lcssdecateam.weebly.comlcssdecateam.weebly.com/uploads/8/6/5/2/8652601/fms… · Web viewSOURCE:Mescon, M.H., Bovee, C.L., & Thill, J.V. (1999). Business today ... This word-of-mouth

2008 DECA Ontario ProvincialsTest 948 FOOD MARKETING SERIES 1

FMS

1. One reason food marketing businesses usually are unable to enter into legally binding contracts with minors is because those under the legal age

A. do not have sufficient funds to make payments. B. may not understand the consequences of their actions. C. are unable to make basic decisions. D. cannot make promises to do something for others.

2. What is the main purpose of most food safety laws and regulations?A. To prevent contamination C. To monitor production B. To organize distribution D. To eliminate bacteria

3. Efficient inventory control can keep a convenience store from having too much of its __________ tied up in stock.A. accounts receivable C. sales volume B. capital D. utility

4. The use of intermediaries enables food producers to make larger profits because intermediariesA. enable producers to use direct distribution.B. may sell more than the producer could sell on its own.C. increase the number of retailer to producer contacts.D. help to reduce the per-unit costs of goods.

5. Tying agreements between food producers and distributors might be considered illegal if they substantially limitA. profitability. B. competition. C. management. D. technology.

6. Which of the following is an example of a grocery store coordinating distribution with the marketing function of promotion:

A. Writing a news release to announce a new product line B. Making sure products are in stock before advertising a sale C. Organizing a contest to attract customers to the store D. Placing an advance order to obtain a seasonal discount

7. Which of the following benefits of partnerships among channel members in a distribution channel has the most potential for misuse:

A. Rapid order fulfillment C. Improved product qualityB. Lower inventories and operating costs D. Sharing of sensitive information

8. When making a telephone call to another food marketing business, it is courteous toA. ask who is answering the phone. C. identify yourself and your company.B. state the purpose of the call. D. call at your convenience.

9. Grocery store employees who participate in group discussions should present their ideas and opinions in a(n)A. written format. B. assertive manner. C. argumentative way. D. nonverbal style.

10. Which of the following is a guideline for supermarket employees to use in communicating with coworkers:A. Think about what they want to say before they say itB. Feel free to express their complaints about their jobsC. Be sure to share rumors and gossip with their coworkersD. Use a direct approach in speaking to an angry coworker

11. Being customer-oriented most benefits food marketing employees by supporting theirA. competitiveness. B. need to be recognized. C. careers. D. efficiency at work.

12. What is a guideline for gourmet market employees to follow when handling disagreeable customers?A. Interrupt often B. Serve promptly C. Act offended D. Observe closely


13. When an item on a purchase order is not in stock, the seller may promise later delivery. This item is referred to asA. missing. B. back-ordered. C. discontinued. D. a special order.

14. Businesses usually are able to prevent the loss of profits on distressed produce byA. buying produce in large quantities. C. inspecting the produce when received.B. selling produce at higher prices. D. attractively displaying the produce.

15. A specialty market that maintains a higher level of inventory than needed to meet demand decreases itsA. federal tax obligations. C. amount of operating capital.B. investment in merchandise. D. costs for insurance coverage.

16. A primary service that food brokerage firms offer small specialty food stores is helping them locate new A. distributors. B. networks. C. vehicles. D. sponsors.

17. Which of the following is a shipping method that is often used to transport milk and fresh produce over long distances:A. Air cargo planes C. Refrigerated railroad cars B. Inland container ships D. International trucks

18. A bakery that includes target marketing in its business activities is trying toA. determine how many people have heard of the bakery. B. forecast how much profit the bakery can make. C. keep its operating expenses within the budget.D. find out whether there is a market for its products.

19. Which of the following has inelastic demand:A. Bread B. Ice cream C. Movie tickets D. Television sets

20. The main difference between food retailers and wholesalers is that retailers sell toA. resource producers. C. ultimate consumers. B. other businesses. D. local distributors.

21. A supermarket chain decides to hold its annual meeting in one U.S. city rather than another because of crime in that city. This is an example of __________ the risk.

A. transferring B. preventing or controlling C. retaining D. avoiding

22. When the economy is growing too slowly, production and employment decrease, and the unemployed have less money to spend on goods and services. What is one way that the government can compensate for a downturn in economic activity?

A. Increase the discount rate for banks C. Decrease spendingB. Increase the amount of money in circulation D. Increase taxes

23. How many people are actually unemployed if there are 45,000 people in the labor force and the total unemployment rate is 5.2%?

A. 2,250 B. 2,340 C. 2,295 D. 2,385

24. Which of the following is one of the positive effects that an increase in international trade is having on food retailers:A. Expanding distribution systems C. Reducing speculative risks B. Opening up new markets D. Lowering price levels

25. Susan volunteered to conduct a customer-complaint survey because she felt it would benefit the grocery store. Which of the following personal traits is Susan displaying:

A. Initiative B. Dependability C. Creativity D. Empathy

26. Adhering to an established set of personal ethics is referred to asA. deceit. B. integrity. C. honesty. D. truth.


27. A supermarket employee who misuses company time is actuallyA. shoplifting. B. pilfering. C. robbing. D. stealing.

28. A recession would be an example of a(n) __________ change.A. technological B. personal C. social D. economic

29. One of the reasons that many people fail to assert themselves is because theyA. are afraid people will take advantage of them. C. don't really know how to be assertive.B. are secure in their relationships. D. don't want to reduce their level of self-esteem.

30. To be effective members of a workplace team, individual workers should beA. committed to personal career goals. C. willing to do whatever is needed.B. skilled in avoiding conflict. D. experienced at working on a team.

31. Dan is unable to walk without assistance and needs special equipment to drive his car. He is employed as a butcher for a major supermarket. Dan knows more about cuts of meat than most of his coworkers, and can answer customers' questions that no one else can answer. Dan is an example of a person who effectively performs his job despite his

A. lifestyle. C. personality.B. physical condition. D. mental ability.

32. After buying a display case for her bakery on credit from the Supermarket Supply Company, Joan realized there was an error on her bill. What federal law will help Joan resolve this error?

A. Truth-in-Lending Act C. Fair Credit Billing Act B. Equal Credit Opportunity Act D. Fair Credit Reporting Act

33. Which of the following is not an important topic for a grocery store owner to discuss with a potential investment advisor:A. Experience C. Education B. Licensing D. Hometown

34. Why does a grocery store need a flow of money into the business?A. To borrow C. To sellB. To exist D. To invest

35. A bakery shop owner who completes a bank deposit that includes a request for cash back is usually required toA. sign the slip. C. count the money. B. open an account. D. wait for approval.

36. Which of the following is an internal source of marketing information that a convenience store uses:A. Employee handbooks C. Trade journals B. Government web sites D. Inventory records

37. Which of the following is an overall reason that marketing research is important to grocery store chains:A. It improves financial management.B. It contributes to the chain's success. C. It makes competitors take notice of the chain. D. It helps the chain to base decisions on opinions.

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

A. Personal character C. Credit ratingB. Buying behavior D. Supplemental income

39. One reason it is important for supermarket chains to review paper-based questionnaires before processing the marketing information is because some of the questionnaires may be

A. completed anonymously. C. improperly filled out and unusable. B. printed with answer codes. D. organized according to last name.


40. Overall, what does marketing allow us to do?A. Feel better about shopping C. Limit our spendingB. Stop buying online D. Live our daily lives

41. Bob owns Green Market, a health-food business in the Florida Keys. Bob recently decided to increase his advertising, specifically the advertising on local radio and television. Which of the following marketing functions relates to Bob's decision:

A. Financing C. Selling B. Distribution D. Promotion

42. How does having too much merchandise in inventory affect large convenience stores?A. They will create a consumer attitude that the merchandise is less valuable than it really is.B. They will automatically need to reduce the price of the merchandise and lose money.C. They will have excess merchandise to store that will tie up valuable cash. D. They will limit the opportunities for manufacturers and distributors to interact with the store.

43. The Martin Cereal Company determines that it wants to build a second plant in another region of the country. This is an example of a marketing

A. tactic. C. strategy. B. goal. D. plan.

44. Which of the following is considered a shopping good:A. Oil painting C. RefrigeratorB. Sugar D. Milk

45. Why do grocery stores develop marketing plans?A. To attract the target customer C. To provide quality service B. To expand the distribution system D. To prepare a revenue statement

46. Identifying potential threats in the marketplace and turning them into opportunities is one reason why a convenience store chain conducts a(n)

A. physical inventory. C. training program.B. organizational review. D. situational analysis.

47. If 60% of a bakery's 400 current customers spend an average of $350 per year and 40% spend $275 per year, calculate the bakery's sales forecast for next year if sales are expected to stay the same.

