lcssdecateam.weebly.comlcssdecateam.weebly.com/uploads/8/6/5/2/8652601/tse2008.docx · Web viewThe management of business logistics: A supply chain perspective (7th ed.) [pp. 464-465]

2008 DECA Ontario ProvincialsTest 962 TECHNICAL SALES EVENT 1

TSE

1. Which of the following are not required to follow the rules and regulations of Title VII of the Civil Rights Act:A. Private employers who employ fewer than 15 persons B. Governmental offices and agencies C. Nonprofit organizations located in rural communities D. Businesses that export goods to foreign countries

2. Most government services in a market economy are financed through theA. sale of products produced by the government. C. collection of taxes from businesses and individuals. B. regulation of price controls. D. price support system.

3. A convenience good usually has __________ distribution.A. selective C. exclusiveB. intensive D. relative

4. One advantage to a computer-repair company of installing a global-positioning system in all of the business's delivery vehicles is that the drivers can

A. identify possible delays in traffic. C. calculate the fuel needed to complete a route. B. obtain accurate directions to destinations. D. gain access to inventory data.

5. A manufacturer who wants an electronics retailer to carry a new technical product might pay the retailer a slotting allowance to cover the cost of

A. sales incentives. C. cents-off coupons. B. licensing fees. D. mail-in rebates.

6. To identify the best combination of transportation routes and modes for optimal distribution effectiveness and costs, a supply chain manager would use a(n) __________ model.

A. queuing C. distribution B. inventory D. game theory

7. What do many technical businesses do if they detect problems during the process of evaluating the performance of a channel member?

A. Help the member improve C. Fine the member for damages B. Terminate the member D. Recommend the member to others

8. What should technical business employees be willing to accept when defending their ideas objectively?A. Additional responsibility C. Nonverbal support B. Critical feedback D. Personal attack

9. Which of the following is not a reason to participate in a discussion:A. To declare your opinion C. To organize your thoughts B. To gain confidence D. To think critically

10. To make sure that employees understand how to complete a new business procedure, the manager should explain it and then allow plenty of time for

A. conversation. C. relaxation. B. recreation. D. practice.

11. Mr. Potter, a regular customer in your cellular phone store, has examined three different models of cell phones and read all the information on the boxes and labels. What type of customer is Mr. Potter?

A. Slow/Methodical C. SuspiciousB. Dishonest D. Domineering/Superior

12. Machines used to manufacture technical products are classified as __________ goods.A. consumer B. capital C. service D. nondurable


13. One of the factors that directly limits the economic freedom of individuals in a private enterprise system is governmentA. taxation. C. services.B. production. D. indecision.

14. Which of the following is a characteristic of a business-format franchise:A. It is the least popular franchise arrangement. C. Continuous assistance is provided by the franchisor.B. Products are bought directly from the supplier. D. The name of the business is chosen by the franchisee.

15. One function of the U.S. Federal Reserve System is to A. regulate the domestic money supply. C. develop international trade regulations. B. establish the national inflation rate. D. determine federal taxation policies.

16. In which of the following situations would consumers' purchasing power increase:A. Take-home pay remains at a constant level. C. Interest rates increase from 6% to 7%.B. Federal income tax rates increase by 2%. D. Pay raise is 5% and inflation rate is 3%.

17. Being persuasive is a characteristic of a(n)A. loyal follower. C. effective leader. B. domineering person. D. authority figure.

18. When you ask yourself, “What would I attempt to do if I knew I could not fail?” you are determining yourA. reason for existing. C. aspirations. B. necessary resources. D. values.

19. If you like to feel as though you are an important member of the team, you will probably work best under a(n) __________ manager.

A. hands-off C. laissez-faireB. democratic D. authoritarian

20. Which of the following is a type of credit card that can be used to make purchases from a variety of participating businesses:

A. Hotel C. Bank B. Retail D. Petroleum

21. One of the advantages to technical businesses of collecting primary information is that this type of information isA. generic. C. accurate. B. expensive. D. internal.

22. For its sales forecast, Giant Telecommunications Company wants to survey not only the opinions of company executives but the opinions of outside experts as well. This is known as the __________ method of sales forecasting.

A. jury of executive opinion C. sales-force composite B. survey of buyer intent D. Delphi technique

23. Calculating total revenue and marginal revenue is one way for electronics businesses to determineA. assets and liabilities. C. cause and effect. B. supply and demand. D. output and profit.

24. Studying the pager business's profit-and-loss statement can tell a business owner theA. value of the business's assets. C. amount of cash on hand.B. rate of return on sales. D. value of current inventory.

25. To verify information about applicants, employers canA. examine application blanks. C. check references. B. review résumés. D. administer physical examinations.


26. When using resources in job orientations, which of the following should be avoided:A. Selecting a variety of resourcesB. Using resources that help to achieve the goals of the orientation C. Using resources to fill time D. Selecting resources that will be meaningful to the audience

27. One of the advantages of rewarding technical employees is that the offer of a reward often encourages employees to be

A. cost conscious. C. creative. B. competitive. D. financially motivated.

28. Rob's supervisor has asked him to carry some boxes of stereo equipment weighing 55 pounds each. Rob refuses because his union contract states that he does not have to carry anything weighing more than 50 pounds. What act protects Rob from being fired for refusing to carry the boxes?

A. Occupational Safety and Health Act C. Civil Rights ActB. Age Discrimination in Employment Act D. Wagner Act

29. In planning marketing activities and in making marketing decisions, technical marketers use a variety of data gathered by a(n)

A. file of employee records. C. marketing-information management system.B. double-entry bookkeeping system. D. inventory control system.

30. Determine which of the following is a true statement:A. The steps in marketing research must follow a certain order, and none can be eliminated.B. The amount of data being gathered affects the steps in the marketing-research process.C. The business can leave out some of the steps in marketing research in certain situations.D. The order of the steps in marketing research can be changed to suit the business.

31. Which of the following is an example of a cellular phone business tabulating the results of a marketing survey:A. Comparing the results with results from other types of research B. Analyzing the information to make it useful to the business C. Assigning a numeric value to the various responses on the survey D. Counting the number of respondents who agreed with the questions

32. How does the marketing function of selling benefit society?A. Helps to increase employment C. Determines to whom to sell B. Creates a relationship with customers D. Affects demand for a good or service

33. A technical marketer who changes the product element in the marketing mix should re-evaluate the other marketing elements because the elements are

A. interrelated. C. unique.B. independent. D. detached.

34. Liza has always wanted a plasma television, and she has finally saved enough money to buy one. In marketing terms, Liza is a

A. market segment. C. target group.B. resource. D. market.

35. Technical businesses often segment their target markets into which of the following three primary areas:A. Geographic, economic, technological C. Demographic, productive, rationalB. Demographic, psychographic, geographic D. Psychographic, sociological, promotional

36. Which of the following is an example of a marketing strategy that a cellular phone business might develop in order to achieve an objective it has outlined in its marketing plan:

A. Obtaining $1 million in sales C. Increasing profits by 10%B. Lowering prices by 5% D. Reducing operating costs


37. What do electronics businesses often conduct in order to be able to forecast sales and plan for the future:A. Financial review C. Case study B. Performance evaluation D. Market analysis

38. Which of the following marketing strategies focuses on opportunities that are a good match with the technical business's strengths:

A. W-T C. W-O B. S-T D. S-O

39. Sales forecasts are used by electronics businesses to determineA. management policy. C. target market.B. production quantities. D. past sales.

40. Why is it important for telecommunications businesses to include specific time frames when setting marketing goals and objectives?

A. Guides the business in hiring more staff. C. Keeps the business focused on the goal. B. Helps the business predict the future. D. Allows the business to identify the market.

41. A primary reason for establishing a marketing budget is that it helps a pager business toA. manage depreciation. C. control spending. B. monitor fixed assets. D. reduce tax liability.

42. What is your primary source of marketing-research information once you have started your own technical business?A. Accounting records C. EmployeesB. Online surveys D. Current customers

43. It is important for electronics businesses to provide employees with safety and health information and training in order to

A. ensure greater profits. C. increase employee morale.B. prevent accidents. D. control employee sick leave.

44. What type of production process involves operating machines around the clock to meet consumer demand for standard products?

A. Continuous C. BatchB. Intermittent D. Labor-intensive

45. A primary reason for a business to analyze and update its technical sales procedures is toA. boost its spending levels. C. decrease its inventory. B. reduce its outputs. D. increase its efficiency.

46. When technical project managers ask members of the group to give short status reports, the managers areA. providing information. C. organizing activities. B. answering questions. D. monitoring progress.

47. Careful handling of complex technical business equipment by employees helps to prevent damage and controlA. usage. C. theft.B. expenses. D. overtime.

