so vendors would not be waiting to deliver before the grocery store opens.SOURCE: BA:086SOURCE: German-Grapes, J. (1997). The teller's handbook: Everything a teller needs to know to

succeed (p. 255). New York: McGraw-Hill.


11. BTo prevent the frozen foods from thawing. The clerk checks the freezer to make sure the temperature remains at zero degrees and the frozen foods are below the load line in order to prevent the foods from thawing. It is important to keep the foods frozen because thawing can cause the growth of harmful bacteria and mold. Maintaining order in the freezer involves arranging the items to make them appealing to customers. Cleaning the freezer involves removing all the food items, turning off the freezer, and washing it out. Removing frozen foods from the freezer is the process of taking out those items that have not sold in a certain amount of time.SOURCE: BA:089SOURCE: Mill, R.C., (1998). Restaurant management: Customers, operations, and employees.

(pp. 202-228). Upper Saddle River, NJ: Prentice Hall.

12. DThoroughly cook all foods from animal sources. To control salmonella, meat should be cooked until the center is no longer pink and all juices run clear. In order to control bacterial infections, employees should not thaw frozen foods on the counter, serve raw seafood, or prepare foods using raw eggs.SOURCE: BA:091SOURCE: Mill, R.C. (1998). Restaurant management: Customers, operations, and employees

(pp. 246-247). Upper Saddle River, NJ: Prentice Hall.

13. DPaying a different wage to men and women doing the same work. The Equal Pay Act of 1963 is an amendment to the Fair Labor Standards Act that makes it illegal for businesses to pay different wages to men and women who are doing the same work. The act prohibits wage discrimination based on gender. Men and women who do substantially the same work that requires equal responsibility, training, and skill must receive equal pay. The act allows different pay scales for the same jobs if the differences are based on a merit system such as accomplishing specific sales goals or on seniority. Therefore, it is not illegal to give bonuses to men who accomplish sales goals or to pay higher wages to women with many years of seniority. The law does not cover comparable work which is the concept that men and women should be paid the same for doing different jobs that require equal skill, effort, and responsibility.SOURCE: BA:055SOURCE: Jennings, M.M. (2000). Business: Its legal, ethical and global environment (5th ed.) [p. 601].

Cincinnati: West Legal Studies in Business, South-Western College Publishing.

14. CRoutine. Employees often use simple written reports to provide managers with routine information, such as the number of items sold each week. Routine information is the type of data that managers need on a regular basis in order to monitor the operation of the business. Simple written reports are straightforward and direct and contain only routine business information. They do not contain analytical, extensive, or in-depth information, which is usually presented in complex written reports.SOURCE: CO:094SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)

[p. 190]. Upper Saddle River, NJ: Prentice Hall.

15. DDefine the purpose. One of the first steps in preparing a complex written report is defining the purpose of the report. Complex reports can have many purposes such as providing background information, summarizing a problem, or offering recommendations. The person preparing the report first needs to have a clear understanding of the purpose of the report before gathering information, organizing materials, or outlining the text.SOURCE: CO:009SOURCE: Lesikar, R.V., Pettit, J.D., Jr., & Flatley, M.E. (1999). Lesikar's basic business communication

(8th ed.) [p. 278]. Boston: Irwin/McGraw-Hill.


16. DGood agendas. An agenda is an outline of the issues and topics that will be discussed or considered during a meeting. Managers develop agendas in advance of the meeting and often make them available to staff members. The agendas usually list each item that will be discussed and specify the amount of time to spend on each item. Formal motions are presented during the staff meeting. Managers may put time limits on discussions, but usually do not prepare for formal debates. Strict rules are often followed during formal meetings rather than during staff meetings, which are more informal.SOURCE: CO:140SOURCE: Locker, K.O. (2000). Business and administrative communication (5th ed.) [pp. 349-350].

Boston: Irwin/McGraw-Hill.

17. BList of employees who will be promoted. Certain information is considered confidential, and supermarkets expect employees who have access to that information to keep it private. For example, information about employee promotions is confidential and should not be divulged until the supermarket is ready to make the announcement. If a supermarket employee has access to this information or learns this information ahead of time, it would be unethical to tell others. Available positions, dates of an upcoming sale, and well-publicized expansion plans are not examples of confidential information.SOURCE: CO:043SOURCE: Kimbrell, G., & Vineyard, B.S. (1998). Succeeding in the world of work: Teacher's

wraparound edition (6th ed.) [pp 185-186]. New York: Glencoe/McGraw-Hill.

18. DPlace. Place utility is usefulness created by making sure that goods or services are available at the place where they are needed or wanted by customers. Time utility is created when products are made available at the time they are needed or wanted by consumers. Possession utility is usefulness created when ownership of a product is transferred from the seller to the user. Form utility is usefulness created by altering or changing the form or shape of a good to make it more useful to the consumer.SOURCE: DS:001SOURCE: DS LAP 1—Distribution

19. CDirect. Direct distribution is a channel of distribution in which goods and services move directly from the producer to the consumer or industrial user. Indirect distribution is where goods and services move from the producer to the channel members and then to consumers or industrial users. Industrial and middleman are not terms that are used to describe businesses that sell products directly to consumer or end users.SOURCE: DS:055SOURCE: MB LAP 3—Channels of Distribution

20. CSlotting allowance. A slotting allowance is a cash premium that food producers pay to supermarkets to cover the costs involved in carrying a new product. In many cases, the cash premium is substantial because there is a lot of competition between food (e.g., cereal) producers to encourage supermarkets to carry their products. Often, the food producer that offers the largest allowance is the one that gets shelf space for its new product. This may be unethical because small food producers that cannot afford to pay large slotting allowances do not have an equal opportunity to distribute their products. A marketing plan is a set of procedures or strategies for attracting the target customer to a business. Promotional strategies are plans of action for achieving promotional goals and objectives. A buying procedure is the steps taken by purchasing personnel to buy goods and services.SOURCE: DS:059SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [p. 446]. Mason, OH:

Thomson/South-Western.