A. $116,000 C. $135,000B. $128,000 D. $140,000

48. Netscape Navigator is an example of a webA. browser. C. server.B. bookmark. D. cookie.

49. What type of software would a specialty market use to calculate the effect that charging higher prices would have on profit?

A. Desktop publishing C. Database B. Spreadsheet D. Presentation

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


51. Which step in the buying process involves signing a form that becomes a legal document?A. Issuing a purchase order C. Negotiating a purchase price B. Completing a requisition form D. Paying a shipping invoice

52. The ultimate responsibility for personal health and safety on the job rests with theA. company. C. union. B. worker. D. government.

53. One of the benefits to the convenience store of establishing good, continuing, relationships with suppliers is that it enables the store to

A. obtain advance information on new products.B. minimize its inventory investment.C. coordinate all of its purchasing efforts.D. purchase at the lowest prices.

54. The three-way light bulbs that supermarkets sell are all made with the same size base. This is an example of a production process that uses __________ parts.

A. segmented C. brandedB. standardized D. graded

55. What should food marketing managers do to prevent the project from falling behind schedule?A. Locate resources C. Track deadlines B. Review goals D. Assign tasks

56. Alert employees can help supermarkets control expenses by discouragingA. shoplifting. C. exchanging.B. purchasing. D. selling.

57. When you set a challenging goal, you are most likely toA. give up too soon. C. be very frustrated.B. be unhappy with the results. D. put forth your best effort.

58. Which of the following steps in the decision-making process involves identifying the consequences of taking different actions:

A. Evaluating information C. Reviewing outcomesB. Choosing alternatives D. Analyzing situation

59. Why is it a good idea to take a small dictionary with you when completing a job application form?A. To impress a potential employer with your ability to access information B. To provide accurate, current addresses and phone numbers C. To check the accuracy of grammar used in completing the formD. To create a positive impression by spelling words correctly

60. Education is an important part of a job résumé and should be listed with the __________ first.A. easiest to complete C. most recently completed B. earliest completed D. most difficult to complete

61. What type of trade publication might be useful to food marketers who want to be informed about worldwide industry trends?

A. Native B. Regional C. Foreign D. Domestic

62. Which of the following jobs in retailing offers individuals the opportunity to plan a convenience store chain's merchandise assortment and supervise the development of in-store displays:

A. Auditor B. Designer C. Manager D. Buyer


63. Which of the following situations is an example of a food marketer engaging in an unethical pricing practice:A. YUM Snack Food Corporation considers its competitors when it is establishing pricing for new products. B. Kipling Food Distribution prices its goods and services in accordance to industry standards. C. Cunningham Food Mart's standard pricing policy is to mark up its products 50%. D. Get-n-Go Supermarket increases its food prices in a location that is experiencing a natural disaster.

64. Which of the following is an example of a gourmet market using the illegal tactic of bait-and-switch advertising:A. Agreeing with competitors to sell a specialty item for a certain price B. Offering a low-priced specialty item to eliminate competition C. Promoting a low-priced specialty item to sell a more expensive item D. Selling certain specialty items at a discounted price

65. Is the following statement true or false: There is no connection between a grocery store's marketing objectives and its pricing objectives.

A. True, marketing and pricing are independent of each other.B. False, marketing objectives are based on pricing objectives.C. True, pricing objectives are not related to marketing objectives.D. False, pricing objectives should be used to achieve marketing objectives.

66. During the introductory stage of a food product's life cycle, a snack-food manufacturer is most likely toA. earn high profits and gain the desired reputation. B. develop and implement intensive distribution strategies. C. promote the product aggressively to create product awareness.D. price the product to effectively penetrate the market.

67. Obtaining information about customers and potential customers who access a supermarket supply business's web site is one way that businesses use __________ technology.

A. database B. computer C. e-mail D. satellite

68. Ethical food marketers establish procedures to handle consumer complaints, returns, or product recalls.A. True, establishing procedures is a way of explaining problems with products because of improper use by

customers. B. False, establishing procedures is not important unless required by law.C. False, establishing procedures is a waste of time if products have been tested for safe use.D. True, establishing procedures reduces harmful effects to the company and its image.

69. A group of employees meeting to review a supermarket's sales records for the purpose of identifying product opportunities is an example of

A. experimenting. B. brainstorming. C. negotiating. D. questioning.

70. When using mind mapping to generate food-product ideas, you begin by writing down the main problem or A. market opportunity. C. primary associations. B. supporting facts. D. situational analysis.

71. The highest grade of meat usually found in supermarkets isA. choice. B. prime. C. standard. D. good.

72. Which of the following vegetables should be misted with water once an hour in order to maintain their quality:A. Cabbage B. Potatoes C. Onions D. Mushrooms

73. Why would a food market add higher priced products to its product mix?A. To prevent out-of-stock conditions C. To enhance the image of the market B. To overcome production problems D. To limit costs

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

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


75. Why do cereal manufacturers want customers to demonstrate brand insistence for them?A. Manufacturers will not have to market themselves or advertise as much. B. Customers will bypass other brands because they are brand loyal and will buy only the desired brand. C. Research shows that customers will pick their brand in a double-blind test 95% of the time.D. Their touch points pretty much take care of themselves.

76. Why is it important for supermarket chains to determine the final cost of purchases from domestic and international sources?

A. To calculate gross profit C. To set up a depreciation schedule B. To monitor operating expenses D. To apply for personal loans

77. What amount of merchandise would a convenience store probably buy for the next year if sales have been increasing by 6% each year and last year's sales totaled $472,350?

A. $495,967 B. $498,329 C. $500,691 D. $505,414

78. Supermarkets receive positive feedback about the effectiveness of their promotional messages when consumersA. buy their products. C. visit their competitors.B. ask specific questions. D. see their advertisements.

79. Which of the following is a true statement about inexpensive, self-service products in convenience stores:A. They are in the declining stage of their life cycles.B. Their promotional mix should emphasize personal selling.C. Examples of these products are automobile parts. D. Sales promotion could promote these products successfully.

80. When the manager of a large supermarket supply company takes potential customers out for lavish dinners and buys them expensive gifts, it might appear as if the manager is engaging in the unethical practice of

A. slander. B. puffery. C. bribery. D. fraud.

81. Misleading or deceptive grocery store advertising is considered to be an unfairA. business policy. C. sales trend.B. trade practice. D. marketing plan.

82. The promotional medium that allows a supermarket to tailor its message and present it only to selected consumers is __________ advertising.

A. television B. direct mail C. radio D. newspaper

83. Illustrations used in a supermarket's print ads are examples of illustrations that focus on theA. product in an appropriate setting. C. product's features. B. product itself. D. benefits of the product.

84. Which form of traditional direct mail is the most expensive for a food marketer to produce and distribute?A. Two-color flyer B. Sales letter C. Postcard D. Four-color catalog

85. What is a guideline that many specialty food markets follow in order to maintain their displays in good condition?A. Replace goods occasionally C. Check lights dailyB. Clean fixtures regularly D. Remove merchandise safely

86. Which of the following is a reason why grocery stores create promotional signs:A. To imitate the competition C. To provide accurate information B. To pressure customers to buy D. To advertise slow-selling items

87. Many supermarkets coordinate a wide variety of promotional activities such as advertising, special events, and displays in order to

A. spread out promotional funds. C. maintain appearances.B. reach a large audience. D. keep employees occupied.


88. As a supermarket supply business's sales increase, employment opportunities in the company are most likely toA. remain the same. C. decrease.B. stabilize. D. increase.

89. Which of the following is a positive outcome for a supermarket supply business when its salespeople consistently provide excellent customer service as part of the selling process:

A. Competitive disadvantage C. Increased commissions B. Improved quality D. Positive reputation

90. Which of the following is a reason why some supermarket supply businesses prefer to have unwritten selling policies:A. Regimentation B. Consistency C. Conformity D. Flexibility

91. Because technology increases sales efficiency and order processing, salespeople in the food-marketing industry have more time to

A. build and maintain a clientele. C. focus on competitors' activities. B. set their sales standards and goals. D. develop new goods and services.

