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2007 DECA Ontario Regionals AAMTest 924 Apparel and Accessories Marketing 1

1. In order for a contract between two parties to be legally binding, one party must make an offer and the other party must accept the offer. This offer and acceptance meets the __________ provision.

A. competent parties B. agreement C. legality D. consideration

2. Determine whether the following statement is true or false: Distribution can affect the success of an accessory company's products.

A. True, effective distribution decreases capital investment.B. True, products must be at the right place at the right time.C. False, distribution is only one small part of marketing.D. False, quality products will succeed regardless of distribution.

3. What distribution channel is most often used to distribute consumer goods?A. Producer to consumer B. Producer to apparel retailer to consumerC. Producer to wholesaler to apparel retailer to consumerD. Producer to agent to wholesaler to apparel retailer to consumer

4. An advantage of using satellite tracking technology in distribution is that it enables clothing manufacturers toA. analyze the contents of packages. C. reroute deliveries based on weather conditions. B. know where shipments are at all times. D. obtain information about competitors.

5. Accessory businesses that implement slotting allowances to distribute products make it difficult forA. large companies to reduce their competition. C. manufacturers to meet customer demand.B. small companies to compete in the marketplace. D. intermediaries to make a reasonable profit.

6. Which of the following is a marketing activity that clothing stores should coordinate with distribution:A. Management B. Purchasing C. Promotion D. Organizing

7. What might result if a shoe manufacturer begins to sell directly to large retailers rather than through traditional wholesalers?

A. Horizontal channel conflict C. Exclusive distributionB. Vertical channel conflict D. Reverse distribution

8. Putting forth effort in order to understand what is being said is calledA. communication. B. active listening. C. listening. D. nonverbal communication.

9. Apparel 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. A characteristic of simple memorandums written by apparel store employees is that they usually are intended to be read by a(n)

A. internal audience. B. board of directors. C. planning committee. D. group of suppliers.

11. Discount clothing store employees who accurately direct customers to other locations within the store are promoting customer

A. complaints. B. honesty. C. curiosity. D. goodwill.

12. An unhappy customer wants to return some sweaters. The salesperson listens well and is polite and courteous to the customer. As a result of this professional approach, the customer leaves the clothing store satisfied. This is an example of

A. increasing sales through suggestion selling. C. providing quality products. B. reducing employee turnover. D. building positive customer relations.

13. Sharon is an order processor for a sportswear manufacturer that prohibits her from eating at her work station so she won't be tempted to eat while talking with customers. This is an example of a(n) __________ policy.

A. employee B. service C. product D. customer


14. What method of checking incoming apparel goods is described as follows: The receiving worker inspects the construction, style, materials, or other characteristics of the goods.

A. Blind check B. Random check C. Quality check D. Direct check

15. Priority processing is appropriate for accessory products that needA. to be back ordered. C. immediate handling. B. to be promoted. D. a lot of storage space.

16. The most effective way for a menswear store to determine the exact quantity and value of its stock is to take a(n) ___________ inventory.

A. perpetual B. opening C. book D. physical

17. Which of the following best describes a consumer good or service:A. A product that can only be used onceB. A product purchased by individuals for personal use C. A product that can be used repeatedly D. A product purchased by businesses for industrial use

18. Determine the type of utility being described in the following situation: A clothing shop conducts a back-to-school sale during the month of August.

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

19. Your firm is considering producing a new hiking boot. Research shows that there is definitely a demand for the boot and that there are currently only two other producers of this boot. Which of the following might prevent your firm from producing this hiking boot:

A. Consumer expectations C. Cost of production B. Product utility D. Promotional considerations

20. A business can be described as a(n)A. reasonable way to make a profit. B. disorganized method of manufacturing products. C. organized effort to produce goods and services. D. unreasonable means for increasing revenues.

21. Which of the following employees is the most productive if employee A works eight hours and assembles 75 watches; employee B works six hours and assembles 60 watches; employee C works four hours and assembles 38 watches; and employee D works 10 hours and assembles 90 watches:

A. Employee C B. Employee A C. Employee B D. Employee D

22. Why might jewelry businesses decide to hold on to expensive diamond earrings to sell later when the economy is experiencing high levels of inflation?

A. Income will remain constant. C. Cash will be in short supply. B. Taxes will limit production. D. Prices will continue to rise.

23. Which of the following actions would a government take to increase international trade:A. Establishment of trade centers C. Establishment of quotas B. Establishment of tariffs D. Establishment of product standards

24. Which of the following is not a desirable personal trait in business:A. Procrastination B. Industriousness C. Assertiveness D. Initiative

25. When Terry was told that his job responsibilities would soon change, he responded that he would be glad to learn new skills. Terry has an attitude of __________ change.