21. AFill orders within a specified amount of time. Food producers often establish service goals that can be measured in order to facilitate the distribution process and improve relations with customers. An example of a measurable goal is filling customers' orders within a specified amount of time, such as overnight or within 24 hours. By setting measurable goals, a food producer can keep track of how efficiently its distribution process is working and whether customers are receiving their orders in a timely manner. If a food producer finds that orders are not being filled within the specified time frame, it can take measures to improve performance and satisfy customers. Preparing orders for shipment, organizing the warehouse, and developing invoicing procedures are routine aspects of distribution, rather than measurable customer-service goals.SOURCE: DS:029SOURCE: Evans, J.R., & Berman, B. (1997). Marketing (7th ed.) [pp. 430-431]. Upper Saddle River,

NJ: Prentice Hall.

22. BPurchase order. If the shipment is complete, all items listed on the purchase order should be listed on the delivery receipt. A bill of lading is the contract between the shipper and the transportation company. A dummy invoice is a blank form on which the contents of a shipment are listed in order to do a blind check of an order. The receiving log, or record, is used to record all data about a shipment of goods.SOURCE: DS:004SOURCE: DS LAP 5—The Receiving Process

23. CRandom. A random check is a method of checking goods which involves a spot check of part of the shipment rather than a check of each item or container. The supermarket often assumes if the containers checked are all right, the rest of the shipment will also be acceptable. Received items are compared against an invoice in the direct check method. A quality check is an examination of incoming goods or materials to ensure that they meet the quality standards of the purchaser. A blind check is a checking method in which the goods received are listed on a blank form, or dummy invoice, which is then compared to the real invoice.SOURCE: DS:085SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 504-506).

New York: Glencoe/McGraw-Hill.

24. DElectronic data interchange. The product scanning equipment in supermarkets not only records the sales transaction at the point-of-sale, but sends the information to the supplier letting the vendor know more product needs to be sent to the store. Immediately, a confirmation is sent via computer to the supermarket. The electronic data interchange, in many cases, eliminates the need for several people to write and communicate the order. Direct selling is a method of sales in which a manufacturer sells directly to the consumer. An example of a convenience good is a prepared dinner entree (e.g., chicken) that is sold in a store's deli. Convenience goods are not necessarily processed any faster during the checkout process than other goods. Consignment distribution is not a term that is used in the supermarket industry.SOURCE: DS:088SOURCE: Wolfe, M.G. (1998). The world of fashion merchandising (pp. 211-212). Chicago: Goodheart-

Willcox.


25. CRail. Rail transportation is often used to ship heavy, bulky items, such as grain and other agricultural products, over long distances. Grain is usually shipped by rail from various central collection points to food processing companies. Rail is an effective shipping method because it has the ability to transport large quantities of grain from one point to another at a relatively low cost. Air transportation is expensive and not able to transport large quantities of bulky items such as grain. Water transportation is often used to ship grain to foreign countries rather than to food processing companies. Trucks are often used to move the grain from the farm to the collection point where it is loaded into rail cars for shipment to processing companies.SOURCE: DS:044SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (1997). Marketing essentials (2nd ed.)

[pp. 324-325]. New York: Glencoe/McGraw-Hill.

26. AAs quickly as possible. Items with a short shelf-life, such as milk, eggs, and most types of produce, need to be put on the selling floor as quickly as possible after delivery. If older stock is on hand, the new stock should be put behind it so that the older stock will be sold while it is still good. Items with longer shelf-life can remain longer in the receiving area without being damaged.SOURCE: DS:015SOURCE: Newman, A., & Cullen, P. (2002). Retailing: Environment & operations (p. 145). London:

Thomson Learning.

27. BRunning out of. Supermarkets need to maintain adequate inventory levels in order to operate. Supermarkets may not be able to function if they run out of the supplies they need or the goods they resell to customers. Sometimes supermarkets stockpile inventory if they think a shortage will occur or if prices will increase drastically. Supermarkets do not maintain adequate inventory levels in order to avoid paying taxes or depreciating the goods.SOURCE: DS:023SOURCE: Newman, A., & Cullen, P. (2002). Retailing: Environment & operations (p. 341). London:

Thomson Learning.

28. AUnit. Unit inventory control is a system of keeping track of inventory according to the actual number of units, or items, of stock. The unit control system records how much stock is on hand, how much has been sold, and how much additional stock has been ordered. Dollar inventory control is a system of tracking the value of the inventory. Periodic control is an inventory method which counts inventory at certain times of the year. Perpetual control is an inventory method which updates inventory information on a continuous basis.SOURCE: DS:022SOURCE: DS LAP 3—Unit Inventory Control Systems

29. C1st quarter. The first quarter had the highest percentage of inventory shrinkage. This is determined by dividing inventory shrinkage of 3,500 units by sales of 100,000 to equal 3 1/2% shrinkage. In the second quarter, inventory shrinkage of 4,500 units is divided by sales of 150,000 to equal 3% shrinkage. Third-quarter inventory shrinkage of 5,000 is divided by sales of 200,000. This equals 2 1/2% shrinkage. The fourth quarter inventory shrinkage of 10,500 units is divided by sales of 350,000 to equal 3% shrinkage.SOURCE: DS:026SOURCE: DS LAP 4—Inventory Shrinkage


30. BAt the same level. Horizontal conflict occurs among channel members that are at the same level of the channel. These members usually are distributors for the same organization and are selling within an assigned territory. Conflict often occurs when one or more channel member attempts to cut prices and lure customers away from other channel members. Vertical conflict occurs when there is disagreement between different levels of the same channel. In vertical conflict, the members may be at a low level or at a high level. The distinguishing characteristic is that they are on different levels.SOURCE: DS:049SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 444-445]. Mason,

OH: Thomson/South-Western.

31. DLower prices for quick sale. When grocery stores have excessive quantities of items that are not selling as well as expected, they often lower the prices to encourage quick sales. Most stores develop a system for handling excessive quantities of a product, and the most common procedure is to lower prices. The lower prices often appeal to customers who will now buy the products because of the discount. Moving the items to another location is not effective unless there is also an incentive to buy—such as lower prices. Warehousing items is expensive, and there is no guarantee that demand will increase. Stores cannot return items to a vendor simply because the items are not selling well.SOURCE: DS:094SOURCE: Lambert, D.M., Stock, J.R., & Ellram, L.M. (1998). Fundamentals of logistics management

(p. 120). Boston: Irwin/McGraw-Hill.