92. If a supermarket supply salesperson does not disclose important information about a product during the selling process, s/he may be violating

A. customer-service regulations. C. false-labeling policies. B. consumer-protection laws. D. exclusive-dealing statutes.

93. A power drink manufacturer has spent $1 million for magazine advertising featuring well-known sports figures. As a salesperson, how should you use these promotions during a sales presentation to buyers for a chain of grocery stores?

A. To build customer confidence C. To forecast salesB. To prove the equipment is the best buy D. To shorten the sales presentation

94. A supermarket deli department cooking a roast for a short time at high temperaturesA. increases portion yield. C. reduces shrinkage.B. increases moisture content. D. increases shrinkage.

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

96. When the variety of goods and services available is limited, food marketing salespeople should ask customers __________ questions.

A. fewer B. more C. complex D. intimate

97. When a supermarket supply salesperson tells a story about other customers who have solved a refrigeration problem by purchasing the good or service, the salesperson is using a __________ close.

A. narrative B. silence C. bonus D. contingent

98. Which of the following is considered a proper method of bagging groceries:A. Place heavy items on the bottom C. Place meat and produce in the same bagB. Place fragile items in the middle D. Mix refrigerated items with dry goods

99. On May 2, Jan returns a bag of dog food with a receipt that shows it was a cash purchase of $9.99 on April 29. Jan wants to exchange the bag of dog food for one that is $14.95. Grocery store policy states that cash refunds will not be given, returns must be made within 10 days, and sales receipts must be presented. Will a cash refund be issued for this transaction?

A. Yes, it was a cash purchase. C. No, the time limit has expired.B. No, the customer owes additional money. D. Yes, the customer will get a due bill.


100. Which of the following is not a reason why planning is important to a food marketing business:A. The other management functions are based on the business's plans.B. Planning helps to unify the efforts of employees.C. Planning is an independent business function.D. Managers who have a plan to follow are less likely to make mistakes.

2008 DECA Ontario ProvincialsTest 948 FOOD MARKETING SERIES

10


111. B

May not understand the consequences of their actions. Food marketing businesses usually are prevented from entering into legally binding contracts with certain groups of people because these people are not considered to have the capacity to understand the consequences of their actions. One of these groups includes minors, those people under the legal age. In most cases, minors cannot enter into legally binding contracts because they are not old enough to be responsible for the consequences. Minors often have part-time jobs and may have sufficient funds to make payments. Minors are able to make basic decisions and can promise to do something for others. Therefore, these are not reasons why businesses usually are unable to enter into legally binding contracts with minors.

SOURCE: BL:002SOURCE: Mescon, M.H., Bovee, C.L., & Thill, J.V. (1999). Business today (9th ed.) [pp. 617-618].

Upper Saddle River, NJ: Prentice Hall.

2. ATo prevent contamination. The main purpose of most food safety laws and regulations is to prevent contamination of food products that are sold to customers. These laws and regulations apply to manufacturers who produce food products, such as cereals and cookies, as well as to grocery stores that sell the products. Also, many grocery stores have deli departments that prepare food items so they are required to follow food safety laws and regulations. The intent is to prevent contamination that may cause illness or even death. Food safety laws and regulations are not intended to organize distribution. Many food safety laws and regulations give governmental agencies the authority to monitor food production in order to verify that the production techniques are safe. It is not possible to completely eliminate bacteria.SOURCE: BL:054SOURCE: Educational Institute of the American Hotel & Motel Association. (2000). Lodging

management program: Year two (pp. 288-293). Lansing, MI: Author.

3. BCapital. Convenience stores cannot afford to invest in too much stock or too little. If too much stock is on hand, storage costs add to the cost of the goods, and goods that are held too long may become outdated or stale. If too little stock is on hand, customers' needs cannot be met. Sales volume is the amount of a store's sales—usually expressed in dollars. A store needs to maintain adequate stock to satisfy its volume of sales. Accounts receivable are the monies owed to a store by its customers. Distribution provides products with time and place utility.SOURCE: CM:001SOURCE: DS LAP 1—Distribution

4. BMay sell more than the producer could sell on its own. By using intermediaries, a food producer may be able to increase the size of its sales force by sharing the selling activities with other businesses. Although the use of intermediaries may help to reduce the per-unit cost of a good, this does not automatically increase the profits of the producer. By using intermediaries, producers are unable to deal directly with ultimate consumers or industrial users. The use of intermediaries decreases the number of retailer to producer contacts.SOURCE: CM:003SOURCE: MB LAP 3—Channels of Distribution


12 5. B

Competition. Competition is rivalry between two or more businesses to attract customer dollars. It should not be prevented through specific business actions such as tying agreements which require a customer to buy other food products in order to obtain desired goods and services. Tying agreements are considered illegal if they substantially limit competition by preventing other distributors from obtaining and selling the same food product to customers. Tying agreements are not considered illegal if they limit profitability, management, or technology.SOURCE: CM:005SOURCE: Armstrong, G., & Kotler, P. (2000). Marketing: An introduction (5th ed.) [p. 377]. Upper

Saddle River, NJ: Prentice Hall.

6. BMaking sure products are in stock before advertising a sale. It is important for grocery stores to coordinate distribution with the marketing function of promotion because products must be in stock and available to sell when they are advertised. Stores that are planning to advertise a sale must first make sure the products are in stock. If customers visit a store to buy products that are not available, they may become irritated with the store and go elsewhere to buy. Promotion includes writing a news release to announce a new product line and organizing a contest to attract customers to the store. However, these activities do not involve distribution. Placing an advance order to obtain a seasonal discount is a distribution function, but it does not involve promotion.SOURCE: CM:007SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 367).

New York: Glencoe/McGraw-Hill.

7. DSharing of sensitive information. The sharing of sensitive information between channel members is necessary to insure lower inventories and operating costs, to improve product quality, and to fill orders quickly. However, this type of customer information can be easily misused or even wind up in the hands of competitors. As a result, actions by channel partners should be closely monitored to prevent the misuse of sensitive information. Lower inventories and operating costs, improved product quality, and rapid order fulfillment are not benefits that are often misused.SOURCE: CM:008SOURCE: Etzel, M.J., Walker, B.J., & Stanton, W.J. (2001). Marketing (12th ed.) [pp. 417-419].

Boston: Irwin.

8. CIdentify yourself and your company. Frequently, the person answering the telephone is not the person with whom you wish to speak. When you identify yourself to the other person, you provide the person with an immediate point of reference. It may be inappropriate to state the purpose of the call to the person answering the phone. Asking that person's name would only be appropriate under certain circumstances. Business calls should be made at an appropriate time whenever possible, not simply at any time that is convenient.SOURCE: CO:114SOURCE: Miculka, J.H. (1999). Speaking for success (pp. 108-110). Cincinnati: South-Western

Educational.


13 9. B

Assertive manner. Assertiveness is the ability to express yourself, communicate your point of view, and stand up for your rights, principles, and beliefs. Grocery store employees who participate in group discussions should present their ideas and opinions in an assertive manner so others will know exactly what they think. Being assertive is an effective way to express your point of view in group discussions. Employees should not be argumentative when participating in group discussions because the goal usually is to reach some type of agreement. Employees usually do not present their ideas and opinions in a written format or a nonverbal style when participating in group discussions. SOURCE: CO:053SOURCE: Lussier, R.N. (2003). Management fundamentals: Concepts, applications, skill

development (2nd ed.) [pp. 329-330]. Mason, OH: South-Western.

10. AThink about what they want to say before they say it. Supermarket employees should be able to express themselves to their coworkers. However, they should always think about what they want to say before saying it so that they do not cause problems or misunderstandings. Legitimate complaints or problems about the job should be discussed with the supervisor, not coworkers. Rumors and gossip should not be passed on to coworkers as they may not be true and could cause harm. A nondirective approach is best in communicating with angry coworkers as it helps to defuse their anger.SOURCE: CO:014SOURCE: Leskiar, R.V., & Flatley, M.E. (2005). Basic business communication: Skills for

empowering the Internet generation (10th ed.) [pp. 413-414]. Boston: McGraw-Hill/Irwin.