A. requesting B. welcoming C. resisting D. dreading

26. When sportswear store salespeople show sincere concern for the feelings of customers, they are demonstratingA. conviction. B. objectivity. C. appreciation. D. empathy.


27. The term verbal assertiveness refers to any form of assertive behavior which involvesA. words. B. eye contact. C. posture. D. facial expression.

28. Being humble is an example of what type of behavior that builds positive working relationships?A. Carrying your own weight C. Getting to know others on your work teamB. Demonstrating courtesy and respect D. Having a good attitude

29. A leader who imagines a better way of doing things is exhibiting the trait ofA. discipline. B. awareness. C. creativity. D. empathy.

30. By understanding the time value of money concept, you know thatA. time and money are related by due date. B. it is better to receive $101 a year from now than $100 today. C. saving money can buy time on debt payment. D. it is better to receive $100 today than $101 a year from now.

31. Which of the following would not be a reason for a dress shop to offer credit to consumers:A. To create savings for the shop C. To build goodwillB. To encourage consumer purchases D. To create customer loyalty

32. An individual who decides to save a certain amount every month in order to have enough money on hand to buy a car in two years is

A. opening an account. C. setting financial goals. B. making an investment. D. analyzing economic conditions.

33. Calculate a shoe store's ending cash balance based on the following information: beginning cash balance of $1,825, total cash receipts of $3,440, operating expenses of $1,675, and inventory purchases of $2,950.

A. $640 B. $615 C. $590 D. $775

34. In budgeting, utility bills, salaries, advertising, equipment purchases, taxes, and loans are examples ofA. business expense. C. spending controls. B. financial goals. D. business income.

35. A clothing store owner completes a bank deposit slip listing $243.85 in cash and $3,928.50 in checks. If the owner indicates $75 cash back, what is the amount of the deposit?

A. $4,043.35 B. $4,097.35 C. $4,128.35 D. $4,172.35

36. What factor does an accessory manufacturer consider when it needs to make decisions about when to develop new products or when to change prices?

A. Selling procedures C. Advertising dataB. Promotional research D. Marketing information

37. What characteristic of useful marketing information requires the information to be closely related to the situation in order to be of the most use?

A. Relevancy B. Accessibility C. Timeliness D. Sufficiency

38. So a clothing store can retrieve current customer and internal marketing information from a central location, it may use which of the following technological tools:

A. Opt-in e-mail B. Presentation software C. A database D. A CAD program

39. Which of the following is most likely to have a marketing-research department:A. Local charity B. Small bridal salon C. Leading shoe manufacturer D. Successful politician


40. Which element of marketing refers to the various types of communication that apparel marketers use to inform, persuade, or remind customers of their products?

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

41. Market segmentation has become important because today's consumersA. seldom change their reasons for buying. C. have similar basic needs and wants.B. care most about a product's price. D. are very discerning and selective.

42. One of the main reasons for developing a marketing plan is to identify the strategies necessary to achieve the marketing

A. mix. B. functions. C. objectives. D. share.

43. What types of environmental factors do shoe store chains often consider when conducting a situational analysis?A. Physical and personal C. Ethical and legalB. Internal and external D. Formal and informal

44. In which of the following situations might a chain of menswear stores decide to increase its sales forecast from $10 million to $12 million for the coming year:

A. Inflation rate increases by 3%. C. One major competitor leaves the market.B. Demand for products is leveling off. D. Population of market area decreases by 5%.

45. Clothing stores often use advanced database technology to obtain information such as zip codes of customers and amount of spending in order to more effectively

A. target the market and improve service. C. monitor levels of inventory. B. forecast the volume of future sales. D. order the merchandise that customers want.

46. In recent years, consumers in North America have been purchasing sweaters, jackets, and coats that are assembled in foreign lands such as China. This continuing growth of foreign trade in North America is an example of

A. import penetration. C. a trade deficit. B. textile transshipping. D. a comparative advantage.

47. When creating and posting information to a web site, one of the most important considerations is theA. opening page. B. search engine. C. domain name. D. shopping cart.

48. The two best ways to send a document by e-mail are byA. including it as a file attachment or by pasting it into the body of the e-mail.B. rekeying the document as an e-mail or by sending a file attachment.C. rekeying the document in the e-mail or by creating a hyperlink to the document.D. creating a hyperlink to the document or by pasting it into the body of an e-mail.

49. What type of software program allows businesspeople to combine graphics, transparencies, slides, and text for an on-screen display of information?

A. Operating B. Application C. Presentation D. Publishing

50. One way that T-shirt shop employees can help to prevent accidents is by practicingA. security procedures. C. emergency methods.B. first-aid techniques. D. good health habits.

51. In order to prevent credit-card fraud, jewelry stores often instruct their employees to check the __________ on the back of the card.

