exams/… · web viewa. emotion. c. bias. b. feedback. d. conviction. 2. retail employees are...

2007 DECA Ontario Provincials RMSTest 917 RETAIL MERCHANDISING SERIES 1

1. A personal opinion that prevents a person from being a fair and impartial listener isA. emotion. C. bias. B. feedback. D. conviction.

2. Retail employees are more likely to be able to correctly follow directions if those directions are explained inA. technical language. C. excessive detail.B. complex terminology. D. chronological order.

3. Which of the following is not a method department store employees can use to suggest changes to management:A. A written memo or short letter C. A suggestion box B. A talk with the manager D. A discussion with coworkers

4. In order to protect products from damage during shipping, producers should use properA. packaging. C. routing.B. labeling. D. tagging.

5. Which of the following retailers would be most likely to be part of the producer to retailer to consumer channel:A. Small boutique C. Specialty shopB. Large retail chain D. Locally owned pharmacy

6. Using coercive power in distribution channel relationships is illegal in the United States if itA. establishes contracts. C. controls arbitration.B. creates exclusive territories. D. restricts competition.

7. Which of the following is a factor that vendors consider when planning a distribution system that will provide superior customer service to retailers:

A. Location of competitors C. Arrangement of space B. Frequency of delivery D. Level of profitability

8. Which of the following forms of transportation can reach the highest number of locations:A. Airlines C. ShipsB. Railroads D. Motor carriers

9. A method of stocking in which older merchandise is brought to the front of the shelf or to the top of a stack of merchandise is called

A. stock shuffling. C. basic stock listing.B. first in, first out. D. stockkeeping.

10. Why is it important for retailers that sell perishable food items to store those goods in refrigerated cases?A. To avoid cross-contamination C. To eliminate shopliftingB. To prevent bacterial growth D. To provide adequate security

11. The two basic types of inventory control systems areA. progressive and periodic. C. dollar and unit.B. sales check and ticket price. D. markdown and markup.

12. Some businesses use tickler control to help maintain the unit inventory system by reminding the business to count part of the stock at

A. the close of business. C. regular intervals. B. the end of the year. D. a specific time of day.

13. Small retailers often maintain accurate unit inventory control records by obtaining information from eachA. delivery form. C. want slip. B. purchase order. D. sales check.

14. Why is it important for furniture stores to coordinate distribution with other marketing activities?A. To provide customer service C. To plan warehouse spaceB. To arrange transportation D. To manage inventory levels

2007 DECA Ontario Provincials RMSTest 917 RETAIL MERCHANDISING SERIES 215. Which of the following is the best example of negative horizontal conflict among members in a distribution channel:

A. An automobile manufacturer provides its authorized dealers with rebate programs.B. A restaurant franchisee uses unauthorized food suppliers that compromise brand integrity.C. A retail business awards a construction contract to the company with the lowest bid.D. A new electronics manufacturer engages in direct distribution strategies.

16. Producers respond to consumers' changing economic wants byA. increasing or decreasing production. C. satisfying their own wants.B. keeping records of what sells. D. hiring a consulting firm.

17. What kind of utility is being created when a producer makes clothing from fabric?A. Time C. PlaceB. Form D. Possession

18. The primary role of management in relation to the other business activities is that managementA. performs the actual work of the business.B. oversees all of the other business activities.C. is only responsible for planning and organizing.D. is the connecting link between producers and consumers.

19. Legal protection of books and other artistic works granted by the government to their creators is known as aA. copyright. C. license.B. patent. D. trademark.

20. What is the economic condition in which there is only one supplier of a certain good or service and no competing products exist?

A. Price discrimination C. False advertisingB. Inflation D. Monopoly

21. When the United States sells its products to the government of a country in Europe, the United States is engaged inA. illegal trade. C. exporting. B. importing. D. domestic trade.

22. A desirable personal trait is self-confidence, which can be defined asA. belief in oneself. C. freedom from fear.B. self-consciousness. D. dependence.

23. By changing your attitude, you can change yourA. talents. C. life.B. aptitudes. D. friends.

24. If a large outlet mall allows its employees to dispose of contaminated water by pouring it into a nearby stream, the mall might face possible

A. government intervention. C. management support.B. industry recognition. D. trade restrictions.

25. In order to be considered a person with initiative, you mustA. cooperate with those who have initiative. C. demonstrate initiative on a regular basis.B. practice initiative from time to time. D. tell people that you have initiative.

26. It is good to feel empathy, but empathy is more beneficial to others if you know how to __________ it.A. demonstrate C. describeB. define D. demand

27. Which of the following types of behavior tries to improve the general quality of relationships:A. Negative C. Aggressive B. Assertive D. Independent

2007 DECA Ontario Provincials RMSTest 917 RETAIL MERCHANDISING SERIES 328. Susan, the supervisor of 12 buyers for a department store, is an authoritarian leader. Which of the following

employees is most likely to function well under her supervision:A. Frank, who is self-confident, self-disciplined, and assertive.B. Annette, who is creative, interested, and enthusiastic.C. William, who is creative, empathetic, and shows initiative.D. Sally, who is patient, accepting, and cooperative.

29. Who usually has the major responsibility for explaining an appliance store's policies to customers?A. Employees C. OwnersB. Managers D. Directors

30. What should salespeople avoid doing when handling customer complaints?A. Arguing politely C. Discussing the problemB. Listening carefully D. Empathizing with the customer

31. What is a music store's total net worth if its balance sheet lists $2,050 in cash, $500 in accounts receivable, $700 worth of fixed assets, and $1,750 in long-term liabilities?

A. $1,000 C. $2,250B. $1,500 D. $2,750

32. How much sales tax has a hardware store collected from customers if its gross sales are $50,825.00, the store made no tax exempt sales, and the sales tax rate is 5.5%?

A. $2,795.38 C. $2,779.04B. $2,765.40 D. $2,541.25

33. To ensure that bank deposits are properly credited to a small fashion boutique's account, an employee should complete a

A. check stub. C. deposit slip. B. signature card. D. withdrawal record.

34. Marketing information obtained from trade publications for use by a retailer is consideredA. primary data. C. a trademark.B. secondary data. D. internal information.

35. Which of the following is a technique for gathering information about competitors that might be unethical if the retailer exceeds accepted practices:

A. Telephone surveys C. Data miningB. Corporate espionage D. Behavior observation

36. Which of the following capabilities of the Internet do department stores often use to quickly and inexpensively locate marketing information:

A. Download C. Catalog B. Search D. Display

37. Before introducing a product to the marketplace, an appliance manufacturer might monitor its competitors' ___________ strategies.

A. auditing C. pricing B. scheduling D. training

38. One reason why it is important for marketing research to be objective is so thatA. researchers can guide consumers' responses. B. researchers can express their own opinions. C. the data gathered cannot be used to benefit other businesses. D. the data gathered are not influenced by researchers' opinions.

39. A retailer's marketing strategy is important because it shows how itsA. goal will be reached. C. tactics will be organized. B. prices will be lowered. D. marketing mix will be blended.

2007 DECA Ontario Provincials RMSTest 917 RETAIL MERCHANDISING SERIES 440. An overall purpose of market segmentation is to divide the market

A. into consumer or industrial markets. C. into well-defined groups of consumers.B. by distance from store or producer. D. by consumer or industry income.

41. Which of the following is an example of an internal change that could affect a home improvement store's sales forecast:

A. A new product line is to be offered by the store. B. The birth rate increased following the Iraq war. C. A direct competitor is planning a new promotional campaign.D. The economy is struggling with a major drop in stock market prices.

42. Why do retailers and e-tailers invest money in merchandise?A. To make a profitable resale B. To show customers they are financially stable C. To get a tax break D. To receive dividends

43. Bob's Emporium receives shipments each week from a regional warehouse that stores and ships merchandise on trucks and by rail. The handling and shipping of this merchandise is part of the marketing function of

A. promotion. C. planning.B. pricing. D. distribution.

44. The interrelated activities involved in getting products from producers to consumers are known as marketingA. concepts. C. functions.B. research. D. strategies.

45. Discount stores maintain information about employees' salaries and their performance on the job in __________ records.

A. procedural C. legalB. financial D. personnel

46. Large retailers often use presentation software to develop computerized training materials that contain interactive buttons, which allow employees to

A. study together. C. access databases.B. test themselves. D. conduct research.

47. In which of the following situations would a furniture store use a spreadsheet software program to calculate the effect that one change will have on its financial status:

A. Operating profit is 15% of total sales.B. Interest rate is expected to decrease by 1/2%.C. Average employee earns $30,000 per year.D. Fixed expenses are $58,500 per month.