11. CCareers. Food marketing employees who are customer-oriented often receive compliments from customers, positive performance evaluations, and raises and/or promotions. Efficiency, competitiveness, and the need to be recognized vary from person to person.SOURCE: CR:004SOURCE: HR LAP 32—Customer-Service Mindset

12. BServe promptly. The disagreeable customer is often surprised and calmed by gourmet market employees who are composed, courteous, and efficient. When dealing with disagreeable customers, employees should serve them promptly in order to eliminate a reason for complaining. Employees should observe closely those customers whom they think may be dishonest. Employees should avoid interrupting disagreeable customers or acting offended by their unpleasant behavior.SOURCE: CR:009SOURCE: EI LAP 1—Making Mad Glad

13. BBack-ordered. Back order is a term used by shippers to refer to goods that are out of stock and will be shipped at a later date. This term explains to the purchaser the reason the item is missing from the shipment. A discontinued item is one that is no longer available. A special order is an attempt to obtain an item requested by a customer but not part of the firm's regular stock.SOURCE: DS:004SOURCE: DS LAP 5—The Receiving Process


1414. C

Inspecting the produce when received. Each incoming shipment of produce should be inspected for damage or signs of deterioration. If a business receives distressed produce, it should return the produce to the vendor for credit or for a new shipment. Care must be taken in ordering good-quality produce in sufficient amounts to meet customer demand without overstocking. Displaying distressed produce or selling it at higher prices will not prevent loss of profit.SOURCE: DS:085SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 503-

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

15. CAmount of operating capital. Specialty markets spend money to purchase and store inventory. If markets maintain a higher level of inventory than needed to meet demand, they decrease the amount of operating capital available for other purposes. They are spending their operating capital to cover the costs of purchasing, storing, and insuring more inventory than will sell during a reasonable amount of time. Markets that maintain high levels of inventory increase their investment in merchandise, their costs for insurance coverage, and their federal tax obligations.SOURCE: DS:023SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)

[pp. 434-435]. Woodland Hills, CA: Glencoe/McGraw-Hill.

16. ADistributors. A food broker is a person or business that locates or buys something on the behalf of a client. Sometimes, specialty food stores sell unusual items and need help in locating a vendor (e.g., distributor) that carries a particular or unique product. Brokers have the expertise and knowledge to help the stores locate vendors. Locating networks, vehicles (e.g., cars), and sponsors are not usually the types of activities that food brokerage firms perform for their clients.SOURCE: DS:126SOURCE: Food Ventures. (n.d.). Choosing and using brokers. Retrieved October 30, 2007, from

http://www.acenetworks.org/frames/food_industry_resources/brokers.htm

17. CRefrigerated railroad cars. Many types of food products are perishable and require the use of special shipping methods. One method that is often used to transport milk and fresh produce over long distances is refrigerated railroad cars. These cars maintain the correct temperature to prevent milk and fresh produce from spoiling while they are being transported over long distances. Inland container ships, air cargo planes, and international trucks are not suitable shipping methods for milk and fresh produce unless they have the ability to refrigerate the items.SOURCE: DS:127SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 468).


18. DFind out whether there is a market for its products. Target marketing is the identification and selection of markets for a business or for a product. Bakeries need to know whether there are consumers who are likely to buy from them in order to know what to sell and how to sell it. Identifying the target market will not enable the bakery to predict the amount of profit that it can earn. Finding out how many consumers have heard of the bakery is not a purpose of target marketing since those who have heard about the bakery still may not buy from it. Identifying the target market does not help to control operating expenses, the costs of running the bakery.SOURCE: MP:003SOURCE: IM LAP 9—Have We Met?


1519. A

Bread. A product has inelastic demand when the demand for it remains the same regardless of increased prices. Products with inelastic demand will be purchased even when their prices are increased. Movie tickets, television sets, and ice cream are considered luxury products and are said to have elastic demand. The demand for these products will go down as their prices are increased.SOURCE: EC:005SOURCE: EC LAP 11—It's the Law (Supply and Demand)

20. CUltimate consumers. Retailers and wholesalers are the two main divisions of the trade industry and are responsible for moving goods from producers to consumers or to industrial users. Food retailers sell to ultimate consumers, while wholesalers sell to other businesses. All retailers sell products to ultimate consumers, but wholesalers supply the goods that will be sold to retailers or that will be used by businesses in their operation. Wholesalers rather than retailers sell to resource producers and local distributors.SOURCE: EC:070SOURCE: MB LAP 6—Business and Society

21. DAvoiding. The supermarket chain is avoiding the dangers of criminal activity by eliminating the risk. To retain risk is to keep it. Preventing or controlling risk is taking measures to prevent or reduce the risk, which would not be possible in this case. Transferring risk is passing the risk to someone else.SOURCE: EC:011SOURCE: EC LAP 3—Lose, Win, or Draw (Business Risk)

22. BIncrease the amount of money in circulation. Increasing the amount of money in circulation may help to increase spending by consumers, which would increase the amount of money received by businesses. Government uses many techniques to compensate for a slow economy including increasing government spending, decreasing taxes, and decreasing the discount rate for banks.SOURCE: EC:017SOURCE: EC LAP 1—Gross Domestic Product

23. B2,340. The labor force includes those who are working or those who are unemployed but actively looking for work. The unemployment rate is the percentage of the unemployed people in the labor force. To calculate the number of unemployed people based on the unemployment rate, multiply the number in the workforce by the rate of unemployment (45,000 x 5.2% or .052 = 2,340). The rate of unemployment is used to analyze the condition of the economy. A low unemployment rate indicates a healthy economy because most of the people who want to work are working. On the other hand, a high unemployment rate indicates a slowdown in the economy with fewer goods and services produced and many people out of work.SOURCE: EC:082SOURCE: O'Sullivan, A., & Sheffrin, S.M. (2003). Economics: Principles in action (pp. 334-335).

Upper Saddle River, NJ: Prentice Hall.


1624. B

Opening up new markets. International trade is increasing, which is having a positive effect on food retailers by opening up new markets. In many cases, the domestic market has reached capacity, and in order for food retailers to grow, they need to find new markets. Foreign markets often provide that growth opportunity because their economies are improving, and their populations have more disposable income. Retailers that move into the international market often face more speculative risks because of differences in culture and the need to expand or develop new distribution systems. The increase in international trade usually does not lower price levels.SOURCE: EC:094SOURCE: Berman, B., & Evans, J.R. (1998). Retail management: A strategic approach (7th ed.)

[pp. 83-86]. Upper Saddle River, NJ: Prentice Hall.

25. AInitiative. This trait identifies a willingness to take on additional or unpleasant duties without being asked to do so. Dependability is exhibited when a person does what s/he says s/he will do. Creativity is the ability to generate unique ideas, approaches, or solutions. Empathy is the ability to put yourself in another person's place.SOURCE: EI:018SOURCE: EI LAP 9—You've Got Personality

26. BIntegrity. Your integrity involves the overall quality of your moral character. Honesty refers to truthfulness, fairness, and authenticity. Truth is an indisputable or accepted fact. The practice of cheating, misleading, or misrepresenting is known as deceit.SOURCE: EI:022SOURCE: HR LAP 19—Honesty and Integrity

27. DStealing. Stealing is taking something that belongs to someone else with no intention of returning it. Misusing company time is a form of stealing because the company is paying for that time, and it cannot be replaced. Ethical supermarket employees work during all of the hours for which they are paid. Robbery is theft that involves the use of force, violence, or fear. Pilfering is taking small sums of money or inexpensive items. Shoplifting is theft of goods by customers.SOURCE: EI:004SOURCE: EI LAP 4—Work Right (Ethical Work Habits)

28. DEconomic. A recession is an economic change, or fluctuation in the economy, as are depressions and prosperous times. Such fluctuations have a direct effect on us all. Personal changes are changes in an individual's private life. Social changes are changes in the values, tastes, habits, etc., of society. Technological changes are developments, breakthroughs, and other changes in the fields of science, engineering, etc.SOURCE: EI:026SOURCE: HR LAP 8—Adjusting to Change

29. CDon't really know how to be assertive. Many people admire assertiveness in others, but they may not know how to be assertive themselves. They simply have never learned how to behave in an assertive manner. Being assertive prevents others from taking advantage of you. People who are not assertive are often insecure in their relationships. Being assertive tends to raise your level of self-esteem.SOURCE: EI:008SOURCE: HR LAP 16—Assertiveness


1730. C

Willing to do whatever is needed. In order to be an effective team member, workers should be willing to do whatever is needed in order to meet the team's goals. This may include carrying out tasks or accepting assignments that are not to the individual's liking. It may also mean that the individual cannot be so committed to personal career goals that s/he cannot set them aside, at least temporarily. Workers do not need to have had previous experience as team members since the role of team player can be learned. Conflict is often part of teamwork and should be managed rather than avoided.SOURCE: EI:045SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 226-