48. Which of the following is an area often used by customers that an electronics store must maintain on a regular basis:A. Employee lounge C. Exterior sidewalk B. Corporate office D. Storage facility

49. What is an aspect of a technical business that should be included in a regular maintenance program?A. Telephone cables C. Water linesB. Utility meters D. Light fixtures


50. John frequently lists or ranks the things he needs to do in the order of their importance. John is __________ his activities.

A. grouping C. prioritizingB. categorizing D. classifying

51. An employee is visiting the electronics company's European office in an effort to obtain a transfer. The best way for the employee to obtain the transfer is to interview with the appropriate person and

A. show a slide presentation. C. provide a lengthy résumé. B. set up a dinner meeting. D. send a follow-up letter.

52. Which of the following differentiates technical sales representative jobs from similar retail sales positions:A. Represents their companies C. Has limited direct supervisionB. Implements firm's marketing strategies D. Faces more rejection than acceptance

53. Which of the following is a technical sales position that involves staying at the business location while assisting customers:

A. Order-taker B. Sales support C. Inside sales D. Specialist

54. Cellular phone businesses that price their goods and services higher than most customers are willing to pay are likely to

A. increase profit. C. reduce costs. B. improve demand. D. lose sales.

55. One of the advantages to businesses using the technology of optical scanning is that it allowsA. suppliers to monitor the delivery system. C. businesses to change pricing information. B. customers to complete the checkout process. D. employees to maintain a secure facility.

56. Which of the following is an internal factor that has a significant effect on selling price:A. Variable expenses C. Competitors' costsB. Social concerns D. Government regulations

57. Which of the following areas of product/service management is important in attracting customers and in protecting technical products:

A. Idea generation C. LabelingB. Concept testing D. Packaging

58. Satellite communications systems often impact the product/service management function by helping electronics distributors to

A. order replacements. C. use software.B. evaluate information. D. track shipments.

59. Which of the following is an example of internal resources that electronics businesses often use to generate product ideas:

A. Agencies B. Competitions. C. Customers D. Employees

60. A seller of digital clock radios provides purchasers with an assurance that any problem with the radios will be repaired or the radios will be replaced if they stop working within a year's time. This promise by the seller is an example of a

A. warranty. B. limited warranty. C. guarantee. D. money-back guarantee.

61. When evaluating customers' experiences, a telecommunications company should keep in mind that customers are most often influenced by their interactions with the company's

A. negotiation committee. C. labor union. B. suppliers. D. employees.

62. When a business takes an existing technical product and increases its user-friendliness, the business is fulfilling its customers' needs by a process called product

A. modification. C. certification. B. classification. D. mollification.


63. Should a pager business attempt to provide services to satisfy every possible customer?A. No, service levels aren't that important to most customers. B. Yes, the loss of a prospect is a catastrophe. C. No, some people make impossible demands.D. Yes, this helps to maintain the desired profit margin.

64. A manager of an electronics store who notices that some employees are standing around while others are struggling to serve a long line of customers should __________ his/her employees.

A. cross train B. reward C. promote D. congratulate

65. The primary reason why technical businesses choose a positioning strategy is toA. ensure that the product is priced reasonably. C. help decide if the product should be altered.B. differentiate a product from its competitors. D. save money on production costs.

66. What might your electronics business do if a competitor is using a brand mark and a brand name that are similar to your business's leading private brand?

A. Take the competitor's actions as a compliment C. Assume that brand recognition will continueB. Market the leading brand as usual D. Take legal action to protect the brand

67. Which of the following is an example of patronage promotion:A. GE brings good things to life. C. Don't drink and drive.B. Exercise to improve your health. D. Support your local schools.

68. The corrective action that the government might require an advertiser to take if the advertiser does not advise consumers about important facts about a technical product is called affirmative

A. briefing. C. testimonial. B. endorsement. D. disclosure.

69. Which of the following is an advantage to businesses of using direct mail to promote a new digital scanner:A. Massive audience appeal C. Selection of recipients B. Low production costs D. Predictable delivery times

70. A manufacturer advertises a digital camera and provides businesses with racks for displaying it. This is an example of the

A. use of cooperative advertising. C. selection of channels of distribution.B. coordination of promotional activities. D. development of an advertising campaign.

71. In order for a technical business to continue to exist, its goods and services must beA. created. B. produced. C. sold. D. manufactured.

72. Which of the following is an example of an area covered by selling-activity policies:A. Pricing products C. Delivering shipmentsB. Adjusting problems D. Qualifying customers

73. Withholding negative information about technical products is considered unethical because it can cross into which of the following illegal activities:

A. Unfair competition C. Bribery B. Misrepresentation D. Required reciprocity

74. What type of information about technical products can a salesperson obtain by talking to customers?A. Construction C. Ways of using the productB. Type of product warranty D. Availability

75. A customer is more likely to buy a technical product when the salesperson is able toA. obtain product information quickly. C. explain obvious product features effectively. B. translate the product's features into benefits. D. offer product discounts and service warranties.


76. The most important consideration in developing a sales-quota system isA. improvement in job satisfaction. C. its appeal to salespeople.B. imitating competitors. D. management's objectives.

77. When a salesperson encounters a customer who cannot decide between two stereo systems, the most appropriate action to take is to

A. ask questions about the intended use of the product.B. let the customer browse without asking many questions.C. use a standard outline of questions to promote decision making.D. provide a written list of attributes and benefits of each product.

78. When Sandy first meets a potential customer, she greets the person with a smile and shakes hands as she introduces herself. Then she asks questions to determine the customer's interests. This is her attempt to

A. demonstrate product knowledge. C. be honest and sincere. B. gain customer confidence. D. relate features and benefits to the customer.

79. The probing technique that is used by electronics store salespersons to make sure they understand the customer's request is intended to

A. open the door for all possible answers. C. elicit positive and negative opinions.B. elicit a simple yes/no response. D. confirm what the customer has said.

80. A salesperson suggesting an cell phone different than the one requested by the customer should avoid referring to that item as a

A. substitute. B. popular brand. C. bargain. D. best seller.

81. When the customer complains that a plasma television's price is too high, the salesperson shouldA. show a lower priced line of goods. C. dismiss the comment as an excuse for not purchasing.B. discount the item's selling price. D. find out why the customer thinks the price is too high.

82. A sales close is the point in a sales presentation when the customerA. is given a brochure to read. C. decides to buy. B. makes a preliminary decision. D. rejects a salesperson's suggestion.

83. Suggestion selling is a sales technique that involvesA. pressuring the customer to buy expensive items. B. encouraging the customer to buy additional items. C. selling items that are heavily promoted.D. selling items the salesperson likes.

84. Why do salespeople often use a structured style of presentation when selling technical equipment to a group?A. To evaluate feedback C. To be aggressiveB. To generate conversation D. To maintain control

85. One of the most effective, but expensive, methods of following up a sale is toA. explain services. C. send letters. B. visit customers. D. maintain records.

86. A 589-pound shipment is sent by motor freight at a rate of $11.56 per 100 pounds. What are the shipping charges?A. $69.09 C. $66.08 B. $67.08 D. $68.09

87. Which of the following is an example of a special order:A. A company returns incorrectly shipped semiconductors to the manufacturer.B. A customer requests a set of stereo speakers that are normally in stock.C. A customer requests a microchip encoder with unusual specifications.D. An electronics vendor faxes a confirmation for a purchase order it has received from a customer.


88. During an electronic store's busiest time, John takes a telephone order for a product that is to be picked up by the customer. John should

A. speak as rapidly as possible. C. ask the customer to repeat the order.B. read the order back to the customer. D. hang up before the customer can ask questions.

89. What method of prospecting are technical salespeople using when they participate in trade shows?A. Referrals B. Promotion C. Bird dogs D. Telephone

90. Presentation software that includes animation allows salespeople to create computer-generated visuals thatA. move realistically. C. outline the topic.B. increase credibility. D. are easy to read.

91. Which of the following factors should a technical business consider when setting a salesperson's quota:A. Social status B. Personal appearance C. Individual ability D. Maturity level

92. An industrial salesperson who has a strong technical background would probably prefer to use which type of approach?

A. Greeting B. Referral C. Question D. Product

93. A primary reason that technical companies generate reports to measure the sales of their product lines is toA. plan general, corporate, overhead-reduction strategies. B. obtain necessary data to analyze marketing efforts.C. evaluate the spending habits of their sales representatives.D. create a profitable commission structure for sales associates.

94. The success of a technical business often depends on how effectively sales managers are able toA. review sales expenses. C. establish sales quotas. B. lead the sales team. D. oversee a bonus plan.