48. A specialty shop selling to an exclusive clientele probably would select vendors who are able to supply which of the following type of goods:

A. Discount C. GenericB. Staple D. Quality

49. Which of the following is not a question retailers should ask when evaluating the performance of a vendor:A. Does the vendor fill reorders promptly? B. Does the vendor consistently fulfill its written promises? C. Does the vendor provide references? D. Does the vendor provide quality merchandise at a low price?

50. What factors must retailers first consider when determining what merchandise to buy for stock?A. Product color and product brand C. Target market and quantity requirementsB. Product quality and target market D. Quantity requirements and product quality

2007 DECA Ontario Provincials RMSTest 917 RETAIL MERCHANDISING SERIES 551. Lately, Tim has been given more and more responsibility at work. He feels that he isn't able to get one job done

before his boss gives him more to do. The pressure that he is feeling is calledA. anger. B. horseplay. C. stress. D. fatigue.

52. One way that employees can help to reduce shoplifting is toA. follow customers around the business. C. search customers as they leave the business.B. keep a watchful eye on customers. D. ask to inspect all bags customers may be

carrying.

53. What production activity evaluates products to make sure that the products the toy manufacturer produces meet certain quality standards?

A. Follow-up B. Automation C. Form utility D. Standardization

54. Why do bookstores feel it is important to maintain accurate accounting records?A. To monitor financial status C. To develop inventory controlB. To prepare purchase orders D. To review employee performance

55. Which of the following employees do retailers often expect to perform some routine housekeeping tasks:A. Managers C. Salespeople B. Consultants D. Security staff

56. Which of the following is a ground rule for brainstorming:A. Some ideas are better than others. C. Don't expand on ideas of others.B. All ideas are welcome. D. There is no time limit.

57. Employees' creative suggestions often result in changes that increase ___________ and reduce expenses.A. efficiency B. conflict C. losses D. costs

58. Many teenagers begin searching for their first jobs by contactingA. neighborhood businesses. C. national corporations.B. employment agencies. D. community training programs.

59. What is one of the benefits of sending an interview follow-up letter?A. Reminds the interviewer of the applicant C. Allows the applicant to include a resume B. Lets the applicant submit test scores D. Provides the interviewer with references

60. What is a factor that many retail chains consider when promoting employees?A. Seniority B. Compensation C. Favoritism D. Arbitration

61. Members of the American Vocational Association can receive an insurance discount as a benefit for membership in the organization. This is an example of which of the following categories of benefits:

A. Expanded business contacts C. Establishment of standardsB. Sales promotion events D. Group services

62. In merchandising, projections of expected retail sales over a given period of time are known asA. basic stock lists. B. forecasts. C. product life cycles. D. assortments.

63. What pricing strategy would be most effective for an antique shop that wants to create an image of very good quality and prestige?

A. Moderate B. Wholesale C. High D. Discount

64. What is one way that retailers often use spreadsheet software programs when deciding prices to charge for certain products?

A. To print price tickets C. To prepare financial reports B. To analyze various possibilities D. To organize customer lists

2007 DECA Ontario Provincials RMSTest 917 RETAIL MERCHANDISING SERIES 665. A law is established to ensure that retailers include pricing terms in their advertisements. The law is designed to

discourage retailers from practicing __________ pricing strategies.A. compliant B. inequitable C. elastic D. deceptive

66. The reason that some business expenses are referred to as variable costs is because theyA. are determined by depreciation. C. remain constant over time.B. are based on individual products. D. change with changes in sales volume.

67. Which of the following is a decision a toy manufacturer might make during the decline stage of the product life cycle:A. Whether to change the product C. How to fend off the competitionB. How to increase awareness of the product D. What production schedule to follow

68. Which of the following is not a reason for revising standards:A. To cut costs and increase profits C. To consider new methods and materialsB. To respond to technological evolution D. To upgrade quality and safety requirements

69. Liz Intel Company is a manufacturer of women's cosmetics and fragrances. The company is an industry leader and distributes its products nationally and internationally. In Europe, the company had great success with using a special tree bark extract in a new perfume. When the product was introduced in the United States, the name of the tree bark was not included on the label or brochures. Which law did Liz Intel Company violate?

A. Federal Food, Drug, and Cosmetic Act C. Magnuson-Moss Warranty ActB. Fair Packaging and Labeling Act D. Consumer Product Safety Act

70. If a retailer's product lines are closely related in terms of the products' target market, the product mix is said to beA. narrow. B. shallow. C. short. D. consistent.

71. For a single price, a department store sells entertainment systems, trains people to use the systems, and arranges for the delivery of the systems. This is an example of

A. captive pricing. C. product bundling. B. brand positioning. D. personal selling.

72. If a specific consumer market wants a snowblower that is easy to assemble and operate, a manufacturer might position the item on the basis of product

A. quality. B. price. C. value. D. benefits.

73. One of the biggest misconceptions about brands is that they areA. names and logos only. C. only for small companies and start-ups.B. meaningless to consumers. D. not that important to the companies who "own" them.

74. An estimate of a department's or a store's total sales for a future period of time is included in aA. merchandising budget. C. balance sheet. B. credit rating. D. profit-and-loss statement.

75. Which of the following is the most important factor that a retailer considers when planning what type and style of stock to buy for resale:

A. Competitive edge C. Timely deliveryB. Customer satisfaction D. Low price

76. External factors that affect a department store's promotional decisions includeA. distribution and technology. C. competition and technology. B. environment, product, and price. D. product, social trends, and demand.

77. Which of the following is not a form of promotion:A. Branding B. Personal selling C. Coupons D. Visual merchandising

78. Retail establishments often encounter ethical problems when deciding how to promoteA. social causes. B. legitimate services C. staple goods. D. controversial products.

2007 DECA Ontario Provincials RMSTest 917 RETAIL MERCHANDISING SERIES 779. An advantage in using the Internet to promote products is that a hardware store can usually

A. create a loyal customer base. B. increase annual sales volume by ten percent. C. reduce traditional publicity efforts. D. track the users' viewing and purchasing habits.

80. The print medium that reaches people who have common personal interests or lifestyles is aA. professional journal. C. trade journal.B. business magazine. D. consumer magazine.

81. What can a customer database tell a gift shop owner?A. How many marketing packages to send to customersB. Where to find new customersC. Who the customers are and which products they have purchasedD. What new products to develop

82. Using the same shape, color, or texture over and over in a display is a technique calledA. repetition. B. scale. C. harmony. D. contrast.

83. When dismantling a display, what should you do with the merchandise you remove?A. Leave it next to the display to be collected by the department managers.B. Return it to the display manager's office.C. Place it in a stockroom so the department managers can retrieve it.D. Return it to the appropriate departments.

84. A retailer creates inexpensive signs to insert in holders that attach to merchandise racks. These signs are most often used to

A. promote short-term sales. C. create a particular mood or atmosphere.B. direct customers to merchandise. D. attract attention to long-term displays.

85. Which of the following types of merchandise would be effectively displayed in a shadow box:A. Rings or necklaces C. CosmeticsB. Clothing D. Children's toys

86. Which of the following is the best example of a point-of-sale assortment display:A. A cardboard cutout of Uncle Sam and red, white, and blue star-shaped sunglasses B. A dump bin that contains one type of individual-sized snack cakeC. Apples, fruit dip, and pie crust arranged in an appealing mannerD. A rack of the latest magazines and best-selling books

87. The guidelines that floral shops set up to help them use communication in order to achieve their marketing goals are known as

A. promotional plans. C. fiscal policies. B. advertising campaigns. D. distribution processes.

88. Which of the following promotional activities should be coordinated with a department store's advertising:A. Special events B. Market trips C. Trade shows D. Customer services

89. Increased sales help retailers make a profit that often enables them toA. organize. B. plan. C. manage. D. expand.

90. A salesperson contacts several people within one retail chain on a regular basis to discuss their special needs and introduce other products. This service method used to maximize sales is called

A. account penetration. C. account retention.B. sales supplementation. D. sales infiltration.

2007 DECA Ontario Provincials RMSTest 917 RETAIL MERCHANDISING SERIES 891. Which of the following is a factor that affects selling policies over which a furniture manufacturer has no control:

A. Availability of raw materials C. Quality of suppliersB. Price of goods/services D. Number of employees

92. A salesperson leaving one retail supply company and taking valuable information about customers to another retail supply company may be guilty of

A. breaking a contract. C. offering bribes.B. unethical behavior. D. misusing assets.

93. Salespeople who promise their customers that profits will increase by a certain amount if they buy a specific surveillance camera for the store may be guilty of

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

94. As a new employee in a large appliance store, Rick feels he needs to know more about the products he sells than his initial training provided. Rick should

A. ask his manager or the buyer for help in acquiring this knowledge.B. complain to his manager that he didn't get enough training.C. realize that eventually he will gain this knowledge through experience.D. ask another new employee what s/he remembers from the training session.