32. B$60,000. The stock turnover rate is the number of times stock is sold in a given period of time. A candy store can use the stock turnover rate to determine its average inventory value in dollars. To calculate average inventory, divide the amount of annual sales by the stock turnover rate ($540,000 ÷ 9 = $60,000). Therefore, the candy shop has an average of $60,000 worth of inventory in stock at all times.SOURCE: DS:053SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 183-184).

Cincinnati: South-Western Educational.

33. DGovernment. In communist command economies, the government is responsible for determining what will be produced, how the products will be produced, and how the products will be allocated. In market economies, individuals and businesses decide how these economic questions will be answered. A venture team is a group involved in product development.SOURCE: EC:007SOURCE: EC LAP 17—Economic Systems

34. DLicenses. Licenses represent permission for a business to operate granted by a local, state, or federal government body. Monopolies occur when there is only one supplier of a product in a given industry and no substitutes are readily available. A patent is an agreement between the government and an inventor that gives the inventor exclusive rights to make, use, and sell the product for a certain period of time. Copyrights are exclusive rights given to authors, publishers, or artists to protect their ownership of literary and/or artworks.SOURCE: EC:008SOURCE: EC LAP 16—Government and Business


35. APrevent or control, transfer, retain, or avoid the risk. Usually, business risk cannot be totally eliminated or avoided. Businesses can choose to take measures that will prevent or control risks that can be anticipated. They can transfer the risk to others by entering into contracts, purchasing insurance, or choosing a form of business ownership that spreads the risk. Or, they may retain, or keep, the risk because it is small, the business is unaware of it, or has underestimated the risk.SOURCE: EC:011SOURCE: EC LAP 3—Business Risk

36. CApprentice. This person works under the direct supervision of a skilled craftsman, i.e., a journeyman, while learning the trade. Arbitrators and mediators assist in negotiations between a company and a union.SOURCE: EC:015SOURCE: EC LAP 5—Organized Labor

37. AFull-time students. Unemployment is an economic problem that affects many communities. The federal government maintains records and conducts surveys in order to calculate the rate of unemployment on a monthly basis. These calculations are estimates because it is not possible to account for each unemployed person. Also, there are categories of people that the government does not include in the calculations. One of these is full-time students because they either do not work, work only on a part-time basis, or work seasonally and, therefore, are not considered a part of the regular labor force. Part-time workers who are not full-time students are included in the calculations. When it calculates the rate of unemployment, the government includes unemployed people who are actively looking for jobs and people who are full-time employees SOURCE: EC:038SOURCE: Brown, B.J., & Clow, J.E. (1997). Introduction to business: Our business and economic

world: Teacher's wraparound edition (4th ed.) [pp. 624-625]. New York: Glencoe/McGraw-Hill.

38. CTo develop new products. Businesses need to obtain and analyze a wide variety of marketing information in order to make decisions for the future. One way that businesses use this information is to develop new products and improve existing products in order to satisfy customers' needs. In order to make marketing decisions that will keep them competitive, businesses are constantly gathering information about customers' preferences and why customers buy certain products. Businesses do not use marketing information to revise credit policies or to prepare sales invoices. Businesses obtain marketing information in order to monitor economic trends, but they are not able to change those trends.SOURCE: IM:012SOURCE: Zikmund, W.G., & d'Amico, M. (1999). Marketing (6th ed.) [pp. 129-130]. Cincinnati: South-

Western College.

39. CA geographic area for a direct-mail campaign. Grocers often collect zip code information to find out where their customers live. Then, they use the information to mail promotional materials to residents of those areas. Zip code information does not tell how often customers shop. While zip codes are useful when researching census or other demographic information, they will not in themselves tell how much customers can pay or the average age.SOURCE: IM:182SOURCE: U.S. Small Business Administration (n.d.). What is marketing research? Retrieved

October 24, 2005, http://www.sba.gov/starting_business/marketing/research.html


40. CBuying behavior. Buying behavior is the usual purchasing methods of consumers; it is the process they use to decide what products they will buy and from whom they will buy the products. By monitoring consumers' buying behavior, supermarket chains are able to find out what type of products they buy, how much they spend on the products, and where they buy certain products on a regular basis. Supermarket chains can use this information to make marketing decisions such as whether to offer lower prices in order to take customers away from competitors. Supermarket chains usually are not able to obtain information about a customer's personal character. Customer credit ratings are not a consideration in pricing. Supplemental income is income from sources other than a primary job and often is private information that is not available to supermarket chains.SOURCE: IM:184SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)

[pp. 643-644]. Woodland Hills, CA: Glencoe/McGraw-Hill.

41. AAchieving planned goals. The business's goals and strategies for achieving those goals may change frequently. Changing the business's image, increasing its profits, or improving management techniques might be specific goals at any point in time.SOURCE: IM:194SOURCE: IM LAP 7—Pick the Mix

42. BMarket products efficiently. Market segmentation is the division of a total market into smaller, more specific groups. This is accomplished by identifying those persons who will be the most likely customers for a product based upon their similar characteristics and needs. Supermarkets that want to appeal to the general population use mass marketing. Operational changes are changes in the way a supermarket is set up or operates (e.g., remodeling or expanding parking). The use of market segmentation is more likely to increase, rather than reduce, production costs.SOURCE: IM:196SOURCE: IM LAP 9—Have We Met?

43. CTo remain competitive. When a grocery store's external environment changes, it should evaluate its internal environment in order to remain competitive. External changes, such as industry growth or a slowdown in the economy, often make it necessary for a grocery store to change the way it does business. These types of external changes might make it more difficult for a grocery store to compete and remain successful. In response to external changes, a grocery store might update its advertising, revise its pricing, and improve its distribution in order to remain competitive.SOURCE: IM:140SOURCE: Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd ed.)

[pp. 98-99]. Boston: Irwin/McGraw-Hill.

44. BFalling trade barriers. By conducting a SWOT analysis, a company might identify potential opportunities to expand its business. Business opportunities tend to increase when trade barriers fall because there are fewer trade and commerce restrictions. Strong research and development is an example of a potential strength. Management turnover is an example of a potential weakness. The risk of takeover (e.g., company acquistion) is an example of a potential threat.SOURCE: IM:141SOURCE: Dessler, G. (1998). Management: Leading people and organizations in the 21st century

(3rd ed.) [pp. 182-183]. Upper Saddle River, NJ: Prentice Hall.