31. BPhysical condition. A person's overall state of health is his/her physical condition. Mental ability refers to an individual's learning and thinking ability. Personality is the combination of all of an individual's personal characteristics, or traits. Lifestyle is the way in which people lead their daily lives.SOURCE: EI:036SOURCE: HR LAP 24—Treating Others Fairly at Work

32. CFair Credit Billing Act. This act requires businesses that extend credit to respond within 30 days to any customer's complaint or inquiry about a billing error. Businesses then have 90 days in which to explain or correct the error. Truth-in-Lending Act, also known as "the Consumer Credit Protection Act," requires businesses to provide consumers with information about the status of their accounts, as well as updated statements of their accounts at regular intervals. The Equal Credit Opportunity Act makes the granting of credit fair by prohibiting the denial of credit based on the applicant's gender, race, age, marital status, or national origin. The Fair Credit Reporting Act allows consumers the opportunity to inspect the files of their credit history at any credit agency and to have any mistakes corrected.SOURCE: FI:002SOURCE: FI LAP 2—Credit and Its Importance

33. DHometown. Although it might be interesting, knowing a potential investment advisor's hometown is not important to discuss when deciding whether to hire him or her. Information about licensing, education, and experience is vital to making a decision about retaining the investment advisor's services.SOURCE: FI:076SOURCE: NASD. (2006). Understanding investment professional designations. Retrieved October

30, 2007, from http://www.nasd.com/web/idcplg?IdcService=SS_GET_PAGE&nodeId=465

34. BTo exist. Money must flow into a grocery store before it can ever exist. Entrepreneurs usually borrow money from a bank or obtain financing from investors in order to go into business. This initial flow of money is used to purchase the goods and services needed to start the grocery store. Stores receive money from the sale of goods and services. Entrepreneurs often obtain start-up money by borrowing it from investors.SOURCE: FI:091SOURCE: FI LAP 6—Count the Cash (Cash Flow)


1835. A

Sign the slip. Most banks and financial institutions require customers to sign the deposit slip if they are requesting cash back from a deposit. The signature indicates that the customer acknowledges receipt of the cash and that it was not deposited into an account. Bakery shop owners should count any money they keep out, but it is not required by the bank. An owner making a deposit already has an existing account. Shop owners should not expect to wait for approval.SOURCE: FI:298SOURCE: American Bankers Association. (2005). Today's teller: Developing basic skills (pp. 48-

50). Washington: Author.

36. DInventory records. Internal information sources come from within the convenience store itself. Invoices, operating budgets, and inventory records are internal sources of information that a store compiles itself. Government web sites and trade journals are examples of external sources of marketing information. Employee handbooks are a type of internal information but they do not contain marketing information.SOURCE: IM:001SOURCE: IM LAP 2—Marketing-Information Management

37. BIt contributes to the chain's success. Marketing research contributes to success because grocery store chains that obtain reliable marketing-research data are better able to make good decisions because their decisions are based on fact, not opinion. Whether marketing research improves a chain's financial management would depend upon the kind of problem the chain is trying to solve and the data gathered. Competitors are often unaware of a chain's marketing-research efforts.SOURCE: IM:010SOURCE: IM LAP 5—Nature of Marketing Research

38. BBuying 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.


1939. C

Improperly filled out and unusable. Paper-based questionnaires and surveys are often used to obtain marketing information from customers. However, supermarket chains that use paper-based questionnaires should physically review them to be sure that they are completed properly. If the questionnaires are improperly filled out, they may be unusable because the information is incorrect or not readable. For example, if customers leave some spaces blank or fill in more than one response to a question, those questionnaires may need to be discarded because the answers are not valid and will affect the accuracy of the research. Many questionnaires contain answer codes that only researchers are able to read and understand. Most questionnaires are completed anonymously; therefore, they are not organized according to last name.SOURCE: IM:062SOURCE: Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd

ed.) [pp. 127-128]. Boston: Irwin/McGraw-Hill.

40. DLive our daily lives. Overall, marketing allows us to live our daily lives since marketing is involved in almost everything we do. Limiting our spending and not buying online anymore are negative responses that may or may not have anything to do with marketing. Feeling better about shopping could be a positive side effect of marketing.SOURCE: MK:001SOURCE: BA LAP 11—Have It Your Way

41. DPromotion. Promotion is a marketing function that communicates information about goods, services, images, and/or ideas to achieve a desired outcome. Selling is a marketing function that involves determining client needs and wants and responding through planned, personalized communication that influences purchase decisions and enhances future business opportunities. Distribution is a marketing function that involves moving, storing, locating, and/or transferring ownership of goods or services. Financing is a business function that involves determining the need for and availability of financial resources to aid in business activities.SOURCE: MK:002SOURCE: MK LAP 1—Work the Big Six (Marketing Functions)

42. CThey will have excess merchandise to store that will tie up valuable cash. A large convenience store that has too much inventory on hand must pay for it even if it doesn't sell quickly, which ties up cash. Also, the merchandise must be stored to prevent damage and insured to protect it in case of disasters. Having a lot of merchandise on hand does not automatically mean that the store must lower the price or that customers will think it less valuable. The amount of merchandise does not limit the opportunities for manufacturers and distributors to interact with the store.SOURCE: MK:009SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)

[pp. 395-396]. Cincinnati: South-Western.

43. BGoal. A goal is an objective or want that you plan to fulfill—a desired outcome. A cereal company that wants to build a second plant in another region of the country is an example of a goal. Tactics are specific actions that a business will use to carry out strategies. Strategies are plans of action for achieving goals and objectives. A plan is a management function of deciding what will be done and how it will be accomplished.SOURCE: MP:001SOURCE: IM LAP 7—Pick the Mix (Marketing Strategies)


2044. C

Refrigerator. A refrigerator is a shopping good because comparisons are made of competing goods before a purchase is made. Milk and sugar are convenience goods because they are purchased frequently and with minimum effort. An oil painting is considered a specialty good because consumers will make a special effort to obtain its unique characteristics.SOURCE: EC:002SOURCE: EC LAP 10—Goods and Services

45. ATo attract the target customer. A marketing plan is a set of procedures or strategies for attracting the target customer to a grocery store. The target market is the group of people identified and selected as the primary users of a product. Each business has a specific target market and develops a marketing plan for the purpose of reaching that market. Providing quality service and expanding the distribution system are marketing strategies that a business might use to attract the target customer. Stores do not develop marketing plans for the purpose of preparing revenue statements.SOURCE: MP:007SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 89-93]. Upper Saddle River,

NJ: Prentice Hall.

46. DSituational analysis. A situational analysis involves examining and interpreting the environmental factors that affect a convenience store chain. As a result of considering the environmental factors, a chain often is able to identify potential threats in the marketplace such as increasing competition or a sluggish economy. Once a chain identifies the specific threats, it takes steps to turn them into opportunities. An organizational review might identify problems within the chain rather than threats in the marketplace. Training programs are internal and may be developed as a result of identifying potential threats in the marketplace. A physical inventory involves counting stock.SOURCE: MP:008SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an

e-commerce world (7th ed.) [pp. 41-42]. Mason, OH: South-Western.

47. B$128,000. When forecasting sales for next year, bakeries consider the amount of sales generated by their current customers. If sales are expected to remain the same, a bakery would forecast the same volume from one year to the next. In this example, 60% of the 400 current customers spend an average of $350 per year. Calculate that amount by multiplying the number of customers by the percent (400 x 60% or .60 = 240). The 240 customers spend $350 each for a total of $84,000 ($350 x 240 = $84,000). Then, determine the 40% by multiplying that percent by the number of customers (400 x 40% or .40 = 160). The 160 customers spend $275 per year for a total of $44,000 ($275 x 160 = $44,000). Add the two amounts to calculate next year's sales, which will be the same as this year's figure ($84,000 + $44,000 = $128,000).SOURCE: MP:013SOURCE: IM LAP 3—Nature of Sales Forecasts


2148. A

Browser. A browser is software that allows a computer to access information on the Internet. A browser has the capability of searching for and locating information on the Web and displaying that information, which then can be printed or saved. Netscape Navigator is an example of a web browser. Internet Explorer is another browser. A cookie is a bit of information that a web site collects about each viewer. A bookmark is Netscape Navigator's term for marking a web site for later reference. A server is a computer that provides services to another computer.SOURCE: NF:006SOURCE: Broadbent, B. (1998). Using the Internet smarter and faster at home, on the road, or at

the office (pp. 37, 139). Menlo Park, CA: Crisp Publications.