95. Which of the following statements is true regarding sales-call patterns for technical companies:A. Technological developments in recent years have indicated that sales-call patterns rarely change.B. Once a prospective customer is obtained, sales representatives usually make fewer sales calls.C. To ensure efficiency and service levels, sales-call patterns should be reviewed on a regular basis.D. Sales-call patterns are designed to help customers maintain favorable time-management skills.

96. A large corporation that sells several lines of diverse technical goods might manage its sales staff by implementing a ___________ organizational structure.

A. product specialization C. cross-functionalB. multilevel marketing D. pure-line

97. When establishing terms-of-sale for technical products, sales managers must consider how the profit margin is affected by the

A. customer's sales potential and the promotion budget.B. method of payment and sales-force size.C. organization structure and customer classification.D. product delivery costs and customer discounts.

98. When establishing sales territories for semiconductor sales personnel, the goal is toA. make each area equal in terms of sales opportunity.B. eliminate the need for travel and expense reimbursement.C. structure the territories based on sales representatives' preferences.D. give the territories with high-market potential to experienced sales staff.

99. Setting the overall goals for a technical business, guiding the activities of the business, and keeping the business moving toward its goals are part of the role of

A. consultants. B. employees. C. managers. D. supervisors.


100. What type of managerial control would a telecommunications company use to measure the profitability of various products, territories, customer groups, distribution channels, and order sizes?

A. Strategic B. Annual plan C. Profitability D. Efficiency

2008 DECA Ontario ProvincialsTest 962 TECHNICAL SALES EVENT

10


111. A

Private employers who employ fewer than 15 persons. The Civil Rights Act of 1964 prohibits discrimination in the workplace because of a person's race, religion, creed, sex, age, or national origin. Title VII of this act was amended in 1972 and requires most employers to follow rules and regulations created to administer the act. However, there are some businesses that are exempt from this law. One of the criteria states that all private employers of 15 or more persons who are employed 20 or more weeks per year must abide by the regulations. Private employers who employ fewer than 15 persons are not affected. Governmental offices and agencies are required to follow the rules and regulations of Title VII of the Civil Rights Act. If nonprofit organizations and export businesses employ 15 or more persons who work 20 or more weeks per year, they must abide by the regulations.

SOURCE: BL:007SOURCE: Mathis, R.L., & Jackson, J.H. (2003). Human resource management (10th ed.) [pp.

105-109]. Cincinnati: Thomson/South-Western.

2. CCollection of taxes from businesses and individuals. Government also borrows money from other countries or from the private sector because income from taxes does not cover all government expenses. Income from the sale of government-produced products is less than income from taxes. Price supports are a type of assistance by government in maintaining the price of a good or service in order to enable the producers to earn a profit. Price controls are ceilings on prices set by government under special circumstances, such as war.SOURCE: EC:008SOURCE: EC LAP 16—Government and Business

3. BIntensive. Convenience goods are consumer goods purchased quickly and without much thought or effort. These types of goods use intensive distribution, the widespread distribution of products which consumers expect to buy almost anywhere. Selective distribution is distribution restricted to a certain area. Exclusive distribution is distribution confined to one dealer in an area. Relative is a distractor.SOURCE: CM:001SOURCE: DS LAP 1—Distribution

4. BObtain accurate directions to destinations. Global-positioning systems installed in delivery vehicles make it possible for drivers to determine their exact location and obtain accurate directions to destinations. Global-positioning systems are the result of satellite technology, which allows a computer-repair company to track a vehicle. These systems also enable drivers to obtain directions so they do not waste time searching for their destinations. The systems speed up the delivery process. Global-positioning systems do not allow drivers to identify possible delays in traffic, calculate the fuel needed to complete a route, or gain access to inventory data. SOURCE: CM:004SOURCE: Coyle, J.J., Bardi, E.J., & Langley, C.J. (2003). The management of business logistics:

A supply chain perspective (7th ed.) [pp. 464-465]. Mason, OH: South-Western.


12 5. C

Cents-off coupons. A slotting allowance is a cash premium that manufacturers pay to electronics retailers to cover the costs involved in carrying a new technical product. The money is intended to pay for such expenses as the cost involved in offering cents-off coupons to encourage customers to try the new product. A slotting allowance also pays for shelf space, store advertising, and penalties if the product doesn't sell. Manufacturers often pay licensing fees to sports teams or famous people in order to use their names or logos on products. Sales incentives are bonuses or awards given to employees who meet or exceed their sales quotas. Mail-in rebates are a sales promotion activity that involves the manufacturer returning part of the price a customer pays for a good or service.SOURCE: CM:006SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p.

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

6. CDistribution. A distribution model is used to determine the best pattern of distribution across different carrier routes. It indicates the most cost-effective and fastest method of moving goods from one location to another. Inventory models aid in determining proper inventory levels. Queuing models involve the amount of time that customers wait in line. Game theory is used to predict how a competitor will react to various activities of a business.SOURCE: CM:009SOURCE: Griffin, R. (2002). Management (7th ed.) [pp. 724-725]. Boston: Houghton Mifflin.

7. AHelp the member improve. Technical businesses usually try to work with channel members to improve their performance because it is less costly to maintain a relationship than to locate new channel members. During an evaluation, a business might detect certain problems, many of which may be small and easy to correct. Helping a channel member improve and correct problems is usually inexpensive. However, it is time consuming to search for new channel members and to develop new relationships. A business probably would not terminate the member unless the problems were severe and impossible to correct. A business would not fine the member for damages. Depending on the type of problems, a business might, or might not, recommend the member to others.SOURCE: CM:011SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 501-503]. Upper Saddle River,

NJ: Prentice Hall.

8. BCritical feedback. When technical business employees present their ideas to management or coworkers, they should be prepared to defend those ideas and provide supporting information. They also should be willing to accept critical feedback because others might not agree with the ideas, or they may have different opinions. Being prepared will help technical business employees remain objective and be able to offer logical evidence to back up their ideas. Critical feedback is often useful because it allows technical business employees to view their ideas from a different perspective. Defending ideas usually does not involve accepting additional responsibility or nonverbal support. It is not acceptable to attack technical business employees on a personal level because of their ideas.SOURCE: CO:061SOURCE: Adler, R.B., & Elmhorst, J.M. (1999). Communicating at work: Principles and practices

for business and the professions (6th ed.) [p. 256]. Boston: McGraw-Hill College.


13 9. A

To declare your opinion. It's important to participate in a group discussion for several reasons: to think critically, to organize your thoughts, to develop your understanding of a topic, to know when to change your mind, and to gain confidence in speaking to other people. Declaring your opinion, which may or may not take place during a discussion, is not a reason to participate.SOURCE: CO:053SOURCE: QS LAP 29—Put In Your Two Cents

10. DPractice. Businesses should give employees the instructions necessary for them to complete job tasks and then allow them plenty of time to practice. Employees who receive sufficient practice time usually learn their jobs more effectively. Managers would not be concerned with providing employees plenty of time for recreation, conversation, or relaxation while they are on the job.SOURCE: CO:139SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)

[pp. 674-675]. Cincinnati: South-Western.

11. ASlow/Methodical. Slow/Methodical customers weigh all the facts before making a buying decision. Domineering/Superior customers have all the answers and are not interested in the opinions of others. Dishonest customers intentionally attempt to avoid paying part or all of the price for a product. Suspicious customers question everything.SOURCE: CR:009SOURCE: EI LAP 1—Making Mad Glad: Handling Difficult Customers

12. BCapital. Any piece of equipment that is used to produce other goods and services is considered a capital good. Consumer goods and services are purchased for private consumption rather than for use by a business. Service is a distractor. Nondurable goods are those items which are used up quickly, such as gasoline, shampoo, and food.SOURCE: EC:001SOURCE: EC LAP 6—Economics

13. ATaxation. To have the money necessary to run the country and to provide the services people need, government collects taxes from individuals and businesses. This restricts economic freedom since taxpayers cannot use all of their income for their own purposes. Other limits to individuals' economic freedom include not being able to buy everything that we'd like to buy, being limited by our own choices, and being limited by laws which have been created to protect us. Government indecision or production are not direct limits on the economic freedom of individuals.SOURCE: EC:009SOURCE: EC LAP 15—People Power (The Private Enterprise System)

14. CContinuous assistance is provided by the franchisor. A business-format franchise is a more complex and more popular type of franchise arrangement than the product trade-name franchise. It involves a close, continuous, working relationship between the franchisor and the franchisee. Examples of the business-format franchise are McDonald's, Holiday Inn, and Jiffy Lube. Products and other materials usually must be purchased from the franchisor's list of approved vendors. The franchisee must operate under the trade name of the franchisor.SOURCE: BL:003SOURCE: BA LAP 7—Own It Your Way (Types of Business Ownership)


1415. A

Regulate the domestic money supply. The Federal Reserve System (Fed) is the central banking organization of the United States that monitors and regulates the flow of credit and money. The Fed does not establish the inflation rate, develop international trade regulations, or determine taxation policies.SOURCE: EC:097SOURCE: Sexton, R. L. (2003). Essentials of economics (p. 396). Mason, OH: South-Western.