95. What is the best method for a home improvement store salesperson to use in determining which features and benefits of a product are important to individual customers?

A. Distribute surveys to past buyers and evaluate their responsesB. Ask appropriate questions and listen to each customerC. Provide brochures and feature-benefit literature to prospectsD. Explain the product's hidden benefits and evaluate customer response

96. Which of the following is a benefit to a store of selling brand-name merchandise:A. Limited availability C. Variable qualityB. National advertising D. Simple packaging

97. A retail salesperson offers assistance to the customer when using the __________ approach.A. service B. greeting C. shopping D. merchandise

98. Which of the following statements would be least effective in the closing of a sale:A. "The product includes a warranty." C. "We accept all major forms of payment."B. "Let us know if you happen to like this." D. "I know you will like this."

99. How should currency be placed in the cash drawer?A. Largest denomination at the right C. Portraits facing the same direction B. Smallest denomination at the left D. Portrait side down

100. Mary buys only one item from a bin of items marked 3 for $5.00. What amount would appear on her sales check for this item before tax?

A. $1.66 B. $1.67 C. $1.50 D. $1.80

2007 DECA Ontario Provincials RMSTest 917 RETAIL MERCHANDISING SERIES

9

Test 917 RETAIL MERCHANDISING (ASSOCIATE LEVEL) — KEY 10

1. CBias. Bias is prejudice or partiality that influences a person's perceptions. It is a major block to effective listening because it affects the way the listener hears what the speaker is trying to say. Feedback is the response received from another person. Emotion is feeling, and conviction is a firm belief in something.SOURCE: CO:017SOURCE: Adler, R.B., & Elmhorst, J.M. (1999). Communicating at work: Principles and practices for

business and the professions (6th ed.) [pp. 107-109]. Boston: McGraw-Hill College.

2. DChronological order. When assigning jobs or tasks to retail employees, managers need to provide employees with precise, easy-to-follow directions. Often, these directions involve performing tasks that need to be completed in a certain order. Then, the directions should be explained in chronological order so the employees will be able to follow them correctly. For example, employees need to know that steps one and two must be completed before step three. If directions are given out of chronological order, employees might not understand or be able to perform as expected. Directions that are explained in complex terminology, in excessive detail, or in technical language may be difficult for employees to understand and follow.SOURCE: CO:119SOURCE: Hyden, J.S., Jordan, A.K., Steinauer, M.H., & Jones, M.J. (1999). Communicating for

success (2nd ed.) [p.11]. Cincinnati: South-Western Educational.

3. DA discussion with coworkers. This approach would communicate the suggested changes to department store workers on the same level. The suggestion would either not reach management or a coworker could communicate the suggestion to management and receive credit for it. Many companies have suggestion boxes so that their employees can offer ideas for improvement. A memo or short letter to management works very well and should be followed with a verbal request for feedback. The direct approach of speaking with the manager is appropriate in many situations.SOURCE: CO:014SOURCE: Locker, K.O. (2000). Business and administrative communication (5th ed.) [pp. 634-637].

Boston: Irwin/McGraw-Hill.

4. APackaging. Packaging protects the product during shipping and makes it easier to ship and to store. Packaging also provides the product with customer appeal. Labeling or tagging products is necessary for identification but does not protect them in shipping. Routing is the path the product takes during shipping.SOURCE: DS:001SOURCE: DS LAP 1—Distribution

5. BLarge retail chain. Large department stores and retail chains are among those who usually deal directly with producers. When it is not possible for a producer to reach a large number of consumers on a direct basis, retailers can provide wide distribution of products to consumers at lower costs than producers can on a direct basis. All of the other alternatives are businesses that would buy from intermediaries because their orders would be too small for direct purchase from the producers.SOURCE: DS:055SOURCE: MB LAP 3—Channels of Distribution

6. DRestricts competition. The Sherman Act of 1890 and the Clayton Act of 1914 were drafted to prohibit monopolistic practices that encouraged anticompetitive activities. If coercive power is used to substantially reduce competition, it is in violation of federal or state antitrust laws. Exclusive territories are legal under certain circumstances. Arbitration and contracts are legal.SOURCE: DS:058SOURCE: Bearden, W.O., Ingram, T.N., LaForge, R.W. (2001). Marketing: Principles and perspectives

(3rd ed.) [pp. 38-39, 310-312]. New York: Irwin/McGraw-Hill.


7. BFrequency of delivery. Vendors plan distribution systems that will provide superior customer service to retailers in order to remain competitive. One factor that they consider is the frequency of delivery. Vendors want to make sure that their customers receive orders in a timely manner and when they are needed. Delivering too frequently may result in an overstock situation for customers, whereas infrequent deliveries may cause the customer to run out of needed goods. Vendors want to deliver goods at the most opportune time for customers in order to keep them from buying from competitors. The location of competitors, the arrangement of space, and the level of profitability are not factors that vendors consider when planning distribution systems that will provide superior customer service.SOURCE: DS:029SOURCE: Evans, J.R., & Berman, B. (1997). Marketing (7th ed.) [pp. 430-431]. Upper Saddle River,

NJ: Prentice Hall.

8. DMotor carriers. Motor carriers can go anywhere a road exists. Railroads are limited by the location of rails. Freight-hauling airlines are limited to larger airports. Ships are limited to water passages.SOURCE: DS:044SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)

[pp. 395-399]. Woodland Hills, CA: Glencoe/McGraw-Hill.

9. BFirst in, first out. When shelves are restocked, the stock should be rotated. The use of FIFO is important because older stock left on the shelf may become shopworn or stale, causing the goods to become difficult to sell, which may result in a loss for the store. Stock should not be shuffled but systematically rotated. Stock listing helps a buyer avoid rush orders or running out of stock. Efficient stockkeeping helps eliminate damage due to handling and storage.SOURCE: DS:015SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)

[p. 392]. Upper Saddle River, NJ: Prentice Hall.

10. BTo prevent bacterial growth. Perishable food items, such as dairy products, need to be stored in refrigerated cases in order to prevent the growth of harmful bacteria. If these items are not stored properly, bacteria may grow and spoil the items. If the items spoil, stores cannot sell them because the products might cause customers to become ill. Stores avoid cross-contamination by storing different types of products in separate areas. For example, cleaning supplies and food products would not be stored together. Storing perishable food items in refrigerated cases does not necessarily eliminate shoplifting or provide adequate security.SOURCE: DS:087SOURCE: Ninemeier, J.D. (2000). Management of food and beverage operations (3rd ed.)

[pp. 256-258]. Weimar, TX: Culinary and Hospitality Industry Publications Services.

11. CDollar and unit. Businesses can choose dollar or unit control methods of tracking inventory. A dollar control inventory system tracks inventory according to the dollar value of the stock. A unit-control system tracks inventory according to the number of physical units of stock. Markdown and markup are methods of adjusting prices. Either dollar or unit inventory can be calculated on a periodic basis. Sales check, ticket price, and progressive are not methods of inventory control.SOURCE: DS:019SOURCE: DS LAP 2—Inventory Control Systems


12. CRegular intervals. A tickler file reminds the business when it is time to count certain parts of stock. The stock is counted in sections on a rotating basis and the count provides data for reordering goods. The tickler system counts on a regular basis, not just at the end of the year. Counting stock at the close of business each day would be unrealistic because of the amount of time and the costs involved. The time of day is irrelevant.SOURCE: DS:022SOURCE: DS LAP 3—Unit Inventory Control Systems

13. DSales check. Sales checks usually contain information about the size, style, type, price, etc., of the items purchased. Small retailers often use this information to delete items from the unit inventory control records. Most small retailers adjust their inventory records on a regular basis, preferably daily, in order to maintain an accurate accounting of the goods on hand and of what should be reordered. Want slips are customers' requests for items that are not in stock. A purchase order is the form that a retailer fills out to order goods. A delivery form accompanies a shipment and is signed by the purchasing company to acknowledge receipt of the goods.SOURCE: DS:091SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


14. ATo provide customer service. Distribution and marketing activities are closely related because goods must be available when and where customers want them. If furniture stores do not have the goods in stock, customers cannot buy. Stores are only able to serve customers when they have the advertised items on hand and at the right price. Arranging transportation, planning warehouse space, and managing inventory levels are types of distribution activities that should be coordinated with marketing activities to provide customer service.SOURCE: DS:048SOURCE: Evans, J.R., & Berman, B. (1997). Marketing (7th ed.) [pp. 430-431]. Upper Saddle River,

NJ: Prentice Hall.