A. expiration date B. customer’s signature C. account number D. identification code

52. What do clothing store managers need to be able to manage projects effectively?A. Authority B. Freedom C. Self-interest D. Pessimism

53. Which of the following is one way that the employees of a bridal salon can help the salon to control expenses:A. By holding up coworkers' projects C. By treating customers efficientlyB. By overcharging customers for services D. By borrowing company property


54. Why is good housekeeping important to a clothing store?A. Good housekeeping prevents customer complaints.B. All stores must meet housekeeping standards.C. A clean store is more appealing to customers.D. Good housekeeping creates an exclusive image.

55. It is often difficult for people to see themselves clearly because they are unable to beA. adaptable. B. objective. C. creative. D. subjective.

56. The job interviewer told Elizabeth at the end of the interview that he couldn't offer her the job because she lacked a particular skill that the job required. Elizabeth's next step should be to

A. write the interviewer a follow-up letter. C. file a formal complaint with the EEOC.B. look for another similar job opportunity. D. look for training in the required job skill.

57. A gathering of suppliers whose objective is to display their apparel and accessory merchandise for buyers is called aA. union meeting. B. career fair. C. trade show. D. planning session.

58. Which of the following career opportunities in apparel retailing involves keeping the store updated on current styles and trends:

A. Fashion director C. Operations managerB. Assistant buyer D. Distribution planner

59. Pants, shirts, and dresses are examples of items that make up the ___________ segment of the fashion industry. A. adornment B. accessory C. fiber D. apparel

60. Which of the following statements concerning time management is false:A. Managing your time effectively will increase personal stress and frustration. B. Time management allows more time for personal activities.C. Managing your time will increase your productivity.D. You will be a more organized person if you learn to control your time.

61. What do specialty boutiques expect to make when they set prices on goods and services?A. Quotas B. Payments C. Profits D. Salaries

62. Bar code symbols that are scanned into computers and used to identify and total information such as the selling prices for accessory products are also called

A. Unified Pricing Criteria. C. United Rating Systems.B. Uniform Resource Locators. D. Universal Product Codes.

63. The selling price of a leather purse is increasing because the manufacturer must pay more for raw materials to make the purse. What is the primary factor for the price increase?

A. Variable costs C. Consumer demandB. Government regulation D. Economic conditions

64. What helps product planners predict whether a new watch will be successful before a business makes a major investment?

A. Product life cycles C. Product monitoringB. Marketing information D. Company goals

65. Which of the following technological tools helps a discount clothing store's employees simultaneously access the same information about the business's products:

A. Micro-portal B. Intranet C. Memory card D. Generator

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


67. The importance of grades and standards increases as international tradeA. decreases. B. increases. C. fluctuates. D. remains unchanged.

68. The government agency that has a broader influence on marketing activities than any other agency is theA. Federal Trade Commission. C. Federal Communications Commission.B. Food and Drug Administration. D. Consumer Product Safety Commission.

69. Which of the following is a reason why a menswear store might choose to expand its product mix:A. To reduce costs B. To increase sales C. To increase risks D. To reduce liability

70. The buyer for Shoe Carnival wants to know the open-to-buy for the month. If planned purchases are $24,500, merchandise received is $8,900, and merchandise on order is $6,400, the present OTB would be

A. $9,200. B. $2,500. C. $15,300. D. $35,900.

71. A characteristic of product bundling is that an accessory store sells several products together for a(n)A. unlimited time. B. higher interest rate. C. higher profit margin. D. reduced price.

72. Some of the major couture houses of Paris have altered their marketing strategies because of theA. success of the ready-to-wear industry. C. popularity of licensing arrangements.B. increased media coverage of fashion. D. rapid changes in the world of fashion.

73. While brands are often associated with large, well-known apparel companies, small apparel businesses and services are also brands because they

A. are preferred by customers over larger companies and products. B. are just as necessary to the economy. C. also have customer perceptions and associations. D. will all eventually grow into larger, well-known organizations.

74. If possible, a fashion retailer that must borrow money to buy inventory should wait until theA. store's storage space is filled. C. stock turnover decreases.B. fashion season is over. D. interest rates go down.

75. Well-planned promotions should communicate to customers specific information aboutA. product usage. C. the accessory shop and its products. B. competitors' products. D. the accessory shop's sales revenues.

76. One reason that some groups are critical of promotional practices is because they think that promotionsA. manipulate consumers. C. are error free.B. eliminate stereotypes. D. reduce people's fears.

77. Which of the following statements is true about regulating promotional activities:A. A clothing business must understand that the laws governing promotional activities vary by country. B. Clothing businesses must submit all promotional materials to the International Ad Coalition for approval. C. Governments bear the sole responsibility of monitoring promotional materials and regulations. D. Most countries have a system of checks and balances to verify that promotion regulations are fair.