16. DPay raise is 5% and inflation rate is 3%. When the inflation rate is lower than the percent of raise that employees receive, the purchasing power of those employees increases. This has a positive effect on the economy because the lower inflation rate means lower prices for goods and services. The pay raise that the employees received was greater than the rate of inflation, so employees actually gained purchasing power. They have more money to spend, and the goods and services they want cost less than their pay increase. When interest rates increase, consumers' purchasing power usually decreases. Consumers' purchasing power does not change if their take-home pay remains at a constant level and all other variables remain the same. An increase in federal income-tax rates usually decreases consumers' purchasing power.SOURCE: EC:081SOURCE: Arnold, R.A. (2004). Economics (6th ed.) [p. 180]. Cincinnati: Thomson/South-Western.

17. CEffective leader. Being persuasive is a characteristic of an effective leader. A leader is a person who guides or directs the actions of others in a desired manner. Leaders help others make decisions and encourage them to do their best. People often follow leaders because they are persuasive. Leaders also persuade by setting the example. Persuasive people are not domineering. A loyal follower is someone who always goes along with the suggestions of another, usually the leader. An authority figure is someone who has power and is in control. Authority figures are not always persuasive.SOURCE: EI:012SOURCE: QS LAP 10—Win Them Over

18. CAspirations. When you ask yourself "What would I attempt to do if I knew I could not fail?", you are determining your aspirations. Your aspirations are the biggest, most lofty dreams you can imagine. The answer to the question does not determine necessary resources, a reason for existing, or values.SOURCE: EI:063SOURCE: QS LAP 11—Picture This

19. BDemocratic. If you like to feel as though you are an important member of the team, you will probably work best under a democratic manager. Such individuals usually have a participatory approach to management. Workers who like to be a part of a team, contribute their ideas, help solve problems, and generally take a personal interest in their work do well under democratic managers. Authoritarian managers see themselves as the sole source of authority. Laissez-faire managers prefer to exercise little to no control and use a hands-off approach.SOURCE: EI:037SOURCE: EI LAP 5 — Can You Relate? (Positive Working Relationships)


1520. C

Bank. Bank credit cards can be used at any business that is affiliated with the system. This gives cardholders a wide range of businesses from which to choose. Retail, hotel, and petroleum cards are issued by individual companies and may be used only at their facilities.SOURCE: FI:002SOURCE: FI LAP 2—Credit and Its Importance

21. CAccurate. Primary information is new information that is collected for the purpose at hand. Primary information is generally more accurate, more current, and more useful than secondary information; but, it is also more expensive and more time consuming to collect. Primary information is not generic, but addresses specific problems or issues. Primary information may, or may not, be internal which is information located inside the company.SOURCE: FI:084SOURCE: BA LAP 2—Risk Management

22. DDelphi technique. The Delphi technique sales-forecasting method gathers opinions from company executives and from outside experts. Sales-force composite is a qualitative sales-forecasting method that gathers opinions from the sales force. Survey of buyer intent is a qualitative sales-forecasting method that gathers information about consumers' plans to purchase. Jury of executive opinion is a qualitative sales-forecasting method that gathers opinions from company executives.SOURCE: FI:096SOURCE: IM LAP 4—Forecasting Sales

23. DOutput and profit. Outputs are the goods and services produced, and profit is the money the business receives for the sale of those outputs. Electronics businesses determine output and profit by calculating total revenue and marginal revenue. Total revenue is all the revenue from the sale of outputs, and marginal revenue is the revenue received from producing and selling one additional unit of output. These calculations help a business decide if output is generating the desired profit. Calculating total revenue and marginal revenue is not a way to determine supply and demand, cause and effect, or assets and liabilities.SOURCE: FI:358SOURCE: Clayton, G.E. (2005). Economics: Principles & practices (pp. 130-131). New York:

Glencoe/McGraw-Hill.

24. BRate of return on sales. The profit-and-loss statement is also called the income statement because it shows the pager business's income from sales. The business can determine the rate of return on sales by dividing net sales into net profit, which is also shown on the profit-and-loss statement. All of the other alternatives are categories of information that would be found on a business's balance sheet.SOURCE: FI:102SOURCE: Levy, M. L., & Weitz, B. A. (2007). Retailing management (6th ed.) [pp. 161-175].

Boston: McGraw-Hill/Irwin.


1625. C

Check references. The checking of references is a common method of gathering and of verifying information about applicants. Types of reference checks that are often used are previous employment, credit, education, and personal references. The information provided by applicants in résumés and in application blanks is verified through the use of reference checks. Physical examinations are used to identify applicants' pre-existing health problems.SOURCE: HR:356SOURCE: MN LAP 51—Selecting New Employees

26. CUsing resources to fill time. Remember: Time is money. You want to schedule the orientation to move workers into their jobs as quickly as possible but not without an adequate orientation. You should select meaningful resources for the audience, use resources that will help to achieve the orientation's goals, and use a variety of resources.SOURCE: HR:361SOURCE: MN LAP 44—Orienting New Employees

27. CCreative. Technical businesses often benefit from rewarding employees because the offer of a reward encourages employees to be creative. Employees are more likely to develop new or creative ways of doing their jobs, or innovative products, if they know they will be rewarded for their efforts. The reward encourages creativity which often leads to increased productivity, new or improved products, or cost savings—all of which benefit the business. The offer of a reward encourages employees to be creative rather than competitive or cost conscious. Rewards do not necessarily encourage employees to be financially motivated because not all rewards involve money. SOURCE: HR:365SOURCE: Lussier, R.N. (2003). Management fundamentals: Concepts, applications, skill

development (2nd ed.) [p. 211]. Mason, OH: South-Western.

28. AOccupational Safety and Health Act. This act stipulates that workers may not be disciplined or discharged for refusing to work in unsafe environments or take part in an unsafe, job-related activity. The Civil Rights Act forbids discrimination on the basis of race, color, religion, sex, or national origin. The Age Discrimination in Employment Act forbids the discharge of employees between the ages of 40 and 70 based solely on age. The Wagner Act protects workers' rights to organize, collectively bargain, and engage in union activities.SOURCE: HR:369SOURCE: MN LAP 53—Remedial Action

29. CMarketing-information management system. A marketing-information management system is an organized way of continuously gathering, accessing, synthesizing, evaluating, and disseminating information for use in making business decisions. The system compiles data generated from many sources such as a double-entry bookkeeping system, employee records, and inventory control. The system's ability to compile this information and to analyze it helps marketers to make effective decisions.SOURCE: IM:001SOURCE: IM LAP 2—Marketing-Information Management


1730. A

The steps in marketing research must follow a certain order, and none can be eliminated. This is a primary characteristic of marketing research. The business must follow a step-by-step research process that includes gathering, recording, and analyzing information, in that order. This is true no matter how much or how little information is being gathered.SOURCE: IM:010SOURCE: IM LAP 5—Nature of Marketing Research

31. DCounting the number of respondents who agreed with the questions. In many cases, processing marketing information involves tabulating the results. Tabulating is counting the number of respondents who answered each question with one of the possible answers. For example, if 100 people responded to a survey, businesses need to know how many of them agreed, disagreed, or had no opinion about the questions. Also, tabulating helps businesses to determine if some people did not answer all the questions, which might have an effect on the accuracy of the results. Tabulating does not involve analyzing the information to make it useful or comparing the results with results from other types of research. Coding is assigning a numeric value to the various responses on the survey. SOURCE: IM:062SOURCE: Hair, J.F., Jr., Bush, R.P., & Ortinau, D.J. (2000). Marketing research: A practical

approach for the new millennium (pp. 501-505). Boston: Irwin/McGraw-Hill.

32. AHelps to increase employment. When sales are good, employment rates also tend to be good. This is a benefit to society. Selling benefits businesses by creating relationships with customers and affecting demand. Determining to whom to sell is a marketing-information management activity that benefits the business.SOURCE: MK:002SOURCE: MK LAP 1—Work the Big Six (Marketing Functions)

33. AInterrelated. If technical marketers change one element of the marketing mix, they should carefully examine the other elements because the others will probably also need to be changed. The marketing-mix elements depend on each other, rather than being independent or detached. The elements are not unique—the same elements can be used by other companies.SOURCE: MP:001SOURCE: IM LAP 7—Pick the Mix

34. DMarket. A market is a customer or potential customer who has an unfulfilled desire and is financially able and willing to satisfy that desire. Liza is a market because she not only wants a plasma television but has the money to buy one. A resource is an item that is used to produce goods and services. A target group is a particular segment of the market. A market segment is one of the groups into which the total market is divided.SOURCE: MP:003SOURCE: IM LAP 9—Have We Met?