45. C$352,500. Businesses often use several forecasting techniques to estimate sales for the coming year because various factors affect the forecast. Some of these factors include the number of existing customers who will continue to buy and the number of a competitor's customers who will buy for the first time. Businesses may gather forecasting information from customer surveys and from salespeople who may have contact with the competitor's customers. In this example, 90% of the 500 current customers will continue to buy and spend an average of $750. Calculate that amount by multiplying the number of customers by the percent (500 x 90% or.90 = 450). The 450 current customers will each spend $750 for a total of $337,500 ($750 x 450 = $337,500).Thirty of the competitor's customers will spend $500 each for a total of $15,000 ($500 x 30 = $15,000). Add the two amounts to calculate next year's sales forecast ($337,500 + $15,000 = $352,500).SOURCE: IM:003SOURCE: Evans, J.R., & Berman, B. (1997). Marketing (7th ed.) [pp. 284-286]. Upper Saddle River,

NJ: Prentice Hall.

46. CMay be short of working capital. When a gourmet food store's sales forecast is too low, the store may not produce or purchase an adequate amount of stock to meet demand. This can reduce the gourmet food store's income from sales and thus the amount of capital with which to run the business. In order to obtain additional income, the gourmet food store may have to raise its prices. A sales forecast that is too low usually causes the gourmet food store to budget too little money for promotion.SOURCE: IM:009SOURCE: IM LAP 4—Forecasting Sales

47. CIncrease in sales. Marketing objectives are the goals that the Jiffy Food Mart seeks to reach with its marketing plan. The overall purpose of developing marketing objectives is to increase sales. If the objectives do not result in an increase in sales, the Jiffy Food Mart should develop different marketing objectives. For example, a goal might be to increase its customer base by 10% in one year, which will lead to an increase in sales. A marketing plan is a set of procedures or strategies for attracting the target customer to a business. Therefore, the marketing objectives focus on customers and sales rather than a decrease in costs, an increase in prices, or a decrease in taxes.SOURCE: IM:198SOURCE: U.S. Small Business Administration, Online Women's Business Center. (n.d.). Marketing plan

components: Marketing objectives and strategies. Retrieved October 25, 2005, from http://www.sba.gov/test/wbc/docs/market/MKPLAN_object3.html

48. BEnvironmental monitoring. Environmental monitoring involves checking assumptions to see whether any of the marketing plan's basic assumptions have changed. Gamesmanship refers to management actions aimed at improving the manager's performance. Behavioral displacement occurs when the behaviors encouraged by control are inconsistent with company goals. Operating delays are an unfortunate consequence of manager-control efforts.SOURCE: IM:145SOURCE: Dessler, G. (1998) Management: Leading people and organizations in the 21st century

(3rd ed.) [pp. 534-535, 544]. Upper Saddle River, NJ: Prentice Hall.


49. DPerformance. The ultimate goal of the marketing audit is to identify problems or techniques that are working effectively with the intention of making adjustments to improve the grocery store's marketing performance. The purpose of marketing is to get goods and services from producers to consumers. A marketing audit indicates whether a grocery store is performing as expected and fulfilling its purpose. Marketing research is the systematic gathering, recording, and analyzing of data about a specific issue, situation, or concern. Marketing information is all the marketing-related data available from inside and outside the business. Marketing mix is the combination of the four elements of marketing.SOURCE: IM:162SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 708-711]. Upper Saddle River, NJ:

Prentice Hall.

50. BCustomers' names. Customers' names are very special and important to them. The salesperson who can use the customer's name in the presentation brings a personal and positive touch to the sale. Brand names are more important to some customers than to others. In most cases, technical terms tend to have a negative rather than a positive effect on customers. Not all customers or selling situations involve credit terms.SOURCE: IS:005SOURCE: Bailey, L.J. (1997). Working: Learning a living (2nd ed.) [p. 121-122]. Cincinnati: South-

Western.

51. BBuild strong relationships. Negotiation can be a means of strengthening long-term relationships with customers, suppliers, coworkers, and other businesses. Negotiation demands a spirit of cooperation. Entering negotiation with the idea of getting a certain action, keeping negative people quiet, or getting something done will not produce a situation that allows everyone to feel they have gained through the process.SOURCE: IS:012SOURCE: U.S. Small Business Administration, Online Women's Business Center. (n.d.). Negotiating:

You've done it before. Retrieved October 25, 2005, from http://www.sba.gov/test/wbc/docs/manage/negotiating.html

52. DDriver's license. A driver's license is the preferred form of identification because it provides a recent photograph of the person, date of birth, height, color of eyes, gender, and current address. A credit card is a plastic-encoded card issued by banks that allows consumers to pay for purchases from an established line of credit. Debit cards are also plastic-encoded cards that provide consumers the ability to transfer monies electronically between the point of purchase and a bank. A Social Security card bears a nine-digit number issued by the federal government for identification purposes. Social Security cards, credit cards, and debit cards do not provide the necessary information needed to determine legal age requirements.SOURCE: IS:026SOURCE: Foster, G., & Hitchman, C. (2000). Supermarket customer service (p. 50). Austin, TX: The

University of Texas.


53. BBurnout. Burnout is a type of exhaustion that is usually caused by too much stress, which is a mental, physical, or emotional feeling of pressure or tension. When employees work in very stressful environments for long periods of time without any relief, they often experience burnout. Burnout may make it impossible for employees to continue functioning at work or even in their personal lives. If burnout is severe, employees may need to find less stressful jobs and obtain counseling. Mental, physical, or emotional abuse may cause stress and lead to burnout. Prejudice is opinion or judgment that is based on feeling or hearsay, rather than fact. Conflict is a dispute concerning attitudes, behavior, goals, etc.SOURCE: IS:019SOURCE: Wallace, H.R., & Masters, L.A. (1996). Personality development for work (7th ed.)

[pp. 216-217]. Cincinnati: South-Western Educational Publishing.