78. Newspapers are a type of print media that can be classified byA. type of programming. C. day parts.B. frequency of publication. D. purchase option.

79. The Franklin Clothing Company wants to provide readers of its print advertisement with a strong sales message about its sportswear. To achieve this objective, the Franklin Clothing Company will need to develop effective

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

80. Which of the following forms of direct mail is most likely to save money for a clothing business:A. Self-mailers B. Color catalogs C. Sales packets D. Computer disks


81. Visual merchandising is important in self-service retailing because the accessory products usually mustA. look identical. B. fit in containers. C. sell themselves. D. be inexpensive.

82. A display worker dismantling an exhibit of shoes and purses should carefully remove the nails in order toA. prevent injuries. B. use them again. C. store the props. D. clean the fixtures.

83. Which of the following would be best for hand lettering signs:A. Camel's hair brush C. Ball-point penB. Radiograph pen D. Coit pen

84. Which of the following usually is the last step in the process of developing a promotional plan:A. Evaluating the results C. Allocating the fundsB. Paying for advertising D. Implementing the plan

85. Josh has been told "no" about 10 times today by potential customers. He doesn't get discouraged or give up, however. He's determined to keep looking for ways to make sales. Which characteristic of a successful salesperson does Josh display:

A. Product knowledge C. Personal appearance B. Persistence and patience D. Ethics

86. Providing quality customer service on a consistent basis often helps sportswear store salespeople to increase sales toA. new prospects. C. current customers.B. first-time buyers. D. major corporations.

87. Which of the following is a benefit to the shoe manufacturer salesperson of building a clientele:A. Acceptance of higher prices C. Support of company imageB. Reduction of selling costs D. Referrals from loyal customers

88. An internal factor that could influence the determination of a clothing company's selling policies is theA. availability of raw materials. C. wants and needs of customers.B. firm's research and development efforts. D. firm's social responsibility.

89. One reason many salespeople for apparel manufacturers use e-mail to follow up with customers on a regular basis is because e-mail makes it possible to

A. communicate instantly. C. organize information. B. arrange delivery. D. schedule training.

90. Which of the following is an individual from whom accessory salespeople can obtain useful product information:A. Advertiser B. Explorer C. Customer D. Competitor

91. How does a feature-benefit chart help a watch salesperson?A. Evaluates customer reaction to the presentationB. Explains the store's compensation rate to the salesperson C. Determines which features and benefits appeal to each customerD. Provides a quick reference to the salesperson about the watch

92. The reason that the hem at the bottom of a garment should not be too narrow is so thatA. the garment can be lengthened. C. the hem can be turned up twice. B. double rows of stitching can be used. D. any raw edges will not be seen.

93. Which of the following types of men’s outerwear might a salesperson recommend to a customer who wants warmth as well as traditional style:

A. Rain poncho B. Ski jacket C. Trench coat D. Denim blazer

94. Which of the following is not a type of customer approach to be used by a clothing store salesperson:A. Service B. Merchandise C. Welcome D. Trial


95. The three basic models of suits for men are the American, the British, and theA. French. B. designer. C. European. D. custom tailored.

96. Which of the following techniques might a menswear store salesperson use to try to sell goods to customers who say that they are just looking:

A. Leave them entirely alone. C. Follow them around. B. Ask personal questions. D. Point out specials.

97. Apparel retailers that use an independent delivery service rather than an in-store delivery system haveA. a higher level of customer satisfaction.B. a higher level of control over delivery services.C. less money invested in offering delivery services.D. greater flexibility in adjusting services to customers' needs.

98. What is the main reason a clothing store employee should know how to properly pack delicate apparel items?A. To wrap as a present C. To decrease wrinklingB. To prepare for shipment D. To prevent breakage

99. A customer wants to return a dress that is the wrong size. The best procedure to follow in handling the return is to offerA. the customer a gift certificate. C. the customer a cash refund. B. to exchange the dress for another dress. D. to sell the customer a more expensive dress.

100. A manager evaluates the production output of the T-shirt department by checking it against the production goals for that time period. This is an example of the __________ function of management.

A. organizing B. directing C. controlling D. planning


1. BAgreement. In order for a contract to be legally binding, an offer must be made by one party and accepted by the other party. In effect, the two parties are agreeing. The competent parties provision requires those entering a contract to be of legal age and meet other criteria. Legality refers to the terms of the offer being within the law, and consideration requires something of value be exchanged.

SOURCE: BL:002SOURCE: Eggland, S.A., Dlabay, L.R., Burrow, J.L., & Ristau, R.A. (2000). Business: Its legal, ethical and global

environment [p. 146]. Cincinnati: South-Western Educational.