1835. B

Demographic, psychographic, geographic. These are the three main ways to segment a target market. Demographic segmentation is the division of a market on the basis of its physical and social characteristics. Psychographic segmentation is the division of a market on the basis of consumers' lifestyles and personalities. Geographic segmentation is the division of a market on the basis of where consumers are located. Productive, rational, sociological, promotional, economic, and technological are not ways of segmenting target markets.SOURCE: MP:005SOURCE: Meyer, E.C., & Allen, K.R. (2000). Entrepreneurship and small business management:

Teacher's manual (2nd ed.) [pp. 92-93]. New York: Glencoe/McGraw-Hill.

36. BLowering prices by 5%. Marketing strategies are plans of action for achieving marketing goals and objectives. To be effective, marketing strategies need to specify how a cellular phone business will achieve it goals. For example, lowering prices by 5% is an action that a business can take to attract more customers, which is the purpose of the marketing plan. Obtaining $1 million in sales, increasing profits by 10%, and reducing operating costs are examples of marketing objectives. To achieve those objectives, the business identifies marketing strategies, such as lowering prices by 5%.SOURCE: MP:007SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an

e-commerce world (7th ed.) [pp. 45-46]. Mason, OH: South-Western.

37. DMarket analysis. Electronics businesses need to gather and analyze marketing information in order to make decisions about what to do in the future. A main concern for most businesses is forecasting sales. They want to be prepared to sell the right products in the right amount to the right market over a period of years. To do that, they must understand changes in the market and in economic conditions. By analyzing current market information, businesses often are able to make fairly accurate sales forecasts that allow them to plan for the future. A performance evaluation is a formal assessment by the supervisor of a worker's job performance that lets the worker know how s/he is doing on the job. A case study is an instructional method that involves giving trainees a written description of an organizational problem, and asking the trainees to determine the problem and potential solutions. A financial review analyzes a business's financial situation.SOURCE: MP:009SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an


38. DS-O. S-O marketing strategies focus on opportunities that are a good match with the technical business's strengths. For example, if one of a business's strengths is its excellent reputation, the business might want to capitalize on that strength to expand the business into neighborhoods or cities. Some current customers could offer referrals or tell associates in those areas about the business. S-T strategies focus on using a business's strengths to overcome its threats. W-O strategies focus on overcoming a business's weaknesses so the business can pursue opportunities. W-T strategies focus on ensuring that a business's weaknesses don't make it even more vulnerable to the threats it already faces.SOURCE: MP:010SOURCE: IM LAP 8—Analyze This! (SWOT)


1939. B

Production quantities. Production quantities are set based on the projected sales for the electronics company's products. The company's past sales records would be considered in preparing the sales forecast. The policies established by management for the operation of the company are not directly affected by sales forecasts. The target market is made up of consumers to whom the business hopes to sell its products.SOURCE: MP:013SOURCE: IM LAP 3—Nature of Sales Forecasts

40. CKeeps the business focused on the goal. An effective marketing objective should include a specific time period. For example, achieving a 5% increase in sales this year over last year is an effective objective. The telecommunications business knows that it wants to accomplish this within one year. Now, the business can focus on developing strategies and tactics to achieve the objective. If the objective is vague and doesn't set a time limit, the business does not have a clear goal. Then, it may take years to achieve the objective because the business is not focused on accomplishing it within a specific time period. Including specific time frames does not help the business predict the future, guide the business in hiring more staff, or allow the business to identify the market.SOURCE: MP:015SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [p. 42]. Mason,

OH: Thomson/South-Western.

41. CControl spending. A budget is an estimate of income and expense for a specific time. By predicting income and expense for a certain time, the pager business can control finances and spending in many areas, including marketing. Assets are anything of value that the business owns. Depreciation is the reduction in value of goods occurring over time. Reducing tax liability is not a primary reason for setting a marketing budget.SOURCE: MP:017SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (p. 39). Tinley Park, IL:

Goodheart-Willcox.

42. DCurrent customers. Current customers are an excellent source of marketing information. You can gather information from current and former customers in surveys by mail, on the phone, in personal interviews, etc. Internet surveys are effective if they involve current customers. Employees may provide useful information, but the primary source is current customers. Accounting records are a type of secondary information.SOURCE: MP:022SOURCE: Meyer, E. C., & Allen, K. R. (2000). Entrepreneurship and small business management:

Teacher's manual (2nd ed.) [p. 171]. New York: Glencoe/McGraw-Hill.

43. BPrevent accidents. Preventing accidents is very important because accidents cost electronics businesses millions of dollars every year. Providing employees with adequate safety information and training helps to prevent accidents. Accident-prevention programs do not control employee sick leave since employees often take sick leave for reasons that are not related to job injuries. Profits and employee morale are not necessarily increased or improved by attempts to prevent accidents.SOURCE: OP:009SOURCE: RM LAP 3—Handling Accidents


2044. A

Continuous. Businesses with a steady demand for their standard products, such as toothpaste, often operate continuously. In most cases, the continuous production process is highly automated and operates steadily with assistance from only a few employees. Intermittent production starts and stops frequently and produces only when there is a need to increase stock levels. Labor-intensive production processes rely more on people than on machines. Batch production processes are used to produce limited quantities of a product at one time.SOURCE: OP:017SOURCE: BA LAP 1—Nature of Production

45. DIncrease its efficiency. A procedure is a step-by-step process for performing a specific task. A company must conduct many tasks to keep the business running. To make sure that the business is operating efficiently, it may evaluate its technical sales procedures to see if the business should make improvements so it can reach its various goals. Outputs are goods and services that result from combining inputs. Most businesses want to increase outputs rather than reduce them. Not all businesses carry inventory. Although spending can improve a business's efficiency, spending more money is not the primary purpose for analyzing and updating its procedures.SOURCE: OP:022SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)

[pp. 288, 330]. Cincinnati: South-Western.

46. DMonitoring progress. An important part of project management involves monitoring the progress of the technical project. Managers monitor the progress to make sure all the members are doing their job. One way they do this is by asking members of the group to give short status reports that explain the progress they are making in completing their assignments. Managers also answer questions and organize activities as part of project management, but these tasks do not involve asking members to give short status reports. Asking for status reports is an example of obtaining information rather than providing information.SOURCE: OP:002SOURCE: QS LAP 18—Make It Happen

47. BExpenses. Damage to complex technical equipment can be expensive to businesses in terms of repair or replacement costs. Employees who carefully handle equipment help control business expenses by preventing damage to equipment that would cost businesses additional money. Carefully handling business equipment does not control usage, overtime, or theft.SOURCE: OP:025SOURCE: NCSU. (n.d.). Managers departmental checklist for employee safety training. Retrieved

November 19, 2007, from <http://www.ncsu.edu/ehs/safetyplan/newemplo.pdf>.

48. CExterior sidewalk. Customers use exterior sidewalks to gain entry to an electronics store Exterior sidewalks must be maintained on a regular basis in order to prevent damage, such as cracks and holes, that might present a safety hazard to customers. Maintaining sidewalks on a regular basis is less expensive for a store than replacing them once they deteriorate. Corporate offices, employee lounges, and storage facilities are areas in a store not often used by customers.SOURCE: OP:032SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)

[pp. 318-320]. Upper Saddle River, NJ: Prentice Hall.


2149. D

Light fixtures. Technical businesses should plan to check light fixtures on a regular basis in order to make sure that they are working properly. Part of the maintenance program should involve routinely replacing the bulbs in light fixtures. Many businesses set a schedule for checking lights and replacing bulbs in order to prevent them from burning out during the times that customers are present. Utility meters, water lines, and telephone cables usually are maintained by their respective utility companies.SOURCE: OP:033SOURCE: Berman, B., & Evans, J.R. (1998). Retail management: A strategic approach (7th ed.)

[p. 409]. Upper Saddle River, NJ: Prentice Hall.

50. CPrioritizing. Prioritizing is determining the order for completion of activities based on their importance. It is a helpful way to manage time. Classifying, categorizing, and grouping activities are sorting techniques in which the importance of each activity is not a factor.SOURCE: PD:019SOURCE: OP LAP 1—About Time (Time Management in Business)

51. DSend a follow-up letter. An employee who is seeking a transfer should arrange an interview with the executives in the electronics company who have the power to authorize a transfer. After the interview, the employee should send follow-up letters to thank the interviewers for their time and provide additional information that may be important. Sending a follow-up letter is a good way to remind interviewers of your interest in the position. An employee would not set up a dinner meeting, provide a lengthy résumé, or show a slide presentation.SOURCE: PD:029SOURCE: Kimbrell, G., & Vineyard, B.S. (1998). Succeeding in the world of work: Teacher's

wraparound edition (6th ed.) [pp. 144-145]. New York: Glencoe/McGraw-Hill.