54. DOn-the-job. This is the most common method of training and involves the employee learning by actually doing the job. Apprenticeship training is practical and experiential training provided by a skilled worker to whom the apprentice is assigned over a period of years. Programmed instruction is independent learning by the employee through a series of printed questions, the answers to which are usually located elsewhere in the book. Vestibule training is conducted by staff members in a classroom setting.SOURCE: MN:019SOURCE: MN LAP 42—Training and Human Resource Development

55. CIdentify the cause(s) of the complaint. Complaints indicate the presence of problems. The first step in handling complaints should be to identify the actual problem(s) behind the complaint. Complaints will not usually work themselves out. They should be addressed before they become grievances—dissatisfactions expressed through an identified formal process.SOURCE: MN:034SOURCE: MN LAP 45—Handling Employee Complaints

56. DFixed. Fixed costs are costs that are not affected by changes in sales volume or sales revenue. Variable and semivariable costs are affected by changes in sales volume or sales revenue. Operating costs are the expenses involved in running the bakery.SOURCE: MN:081SOURCE: MN LAP 57—Operating Expenses

57. BSuitable, understandable, and timely. Control is a management function that monitors the work effort. For managers to control business activities in an effective manner, control methods must be applicable for the situation (e.g., a graphic artist performs different activities than the plant manager); understandable so employees perform activities correctly; and timely (e.g., products are not shipped before they are packed appropriately). Generally, effective control systems are also economical (cost effective) and relevant. The rigidity, flexibility, transferability, responsiveness, and tangibility of the control system are often dependent on the situation.SOURCE: MN:135SOURCE: Kleindl, B.A. (2001). Strategic electronic marketing: Managing e-business (pp. 624-626).

Cincinnati: South-Western College Publishing.


58. C$174,625. An important part of developing a company's budget is determining the amount to allocate for each category such as salaries and wages, rent, insurance, utilities, etc. Since payroll accounts for a major portion of the expenses, it is vital that Horton Food Systems budget that amount as accurately as possible. To determine the amount to allocate for salaries and wages in this situation, first calculate the extensions. If two employees each earn $35,000 per year, then the two earn a total of $70,000 ($35,000 x 2 = $70,000). One part-time employee who works 1,250 hours a year at $7.50 earns $9,375 per year (1,250 x $7.50 = $9,375), so three part-time employees earn a total of $28,125 per year ($9,375 x 3 = $28,125). Add the total salaries and wages for each category of employee to determine the amount to budget ($54,000 + $70,000 + $22,500 + $28,125 = $174,625).SOURCE: MN:653SOURCE: CompensationMaster. (n.d.). A contribution-based approach. Retrieved October 25, 2005,

from http://www.compensationmaster.com/contribution.html

59. A$460. Many food businesses, such as butcher shops, control expenses by hiring part-time employees at an hourly rate instead of salaried, full-time employees. The advantage to the butcher shop is the same number of employees working during a given time period but for less wages. To calculate the savings, first determine the weekly payroll expense for one part-time employee by multiplying the number of hours worked each week by the hourly rate ($11.50 x 20 = $230). Then, multiply that amount by the four part-time employees ($230 x 4 = $920); and the total weekly amount by the two-week pay period ($920 x 2 = $1,840). Next, determine what the payroll would be for two full-time employees by multiplying the weekly salary by the number of employees and that amount by the two-week pay period ($575 x 2 = $1,150; $1,150 x 2 = $2,300). Then, subtract the two-week, part-time payroll from the two-week, full-time payroll to determine the amount the butcher shop will save ($2,300 - $1,840 = $460).SOURCE: MN:059SOURCE: BizMove.com. (n.d.). How to reduce costs. Retrieved October 25, 2005, from

http://www.bizmove.com/finance/m3k.htm

60. COwners often use business plans as a tool to help them achieve their objectives. The business plan is a written document that outlines each area of the business and the strategies it will use to accomplish business goals. The document helps business owners and managers to carry out and monitor objectives and evaluate the accomplishments and outcomes. Lending institutions usually like to review a company's business plan because it helps them weigh the risks associated with the applicant's loan. An operating plan provides information regarding facilities, manufacturing processes, personnel, and materials needed to produce products. All types of businesses should develop business plans, including sole proprietorships, partnerships, corporations, and hybrids.SOURCE: MN:101SOURCE: Brown, B.J., & Clow, J.E. (1997). Introduction to business: Our business and economic

world: Teacher's wraparound edition (4th ed.) [pp. 215-217]. New York: Glencoe/McGraw-Hill.

61. COrdering pizza for dinner. Routine decisions are decisions that people make often. They are so minor or simple that people don't think about them much and make them almost unconsciously. Deciding to order pizza for dinner is a routine decision. Selecting which car to buy, choosing a career to pursue, and picking a new roommate are not routine decisions.SOURCE: PD:017SOURCE: PD LAP 10—Weigh Your Options (Decision Making)


62. BNatural talent. Aptitudes are natural talents or abilities for learning specific skills. People usually consider their natural talents when identifying occupations, because their abilities are an indication of what type of work they will be able to do the best and enjoy the most. For example, a person with good hand skills who has the ability to attractively combine colors and materials might consider a career in design or visual merchandising. Mental health is a person's soundness of mind. Personal conduct is the way a person behaves. Social attitude is a person's point of view about society.SOURCE: PD:023SOURCE: Daggett, W.R., & Miles, J.E. (1998). The dynamics of work: Introduction to occupations

(2nd ed) [pp. 33-34]. Cincinnati: South-Western Educational.

63. DSupermarket chain. Large supermarket chains usually have departments that are responsible for the pricing function. The owners of independent grocery stores, local butcher shops, and small bakeries would most likely be in charge of setting prices for their goods and services.SOURCE: PI:001SOURCE: PI LAP 2—Pricing

64. ASocially responsible. Social responsibility is the duty of business to contribute to the well-being of society. A food distribution company is being socially responsible if it refuses to take advantage of unfortunate situations, such as damage caused by natural disasters, by raising the prices of goods and services that people need. Businesses that focus on contributing to society usually build goodwill within the community and develop long-term relationships that are far more profitable than the quick money they earn by raising prices during a disaster. Therefore, refusing to raise prices is not economically unsound because the food distribution company will profit in the future from its responsible actions. Refusing to raise prices during a natural disaster is not a political or legal issue.SOURCE: PI:015SOURCE: Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd ed.)