2. BTrue, products must be at the right place at the right time. Distribution methods are as important to the success of accessory products as the products themselves. Even good products can fail if they are not where customers can purchase them or are not at the business when the customer needs them. Capital investment is not reduced by effective distribution. Distribution is one part of marketing, but it has become increasingly important, and its costs make up about half of total marketing costs.SOURCE: CM:001SOURCE: DS LAP 1—Distribution

3. CProducer to wholesaler to apparel retailer to consumer. The majority of consumer products are distributed through an indirect channel. Most apparel retailers cannot buy the large quantities producers sell, so producers use wholesalers to sell to the smaller retailers. Wholesalers buy large quantities from producers and divide them into smaller units for sale to retailers.SOURCE: CM:003SOURCE: MB LAP 3—Channels of Distribution

4. BKnow where shipments are at all times. Satellite tracking technology is based on the use of orbiting satellites and enables clothing manufacturers to monitor the location of delivery trucks. Once a shipment is placed on a truck, the shipment can be tracked by satellite so manufacturers know where the shipment is at all times. This technology makes it possible for manufacturers to tell customers exactly where the shipment is and when it will be delivered. Satellite tracking technology does not enable manufacturers to analyze the contents of packages, reroute deliveries based on weather conditions, or obtain information about competitors.SOURCE: CM:004SOURCE: Coyle, J.J., Bardi, E.J., & Langley, C.J. (2003). The management of business logistics: A supply chain

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

5. BSmall companies to compete in the marketplace. A slotting allowance refers to a fee paid by a manufacturer or vendor to a customer, usually a retailer. This fee is charged to cover the costs for placing a new accessory product on the retailer's shelves. Sometimes the fees can be very high. Therefore, companies with less money have a more difficult time securing shelf space than larger, well-known companies with more available revenue. Slotting allowances can make it difficult for small companies to compete in the marketplace, which makes it possible for larger companies to reduce their competition. Slotting allowances do not generally determine the manufacturer's ability to meet customer demand. A shortage of raw materials might affect the manufacturer's ability to meet customer demand. Slotting allowances do not necessarily make it difficult for intermediaries such as freight carriers to make a reasonable profit.SOURCE: CM:006SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary Marketing (11th ed.) [p. 446] Thomson/South-Western.


6. CPromotion. Promotion is a marketing function that communicates information about goods, services, images, and/or ideas to achieve a desired outcome. Because most clothing stores plan their promotional activities well in advance, they need to coordinate that effort with distribution. Problems may arise if advertising or special events are planned to promote goods that are not available on schedule. Stores should make sure that goods will be delivered on time to coordinate with promotional activities. Purchasing is a business activity rather than a marketing activity. Management is the process of coordinating resources in order to accomplish an organization's goals. Organizing is the management function of setting up the way the business's work will be done.SOURCE: CM:007SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p.367 ).

New York: Glencoe/McGraw-Hill.

7. BVertical channel conflict. Vertical conflict may occur among members who are on different levels of the same channel of distribution. For example, a shoe manufacturer traditionally sells products to wholesalers who sell the products to a retailer. If the manufacturer starts to sell directly to the retailer, the wholesalers are eliminated from the channel of distribution, which might create conflict because the wholesalers are losing customers and revenue. Reverse distribution involves recycling an existing product. Horizontal conflict may occur among members who are on the same level in a channel of distribution. Exclusive distribution involves selling to only one distributor.SOURCE: CM:008SOURCE: Zikmund, W.G., & d'Amico, M. (1999). Marketing (6th ed.) [pp. 371-375]. Cincinnati:

South-Western College.

8. BActive listening. Listening is what we do when we hear words and sounds. Active listening requires the listener to interpret and process information to capture the true meaning of what is being said. Active listening is a verbal communication skill.SOURCE: CO:017SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 179-182).


9. BAssertive manner. Assertiveness is the ability to express yourself, communicate your point of view, and stand up for your rights, principles, and beliefs. Apparel 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. AInternal audience. Memorandums are a type of simple written report that apparel store employees often prepare to provide information to others within the business. Since memorandums are usually intended to be read by an internal audience, they are less formal and shorter than traditional business letters. They often provide information about the progress of current projects or an explanation of upcoming events. Not all apparel stores have boards of directors or planning committees. However, these are examples of internal audiences that may, or may not, receive memorandums. A group of suppliers is an external audience.SOURCE: CO:094SOURCE: Lesikar, R.V., & Flatley, M.E. (2005). Basic business communication: Skills for empowering the Internet

generation (10th ed.) [pp. 97-99]. Boston: McGraw-Hill/Irwin.


11. DGoodwill. Customers expect employees to be able to answer their questions and direct them to various locations within the discount clothing store. Employees who accurately give directions are promoting customer goodwill because customers become irritated quickly if they are given confusing directions or sent to the wrong location. Giving accurate directions does not promote customer honesty and curiosity. Giving accurate directions would reduce the possibility of customer complaints.SOURCE: CO:073SOURCE: Hyden, J.S., Jordan, A.K., Steinauer, M.H., & Jones, M.J. (1999). Communicating for success (2nd ed.)