52. CHas limited direct supervision. Technical sales representatives often work in the field and have limited direct supervision from managers in the central office. They need more self-motivation to maintain a high productivity level. All salespeople are required to implement marketing strategies and represent their companies to consumers. They all face more uninterested buyers than actual buyers of the goods/services they are selling.SOURCE: PD:120SOURCE: Etzel, M.J., Walker, B.J., & Stanton, W.J. (2001). Marketing (12th ed.) [pp. 520-521].

Boston: Irwin.

53. CInside sales. Some technical businesses maintain a sales area at their locations and staff those areas with inside salespeople. These salespeople assist customers who visit the business; however, they do not call on customers. Inside salespeople must be knowledgeable about the technical products, and be able to answer questions and conduct demonstrations. For example, a customer visiting a business that sells copiers would deal with an inside salesperson who would be able to help the customer select the most appropriate copier for his/her business. Sales-support staff assist salespeople. An order-taker simply takes an order that a customer calls in to the business. A specialist might be a sales-support person who has detailed knowledge of how the technical product operates.SOURCE: PD:055SOURCE: Ingram, T.N., LaForge, R.W., Avila, R.A., Schwepker, C.H., & Williams, M.R. (2001).

Sales management: Analysis and decision making (4th ed.) [pp. 24-25]. Mason, OH: South-Western.


2254. D

Lose sales. If cellular phone businesses price their goods and services higher than most customers are willing to pay, the businesses' sales will decline. Pricing needs to satisfy both buyers and sellers so that both groups feel they are getting the most value from the goods or services. Pricing goods and services higher than most customers are willing to pay will not reduce costs or increase profit. It is likely to reduce demand.SOURCE: PI:001SOURCE: PI LAP 2—Pricing

55. BCustomers to complete the checkout process. Optical scanning is a method of reading prices that are marked electronically. One of the benefits of optical scanning is that it allows customers to scan their purchases and complete the checkout process without assistance from employees. As a result, businesses may be able to reduce the number of employees that are needed to read prices and manually ring up purchases. Optical scanning does not allow suppliers to monitor the delivery system or allow employees to maintain a secure facility. Optical scanners read pricing information rather than allow businesses to change pricing information.SOURCE: PI:016SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)

[pp. 274-275]. Woodland Hills, CA: Glencoe/McGraw-Hill.

56. AVariable expenses. Variable expenses are business costs that change according to changes in sales volume. Variable expenses have a significant effect on selling price because businesses need to charge enough for their products to cover costs and still earn a profit. If a business's variable expenses increase, it may need to raise the selling price to remain profitable. Social concerns, competitors' costs, and government regulations are external factors that affect selling price.SOURCE: PI:002SOURCE: PI LAP 3—Factors Affecting Selling Price

57. DPackaging. Packaging is placing the technical product in a protective wrap or container before it is offered for sale. It is an area of product management that has increased in importance as the number of items available to consumers has increased. The package must be eye-catching in order to attract purchasers. It must also protect the product, create a product image ranging from economy to luxury, and identify the product brand. Good packaging helps to increase sales. Labeling provides information about the product and attracts customers but does not protect the product. Idea generation is the process of thinking up or creating new plans, schemes, and thoughts. Concept testing is exploring the concept, or idea, for a product in order to obtain feedback.SOURCE: PM:001SOURCE: PP LAP 5—Product/Service Planning


2358. D

Track shipments. An important part of product/service management involves maintaining and improving the good or service because customers expect a quality good or service that keeps up with advances in technology. Satellite communications systems make it possible for electronics distributors to track shipments for customers, thereby improving the good or service. If an electronics distributor sells a product, it can track the product from the time it is ordered until it is delivered. If the electronics distributor sells a service such as delivery, it can use satellite communications systems to track the delivery process. Satellite communications systems do not help to order replacements, evaluate information, or use software.SOURCE: PM:039SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an


59. DEmployees. An electronics business uses many resources to generate ideas for new products. Employees are internal resources for product ideas. Competitors, customers, and agencies are external resources.SOURCE: PM:128SOURCE: Longenecker, J.G., Moore, C.W., & Petty, J.W. (2003). Small business management:

An entrepreneurial emphasis (12th ed.) [p. 379]. Cincinnati: Thomson/South-Western.

60. AWarranty. A warranty is a promise made by the seller or the producer to the consumer that the seller will repair or replace a product that does not perform as expected. A guarantee is a promise made by the seller to the consumer that the seller will refund the consumer's purchase price if the product does not perform as expected. A limited warranty does not contain the provisions of a full warranty but may be limited to specific parts or repairs. Guarantees are often called money-back guarantees because they promise a refund to the customer if the good/service does not meet expectations.SOURCE: PM:020SOURCE: PP LAP 4—Warranties and Guarantees

61. DEmployees. The way that customers experience purchase transactions affects how they view the telecommunications company. Good experiences often bring the customers back, while unpleasant experiences can prompt customers to purchase from the company's competitors. The ways that employees interact with customers have a major impact on the customers' experiences and their perceptions of the company. Helpful, courteous, and knowledgeable employees foster good customer experiences. Employees who are indifferent, rude, and lacking in knowledge often have a negative effect on the customers' experiences. Customers do not usually interact with the company's suppliers, labor union, or negotiation committee.SOURCE: PM:138SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 625-626). Tinley

Park, IL: Goodheart-Willcox.

62. AModification. Because customers' needs and wants may change over time, businesses must find products to fulfill the customers' new needs and wants. Sometimes, a business can alter or modify existing technical products so they better accommodate the customers' needs. Classification, certification, and mollification are not processes that all businesses use to fulfill customers' needs. SOURCE: PM:130SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p.



2463. C

No, some people make impossible demands. Although service levels may be important to many customers, satisfaction levels and expectations also vary among customers, so an attempt to satisfy every customer would be both costly and futile. The loss of a single prospect is seldom a catastrophe. Services should be offered if they are needed and serve a purpose within the store's philosophy, policies, and procedures. The desire of the store is to offer services that will satisfy the majority of its present and potential customers.SOURCE: PM:036SOURCE: Rokes, B. (2000). Customer service: Business 2000 (p. 109). Mason, OH: South-

Western.

64. ACross train. When electronics store employees are taught to perform other people's jobs, they can step into action when things get crazy. Giving a reward to employees who stand around and do nothing while customers become agitated is bad business. Promotions are deserved when employees demonstrate an ability to perform at a higher level of responsibility within the company. Employees should not be congratulated for failing to provide customer service.SOURCE: PM:013SOURCE: PM LAP 1—Customer Service Supersized!

65. BDifferentiate a product from its competitors. Technical businesses choose a positioning strategy so that their products will stand out in the minds of consumers. In order to do that, they must differentiate themselves from their competitors. Positioning strategies are chosen to create the desired image for the product by identifying, placing, and selling their products in the most effective manner. Businesses do not choose a positioning strategy to save money on product costs, ensure that the product is priced reasonably, or decide if the product should be altered.SOURCE: PM:043SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)


66. DTake legal action to protect the brand. Brand recognition is one of a product's greatest assets. Electronics businesses value a successful brand and do everything in their power to protect it. If a competitor uses a similar brand mark and brand name, a business might take legal action to force the competitor to stop using the similar mark and name. A business would not take the competitor's actions as a compliment. A business would probably make some changes in its marketing strategy while taking legal action against the competitor. A business would not assume that its brand recognition will continue if a competitor is using a similar brandmark and brand name.SOURCE: PM:126SOURCE: PM LAP 10—Building Your Business's Brand

67. AGE brings good things to life. General Electric promotes and enhances its prestige by reminding consumers of its contributions to their well-being. The other alternatives are examples of public-service promotions that inform consumers about noncontroversial issues that are in the public interest.SOURCE: PR:002SOURCE: PR LAP 4—Know Your Options (Types of Promotion)


2568. D

Disclosure. When a technical business violates a government regulation, corrective action is the manner in which the government requires the business to put right or fix the wrongdoing. Affirmative disclosure is a type of corrective action in which the government orders the advertiser to include product information in future advertisements that it omitted in its previous advertisements. An endorsement is approval by a reputable external source. A testimonial is a statement by an identified product user proclaiming the benefits received from the use of the product. A briefing is an update or status report.SOURCE: PR:101SOURCE: Semenik, R.J. (2002). Promotion and integrated marketing communications (p. 197).

Mason, OH: South-Western.