49. BSpreadsheet. Specialty markets use spreadsheet software to perform mathematical calculations quickly and accurately. One of the advantages of using spreadsheet software is that it is possible to do "what if" calculations. For example, a market might enter different prices to determine the effect that those prices would have on profit. The market can experiment with different rates before deciding which rate will be most appealing to customers and still generate the desired profit. Database software is used to arrange and sort information. Desktop publishing and presentation software are used for visual presentations.SOURCE: NF:010SOURCE: Eggland, S.A., Dlabay, L.R., Burrow, J.L., & Ristau, R.A. (2000). Intro to business (4th

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

50. ATo 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: OP:128SOURCE: Mill, R.C., (1998). Restaurant management: Customers, operations, and employees.

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

51. AIssuing a purchase order. A purchase order is a form identifying the prices, discounts, dating, transportation, charges, etc., applicable to an order issued by a buyer to a seller. When a purchase order is signed it becomes a legal document which authorizes the vendor to ship goods and the buyer to pay for the goods ordered. Negotiating a purchase price, completing a requisition form, or paying a shipping invoice do not involve signing legal documents.SOURCE: OP:117SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 348-


52. BWorker. The company can install safe equipment, provide training, and develop safe operating procedures, but it is ultimately up to the worker to act in a safe manner. A company cannot force a worker to be safe. The government has laws regulating safety in businesses, but it cannot monitor each worker. The union can only encourage safe work habits.SOURCE: OP:007SOURCE: RM LAP 2—Following Safety Precautions


2253. A

Obtain advance information on new products. It is essential that purchasing locate suppliers who are dependable and able to fulfill their promises. Often, by establishing longstanding or permanent relationships with suppliers, purchasers can gain access to advance information on new products, better service, and more timely resolution of problems. This does not help purchasers coordinate all purchasing efforts, purchase products at the lowest price, or minimize inventory investment.SOURCE: OP:015SOURCE: PU LAP 1—Purchasing

54. BStandardized. Some production processes, such as mass production, use standardized parts to make large quantities of similar products. Standardized parts are interchangeable. Grading is the process of rating products according to certain established standards or characteristics. Branding is the ongoing decision-making process about the use of brands. Segmenting divides people or things into sections according to certain criteria.SOURCE: OP:017SOURCE: BA LAP 1—Nature of Production

55. CTrack deadlines. Tracking deadlines is important during the planning stages and while the project is being completed. Food marketing managers should keep track of due dates and not let the project fall behind schedule. If the deadlines are not met, the project cannot proceed as planned. Managers also review goals, but that will not prevent the project from falling behind schedule. Managers usually assign the task of locating resources to a group member. Once tasks are assigned, managers monitor the progress and track deadlines.SOURCE: OP:002SOURCE: QS LAP 18—Make It Happen

56. AShoplifting. Supermarkets lose millions of dollars each year because of shoplifting. Employees can help discourage shoplifting by being alert on the job and watching for suspicious people. Preventing shoplifting helps supermarkets reduce the losses that they would incur if goods were stolen. Employees should encourage purchasing by customers. Supermarket employees help with the selling process. Discouraging exchanges would not control expenses.SOURCE: OP:025SOURCE: MN LAP 56—Employee Role in Expense Control

57. DPut forth your best effort. A goal should not be too hard to reach or too easy but challenge you to put forth your best effort. Meeting a challenging goal should make you happy with the outcome. Giving up too soon comes from a lack of perseverance. A challenging goal is not necessarily frustrating.SOURCE: PD:018SOURCE: HR LAP 6—Goal Setting

58. AEvaluating information. Individuals should evaluate the information they have gathered and identify the pros and cons of taking different actions. They should look at the consequences of all possible decisions and review what might happen based on the information they have obtained. Choosing alternatives is deciding what to do. Analyzing the situation is identifying that a decision needs to be made. Reviewing outcomes is evaluating the result of the decision.SOURCE: PD:017SOURCE: PD LAP 10—Weigh Your Options (Decision Making)


2359. D

To create a positive impression by spelling words correctly. Misspelled words on a job application present a negative, careless image to potential employers. You should be prepared to check the accuracy of your spelling by taking a small dictionary with you when completing application forms. Dictionaries are not resources for addresses, phone numbers, and grammar usage. Employers are impressed with accurately completed application forms, rather than by a person's ability to look up words in the dictionary.SOURCE: PD:027SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp. 47-51].

Mason, OH: South-Western.

60. CMost recently completed. Education is one of the most important parts of a résumé and should be listed with the most recent first. Prospective employers are interested in knowing the highest level of education or training completed and usually, that is the most recent level. The levels of education are listed in reverse chronological order; therefore, the earliest is listed last. Studies are listed according to chronological order and not level of difficulty.SOURCE: PD:031SOURCE: Kimbrell, G., & Vineyard, B.S. (1998). Succeeding in the world of work: Teacher's

wraparound edition (6th ed.) [pp. 122-123]. New York: Glencoe/McGraw-Hill.

61. CForeign. Foreign trade publications are published by specific industries in other countries, such as France or Great Britain. These foreign publications are intended for the businesses in that industry and provide current information on what is happening in those countries. Food marketers often read foreign trade publications in order to be informed about worldwide industry trends that may have an effect on the same industry in their country. Domestic or native trade publications deal with industry information in a marketer's home country. Regional trade publications deal with industry information in a specific area of a country.SOURCE: PD:036SOURCE: CD LAP 1—Trade Associations and Professional Organizations

62. DBuyer. Buyers for retail stores often are responsible for planning the merchandise assortment, working with vendors to purchase the merchandise, and overseeing the display of that merchandise in the store. All types and sizes of retailers, such as convenience store chains, employ people who specialize in buying the goods that the stores sell. Employees often begin their careers as trainees in the buying department and work their way up the ranks to assistant buyer, senior buyer, and manager of the department. Managers are responsible for the overall operation of a store or a specific department within the store. A designer might develop ideas for displays. An auditor analyzes accounting information.SOURCE: PD:038SOURCE: Berman, B., & Evans, J.R. (1998). Retail management: A strategic approach (7th ed.)

[pp. A1-A6]. Upper Saddle River, NJ: Prentice Hall.


2463. D

Get-n-Go Supermarket increases its food prices in a location that is experiencing a natural disaster. It is unethical and, in some locations, it is illegal for businesses to increase prices for staple items (e.g. food, wood, and gasoline) during emergencies. Food marketers that engage in price gouging are taking advantage of unfortunate circumstances, which society considers an unethical practice. Pricing goods according to industry standards, marking up goods by a certain percentage, and considering the competition's prices do not represent ethical dilemmas.SOURCE: PI:015SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 537).


64. CPromoting a low-priced specialty item to sell a more expensive item. Bait-and-switch advertising involves promoting a low-priced item to attract customers to whom the gourmet market then tries to sell a higher priced item. In many cases, the low-priced item is in very limited supply or completely unavailable when customers try to buy it. The only reason the item is advertised at that price is to attract customers and encourage them to buy a more expensive item. Loss-leader pricing involves offering a low-priced item to eliminate competition. Price fixing involves agreeing with competitors to sell an item for a certain price. Selling certain items at a discounted price is not an illegal pricing tactic.SOURCE: PI:017SOURCE: Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd

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

65. DFalse, pricing objectives should be used to achieve marketing objectives. The grocery store should establish its marketing objectives first, then choose pricing objectives that will help it to achieve those objectives. A store's pricing objectives, therefore, should be compatible with its marketing objectives.SOURCE: PI:002SOURCE: PI LAP 3—Factors Affecting Selling Price

66. CPromote the product aggressively to create product awareness. During the introduction phase of a food product, a snack-food manufacturer is more likely to lose money than to make it. This is because the business tends to aggressively promote the product in order to generate product awareness and to get consumers to try the product. Sometimes, businesses use pricing strategies that generate low profit margins to encourage people to try the product and to create product awareness. A business is most likely to use intensive distribution strategies during a product's growth and maturity phases. A business usually generates the highest profits for a product during the product's maturity phase. A business often uses penetration pricing during the growth stage of a product's life cycle.SOURCE: PM:024SOURCE: Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [p. 293]. Upper

Saddle River, NJ: Prentice Hall.