[pp. 326-328]. Boston: Irwin/McGraw-Hill.

65. APrice fixing. Price fixing is an illegal agreement between businesses (e.g., grocery stores) as to a price or price range for products. Price fixing extends beyond merely agreeing on prices; it also includes coordinating the amount of discounts and credit terms. When competitors agree to carry the same goods, set prices, and control the market, they are fixing prices. This exchange of information prevents customers from having a choice about what they buy and what they pay. Unit pricing is a pricing technique in which consumers are given the price per unit for products. Price advertising involves promoting special prices such as discounts or two-for-one offers. Deceptive pricing involves misleading customers about the actual price of an item.SOURCE: PI:017SOURCE: Evans, J.R., & Berman, B. (1997). Marketing (7th ed.) [pp. 596-597]. Upper Saddle River,

NJ: Prentice Hall.

66. BCost, demand, and competition-based pricing. Even though one pricing method may be primary, all three types should be considered when selecting a base price method for a good or service. The cost-based method is a dollar or percent amount added to the cost of production to calculate the desired profit margin. The demand-based pricing method sets prices based on the consumer demand for the good or service. For example, high demand equates to higher prices. The competition-based pricing method involves setting prices that are equal to or lower than the prices charged by competitors.SOURCE: PI:018SOURCE: Pride, W. M., & Ferrell, O. C. (2000). Marketing: Concepts and strategies (2000e)

[pp. 545-548]. Boston: Houghton Mifflin.


67. BSales revenue. Money that comes into the business from the sale of goods and services is known as sales revenue or income from sales. It is the main source of income for most grocery stores. Dividends are a form of income from investments. Return on investment is the percent or amount of money earned from investing in a business. Capital is money used to operate a business.SOURCE: PI:006SOURCE: PI LAP 4—Calculating Break-Even

68. AProduct/Service management. Product/Service management involves obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities. The product life cycle is the course that a product follows in the market and includes the stages of introduction, growth, maturity, and decline. The marketing mix includes product, price, place, and promotion. Product implementation is a distractor.SOURCE: PM:001SOURCE: PP LAP 5—Product/Service Planning

69. DCause packaging. Cause packaging is using a product to promote a political or social issue. Environmental labeling and provocative branding are not terms commonly associated with packaging. Political lobbying is the act of trying to influence the attitudes and actions of legislative groups.SOURCE: PM:040SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 578].


70. BCanned fruit. Many food products must meet various standards before being distributed for end-user consumption. Sometimes the standards are established in different levels known as grades. Meat, eggs, fruits, and vegetables are subject to grading. Although grading is possible for lawn mowers, athletic footwear, and CD players, these items are not the most likely candidates for the grading process.SOURCE: PM:019SOURCE: PM LAP 8—Grades and Standards

71. BProduct-mix strategy. A strategy is a plan of action. Types of product-mix strategies are expansion, contraction, alteration, trading-up, trading-down, and positioning. A marketing strategy is a plan of action for achieving marketing goals and objectives. A promotional mix is a combination, or blend, of marketing communication channels that a business uses to send its message to consumers. Product positioning is the consumer's image or impression of a product as compared to that of competitive products.SOURCE: PM:003SOURCE: PP LAP 3—Product Mix

72. CProduce. Produce includes a wide variety of fresh fruits and vegetables and is one of the main categories of food in a grocery store. Produce has a high sales volume, which is one of the reasons why it is placed near the store's entrance. Attractively displayed fresh produce appeals to customers and encourages them to buy. As a result, the produce department is often one of the largest areas of the store. The dry foods category includes cereal, which usually is located in the middle of the store. Seafood and frozen items do not have as high a sales volume as produce and often are located in the back of the store or in the last aisle, respectively.SOURCE: PM:057SOURCE: Colborne, R. (1996). Visual merchandising: The business of merchandise presentation

(pp. 34, 177). Albany, NY: Delmar.


73. AProduct. Product features and attributes are being affected in the positioning of the product. The butcher shop is emphasizing features rather than price, place, or promotion.SOURCE: PM:042SOURCE: Burrow, J.L. (2002). Marketing (pp. 171-173). Mason, OH: South-Western.

74. ABrand mark. The hollow tree on a box of Keebler cookies is an example of a brand mark. A brand is the name, term, symbol, or design that identifies a product and distinguishes one product from another. The trade name identifies a company or organization. The trade character is a lifelike symbol associated with a product or company.SOURCE: PM:021SOURCE: PM LAP 6—It's a Brand, Brand, Brand World!

75. BInternal customers. Employees are a supermarket chain's internal customers, and they need to be encouraged by management to work together serving each other and customers. In turn, this creates a positive work environment. External customers are who a person normally thinks of as customers, and management's role is not to get them to work together, but to help them to enjoy buying from the business. A manager's responsibility regarding the business's vendors is to get them to deliver products in a timely fashion with minimal interruption to employees and customers. Managers do not have control over the actions of the business's lawyers; besides, most lawyers work off the business's premises.SOURCE: PM:013SOURCE: PM LAP 1—Customer Service Supersized!

76. AEnvironmental factors. Environmental factors have an effect on how customers feel about a grocery store. Grocers often consider these factors when creating the type of facility that will attract and satisfy their target market. Wide aisles, attractive signage, and comfortable customer-service areas are environmental factors that some grocers incorporate into the facility because that is what their customers expect. Although some signs are used for decoration and customer-service areas may be decorated in the latest style, wide aisles are not a decorating technique. Traffic pattern refers to the way customers are guided through the store. Interior accessories include floor and wall coverings, lighting, etc., rather than aisles and signage.SOURCE: PM:010SOURCE: Berman, B., & Evans, J.R. (1998). Retail management: A strategic approach (7th ed.)

[pp. 557-558]. Upper Saddle River, NJ: Prentice Hall.