69. CSelection of recipients. Direct mail is a form of advertising in which the promotional medium comes to consumers' homes or businesses. A business that uses direct mail to promote its products selects who receives its messages. The business saves time and money because it is sending the direct mail to a market segment that is most likely to purchase from the business, which is an advantage. Disadvantages of using direct mail to promote products are that it is often expensive to produce and postal delivery service is unpredictable. A business uses direct mail to target its messages towards a specific market rather than to massive audiences.SOURCE: PR:089SOURCE: O'Guinn, T.C., Allen, C.T., & Semenik, R.J. (2003). Advertising and integrated brand

promotion (3rd ed.) [pp. 683-684]. Mason, OH: South-Western.

70. BCoordination of promotional activities. Promotional activities are coordinated when two or more different types of activities, such as advertising and sales promotion, are combined in order to achieve a goal. Cooperative advertising occurs when advertising costs are shared by members of the distribution channel. Channels of distribution are the paths, or routes, that goods and services take from the producer to consumer. An advertising campaign is a series of advertisements planned around a central theme.SOURCE: PR:076SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)


71. CSold. Technical businesses could not make a profit if they did not sell the goods and services that they produced, created, or manufactured. Without a profit, the business would not have funds with which to operate the business, and it would be forced to close.SOURCE: SE:017SOURCE: SE LAP 117—Sell Away (The Nature and Scope of Selling)

72. DQualifying customers. Selling-activity policies focus on providing salespeople with guidelines for activities that involve interaction with customers or potential customers. The function of qualifying a customer is covered by selling-activity policies because it involves a salesperson's working with a prospect to determine if that individual has a need for a good or service, the ability to pay, and the authority to buy. Pricing products and delivering shipments are covered by terms-of-sale policies. Adjusting problems is covered by service policies.SOURCE: SE:932SOURCE: SE LAP 121—Selling Policies


2673. B

Misrepresentation. Some salespeople withhold negative product information to avoid turning the customer away from a purchase. But, withholding information could be considered misrepresentation or negligence, which are illegal activities. Unfair competition is characterized by things such as (a) making price deals, (b) requiring exclusive dealership, (c) tying-in sales, and (d) requiring reciprocity. Participating in bribery is illegally exchanging something for the right to do business or receive products.SOURCE: SE:106SOURCE: SE LAP 129—Keep It Real—In Sales (Selling Ethics)

74. CWays of using the product. By talking with customers, salespeople often are able to learn additional ways of using technical 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.

75. BTranslate the product's features into benefits. Knowing the facts (features) about a technical good or service is of little value unless the salesperson has the ability to translate features into product benefits. In any selling situation, the salesperson must determine the benefits for which the customer is looking and then explain the appropriate benefits and features. When customers understand the advantages of having the product, they are more likely to buy. Obtaining product information quickly and explaining obvious product features may not facilitate a purchase if the salesperson does not explain the product's benefits. Discounts and warranties are possible benefits to the customer but are not always available.SOURCE: SE:109SOURCE: SE LAP 113—Find Features, Boost Benefits (Feature-Benefit Selling)

76. DManagement's objectives. A sales manager must always consider management's objectives first. These objectives have been developed through much consideration and are of importance to the future of the company. These objectives are more important than whether the system appeals to salespeople or whether it has an effect on improvements in job satisfaction. A sales-quota system should provide a vehicle for achieving management's objectives rather than imitating competitors.SOURCE: SE:282SOURCE: Churchill, G.A., Ford, N.M., Walker, O.C., Johnston, M.W., & Tanner, J.F. (2000).

Sales force management (6th ed.) [pp. 154-155]. Boston: Irwin/McGraw-Hill.


2777. A

Ask questions about the intended use of the product. By asking questions about how the customer intends to use the stereo system, the salesperson can get a better idea of what might be the most appropriate item to purchase. For example, a customer who wants to purchase a stereo system for a small apartment might not need to purchase one with the same attributes as a customer who has a very large house. "Just-looking" customers are those who are not aware of a need and are not shopping for anything in particular. This customer should be left to browse. By observing a customer's behavior, a salesperson can determine if a customer is struggling to decide on a purchase. If the salesperson does not approach and question the customer in this situation, the customer could get frustrated and not purchase anything. Although it is possible to provide a written list of attributes and benefits of each product, the salesperson needs to first question the customer about the intended use of the product to make sure s/he is recommending the most appropriate item. A list or brochure is appropriate if a customer cannot decide to purchase a product and needs time to make a decision. Each customer has different needs and wants. Therefore, it is not preferable to use a standard line of questioning with each person.SOURCE: SE:111SOURCE: SE LAP 114—Questioning

78. BGain customer confidence. To gain the customer's confidence, the salesperson must have a certain amount of self-confidence. Greeting a customer with a smile and a handshake demonstrates the salesperson's self-confidence. Being honest and sincere with the customer involves giving honest answers and interacting with the customer to help him or her feel comfortable. This usually requires some time. Demonstrating product knowledge by answering a customer's question(s) about a product may help the customer reach one or more of the five buying decisions. Relating features and benefits will help the customer understand what makes that product the right product choice.SOURCE: SE:811SOURCE: SE LAP 108—Customer Buying Decisions

79. DConfirm what the customer has said. Confirming probes not only verify the electronics store salesperson's understanding of the customer but the customer's understanding of what the salesperson has said. Opinion-gathering probes may bring out both positive and negative opinions. Closed-end questions often have a yes/no or "this color instead of that color" type response. Open-ended questions do not restrict the customer's response in any way.SOURCE: SE:113SOURCE: SE LAP 120—Probing

80. ASubstitute. Salespeople should be careful not to refer to alternative items as substitutes; otherwise, customers may feel that the items are inferior to the ones requested. Instead, salespeople should point out the positive features and benefits of the other items. For example, a salesperson might refer to a cell phone as a popular brand, a best seller, and/or a bargain.SOURCE: SE:114SOURCE: SE LAP 111—Using Substitute Selling

81. DFind out why the customer thinks the price is too high. The fact that a customer complains about the price of a plasma television shows some interest in buying. Only after the salesperson understands the basis of the objection can s/he find an effective way to complete the sale. While a lower priced item may be easier to sell, it may not meet the needs of the customer. The salesperson does not always have the authority to grant a discount.SOURCE: SE:874SOURCE: SE LAP 100—Converting Objections


2882. C

Decides to buy. This point may be reached at any time during the sales presentation, but there are usually a number of minor decisions the customer makes before making the final buying decision. These would be preliminary decisions, and they could result from reading a brochure or from accepting or rejecting the salesperson's suggestions.SOURCE: SE:895SOURCE: SE LAP 107—Closing Sales

83. BEncouraging the customer to buy additional items. Suggestion selling is a sales technique in which the salesperson attempts to increase the customer's purchase by suggesting additional products after the original decision to buy has been made. These items may be related to the initial purchase or of some specific benefit to the customer. Customers should not be pressured to buy expensive or inexpensive items. Whether the items are heavily promoted or preferred by the salesperson should not be a factor in suggestion selling.SOURCE: SE:875SOURCE: SE LAP 110—Using Suggestion Selling

84. DTo maintain control. Presentations to groups often need to be more structured because there are more people involved. The salesperson needs to be able to maintain control of the group, present the information in an orderly fashion, and prevent all the participants from talking at once. The best way to maintain control often is to structure the presentation and designate a question-and-answer period at the end. Structured presentations often discourage casual conversation. Salespeople do not use a structured style of presentation to evaluate feedback. It is not effective for salespeople to be overly aggressive.SOURCE: SE:073SOURCE: Futrell, C.M. (1999). Fundamentals of selling: Customers for life (6th ed.) [pp. 268-271].

Boston: Irwin/McGraw-Hill.

85. BVisit customers. Visiting customers is one of the most expensive approaches to follow-up, but it is considered the most effective. Its effectiveness is created by the face-to-face meeting of the customer and the salesperson. Visiting customers is expensive because it requires a lot of time. Sending letters and explaining services are inexpensive methods of following up a sale. Maintaining records is an important part of follow-up, but it is not a follow-up method.SOURCE: SE:057SOURCE: SE LAP 119—Follow-up Strategies

86. D$68.09. To determine freight charges, divide the total weight by 100 to obtain the number of 100 pounds units present in the shipment (589 ÷ 100 = 5.89). Then, multiply this number by the rate per 100 pounds to obtain the shipping charges (5.89 x $11.56 = $68.088 rounded up to $68.09).SOURCE: SE:116SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 73, 86).

Cincinnati: South-Western Educational.


2987. C

A customer requests a microchip encoder with unusual specifications. A special order is a request for an item that is not usually carried in stock. An item with unusual or nonstandard industry specifications is considered a special order. A confirmation is a written verification that the (purchase) order or request has been received. A customer requesting a set of stocked stereo speakers is not a special order. When a company returns product that is shipped incorrectly, it is processing a vendor return.SOURCE: SE:009SOURCE: Bond, R. (2001). Retail in detail: How to start and manage a small retail business (2nd

ed.) [pp. 87-88]. Central Point, OR: Oasis Press.