2567. B

Computer. Computer technology makes it possible for supermarket supply businesses that have web sites to obtain valuable information about customers and potential customers. Today, many businesses have web sites that visitors access on a regular basis. When visitors access a site, computer technology enables businesses to track and record the visit. Technology also allows businesses to ask visitors to register before accessing a site. This process often involves answering a variety of questions such as name, address, e-mail address, etc. The businesses compile this information into customer databases that they can use to send additional information to those visitors who fit the criteria of their target markets. Businesses do not use e-mail, database, or satellite technology to obtain information about customers who access their web sites.SOURCE: PM:039SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an

e-commerce world (7th ed.) [pp. 127-128]. Mason, OH: South-Western.

68. DTrue, establishing procedures reduces harmful effects to the company and its image. Not only is it ethical to have procedures for handling complaints, returns, or recalls, it is also in the best interest of the food marketing company. However, these procedures are not required by law. Ethical marketers want to resolve any problems and provide safe products to customers. Ethical marketers do not blame customers for problems or believe that procedures are a waste of time or not important.SOURCE: PM:040SOURCE: Bearden, W.O., Ingram. T.N., & LaForge, R.W. (2001). Marketing: Principles and

perspectives (3rd ed.) [pp. 235-236]. Boston: Irwin.

69. BBrainstorming. Brainstorming is a creative-thinking technique involving the identification of as many different ideas as possible during a certain time frame. Supermarkets often have groups of employees meet to review information in an attempt to identify product opportunities. Sales records are a valuable source of information to review because they contain information about product returns. Supermarket employees can analyze the reasons for the returns and brainstorm product opportunities that will solve the return problem. Reviewing a supermarket's sales records for the purpose of identifying product opportunities is not an example of experimenting, negotiating, or questioning.SOURCE: PM:134SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 279-280). Tinley

Park, IL: Goodheart-Willcox.

70. AMarket opportunity. When a situation exists to fulfill a market's unmet needs, there is a market opportunity. Entrepreneurs and food marketing businesses use creative-thinking techniques during the product-development process, which involves finding ways to take advantage of the market opportunity that presents itself. Mind mapping is a creative-thinking technique that involves generating ideas by making associations. To begin the mind-mapping process, you write the problem or market opportunity in the center of a large sheet of paper. From that starting point, you draw lines to other words or phrases that relate to the main idea (problem, or market opportunity), and continue the process by making associations, which generates ideas and identifies possible solutions. The mind-mapping starting point does not begin by writing down supporting facts or primary associations. A situational analysis is a determination of a firm's current business situation and the direction in which the business is headed.SOURCE: PM:127SOURCE: PM LAP 11—Unleash Your Oh! Zone (Product Idea Generation)


2671. B

Prime. In descending order, grades of meat are prime, choice, good, and standard.SOURCE: PM:019SOURCE: PM LAP 8—Grades and Standards

72. ACabbage. Certain vegetables, such as cabbage, lose moisture rapidly. They should be sprinkled or misted to reduce shrinkage and to give the produce item that fresh look customers like. Onions, mushrooms, and potatoes should be kept dry.SOURCE: PM:053SOURCE: Produce Marketing Association. (2000). Grocery store misting. Retrieved October 31,

2007, from http://aboutproduce.com/faq/misting.html

73. CTo enhance the image of the market. When a food market decides to add higher priced products or product lines to its product mix, it is using a trading-up, product-mix strategy. In this way, the market can upgrade its image from one level to another. The use of alteration strategies can help a market limit its costs. An advantage associated with using an expansion strategy is that the market can prevent out-of-stock conditions. A contraction strategy is used when production has become a problem.SOURCE: PM:003SOURCE: PP LAP 3—Product Mix

74. 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.

75. BCustomers will bypass other brands because they are brand loyal and will buy only the desired brand. Customers develop brand loyalty—a relationship with or preference for a particular brand—through repeated, positive experiences. When customers refuse all other brands except the single brand they want, brand insistence exists. Cereal manufacturers try to cultivate brand insistence in customers so that they will repeatedly purchase their goods or services and will not be tempted to try something different. When customers demonstrate brand insistence, it does not mean that manufacturers will no longer have to market themselves or advertise. The marketplace is dynamic, ever-changing, and highly competitive. Manufacturers must nurture their customer relationships and communicate with their customers on an ongoing basis in order to preserve their loyalty. Likewise, even when customers are brand insistent, it does not mean that a manufacturer's touch points, or opportunities to interact with customers, can be left to chance. Manufacturers must nurture relationships with even the most loyal customers with just as much passion as they attempt to woo new ones. While most manufacturers would be pleased to have customers select their brand in any kind of research, that is not why they want to develop customers who are brand insistent. The proof of unwavering brand loyalty is in the depth and breadth of the relationships with those customers, which translates into ongoing sales for the manufacturer.SOURCE: PM:021SOURCE: PM LAP 6—It's a Brand, Brand, Brand World! (The Nature of Branding)


2776. A

To calculate gross profit. Gross profit is the money left after the cost of goods expense is subtracted from total income. Cost of goods is the amount of money a supermarket chain pays for the products it sells. The chain needs to determine the final cost of purchasing these products which might include shipping and delivery charges, import taxes, etc. Once a chain has determined the final cost, it subtracts that amount from net sales (income) to calculate gross profit. Supermarket chains do not determine the final cost of purchases to monitor operating expenses, set up a depreciation schedule, or apply for personal loans. SOURCE: PM:193SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 767).


77. C$500,691. When determining the amount of merchandise to purchase, a convenience 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 6% 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, sales will probably increase by 6% so the store will buy 6% more merchandise. To determine the amount of merchandise the store will probably buy next year, multiply last year's sales by 6% and add that amount to last year's sales ($472,350 x 6% or .06 = $28,341; $472,350 + $28,341 = $500,691).SOURCE: PM:261SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 485-


78. ABuy their products. The purpose of a promotional message is to tell consumers about certain goods, services, or ideas and persuade them to buy or form an opinion. A supermarket receives positive feedback about the effectiveness of its promotional message when customers buy its products. Customers might ask specific questions, but they are giving positive feedback only when they buy. A supermarket receives negative feedback if consumers buy from a competitor. When consumers see an advertisement, they are receiving a promotional message rather than giving feedback.SOURCE: PR:001SOURCE: PR LAP 2—Promotion

79. DSales promotion could promote these products successfully. Sales promotion or advertising is adequate promotion for inexpensive, self-service products that customers purchase with very little effort. Although some of these products may be in the declining stage, others may be in the introductory, growth, or maturity stages. Some automobile parts are expensive; however, they usually are not sold in convenience stores. SOURCE: PR:003SOURCE: PR LAP 1—Promotional Mix


2880. C

Bribery. Bribery refers to the activities in which a person engages that are meant to influence the actions of another person. A manager of a supermarket supply company who takes potential customers out for lavish dinners and buys them expensive gifts might be viewed as engaging in bribery because s/he might be attempting to use these activities to obtain new customers. Bribery is often considered unethical business behavior because it creates an unfair advantage in the marketplace. Some, but not all, countries have laws regulating bribery practices. Puffery is the practice of using exaggerated expressions to describe a product or its features (e.g., "the best"). When a person makes accusations or negative comments about another person or entity, it is often called slander. Fraud is a deception purposely carried out to secure unfair or unlawful gain.SOURCE: PR:099SOURCE: Semenik, R.J. (2002). Promotion and integrated marketing communications (pp. 213,

219). Mason, OH: South-Western.

81. BTrade practice. Misleading or deceptive grocery store advertising is considered to be an unfair trade practice because it may have a negative effect on competition. Deceptive advertising may confuse or mislead customers who will be unable to make buying decisions based on fact. When that occurs, the stores using deceptive advertising often have an unfair advantage over competitors who are providing truthful information to customers. A business policy is a general rule or statement the business follows. A sales trend is the direction in which sales are moving. A marketing plan is a set of procedures or strategies for attracting the target customer to a business.SOURCE: PR:101SOURCE: Russell, J.T., & Lane, W.R. (1999). Kleppner's advertising procedure (14th ed.)

[pp. 654-655]. Upper Saddle River, NJ: Prentice Hall.