[pp. 112-114]. Cincinnati: South-Western Educational.

12. DBuilding positive customer relations. Treating customers with respect and courtesy creates a positive relationship with customers and goodwill for the clothing store. The situation described does not involve suggestion selling, quality of products, or employee turnover.SOURCE: CR:003SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 323-327).


13. AEmployee. Businesses, such as sportswear manufacturers, have policies that explain how employers are to act and how they are to deal with customers. Some of these policies include rules about eating and smoking on the job. Businesses make these policies in order to present a certain image to customers. Service policies are established to provide special features that other, similar businesses may not offer in order to persuade customers to choose their business over another. Some policies affect customers directly, such as guidelines for offering credit. A product policy is a guideline affecting the kinds of goods and services that businesses offer to customers.SOURCE: CR:007SOURCE: HR LAP 25—Interpreting Business Policies

14. CQuality check. The purpose of the quality check is to determine whether the quality of the apparel goods received is the quality that was ordered. Receiving workers may do the quality check, or it may be done by the company's buyers. With a blind check, receiving workers list the goods that were received on a dummy invoice that is then compared with the actual invoice after the blind check is completed. With a random check, receiving workers spot check containers at random. If the goods in those containers are acceptable, the entire order is considered acceptable. If problems are detected, the receiving workers do a direct check. In the direct check, as the goods are unpacked, they are sorted, counted, inspected, and checked directly against the invoice or the purchase order.SOURCE: DS:004SOURCE: DS LAP 5—The Receiving Process

15. CImmediate handling. Goods which require special care, e.g., perishable items or valuable jewelry, must be processed as soon as possible to prevent damage or loss. Priority items may need special storage such as refrigeration, but the amount of storage is not a factor. Items that are on back order are temporarily out of stock and will be shipped at a later date. Whether the items will need to be promoted is not a factor in priority processing.SOURCE: DS:085SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)

[pp. 382-383]. Upper Saddle River, NJ: Prentice Hall.

16. DPhysical. A physical inventory is an actual count of the items in stock and provides the menswear store with the exact quantities and values of stock on hand. A perpetual, or book, inventory involves continuously updating inventory records as transactions occur. Opening inventory is the amount of stock a store has on hand at the beginning of each period.SOURCE: DS:025SOURCE: DS LAP 6—Counting Inventory


17. BA product purchased by individuals for personal use. Individuals who purchase and use goods or services to satisfy their own wants and needs are called ultimate consumers. Capital goods are manufactured or constructed items purchased by businesses for use in their operations. Whether products can only be used once or can be used repeatedly refers to product durability.SOURCE: EC:002SOURCE: EC LAP 10—Goods and Services

18. CTime. Time utility is making products available at the time they are wanted or needed by consumers. Customers are looking for good buys in school clothes before the beginning of each school year—usually the end of August. Place utility is making goods and services available at the place (location) they are wanted or needed by consumers. Possession utility is created when the ownership of a product is transferred from the seller to the person who will use it. Form utility is altering or changing the form or shape of a product to make it more useful to the consumer.SOURCE: EC:004SOURCE: EC LAP 13—Use It

19. CCost of production. If the business determines that the cost of producing a product, such as a hiking boot, will be higher than its selling price, it would not be advisable to produce the product even though there is demand for it. Promotional considerations, consumer expectations, and product utility are factors that affect demand, not supply.SOURCE: EC:005SOURCE: EC LAP 11—It's the Law (Supply and Demand)

20. COrganized effort to produce goods and services. A business, whether for profit or nonprofit, is an organized effort to produce goods and services. It is not a disorganized method of doing anything—least of all, manufacturing products. Although a business can be a reasonable means for making a profit, that is not the description of a business. Unreasonable business behavior typically decreases revenues.SOURCE: EC:071SOURCE: EC LAP 19—Strictly Business (Business Activities)

21. CEmployee B. The productivity of individual workers can be measured by the amount of work the individual can produce in a certain amount of time. In this example, employee B was able to assemble 60 watches in six hours or an average of 10 watches per hour (60 ÷ 6 = 10). The other employees were not as productive and were not able to assemble an average of 10 watches per hour. To be as productive, employee A should have assembled 80 watches in eight hours, employee C should have assembled 40 watches in four hours, and employee D should have assembled 100 watches in 10 hours.SOURCE: EC:013SOURCE: EC LAP 18—Productivity

22. DPrices will continue to rise. When inflation is at a high level, prices are also high. During times of inflation, prices often continue to rise. As a result, some jewelry businesses might decide to hold on to expensive diamond earrings to sell later because they anticipate that prices will continue to increase and they can sell the earrings for more at a later time. Consequently, inflation can cause a decrease in supply because businesses are waiting to sell products at the highest price possible. Businesses do not hold on to products to sell later because taxes will limit production, cash will be in short supply, or income will remain constant.SOURCE: EC:083SOURCE: O'Sullivan, A., & Sheffrin, S.M. (2003). Economics: Principles in action (pp. 119-120). Upper Saddle River,

NJ: Prentice Hall.