15. BA restaurant franchisee uses unauthorized food suppliers that compromise brand integrity. Horizontal conflict is defined as disagreement among channel members that perform distribution activities at the same level. For example, restaurant franchisees must follow the rules that the parent company (franchisor) establishes in the franchise agreement. Using unauthorized suppliers is not only a breach of contract, but is compromising brand integrity by using products that the franchisor might consider below standard. This can create conflict among other franchisees who are following the rules. Direct distribution is the channel of distribution in which goods and services move directly from the producer to the consumer or industrial user. Since the manufacturer is a new company, it is not creating conflict by engaging in direct distribution since it has not established a dealership arrangement. A manufacturer that provides authorized dealers with rebate programs does not necessarily create conflict among its dealers. Soliciting bids and awarding contracts are common business practices and can create normal economic competition.SOURCE: DS:049SOURCE: Armstrong, G., & Kotler, P. (2000). Marketing: An introduction (5th ed.) [pp. 333-335].

Upper Saddle River, NJ: Prentice Hall.


16. AIncreasing or decreasing production. Successful producers devote a great deal of time and money to finding out exactly what consumers want. They know that their success depends on keeping careful records of what sells and what doesn't so that they can focus on satisfying the economic wants of consumers rather than their own wants. If a certain product is not wanted by consumers, its production will be cut back or stopped; however, if the item is popular, its production will be increased. A producer might hire a consulting firm to identify consumers' changing economic wants in order to respond to those wants.SOURCE: EC:002SOURCE: EC LAP 10—Goods and Services

17. BForm. Form utility is usefulness created by altering or changing the form or shape of a good to make it more useful to the consumer. The producer of clothing creates form utility by making lengths of fabric into clothing that consumers can buy and wear. Time utility is usefulness created when products are made available at the time they are needed or wanted by consumers. Possession utility is usefulness created when ownership of a product is transferred from the seller to the user. Place utility is usefulness created by making sure that goods or services are available at the place where they are needed or wanted by consumers.SOURCE: EC:004SOURCE: EC LAP 13—Use It (Utility)

18. BOversees all of the other business activities. Management coordinates the business's resources so that others can carry out the work. Managers do not perform the actual work of the business, but they see to it that others do. In addition to being responsible for planning and organizing, management is also responsible for staffing, directing, and controlling. Marketing is the business activity that provides the connecting link between producers and consumers.SOURCE: EC:071SOURCE: MB LAP 10—Business Activities

19. ACopyright. This is one way in which government protects business property. A trademark is a symbol, design, or word used by a business to identify a good or service. A license is official permission to do or own a specified thing. A patent is legal protection of an invention or process granted by the government to its owners for a certain number of years.SOURCE: EC:008SOURCE: EC LAP 16—Government and Business

20. DMonopoly. A monopoly exists when there is only one source for a given product and no substitute products are readily available. In these situations, the seller can control the price of that product. Price discrimination occurs when a manufacturer sets different prices for different customers who are buying the same goods. False advertising is any form of advertising that is misleading. Inflation occurs when an inadequate supply of goods/services causes prices to rise rapidly.SOURCE: EC:012SOURCE: EC LAP 8—Ready, Set, Compete! (Competition)

21. CExporting. Exporting is the selling of goods and services produced in one country to the individuals, manufacturers, or governments of another. This is a legal form of trade referred to as international trade. Domestic trade is the buying and selling of goods within a country. Importing occurs when goods or services are brought into a country from other nations.SOURCE: EC:016SOURCE: EC LAP 4—Beyond US (International Trade)


22. ABelief in oneself. People who have self-confidence believe in themselves, and this is a desirable personal trait because it is essential to personal success. Few people achieve freedom from fear although they can develop courage in order to overcome their fear. Dependence is the need for support. Self-consciousness is preoccupation with one's self.SOURCE: EI:018SOURCE: HR LAP 10—Personal Traits

23. CLife. Your personal image, your relationships with others, and your life in general can be changed by changing the way you look at things. This is especially noticeable in people who change from negative to positive attitudes. Changing your outlook will not, however, change other people or change your aptitudes or talents.SOURCE: EI:019SOURCE: HR LAP 11—Positive Attitude

24. AGovernment intervention. Sometimes, businesses such as outlet malls allow their employees to take actions that result in public pressure for government intervention. Polluting the environment is an action that might force the government to intervene and impose regulations to control what a business is permitted to do. Government intervention may result in guidelines that make it more difficult and costly to do business. Trade restrictions limit the quantity of goods that can move into or out of a country. Industry probably would condemn, rather than recognize, a business that contributed to environmental pollution. If a business allows its employees to pollute, it has the support of management.SOURCE: EI:004SOURCE: EI LAP 4—Work Right (Ethical Work Habits)

25. CDemonstrate initiative on a regular basis. Initiative is a personal characteristic expressed by a consistent pattern of behavior. In order to be viewed as a person with initiative, you must demonstrate that quality regularly over a period of time. Telling people that you have initiative, practicing initiative from time to time, or cooperating with those who have initiative would not be sufficient.SOURCE: EI:024SOURCE: HR LAP 14—Initiative

26. ADemonstrate. Feeling empathy may make you feel good about yourself but will not benefit anyone else unless you know how to demonstrate it. Some ways you can do that include listening to others, making regular contact with those around you, using tact, responding empathetically, sharing experiences, and showing support. Empathy must be voluntary and cannot be demanded. Defining or describing empathy may make it understandable but will not benefit others.SOURCE: EI:030SOURCE: HR LAP 17—Empathy

27. BAssertive. Assertive behavior is characterized by a willingness to stand up for one's own rights while showing respect for the rights of others. The goals of assertive behavior include improving the general quality of relationships, self-esteem, mutual respect and understanding, and cooperation. Aggressive behavior is characterized by a willingness to ignore the rights of others and to exploit others in order to achieve personal goals. Aggressive behavior is one kind of negative behavior. Independent behavior is characterized by the tendency to make decisions without consulting others.SOURCE: EI:008SOURCE: HR LAP 16—Assertiveness


28. DSally, who is patient, accepting, and cooperative. She should function successfully under an authoritarian leader. Authoritarian leaders exercise a high degree of control over their subordinates. Annette, who is creative, interested, and enthusiastic, should function best under a democratic leader. Frank, who is self-confident, self-disciplined, and assertive should function best under a laissez-faire leader. William, who is creative, empathetic, and shows initiative should function best under a democratic leader.SOURCE: EI:037SOURCE: HR LAP 9—Positive Working Relationships

29. AEmployees. Employees usually explain business policies to customers because they meet with customers on a daily basis and are the first contact customers have with the business. Managers, owners, and directors usually do not deal with customers on a regular basis.SOURCE: EI:042SOURCE: HR LAP 25—Interpreting Business Policies

30. AArguing politely. Salespeople should never argue with the customer, not even in a polite manner. Allowing the person to express dissatisfaction will place the customer in a positive frame of mind. Therefore, you need to listen carefully, empathize with the customer's problem, and discuss the problem and possible solutions.SOURCE: EI:043SOURCE: HR LAP 23—Handling Customer Complaints

31. B$1,500. A music store's balance sheet is a financial statement that captures the financial condition of the store at that particular moment. A balance sheet includes a store's assets, liabilities, and net worth. To calculate net worth, first determine total assets by adding cash, accounts receivable, and value of fixed assets ($2,050 + $500 + $700 = $3,250). Subtract long-term liabilities from total assets to calculate net worth ($3,250 - $1,750 = $1,500).SOURCE: FI:085SOURCE: FI LAP 5—Show Me the Money (Nature of Accounting)

32. A$2,795.38. To calculate the amount of sales tax the hardware store has collected and must pay to the government, multiply gross sales by the sales tax rate ($50,825.00 x 5.5% or .055 = $2,795.375 rounded up to $2,795.38).SOURCE: FI:090SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 339-340). New

York: Glencoe/McGraw-Hill.