77. CProfessional looking. Many small gourmet food shop owners make the mistake of using an off-the-shelf graphics program to design their own logo, and it shows! A much better option is to hire a graphic designer who has the experience and artistic flair necessary to produce a professional-looking logo. A gourmet food shop's name should be short and easy to pronounce so that it is memorable. However, brand logos typically consist of designs and/or a group of letters that cannot be spoken. Anyone can protect a brand by registering a trademark or service mark. Sometimes, a gourmet food shop owner will pay extra for the graphic designer to take care of this process once the overall design has been completed and approved. Complex, abstract logo designs can be confusing because customers often have trouble relating them back to the gourmet food shop. Therefore, they are generally not a good idea.SOURCE: PM:126SOURCE: PM LAP 10—Building Your Business's Brand


78. B1.9. Stock turnover is calculated by dividing sales for the period by average monthly inventory. To calculate average inventory, add the monthly inventories and divide by the number of inventories, including the ending inventory ($50,000 + $61,000 + $69,000 + $50,000 = $230,000 ÷ 4 = $57,500). Then, divide net sales by average inventory to determine the stock turnover figure ($110,000 ÷ $57,500 = 1.9).SOURCE: PM:062SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 181-183).

Cincinnati: South-Western Educational.

79. AAn amount of money available for purchasing merchandise. Grocery stores (or departments) do not always spend all of their allotted merchandise budget at one time but place merchandise orders at intervals. Therefore, it is necessary that they be able to determine the total amount previously spent and the total amount which remains to be spent. This process is called determining open-to-buy. It involves dollar amounts, not specific purchases. Available credit and comparative sales figures can be useful in determining planned sales and planned purchases for a specific period, but those figures are not helpful in computing open-to-buy.SOURCE: PM:064SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 487-488). New

York: Glencoe/McGraw-Hill.

80. C$426,555.50. When determining the amount of frozen pizzas to purchase, a grocery store would consider last year's sales as well as the increase in sales for the last few years. If sales have been increasing by 7% a year for the last few years, next year's sales will probably increase by that amount. Stores also consider other factors, such as current economic conditions and industry predictions, when deciding how much to buy; however, past sales figures and increases are major indicators. In this example, pizza sales will probably increase by 7% so the store will buy 7% more frozen pizzas. To determine the amount of pizzas the store will probably buy next year, multiply last year's sales by 7% and add that amount to last year's sales ($398,650 x 7% or .07 = $27,905.50; $398,650.00 + $27,905.50 = $426,555.50).SOURCE: PM:121SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


81. APrivate. Many grocery stores carry their own private-label brands because their gross margin averages between 20% and 30% more than for national brands. Customers typically prefer to buy national brands, but the markup on these products is not as profitable for grocers. Generic brands have really never been well-received by customers, and so their gross margin is typically not very high. Corporate brands is another name for national brands.SOURCE: PM:065SOURCE: Kahn, B.E., & McAlister, L. (1997). Grocery revolution: The new focus on the consumer

(p. 154). Reading, MA: Addison-Wesley Educational.

82. BCoupons and rebates. Sales promotion is promotional activities other than advertising, personal selling, and publicity that are intended to achieve a desired outcome. It may also use free samples, displays, or contests to interest customers in the product. It does not involve personal selling, publicity, press releases, or public relations, although customer goodwill may be generated by the samples and reduced prices.SOURCE: PR:001SOURCE: PR LAP 2—Promotion


83. BDeceptive. Deceptive promotion makes false or exaggerated claims about the benefits of the product to the consumer. Offensive promotions are those that are considered to be in bad taste, vulgar, and/or insulting to human intelligence. Fearful promotions focus on the insecurities of people and unfavorable outcomes that may result from not buying a product. Some critics of promotion consider promotion to be manipulative because it influences purchase behaviors.SOURCE: PR:002SOURCE: PR LAP 4—Types of Promotion

84. DSupporting worthwhile causes. Social responsibility is the duty of business to contribute to the well-being of society. One way that businesses exhibit social responsibility is by developing promotions that support worthwhile causes. Some businesses advertise in support of charitable organizations or sponsor ad campaigns to encourage young people to stay in school. They may focus on helping the public to understand important health issues or safety concerns. Promotions that announce upcoming sales, explain business policies, or describe recent renovations are not examples of socially responsible promotions.SOURCE: PR:099SOURCE: Russell, J.T., & Lane, W.R. (1999). Kleppner's advertising procedure (14th ed.)


85. DGives a false impression. An advertisement is considered deceptive if it gives a false impression even though the information in the ad is basically truthful. Businesses are not permitted to convey false impressions by failing to include supporting information. Although it is difficult to prove deception, one of the key factors is often whether the ad gave a false impression. Comparing several brands is a characteristic of comparative advertising. Deceptive advertising does not violate the right to privacy or restrict free speech.SOURCE: PR:101SOURCE: Russell, J.T., & Lane, W.R. (1999). Kleppner's advertising procedure (14th ed.)


86. CInsert. A brochure, catalog, or other advertisement that is added to the newspaper or magazine is called an insert. In some cases, the insert is loose, and in other cases it is fastened to the publication with a narrow edge of glue. Tabloids are newspapers that are about half the size of a regular paper and in the shape of a magazine. Tear sheets are copies of actual advertisements taken from the publications in which they were printed and sent to the advertisers. Classified ads are individual ads grouped together by classification, or category.SOURCE: PR:007SOURCE: PR LAP 3—Ad-quipping Your Business

87. ABody copy. Copy is the text of an advertisement that delivers the sales message. As the principal sales message, the copy should build desire and invite readers to take action. Tag lines are slogans. Illustrations are photographs, drawings, paintings, or graphics. White space is blank space.SOURCE: PR:014SOURCE: PR LAP 7—Parts of Print Ads


88. BProportion. Proportion is the relationship between the various parts of a display that helps to create an attractive appearance. The pyramid arrangement is a commonly used technique for achieving proportion in a display. In most cases, the display would not be considered to have variety or originality since it usually contains many units of the same product (e.g., canned fruit). It does not require imagination to create a pyramid.SOURCE: PR:026SOURCE: Mills, K.H., Paul, J.E., & Moorman, K.B. (1995). Applied visual merchandising (3rd ed.)