88. BRead the order back to the customer. John can ensure that he has recorded the order correctly if he reads it aloud. Asking the customer to repeat an order makes it appear as though John wasn't listening. No matter how busy he is, John should speak slowly and clearly so that he will be understood, and he should not hang up until he is sure the order is completed.SOURCE: SE:835SOURCE: Miculka, J.H. (1999). Speaking for success (pp. 108-110). Cincinnati: South-Western

Educational.

89. BPromotion. Promotion can be used to generate prospects. Promotional activities may include participating in trade shows, placing advertisements, or sending direct-mail pieces. Technical salespeople who participate in trade shows or industry-sponsored exhibits usually ask that interested people fill out information cards so they can follow up with these prospects later. The referral method of prospecting involves salespeople's asking someone they know or someone who uses their products to recommend them to others. The bird-dog method of prospecting involves a salesperson hiring others to generate prospect lists. The telephone method involves using telemarketing to contact prospects.SOURCE: SE:001SOURCE: SE LAP 116—Prospecting

90. AMove realistically. Many presentation software programs contain an animation feature. The use of animation in presentations is effective because it can provide a realistic display that moves and contains action. For example, a salesperson might use presentation software to combine computerized drawings and animate a proposed amusement park or an airport terminal. The animated representation shows people using the park or terminal, which makes it easier for viewers to visualize the finished product. The animation feature is used to create movement and action rather than to make the presentation easy to read or more credible. The animation feature generally is not used to outline the topic.SOURCE: SE:119SOURCE: Adler, R.B., & Elmhorst, J.M. (1999). Communicating at work: Principles and practices

for business and the professions (6th ed.) [p. 360]. Boston: McGraw-Hill College.

91. CIndividual ability. To be fair, sales quotas should be based on an individual technical salesperson's ability and territory. Experienced salespeople in a well-established territory should be able to make a higher quota than inexperienced salespeople in a new territory. Therefore, sales quotas should be set at the same level of difficulty based on individual ability. Personal appearance, maturity level, and social status are not factors that businesses consider when setting individual sales quotas.SOURCE: SE:864SOURCE: SE LAP 118—Sales Quotas


3092. D

Product. A product approach is a type of sales opening that tells the customer about the product's features. A salesperson who has a strong technical background and knows a lot about the product might prefer to use the product approach because this is his/her field of expertise. Question and referral are other types of approaches that salespeople can use depending on which one felt comfortable and appropriate to the circumstances. Greeting is not a type of approach.SOURCE: SE:110SOURCE: SE LAP 124—Opening the Industrial Sale

93. BObtain necessary data to analyze marketing efforts. Sales reports are developed in many ways to evaluate different data. For example, companies often develop reports to monitor the efforts of their salespeople and specific territories. Sales reports are also used to collect information about the status of various items in a product line during a certain time period. For example, a report might indicate that a fast-moving item has been on back order several times. This might indicate that the item is popular and higher amounts of the product need to be manufactured or stocked. On the other hand, the report might indicate slow-moving items that need to be phased out. Although sales reports often help management to determine ways to cut operational costs, they do not contain all the data needed to create overhead-reduction strategies and are, therefore, not the primary reason sales reports are developed. Expense reports are used to evaluate the spending habits of sales representatives. Product sales reports are not generally considered the primary source for developing compensation structures. Although sales reports might be used to help create commission structures for sales personnel, other data are used.SOURCE: SE:283SOURCE: Stanton, W.J., & Spiro, R. (1999). Management of a sales force (10th ed.) [pp. 347-

348]. Boston: Irwin/McGraw-Hill.

94. BLead the sales team. The success of a technical business often depends on how effectively sales managers are able to lead the sales team, because the goal of businesses is to generate sufficient income to continue operating and earn a profit. Effective sales management is essential for technical businesses to achieve this goal. If sales managers are able to lead effectively by communicating goals to the sales team and motivating the team to achieve those goals, the technical business will succeed. If not, then the technical business might fail because sales goals are not met. Sales managers help a business to succeed by controlling sales expenses rather than reviewing them. Sales managers often establish sales quotas but must lead the sales team in reaching quotas in order to help the business succeed. The success of a technical business does not depend on how effectively sales managers oversee a bonus plan.SOURCE: SE:079SOURCE: Futrell, C.M. (2001). Sales management: Teamwork, leadership, and technology (6th

ed.) [pp. 7-8]. Mason, OH: South-Western.

95. CTo ensure efficiency and service levels, sales-call patterns should be reviewed on a regular basis. Most sales territories are constantly changing. Customers go out of business while others plan expansions. Sometimes, company buyers change their work schedules. Therefore, it is important to review and update sales-call patterns on a frequent basis. Many factors are considered when developing a sales-call pattern; however, it is not necessarily true that new customers are called on less frequently. For example, a new customer might need training assistance. A benefit in developing sales-call patterns is that they help sales representatives manage their time wisely.SOURCE: SE:284SOURCE: Manning, G.L., & Reece, B.L. (1998). Selling today: Building quality partnerships (p.

349). Upper Saddle River, NJ: Prentice Hall.


3196. A

Product specialization. As a result of mergers and consolidations, some companies have become very large and diversified in nature. For example, a large electronics company might sell calculators, electronic scales, and automated machinery. All items are used by different markets for different purposes. Therefore, some companies opt to organize their sales staff to specialize in certain product lines. The advantage in creating a specialized selling team is that sales personnel are generally well educated about a specific product. In the eyes of the customer, the salesperson has credibility and exercises expertise in relation to a narrow scope of products. Pure-line organization refers to a structure in which decision making is done by one person. Small companies are often organized in this manner. Multilevel marketing is a business structure that pays commission on sales earned by people at two or more levels; the sales representatives usually work independent of the company; and the representatives not only sell products but try to get others to sell them. Cross-function organizations are generally short-term in nature. Members are gathered to complete a task or objective and then disband once the task has been completed.SOURCE: SE:293SOURCE: Futrell, C. M. (2001). Sales management: Teamwork, leadership, and technology (6th

ed.) [pp. 83-87]. Mason, OH: South-Western.

97. DProduct delivery costs and customer discounts. Terms-of-sale policies are defined as the guidelines covering the aspects of a sale with which customers are usually most concerned through price, delivery, credit, discount, and guarantee policies. Negotiating terms-of-sale with customers can involve the evaluation of many factors. The nature of the product as well as the nature of the business often affect the terms-of-sale. However, the most important aspect of the terms-of-sale is that the company makes a reasonable profit, and the customer receives fair treatment in terms of price, delivery, payment options, and warranties. Delivery costs are an important factor when establishing terms-of-sale. For example, one customer might pay a percentage of the delivery costs while another pays a flat rate. In regard to discounts and payment plans, one customer might receive a 15% discount when ordering products in bulk while another customer receives a 5% flat rate discount or a set percentage discount for early payment of goods. All these factors affect the seller's level of profitability. Often, managers consider the size or classification of a customer or a customer's sales potential when developing specific terms-of-sale contracts. However, organizational structure and promotional budgets are not always considered.SOURCE: SE:294SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p.


98. AMake each area equal in terms of sales opportunity. Each representative should have the same or equal potential for sales. If territories are divided so that others have the sales advantage, it is possible that staff morale will lower and representatives might feel they are treated unfairly. As a result, the company might experience high turnover due to unhappy employees. Sales territories are not established based on representatives' preferences, nor are they usually designed so that experienced sales staff get the territories with the best market potential. Travel expenses are considered when establishing territories but rarely are expenses eliminated.SOURCE: SE:295SOURCE: Ingram, T.N., LaForge, R.W., Avila, R.A., Schwepker, C.H., & Williams, M.R. (2001).

Sales management: Analysis and decision making (4th ed.) [p. 120]. Mason, OH: South-Western.


3299. C

Managers. Managers are responsible for setting the overall goals and motivating their employees to work towards accomplishing them so the technical business can be successful. Employees are responsible for working towards the goals of the business, but they are not responsible for setting goals. Consultants do not set goals for businesses other than their own. Supervisors guide employees in carrying out the activities of the business.SOURCE: SM:001SOURCE: BA LAP 6—Manage This!

100. CProfitability. Profitability control measures and controls the profitability of the telecommunications company's various products, territories, customer groups, channels, and order sizes. Annual-plan control is used to ensure the company achieves sales and profits goals. Strategic control includes a periodic assessment of the company and its strategies in the marketplace. Efficiency control focuses on finding ways to increase the efficiency of the sales force, advertising, sales promotion, and distribution.SOURCE: SM:004SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [p. 714]. Upper Saddle River, NJ:

Prentice Hall.

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