33. CDeposit slip. A deposit slip is a form on which the bank customer lists the amount of cash and checks being deposited. The slips are usually preprinted with the customer's name and account number. These slips are used to ensure the deposit is credited to the correct account. Employees do not complete signature cards, check stubs, or withdrawal records when making bank deposits.SOURCE: FI:298SOURCE: Eggland, S.A., Dlabay, L.R., Burrow, J.L., & Ristau, R.A. (2000). Intro to Business (4th ed.)

[p. 357]. South-Western Educational Publishing.

34. BSecondary data. Secondary data are information that has been collected for a purpose other than the project at hand. Primary data are collected specifically for the problem or project at hand. A trademark is a symbol, design, or word used to identify a good or service and often registered with the government to prevent its use by others. Internal information is data obtained from sources within the business.SOURCE: IM:001SOURCE: IM LAP 2—Marketing-Information Management


35. BCorporate espionage. The practice of collecting information about competitors is known as corporate espionage. The majority of businesses, such as retailers, participate in corporate espionage to some extent. In most cases, it involves analyzing readily available information to try to determine a competitor's marketing strategies or plans for a new product. However, in some situations the practice can be unethical if businesses go beyond accepted practices to obtain information that is private. For example, sifting through a competitor's trash to find secret documents is a form of corporate espionage that is usually considered unethical. Telephone surveys and behavior observation are accepted methods of obtaining information about customers. Data mining involves searching customer databases to identify trends.SOURCE: IM:025SOURCE: Boone, L.E., & Kurtz, D.L. (2002). Contemporary marketing (p. 197). Mason, OH:

South-Western.

36. BSearch. Department stores often use the search capabilities of the Internet to look for marketing information that would take a long time to find using conventional research techniques. The technology that makes the Internet possible allows stores to quickly and inexpensively search for information throughout the world. Searching online is much faster and less expensive than conducting library research because the computer is able to locate large amounts of specific information in a matter of seconds. Once a store locates useful marketing information online, it can download the information to a disk and print hard copies. Various online search sites catalog web pages based on content. However, that is not a function that stores use to quickly and inexpensively locate marketing information. Search engines display the results of a search, but that is not a way to locate information. SOURCE: IM:183SOURCE: Hair, J.F., Jr., Bush, R.P., & Ortinau, D.J. (2000). Marketing research: A practical approach

for the new millennium (pp. 120-124). Boston: Irwin/McGraw-Hill.

37. CPricing. When conducting marketing research, appliance manufacturers often gather information about their competitors. Manufacturers often monitor the prices of their competitors' similar products to make marketing decisions for their own products. A manufacturer might monitor its competitors' scheduling, auditing, and training methodology; however, this information might be more difficult to obtain and use in relation to the introduction of a product.SOURCE: IM:184SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 508].

Woodland Hills, CA: Glencoe/McGraw-Hill.

38. DThe data gathered are not influenced by researchers' opinions. Researchers must be very careful not to express their own opinions or try to influence consumers' responses because that would influence the responses, and the data collected would not be objective. Objective data give the business valid information to use in decision making. Marketing-research companies often gather data for a variety of businesses, but that is not a reason why the research should be objective.SOURCE: IM:010SOURCE: IM LAP 5—Nature of Marketing Research

39. AGoal will be reached. Although the marketing strategy may involve lowering prices or organizing the tactics, a retailer's strategy is important because it shows how its goal will be reached. The marketing mix is blended after the marketing strategy is selected.SOURCE: IM:194SOURCE: IM LAP 7—Pick the Mix (Marketing Strategies)


40. CInto well-defined groups of consumers. Segmenting the market enables the business to know as much as possible about customers or potential customers, which helps the business to market its products effectively. This is the overall purpose of market segmentation. Dividing the market by consumers' incomes or their locations is an aspect of market segmentation. Consumer markets are composed of individuals who purchase goods or services to satisfy their personal desires. Industrial markets are composed of businesses which purchase items for use in the operation of the business, for resale, or for making other goods.SOURCE: IM:196SOURCE: IM LAP 9—Have We Met? (Market Identification)

41. AA new product line is to be offered by the store. Internal changes are circumstances within the home improvement store. They include changes in personnel, promotion, pricing, product lines, distribution processes, and marketing strategies. The store has control over internal changes and can adapt its sales forecast accordingly. External changes occur outside the store, and stores have no control over these changes. Competitors' actions, population changes, and economic changes are examples of external factors that can affect sales forecasts.SOURCE: IM:003SOURCE: IM LAP 3—Nature of Sales Forecasts

42. ATo make a profitable resale. Retailers and e-tailers invest money in merchandise so they can make a profitable resale to customers. The merchandise is an investment because the better the merchandise, the bigger the potential profits. Retailers and e-tailers do not need to invest money in merchandise to show customers they are financially stable, to get tax breaks, or to receive dividends.SOURCE: MK:004SOURCE: Holliday, A. (2006). Understanding field marketing. Retrieved October 10, 2006, from

http://www.marketresearchworld.net/index.php?option=com_content&task=view&id=248&Itemid=42

43. DDistribution. Distribution involves moving, storing, locating, and/or transferring ownership of goods and services. Pricing involves determining and adjusting prices to maximize return and meet customers' perceptions of value. Planning is the first step in the management process, involving deciding what will be done and how it will be accomplished. Promotion involves communicating information about goods, services, images, and/or ideas to achieve a desired outcome.SOURCE: MK:001SOURCE: BA LAP 11—Have It Your Way (Marketing)

44. CFunctions. Marketing functions include purchasing, pricing, selling, promoting, and distributing. Marketing research is part of the marketing function of marketing-information management. The marketing concept is a philosophy of conducting business that is based on the belief that all business activities should be aimed toward satisfying consumer wants and needs while achieving company goals. Marketing strategies are plans of action for achieving marketing goals and objectives.SOURCE: MK:002SOURCE: MK LAP 1—Work the Big Six (Marketing Functions)

45. DPersonnel. Discount stores keep records about their employees, or personnel. These personnel records provide such information as when employees are hired, how much money they make, how well they perform, and their reasons for leaving the store. Financial records are documents containing information related to the amount of money going into and out of a discount store. Legal records are documents containing information related to the goods that a store has on hand or on order. Business procedures are included in administrative records.SOURCE: NF:001SOURCE: MN LAP 58—Business Records


46. BTest themselves. Presentation software enables large retailers to develop materials that contain interactive buttons. This allows employees to test themselves on their knowledge and understanding of the material. Retailers often develop this type of computerized training materials because it allows employees to learn at their own pace, test themselves, and review the material if necessary. Employees can read a question or view an action on a computer screen and respond by clicking on an interactive button. The computer quickly processes the information and advises the employees if their answers are correct. Businesses do not develop computerized training materials that contain interactive buttons in order to allow employees to study together, access databases, or conduct research.SOURCE: NF:008SOURCE: Desimone, R., Werner, J., & Harris, D. (2002). Human resource development (3rd ed.)

[pp. 210-215]. Orlando, FL: Harcourt.

47. BInterest rate is expected to decrease by 1/2%. Spreadsheet software programs allow businesses, such as furniture stores, to use a computer to perform accounting and other financial calculations. An advantage of using a spreadsheet program is that a store can make various changes to specific numbers and figures to find out quickly what effect they will have on its financial status. For example, a store could reduce the interest rate it is paying on loans to find out the effect that would have on operating expenses. If a store owes a substantial amount of money and the interest rate decreases, it will be able to save a significant sum in interest. The store can enter several different interest rates, and the spreadsheet program will automatically do the calculations. The alternatives are not examples of change that will affect a store's financial status.SOURCE: NF:010SOURCE: Longenecker, J.G., Moore, C.W., & Petty, J.W. (2000). Small business management: An

entrepreneurial emphasis (11th ed.) [pp. 461-463]. Cincinnati: South-Western College.

48. DQuality. Quality is the degree of excellence of a good. Specialty shops selling to an exclusive clientele need to select vendors who are able to supply the quality goods that these customers expect. Stores always should buy from vendors who provide the type of merchandise that is right for their customers. Selecting vendors who cannot supply the appropriate goods will have a negative impact on the store's sales. Staple goods are goods for which there is constant demand. Generic goods are unbranded products of lower or standard quality. Discount goods are sold at reduced prices.SOURCE: OP:080SOURCE: Longenecker, J.G., Moore, C.W., & Petty, J.W. (2003). Small business management: An

entrepreneurial emphasis (12th ed.) [pp. 512-513]. Cincinnati: Thomson/South-Western.