89. BShould determine if any of the components can be used in future displays. Portable lighting fixtures and props such as beach balls and flags are all items that could be used in future store displays. Dated items (e.g., signs with a year on it), are less likely to be used in future displays. These types of items are generally discarded. Permanent lighting fixtures are not usually removed when displays are dismantled. Because some of the props or elements might possibly be used again, everything should not be discarded or placed in the trash. Display building time is generally estimated while it is in the planning stages, not while previous displays are in the process of being dismantled.SOURCE: PR:054SOURCE: Wolfe, M.G. (1998). The world of fashion merchandising (p. 412). Chicago: Goodheart-

Willcox.

90. ABulk displays are less expensive. They are less expensive because employees spend less time and effort arranging the displays. In a bulk display, the produce items are dumped or placed in an open container which allows customers to select individual items. Bulk displays do not keep the produce looking fresher any longer than the produce that is prepackaged. Bulk produce displays do not reduce losses caused by customer handling because the displays are intended to encourage customers to pick up the items themselves. Produce in bulk displays is not marked individually with price labels.SOURCE: PR:048SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


91. BGet the most benefit from its promotions. A good promotional plan can help an organic food store to have a successful promotional program and to get the most for its promotional dollar. The plan should help the organic food store to reach its marketing objectives. The organic food store can choose between a push and a pull strategy for its products without a promotional plan. The organic food store should identify its primary target market before developing its promotional plan.SOURCE: PR:073SOURCE: Longenecker, J.G., Moore, C.W., & Petty, J.W. (2003). Small business management: An

entrepreneurial emphasis (12th ed.) [p. 235]. Cincinnati: Thomson/South-Western.

92. CDisplay and advertising. These two departments are largely responsible for developing and carrying out a supermarket chain's promotions. In order for such promotions to be effective, it is important for advertising and display efforts to be correlated. The personnel department handles staffing and other human relations responsibilities. The credit department handles customer accounts.SOURCE: PR:076SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)

[p. 495]. Upper Saddle River, NJ: Prentice Hall.


93. CFalse, merchandise to be displayed should be chosen first. The first step in planning a display is to select the most appropriate merchandise for promotion. The items chosen for promotion may suggest a theme or lend themselves to a particular theme. The theme should help to promote the merchandise, not vice versa.SOURCE: PR:077SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 325].


94. CFood promotion. Gina's Gourmet Grocery is attempting to make customers think about what ingredients they will need to buy for their recipes and hopefully to make a trip to the store. In other words, Gina's Gourmet Grocery is promoting the food that it sells. Affiliate marketing is the process of promoting and selling another business's products in exchange for a commission. Because Gina's Gourmet grocery must pay for the cost of producing, printing, and mailing the newsletter, the gesture cannot be considered publicity. A capital investment refers to the amount of money the business has invested in its goods and other property.SOURCE: PR:111SOURCE: Wemischner, R., & Karp, K. (1998). Gourmet to go: A guide to opening and operating a

specialty food store (p. 259). New York: John Wiley & Sons.

95. CLong-term relationships. Salespeople realize that it is important to develop long-term relationships with customers so customers will continue to buy from them. One way to develop long-term relationships is to provide quality customer service that meets customers' needs and makes them feel appreciated. Salespeople can provide quality service in many ways, such as following up after a sale, sending thank-you notes, offering to provide support information, etc. As a result of such service, salespeople often develop relationships with customers that last for a long time. Using effective follow-up techniques and problem-solving methods are ways to provide quality customer service. Salespeople do not provide quality customer service by developing substitute-selling strategies.SOURCE: SE:076SOURCE: Futrell, C.M. (1999). Fundamentals of selling: Customers for life (6th ed.) [p. 402]. Boston:

Irwin/McGraw-Hill.

96. BMisrepresentation. Misrepresentation involves exaggerating the product's benefits or promising more than a product can provide. An example of misrepresentation is promising customers that profits will increase by a certain amount if they purchase specific products for resale. If a customer buys a product based on a salesperson's statement and the product does not generate the promised profit, the retail customer may sue the food distributor. Misrepresenting products is illegal and may be costly to food distributors if they are sued. Food distribution salespeople should be as factual as possible and provide exact product information to avoid misleading their customers. Promising more than a product can provide is not an example of discrimination, incentive selling, or sales puffery.SOURCE: SE:108SOURCE: Futrell, C.M. (2001). Sales management: Teamwork, leadership, and technology (6th ed.)

[pp. 37-38]. Mason, OH: South-Western.

97. DGeneric. These products are unbranded, i.e., the label simply says "paper towels." These products are inexpensive alternatives to brand-name goods. Specific brand names are associated with national, private, and middlemen brands.SOURCE: SE:019SOURCE: Lewison, D.M. (1997). Retailing (6th ed.) [p. 371]. Upper Saddle River, NJ: Prentice Hall.


98. CIt is complex. Selling is a complex process that varies across industries, products, and customers. It consists of several phases that should be performed consecutively. The selling process is not limited to retail sales. The phases are: establishing relationships with customers, discovering client needs, prescribing solutions to needs, reaching closure, and reaffirming buyer-seller relationships.SOURCE: SE:048SOURCE: SE LAP 126—The Selling Process

99. ACoupon. Many manufacturers and businesses offer coupons to customers to introduce new products and to increase sales. Coupons usually offer a certain amount off the purchase price of specified items. A refund is the purchase price given back to a customer who returns an item. A markdown is a reduction in the selling price of goods. A rebate is a return of part of the price a customer pays for a good or service, usually offered by the manufacturer of the product.SOURCE: SE:116SOURCE: MA LAP 52—Calculating Miscellaneous Charges

100. BDetermine if the item should be eliminated from the product line. If sales for a specific item have been low or slow moving, it might be in the best interest of the grocery store to drop the item from the product line because warehousing such items for long periods of time can cost the company money. A grocery store's overall financial status cannot be examined by looking at the sales movement of one item. Financial information is compiled from a variety of other sources. Reorder sales of the specific item can be evaluated by the product analysis; however, overall reorder sales for all products cannot be evaluated. The relationships between salespeople and customers cannot be evaluated by extracting information about one product from one source.SOURCE: SE:056SOURCE: Hite, R., & Johnston, W. (1998). Managing salespeople: A relationship approach

(pp. 395-396). Mason, OH: South-Western.

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London Central DECA Team - Homelcssdecateam.weebly.com/uploads/8/6/5/2/8652601/fms2… · Web viewMarketing research is the systematic gathering, recording, and analyzing of data