82. BDirect mail. Direct mail is a promotional medium that comes to consumers' homes in the form of letters, catalogs, postcards, and folders. Each piece of direct mail can be designed to appeal to a particular market and mailed only to members of that market. Newspaper, radio, and television ads are presented to anyone who sees the newspaper or listens to the broadcast message.SOURCE: PR:007SOURCE: PR LAP 3—Ad-quipping Your Business (Types of Promotional Media)

83. BProduct itself. Most supermarket advertisements simply show pictures of available products. Illustrations that focus on specific details of the product, rather than on the product as a whole, are focusing on the product's features. Illustrations of products such as furniture or clothing often show those products in an appropriate setting. A "before and after" illustration is an example of an illustration that shows the benefits of using a product.SOURCE: PR:014SOURCE: PR LAP 7—Parts of Print Ads

84. DFour-color catalog. Direct mail is a form of advertising in which the promotional medium comes to consumers' homes or businesses. A catalog is a booklet that includes graphics, specifications, and information about a business's products. Four-color catalogs are expensive to produce because the pre-press and printing processes are more complex than they are for promotional materials that use one or two colors of ink. Also, catalogs tend to be larger and heavier than sales letters, postcards, and two-color flyers, which increases postage costs.SOURCE: PR:089SOURCE: O'Guinn, T.C., Allen, C.T., & Semenik, R.J. (2003). Advertising and integrated brand

promotion (3rd ed.) [pp. 683-685]. Mason, OH: South-Western.


2985. B

Clean fixtures regularly. Display fixtures and props become dusty over time and should be cleaned regularly in order to keep the display in good condition. Regularly cleaning the fixtures keeps the display looking fresh and new. Fixtures that are dirty or dusty create a negative impression of the goods that are on display and may discourage customers from buying them. Goods that are missing should be replaced immediately rather than occasionally. Lights do not need to be checked daily. Maintaining displays does not involve removing merchandise safely.SOURCE: PR:052SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 393).


86. CTo provide accurate information. One of the main reasons for creating promotional signs is to provide accurate and factual information to customers. Promotional signs attract customers' attention and can help to interest them in the products being offered. The information contained on promotional signs often answers questions that customers may have about the products. Promotional signs serve as silent salespeople; therefore, the information needs to be accurate. Promotional signs are not created to pressure customers to buy or to imitate the competition. Grocery stores do not advertise slow-selling items.SOURCE: PR:109SOURCE: Bell, J., & Ternus, K. (2002). Silent selling: Best practices and effective strategies in

visual merchandising (2nd ed.) [pp. 180-181]. New York: Fairchild.

87. BReach a large audience. Supermarkets know that it is more effective to coordinate a wide variety of promotional activities rather than relying on only one type in order to reach a large audience. Some customers are more influenced by newspaper ads while others pay attention to special events. Coordinating the various types often increases the appeal to a larger audience. Spreading out promotional funds, keeping employees occupied, or maintaining appearances are not purposes of coordinating promotional activities.SOURCE: PR:076SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 367).


88. DIncrease. The more sales a supermarket supply company makes, the more people it will need to produce and sell the products. If sales were to decrease, layoffs would most likely occur. When a business's sales stabilize or remain the same, the company would most likely keep the employees that it has and not increase or decrease its workforce.SOURCE: SE:017SOURCE: SE LAP 117—Sell Away (The Nature and Scope of Selling)

89. DPositive reputation. When salespeople consistently provide excellent customer service, customers are satisfied and are likely to purchase again. Customers are also likely to tell friends, relatives, and colleagues about the business. This word-of-mouth promotion is one way the supermarket supply business can build a positive reputation and increase its customer base. Excellent service does not always improve product quality. Higher commissions are positive outcomes for the salesperson rather than the business. When salespeople provide excellent customer service, the result can provide a business with a competitive advantage over its competitors rather than a disadvantage. SOURCE: SE:076SOURCE: Manning, G.L., & Reece, B.L. (1998). Selling today: Building quality partnerships

(pp. 320-321). Upper Saddle River, NJ: Prentice Hall.


3090. D

Flexibility. Selling policies may be in writing or simply understood by employees. Opinions vary as to whether policies should be put in writing. Those against written policies claim they are too inflexible and restrictive. Some supermarket supply businesses prefer to have unwritten selling policies because of the flexibility that enables them to make frequent changes. Written selling policies tend to be more consistent, regimented, and conforming.SOURCE: SE:932SOURCE: SE LAP 121—Selling Policies

91. ABuild and maintain a clientele. Telephones, faxes, and computers help food-marketing businesses process their sales orders quickly. Because these technological tools increase efficiency, salespeople have more time to call on prospective and existing customers. Sales managers usually set sales standards and goals for sales personnel. Although salespeople may want to monitor some of their competitors' activities, they should focus on building and maintaining a clientele. A salesperson's job does not usually involve developing new products for the food-marketing business.SOURCE: SE:107SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [p. 577]. Mason,

OH: Thomson/South-Western.

92. BConsumer-protection laws. Governments develop consumer-protection laws to reduce the risk of consumer fraud or personal injury by products that businesses sell. Consumer-protection laws address selling activities. For example, if a company's salesperson does not tell a customer about a product's limitations and the customer misuses the product and receives injuries due to the misuse, the customer could sue the company. As a result, the company may experience consumer credibility problems and financial losses. Failure to disclose information about a product during the selling process is not a violation of customer-service regulations, false-labeling policies, or exclusive-dealing statutes.SOURCE: SE:108SOURCE: Greene, C. (2000). Selling: Business 2000 (pp. 104-105). Mason, OH: South-Western.

93. ATo build customer confidence. Prospective customers pay attention to statements from experts in the field who are willing to recommend a product. They feel if the product satisfies the expert, it will satisfy them. The testimonial may not shorten the sales presentation, and that should not be the salesperson's intention. A testimonial ad cannot help to predict what sales of a product will be or prove that it is a better buy than another product. Advertising campaigns do not necessarily guarantee the best buy. Ads should not be used to reduce time spent with the customer. The customer's needs and wants may not be met by this particular product.SOURCE: SE:062SOURCE: Futrell, C.M. (1999). Fundamentals of selling: Customers for life (6th ed.) [p. 176].

Boston: Irwin/McGraw-Hill.

94. DIncreases shrinkage. Cooking a roast for a short time at a high temperature will cause more shrinkage than cooking a roast at a lower temperature for a longer period of time. Shrinkage reduces moisture which reduces the number of portions (by weight) available in the roast.SOURCE: SE:130SOURCE: Mill, R.C. (1998). Restaurant management: Customers, operations, and employees (p.

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


3195. D

Translate the product's features into benefits. Knowing the facts (features) about a 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)

96. AFewer. When the variety of goods and services available is limited, food marketing salespeople should ask fewer questions. Asking too many questions about customers' preferences when the variety is limited could eliminate the salesperson's chances of making a sale. Asking more questions might convince the customers that what they really want is not available. Salespeople should avoid asking complex questions which may be confusing to customers. Salespeople should never ask intimate questions of customers.SOURCE: SE:111SOURCE: SE LAP 114—Questioning

97. ANarrative. This technique involves discussing how the good/service satisfied other customers' needs. With the bonus close, the supermarket supply salesperson offers a gift or bonus with the purchase of the product being presented. When the silence close is used, the salesperson stops talking after covering the features and benefits of a good/service in order to allow the customer time to make a decision. A contingent close depends upon the salesperson's proving a point to the customer to remove obstacles to the sale.SOURCE: SE:895SOURCE: SE LAP 107—Closing Sales

98. APlace heavy items on the bottom. Heavy items should always be placed on the bottom of bags to prevent damaging fragile items, such as eggs and bread, and to provide a foundation for the other groceries. Fragile items should be placed on the top to prevent crushing and breakage. Meat should be bagged separately to prevent leakage onto other foods. Refrigerated products will remain cold longer if they are bagged together.SOURCE: SE:158SOURCE: Foster, G., & Hitchman, C. (2000). Supermarket customer service (pp. 15-16). The

University of Texas-Austin.

99. BNo, the customer owes additional money. This transaction is an example of a merchandise exchange for a higher priced item. Therefore, the customer owes the grocery store the difference between the prices of the two items ($14.95 - $9.99 = $4.96) plus additional tax. Due bills are given to customers when the item they wish to purchase is not in stock. The time limit has not expired since the dryer was returned within three days.SOURCE: SE:162SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 340-



32100. C

Planning is an independent business function. Planning affects all areas of the food marketing business because it lays the groundwork for the other management functions of organizing, staffing, directing, and controlling. Planning can help to prevent mistakes, and it enables employees to see how their efforts fit into the business's overall plan.SOURCE: SM:001SOURCE: BA LAP 6—Manage This!

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lcssdecateam.weebly.comlcssdecateam.weebly.com/uploads/8/6/5/2/8652601/fms… · Web viewSOURCE:Mescon, M.H., Bovee, C.L., & Thill, J.V. (1999). Business today ... This word-of-mouth