49. CDoes the vendor provide references? Asking for the vendor's references should be something the retailer does before hiring the vendor the first time, not as part of a performance evaluation. Asking if the vendor consistently fulfills promises, promptly fills reorders, and provides quality merchandise at low prices are all questions important to retailers during the performance evaluation of a vendor.SOURCE: OP:109SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)

[pp. 367-369]. Upper Saddle River, NJ: Prentice Hall.

50. BProduct quality and target market. Before merchandise can be purchased from suppliers, buyers must know the needs and wants of the target market in terms of quality. For example, discounters (e.g., Kmart) do not generally carry more expensive labels that are usually considered high-quality merchandise. Other retailers, such as Macy's, carry high-quality, expensive merchandise to accommodate a high-income target market as well as medium-priced goods for a mass market. Although color, brand, and quantity are important considerations, those are generally addressed after quality and target market are established.SOURCE: OP:090SOURCE: Berman, B., & Evans, J.R. (1998). Retail management: A strategic approach (7th ed.)



51. CStress. Stress is a mental or emotional feeling of pressure or tension. Stress can cause behavior problems such as carelessness or inattention on the job. Fatigue is a state of mental or physical tiredness. Horseplay is behavior such as running, jumping, wrestling, or showing off. Anger is a high level of displeasure often accompanied by hostility.SOURCE: OP:007SOURCE: RM LAP 2—Following Safety Precautions

52. BKeep a watchful eye on customers. Keeping a watchful eye on customers lets potential shoplifters know they are under observation and may be caught if they steal. Employees would create an unfavorable shopping experience for customers if they followed the customers. Customers and their belongings should not be touched by employees.SOURCE: OP:013SOURCE: RM LAP 4—Security Precautions

53. AFollow-up. The last production activity is following up to make sure production was carried out according to plan and that the products produced met company standards for quality. This may include inspecting the materials used in making the products as well as examining the finished products. Standardization is the process of setting criteria for products so that they will be uniform. Automation is the use of robots or other automatic equipment to do certain tasks. Form utility is usefulness created by altering or changing the form, or shape, of a good to make it more useful to the consumer.SOURCE: OP:017SOURCE: BA LAP 1—Nature of Production

54. ATo monitor financial status. Bookstores maintain accurate accounting records in order to keep track of how they are doing financially. The accounting records provide bookstores with such important information as the amount of operating expenses, what their sales revenues are, and whether the bookstores are earning profits. Bookstores do not maintain accounting records in order to prepare purchase orders, review employee performance, or develop inventory control.SOURCE: OP:024SOURCE: MN LAP 57—Operating Expenses

55. CSalespeople. Most retailers expect their salespeople to perform some routine housekeeping tasks as part of their jobs. These tasks might include dusting shelves and counters, straightening up the goods that are on display, and keeping the checkout area in a neat and orderly condition. Salespeople perform these tasks when they are not busy serving customers and when customer traffic is the lightest. Consultants are not regular employees of the retailer and often work only on a project basis. Retailers usually do not expect managers or members of the security staff to perform housekeeping tasks.SOURCE: OP:032SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


56. BAll ideas are welcome. In a brainstorming session, all ideas are welcome. No judgments should be made about ideas. Every point of view is valuable. A time limit is applied to the session, usually about 20-25 minutes. Group members are encouraged to expand upon others' ideas.SOURCE: PD:077SOURCE: IS LAP 2—No Problem


57. AEfficiency. Creative thinking often results in suggestions for operational changes that serve to increase efficiency and reduce business expenses. Suggestions that tend to bring conflict, increased costs, and increased losses will probably be unwelcome.SOURCE: PD:012SOURCE: PD LAP 2—Creativity

58. ANeighborhood businesses. Local companies where teenagers and their families do business often are good sources for first jobs. Local businesses, such as grocery stores and independent retailers, often hire teenagers on a part-time basis to work after school hours, on weekends, and during summer vacations. These businesses frequently are willing to hire the teenagers who are members of their community. Most employment agencies do not work with people looking for entry-level jobs. Teenagers usually don't find their first jobs with national corporations unless those corporations have local offices. Community training programs are intended to help train teenagers for jobs.SOURCE: PD:026SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp. 33-35].

Mason, OH: South-Western.

59. AReminds the interviewer of the applicant. Applicants should send follow-up letters immediately after the interview in order to thank the interviewers for their time. Follow-up letters also remind the interviewer of the specific applicant and help to create a favorable impression. If there are several applicants with comparable qualifications, an interviewer might select the one who remembered to send a follow-up letter. An applicant's resume, references, and test scores usually are submitted with the employment application or during the employment interview.SOURCE: PD:029SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp. 71-72].


60. ASeniority. Seniority involves the length of time that a person has been employed by one retail chain. The longer people have been employed, the more seniority they have. Retail chains often consider seniority when selecting employees to promote. Often, they try to promote the more senior employees because they have more experience on the job and have demonstrated long-term loyalty to the chain. Compensation is pay and benefits. Favoritism involves granting special favors to certain people. Arbitration is a method of settling a labor dispute.SOURCE: PD:034SOURCE: Daggett, W.R., & Miles, J.E. (1998). The dynamics of work: Introduction to occupations

(2nd ed.) [p. 461]. Cincinnati: South-Western Educational.

61. DGroup services. Group rates or discounts such as travel discounts, etc., are a group service often made available to association members. Sales promotion events would include such things as a cosponsored sidewalk sale or a Christmas parade. Members of associations have opportunities to expand their network of business contacts through interaction with other community leaders. Associations provide the benefit of establishing standards by requiring members to follow certain practices.SOURCE: PD:036SOURCE: CD LAP 1—Trade Associations/Professional Organizations


62. BForecasts. Projections of expected retail sales over a given period of time are known as forecasts. They are the basis of merchandising plans. Basic stock lists are lists that specify certain information (such as size, color, style) for every item in the retailer's inventory. Product life cycles show the introduction, growth, maturity, and decline stages of a product's life. Assortments are the selections of merchandise that retailers carry.SOURCE: PD:088SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


63. CHigh. High prices suggest high quality and prestige to customers, while moderate or discount prices are associated with low quality. Wholesale prices are what the antique shop pays for the items it buys for resale.SOURCE: PI:001SOURCE: PI LAP 2—Pricing

64. BTo analyze various possibilities. Computer technology and advanced spreadsheet software programs make it possible for retailers to analyze various possibilities and experiment with different prices before deciding on the actual price to charge for certain products. A retailer can plug in different prices for various products to find out what effect each price will have on profit. The software program analyzes and calculates the financial data. Retailers use spreadsheet programs to determine which price will be the most profitable as well as the most appealing to customers before setting the price. Spreadsheet software programs do not print price tickets. A retailer would use word processing software to prepare financial reports. A retailer would use database software to organize customer lists.SOURCE: PI:016SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)


65. DDeceptive. Deceptive advertising practices employ techniques that lead a customer to believe that the product holds greater value than it actually does. For example, a retailer publishes a very low price in a newspaper advertisement for a specific product. A customer enters the store with the intention of purchasing the product at that price. However, the customer finds out that certain criteria must be met to receive the published price. The retailer used a published price under false pretenses to get customers into the store. Inequitable, elastic, and compliant are not terms that are widely used to describe misleading advertising and pricing practices.SOURCE: PI:017SOURCE: Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [pp. 440, 608].


66. DChange with changes in sales volume. Variable costs do not remain constant but go up when sales increase and go down when sales decrease. They include such costs as shipping, sales commissions, and raw materials. Depreciation is the reduction in value of goods occurring over a period of time. Variable costs are not determined by depreciation or based on individual products.SOURCE: PI:002SOURCE: PI LAP 3—Factors Affecting Selling Price


67. AWhether to change the product. Whether to change the product is one of the choices that needs to be made during the decline stage. During this stage in the product life cycle, the toy manufacturer also has to decide whether to sell or license the product, recommit to the product line, discount the product, or regionalize the product. Increasing awareness occurs during the introductory stage. Fending off the competition occurs during the maturity stage. The company does not need to decide the production schedule.SOURCE: PM:024SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)


68. ATo cut costs and increase profits. Although cutting costs and increasing profits is a constant concern for business, it is not a reason for revising standards. The implication is that standards will be lowered to save money. It is often necessary to revise standards to respond to new technology, to consider new methods and materials, and to upgrade quality and safety requirements.SOURCE: PM:019SOURCE: PM LAP 8—Grades and Standards