23. AEstablishment of trade centers. Trade centers are offices and display rooms set up by our government in foreign cities to increase international trade by assisting exporters in finding foreign markets for their goods and services. Quotas that limit imports, tariffs that tax incoming goods, and the establishment of strict product standards are frequently used trade barriers.SOURCE: EC:016SOURCE: EC LAP 4—Beyond US (International Trade)

24. AProcrastination. Someone who procrastinates puts things off until the last possible minute. The alternatives are very desirable personal traits. Industriousness is a willingness to work hard. Assertiveness is the ability to stand up for your rights without infringing on the rights of others. Initiative is a willingness to act without having to be told to do so.SOURCE: EI:018SOURCE: HR LAP 10—Personal Traits

25. BWelcoming. Terry has learned that it is best to welcome, accept, and feel comfortable with change, since it can often be a positive force in life. He has not requested a change in job duties. Dreading and resisting change can make it very difficult to adjust to the change.SOURCE: EI:026SOURCE: HR LAP 8—Adjusting to Change

26. DEmpathy. Empathy is putting yourself in another person's situation. Sportswear store salespeople who develop empathy are better able to understand and meet customers' needs. Objectivity is the ability to look at something clearly, usually without emotional involvement. Appreciation is gratefulness. Conviction is a strong belief.SOURCE: EI:030SOURCE: HR LAP 17—Empathy

27. AWords. The term verbal indicates that words are involved. Nonverbal assertiveness refers to assertive behavior that involves body language rather than words, e.g., facial expression, posture, eye contact, etc.SOURCE: EI:008SOURCE: HR LAP 16—Assertiveness

28. BDemonstrating courtesy and respect. Being humble is an example of demonstrating courtesy and respect toward others on your work team in the process of building positive working relationships. Demonstrating courtesy and respect toward others on your work team includes being humble, tactful, patient, empathetic, tolerant, and having a sense of humor when things don't go as planned. Being humble is not an example of carrying your own weight or getting to know others on your work team. It may go along with having a good attitude, but it is best as an example of demonstrating courtesy and respect.SOURCE: EI:037SOURCE: EI LAP 5—Can You Relate? (Positive Working Relationships)

29. CCreativity. Creativity is the ability to generate unique ideas, approaches, and solutions. An effective leader must have the ability to be creative and be able to imagine a better way of doing things. Leadership demands imagination, enthusiasm, and openness to new ideas. A leader knows that out of a hundred off-the-wall ideas, there may be one that works. Discipline involves acting in a controlled manner. Empathy is the ability to put yourself in another person's place.SOURCE: EI:009SOURCE: QS LAP 27—Follow Me!


30. DIt is better to receive $100 today than $101 a year from now. According to the concept of the time value of money, the sooner money is received the more time you have to let it grow. Receiving money later costs you the opportunity to earn interest or other appreciation. Saving money will not buy time on debt payment. Time and money are not related by due date.SOURCE: FI:062SOURCE: Investopedia.com. (n.d.). Understanding the time value of money. Retrieved July 26, 2007, from

http://www.investopedia.com/articles/03/082703.asp

31. ATo create savings for the shop. Offering consumer credit does not create savings for the dress shop but is a costly service. The shop must spend additional monies for billing procedures, personnel in the credit department, and collection procedures. However, offering credit helps a shop to build goodwill, to develop customer loyalty, and to encourage customers to buy more.SOURCE: FI:002SOURCE: FI LAP 2—Credit and Its Importance

32. CSetting financial goals. Financial goals are objectives that individuals want to achieve. Deciding to save money to buy a car in two years is a financial goal. Individuals often set financial goals based on a time factor because they have a need that they want to satisfy. In this situation, buying a car in two years is the need that can be satisfied by saving money every month. Deciding to save money is not an investment, although the money that is saved might be invested or placed in a savings account. An individual who decides to save money is not analyzing economic conditions.SOURCE: FI:065SOURCE: Kapoor, J.R., Dlabay, L.R., Hughes, R.J., & Hoyt, W.B. (2005). Business and personal finance (pp. 11-15).