69. BFair Packaging and Labeling Act. The Liz Intel Company violated the Fair Packaging and Labeling Act because the ingredients for the perfume were not provided to the consumer. The Fair Packaging and Labeling Act is a federal law passed in 1967 requiring that specific information about products and producers be provided on a product's package or label. The Consumer Product Safety Act was passed in 1972. It formed the Consumer Product Safety Commission, which was given jurisdiction over the safety of consumer products. The Federal Food, Drug, and Cosmetic Act bans the production, transportation, and sale of misbranded or adulterated foods, drugs, cosmetics, and medical devices. The Magnuson-Moss Warranty Act regulates warranties offered by businesses, requiring them to provide more and better warranties.SOURCE: PM:017SOURCE: PP LAP 7—Consumer Protection in Product Planning

70. DConsistent. Consistency is a product-mix dimension referring to how closely a retailer's product lines are related in terms of the products' end use, methods of distribution and production, target market(s), and/or price range. Shallow, or short, refers to the depth of a product mix that offers few items in the product line. Narrow refers to the width of the product mix offering a limited number of product lines. With an inconsistent product mix, the product lines are not related.SOURCE: PM:003SOURCE: PP LAP 3—Product Mix

71. CProduct bundling. Product bundling involves combining several products and selling them for one all-inclusive price. Selling a product, plus delivery, and the training to use the product as a single unit is an example of product bundling. In many cases, department stores sell the bundled product for less than the total cost of each item or service sold separately. Brand positioning involves creating a certain image or impression of a brand as compared to those of competitors' brands. Captive pricing involves setting a price for support products that must be used with a main product. Personal selling is the form of promotion that determines client needs and wants and responds through planned, personalized communication that influences purchase decisions and enhances future business opportunities.SOURCE: PM:041SOURCE: Evans, J.R., & Berman, B. (1997). Marketing (7th ed.) [p. 629]. Upper Saddle River, NJ:

Prentice Hall.


72. DBenefits. Product positioning is the customer's image or impression of a product as compared to that of competitive products. Benefits are the advantages that the customer receives from using the product. Easy assembly and operation are the product's benefits. Price refers to the amount of money a customer pays for a product. Value is the amount of satisfaction a good or service will provide a customer. Quality refers to a product's degree of excellence.SOURCE: PM:042SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 645). New

York: Glencoe/McGraw-Hill.

73. ANames and logos only. Traditionally, brands were viewed more narrowly than they are today—as mainly representations of a product. Names and logos were the most obvious of these representations. But "brand" today is much more meaningful, in that the term encompasses everything that touches customers—all their feelings, images, associations, and experiences with a particular company, good, or service. Generally, brands are thought of in terms of larger, more well-known companies rather than smaller businesses and start-ups. Brands are very important to most consumers and greatly influence their purchase decisions. Likewise, brands are very important to the businesses that "own" them, in that their brands are their relationships with their customers.SOURCE: PM:021SOURCE: PM LAP 6—It's a Brand, Brand, Brand World!

74. AMerchandising budget. A merchandising budget is an estimate of products expected to be sold to customers. It may also include information about previous sales totals, stock on hand at the beginning and end of each month, and planned reductions. Buyers use the merchandising budget in calculating how much money they can spend on new purchases. A profit-and-loss statement reports all revenue and expenses for a given period. A credit rating is an appraisal of ability to meet financial obligations. A balance sheet is a statement of net worth.SOURCE: PM:061SOURCE: Lewison, D.M. (1997). Retailing (6th ed.) [pp. 363-364]. Upper Saddle River, NJ: Prentice

Hall.

75. BCustomer satisfaction. Retailers plan to buy the type of stock that will satisfy their customers' wants and needs. Satisfying the end consumer is the primary factor needed to build customer loyalty. Low prices, having a competitive edge, and timely delivery of ordered goods are important in business, but without returning, satisfied customers, the retailer will suffer.SOURCE: PM:062SOURCE: Bearden, W.O., Ingram, T.N., & LaForge, R.W. (2001). Marketing: Principles and

perspectives (3rd ed.) [pp. 119-120]. Boston: Irwin.

76. CCompetition and technology. The environment, social trends, and demand, in addition to competition and technology, are external factors, or influences from outside the department store, that have an effect on promotional decisions. Product, price, and distribution are internal factors.SOURCE: PR:001SOURCE: PR LAP 2—Promotion

77. ABranding. Branding is the ongoing decision-making process about the use of brands. The brand will probably be used in promotions, but branding the product is not a form of promotion. Personal selling is the form of promotion that uses planned, personalized communication in order to influence purchase decisions and to ensure satisfaction. Coupons and visual merchandising are examples of sales promotions, promotional activities other than advertising, personal selling, and publicity that stimulate consumer purchases.SOURCE: PR:003SOURCE: PR LAP 1—Promotional Mix


78. DControversial products. Over time, products that once were considered inappropriate to advertise have moved into the mainstream; however, certain products remain controversial. Retail establishments often encounter ethical problems when deciding how to promote these products. For example, gambling is legal in some areas but illegal in others. Businesses involved in legal gambling face the ethical dilemma of how to promote that activity to consumers who live in areas where it is illegal. Businesses that promote social causes, legitimate services, and staple goods usually do not encounter ethical problems.SOURCE: PR:099SOURCE: Wells, W., Burnett, J., & Moriarty, S. (2000). Advertising principles and practice (5th ed.)


79. DTrack the users' viewing and purchasing habits. Promotion is a term that refers to the various types of communications that marketers use to inform, persuade, or remind customers of their products. Technological advancements (e.g., Internet) have made it possible for a hardware store to track its customers' (visitors') behavior in relation to their web-site hits, inquiries, and purchases. The ability to track this online information often helps the store to determine its customers' needs and preferences, and to determine the best way to meet these needs and preferences. Because other factors influence a store's success, using the Internet to promote products does not always increase annual sales volume or create a loyal customer base. Using the Internet as one method of promotion does not necessarily mean that a store should reduce its traditional publicity efforts. SOURCE: PR:100SOURCE: Semenik, R.J. (2002). Promotion and integrated marketing communications (pp. 312-313).


80. DConsumer magazine. Consumer magazines are read by individuals as part of their personal media use. A consumer magazine, such as Sports Illustrated, is written for people who have a personal interest in specific topics or points of view. Trade journals and professional journals are types of business magazines that are of interest to individuals in specific areas of business and industry.SOURCE: PR:007SOURCE: PR LAP 3—Ad-quipping Your Business

81. CWho the customers are and which products they have purchased. A customer database can track and supply all types of information about a gift shop's customers. It can tell an owner the names of customers, what they buy, and how much they spend. A database will not make product or frequency decisions.SOURCE: PR:091SOURCE: Tiffany, L. (2000, June 12). How do you take database marketing to the next level? Customer

relationship management. Retrieved October 10, 2006, from http://www.entrepreneur.com/Your_Business/YB_SegArticle/0,4621,276184,00.html

82. ARepetition. Repetition is used to create emphasis. Repeating the same color, shape, or texture in display items calls attention to those particular items. Scale is the relationship of display items to each other and to the display space. Harmony is the smooth blend of all the elements of a display. Contrast uses items of very different size, shape, or texture together in order to create emphasis.SOURCE: PR:026SOURCE: Bell, J., & Ternus, K. (2002). Silent selling: Best practices and effective strategies in visual

merchandising (2nd ed.) [pp. 42, 109-110]. New York: Fairchild.


83. DReturn it to the appropriate departments. Merchandise removed from displays should be carefully handled and returned to the appropriate departments to be placed in stock and sold. Merchandise left in the display manager's office, a stockroom, or next to a display may not be returned to the appropriate departments and end up lost, stolen, or damaged.SOURCE: PR:054SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 330].

Woodland Hills, CA: Glencoe/McGraw-Hill.

84. APromote short-term sales. Retailers often reduce the price of merchandise to increase short-term sales. Because the pricing often differs among sales promotions, retailers use inexpensive paper or cardboard signs to advertise in-store price reductions. The signs can be placed in freestanding fixtures and can be changed quickly. Signs that direct customers to merchandise are often found in supermarkets and discount stores. These signs are usually used on a long-term basis and are posted to guide customers to various departments or areas of the store. Signs that are used to create a particular mood or atmosphere are often used outside the facility, on permanent fixtures, or on walls as backlit transparencies. Depending on the design and the materials used, these signs often invoke certain feelings. For long-term use, signs are generally constructed of more durable and/or expensive material such as wood, fabric, or Lucite.SOURCE: PR:109SOURCE: Russell, J.T., & Lane, W.R. (1999). Kleppner's advertising procedure (14th ed.) [p. 191].


85. ARings or necklaces. Because of their small size and great expense, rings or necklaces can be displayed quite effectively in a shadow box. Often the box is well-lit, and the items will sparkle in the open air or behind glass. Cosmetics are usually displayed in racks so customers can compare the different styles and lines. Clothing is best displayed on mannequins or folded on shelves. Children's toys, although small in nature, are best displayed in an open area where children may handle the items.SOURCE: PR:031SOURCE: Diamond, J., & Diamond, E. (1999). Contemporary visual merchandising (p. 52).


86. DA rack of the latest magazines and best-selling books. Point-of-sale displays can be categorized and set up in different ways. An assortment display includes a wide range of merchandise to try to appeal to different consumers. For example, a drugstore might display auto, craft, decorating, television guides, and fitness magazines near the checkout. A dump bin might be a cut case in which the product is left in the original carton. In addition, one type of snack cake does not display an assortment of items; it displays one item. An apple, fruit dip, and pie crust display is called an ensemble display. This display is a grouping of different merchandise categories in one area instead of three separate units. The items complement each other. For example, the apples can be eaten with the dip or be used to make pies. A theme display establishes a certain mood or atmosphere for store customers. A cutout of Uncle Sam and star-shaped sunglasses might be used during the United States' Independence Day celebration.SOURCE: PR:114SOURCE: Berman, B., & Evans, J.R. (1998). Retail management: A strategic approach (7th ed.)



87. APromotional plan. Floral shops develop plans that help them communicate to the public through a variety of promotional techniques, such as advertising and public relations. The purpose of the promotional plan is to inform the public about the floral shop and encourage consumers to buy its goods and services. An advertising campaign is a series of advertisements planned around a central theme. Fiscal policy is the government policy that sets levels of government spending and taxation. The distribution process includes all the steps involved in the physical movement or the transfer of ownership of a good or service from the producer to the consumer.SOURCE: PR:073SOURCE: Burrow, J.L. (2002). Marketing (pp. 418-419). Mason, OH: South-Western.

88. ASpecial events. Special events are promotional activities that may include a wide variety of activities such as lectures, demonstrations, and celebrity appearances. A department store should coordinate its advertising and special events in order to obtain the maximum results. The advertising will inform customers of the special events, and once these customers have been drawn into the store, the sales staff will have the opportunity to encourage them to buy. Market trips involve the buyers for a store visiting a certain market in order to purchase products for resale. Trade shows are exhibitions at which manufacturers and suppliers in a particular industry display their goods. Customer services are activities, such as free delivery and gift wrapping, that increase customer satisfaction and create goodwill.SOURCE: PR:076SOURCE: Lewison, D.M. (1997). Retailing (6th ed.) [p. 536]. Upper Saddle River, NJ: Prentice Hall.

89. DExpand. As sales and profits increase, more salespeople can be hired, and additional stores can be opened. Wholesalers and manufacturers serving the retailers also grow because the increased sales help them expand. Planning, managing, and organizing are functions of management that take place regardless of whether retailers are making a profit and expanding.SOURCE: SE:017SOURCE: SE LAP 117—Selling

90. AAccount penetration. By communicating with several people in a single retail chain, salespeople can often increase sales by selling products to solve problems or meet the needs of other departments in the retail chain. In addition, the more contacts a salesperson has in a retail chain, the more referrals s/he is likely to receive. Account retention refers to the ability to keep a customer. Sales infiltration and sales supplementation are not terms commonly used in the selling industry.SOURCE: SE:076SOURCE: Futrell, C.M. (1999). Fundamentals of selling: Customers for life (6th ed.) [pp. 406-407].

Boston: Irwin/McGraw-Hill.

91. AAvailability of raw materials. External factors that influence selling policies are those forces over which the furniture manufacturer has little or no control. One of these factors is the availability of raw materials. Manufacturers have no control over the availability of raw materials needed to manufacture products. Therefore, manufacturers develop selling policies to deal with both a shortage and an abundance of raw materials. Manufacturers have control over the prices they charge for their goods or services. Manufacturers also are able to control the number of employees hired and to buy from quality suppliers.SOURCE: SE:932SOURCE: SE LAP 121—Selling Policies


92. BUnethical behavior. Ethics are the basic principles that govern a person's behavior. People who follow those principles and standards are behaving ethically, while people who disregard those principles and standards are behaving unethically. An example of behavior that might be considered unethical is leaving a retail supply company and taking valuable information about customers to another retail supply company. Salespeople taking specific information about a customer's buying habits, quantities purchased, and prices paid are behaving unethically because that information belongs to the company. Company assets include samples, vehicles, equipment, expense accounts, etc. If a salesperson has a noncompete contract with one company, s/he may be breaking the contract by going to another company. Taking valuable customer information is not an example of offering bribes.SOURCE: SE:106SOURCE: Futrell, C.M. (2001). Sales management: Teamwork, leadership, and technology (6th ed.)

[pp. 35-36]. Mason, OH: South-Western.

93. CMisrepresentation. Misrepresentation involves exaggerating the capabilities of a product or promising more than a product can provide. An example of misrepresentation is promising customers that profits will increase by a certain amount if they buy a specific surveillance camera for the store. If a customer buys the product based on a salesperson's statement and the product does not generate the promised profit, the customer may sue the business. Misrepresenting products is illegal and may be costly to businesses if they are sued. Salespeople should be as factual as possible and provide exact product information to avoid misleading customers. Promising more than a product can provide is not an example of discrimination, incentive selling, or sales puffery.SOURCE: SE:108SOURCE: Futrell, C.M. (2001). Sales management: Teamwork, leadership, and technology (6th ed.)

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

94. AAsk his manager or the buyer for help in acquiring this knowledge. Rick's manager and the buyer are both in a position to help Rick acquire the product knowledge he needs to become a competent appliance salesperson. Although Rick will learn from experience, he should ask for help as he needs it. Rick will not learn much from another inexperienced employee. Complaining to his manager would not solve the problem and would probably antagonize the manager.SOURCE: SE:062SOURCE: Manning, G.L., & Reece, B.L. (1998). Selling today: Building quality partnerships

(pp. 105-108). Upper Saddle River, NJ: Prentice Hall.

95. BAsk appropriate questions and listen to each customer. Since each customer has different needs and wants, the home improvement store salesperson needs to ask questions about how the customer will use the product and determine what is important to the customer (e.g., style, service, durability). Once the information is obtained by the salesperson, s/he can determine the most appropriate product for the customer. Surveys completed by past customers will not always indicate the needs and wants of current customers. Brochures and literature are generally distributed to undecided buyers and are used as a follow-up tool. Hidden benefits are generally explained after the salesperson has determined the customer's initial needs and wants in terms of product features and benefits.SOURCE: SE:109SOURCE: SE LAP 113—Feature-Benefit Selling


96. BNational advertising. Brand-name merchandise is usually produced by a major manufacturer and distributed throughout the country. This type of merchandise is advertised nationally because it is sold in stores everywhere. Even small stores in rural locations benefit from the national advertising because it makes the brand-name merchandise known to all customers. Simple packaging and variable quality are characteristics of generic brands. Brand-name merchandise is available in abundance all over the country.SOURCE: SE:019SOURCE: Berman, B., & Evans, J.R. (1998). Retail management: A strategic approach (7th ed.)


97. AService. An example of the service approach would be "May I help you?" The greeting, or welcome, approach offers a warm, friendly greeting that makes the customer feel welcome and important. The merchandise approach involves a comment or question that helps direct the customer's attention to a specific item of merchandise. Shopping is not a type of approach.SOURCE: SE:110SOURCE: SE LAP 101—Opening the Retail Sale

98. B"Let us know if you happen to like this." This is an example of a negative close and is the least effective closing statement because it gives the impression of disinterest. One of the guidelines for effective sales closings includes avoiding negative closes. The other statements are informative and positive and give the impression of being interested in the customer.SOURCE: SE:895SOURCE: SE LAP 107—Closing Sales

99. CPortraits facing the same direction. In order to prevent misidentification of bills, currency should be placed in the cash drawer all facing the same direction. This is a standard technique that permits easy identification of the bill and helps to prevent errors when handling money. Portrait side is usually placed up. Smallest denomination is at the right, and the largest denomination is at the left.SOURCE: SE:156SOURCE: MA LAP 47—Preparing Cash Drawers

100. B$1.67. To find the cost of one unit for items with multiple pricing, divide the price by the number of units, and round the answer to the next whole cent ($5.00 ÷ 3 = $1.666 or $1.67).SOURCE: SE:117SOURCE: MA LAP 48—Completing Sales Checks

exams/… · web viewa. emotion. c. bias. b. feedback. d. conviction. 2. retail employees are...

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