33. A$640. Ending cash balance is the amount of cash a shoe store has left at the end of the month. This figure is calculated by subtracting the total cash paid out from the total cash available. First, determine the total cash available by adding the beginning cash balance and the total cash receipts ($1,825 + $3,440 = $5,265). From this figure, subtract the total cash paid out which includes the operating expenses and the inventory purchases ($5,265 - $1,675 = $3,590 - $2,950 = $640).SOURCE: FI:091SOURCE: FI LAP 6—Count the Cash (Cash Flow)

34. ABusiness expense. Utility bills, salaries, advertising, equipment purchases, taxes, and loans are examples of expense items a business must spend money on. They are the opposite of business income, examples of which are sales and interest. They do not, in and of themselves, represent spending controls or financial goals.SOURCE: FI:106SOURCE: FI LAP 3—Money Tracks

35. B$4,097.35. Clothing store owners usually complete bank deposit slips at the end of the day in order to deposit the cash and checks received from customers. In some cases, the owner might want cash back to use as a beginning cash fund for the next day. To calculate the amount of deposit, add the total of cash and checks ($243.85 + $3,928.50 = $4,172.35). Then, subtract the cash back to determine the total amount of deposit ($4,172.35 - $75.00 = $4,097.35).SOURCE: FI:298SOURCE: Lange, W.H., Rousos, T.G., & Mason, R.D. (1998). Mathematics with business applications (4th ed.) [pp.

126-127]. New York: Glencoe/McGraw-Hill.


36. DMarketing information. Marketing information is all the marketing-related data available from inside and outside the business. This data includes information about customers, the social and economic environment, and developing trends. Accessory manufacturers need marketing information to make decisions about when to develop new products that will meet the changing needs of customers. They also need this information to decide when to change prices. Manufacturers that develop new products or change prices without obtaining current marketing information run the risk of developing products that customers do not want, or of making price changes that customers will not accept. Promotional research and advertising data will help manufacturers decide how to promote and advertise new products. Selling procedures are the steps that salespeople follow to achieve their goal of making a sale.SOURCE: IM:012SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an

e-commerce world (7th ed.) [p. 124]. Mason, OH: South-Western.

37. ARelevancy. The data collected must be closely related to the situation in order to be of the most use. Timely data are up-to-date and gathered at a time when they will be of most value to the businesses. Accessible data are readily available so that they can be gathered without major effort or excessive cost. Sufficient data are available quantities required by marketers to make decisions.SOURCE: IM:001SOURCE: IM LAP 2—Marketing-Information Management

38. CA database. A database is a collection of information that a clothing store can retrieve quickly. Many stores use databases to store information about their customers, such as contact information and buying preferences. Presentation software is a computer application that displays a slide show. Opt-in e-mail messages are electronic promotional messages that are sent with a recipient's permission and allow the recipients to request removal from the subscriber list at any time. A CAD program is a computer software program that allows users to create multi-dimensional graphics.SOURCE: IM:183SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 594-595).


39. CLeading shoe manufacturer. More than 85% of the country's leading manufacturers have marketing-research departments. Businesses of all sizes can hire the services of outside market researchers, but large businesses often have their own marketing-research departments. Local charities, small retail businesses, and political candidates would conduct their own research or hire an outside researcher.SOURCE: IM:010SOURCE: IM LAP 5—Nature of Marketing Research

40. DPromotion. By definition, the promotion element refers to the various types of communication that apparel marketers use to inform, persuade, or remind customers of their products. The other options are the other elements of the marketing mix.SOURCE: MP:001SOURCE: IM LAP 7—Pick the Mix

41. DAre very discerning and selective. Consumers have become very discerning in the purchases that they make. They do not feel that products that are designed for everyone will meet their specific needs. This has made target marketing more important. Consumer needs, wants, reasons for buying, and concern about price are varied.SOURCE: MP:003SOURCE: IM LAP 9—Have We Met?


42. CObjectives. Marketing objectives are the goals a business seeks to reach with its marketing plan, which is a set of strategies for attracting the target customer to the business. One of the main reasons for developing a marketing plan is to identify those strategies that are the plans of action for achieving marketing goals and objectives. Marketing functions are interrelated activities that must work together to get goods and services from producers to consumers. Marketing mix is the combination of the four elements of marketing-product, place, promotion, and price. Market share is an organization's portion of the total industry sales in a specific market.SOURCE: MP:007SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 88-90]. Upper Saddle River,

NJ: Prentice Hall.

43. BInternal and external. The environmental factors that shoe store chains consider when conducting a situational analysis may be internal as well as external. Internal factors are those within the chain itself that have an impact on the chain's marketing effort, such as the distribution system or the pricing strategy. External factors are those that exist outside the chain and over which the chain may have no control, such as the state of the economy or the number of competitors. Chains examine both types of environmental factors in order to adapt to change and make effective marketing decisions. For example, a chain might decide to adjust its prices to remain competitive if the economy is slowing down. Physical and personal, ethical and legal, and formal and informal are not types of environmental factors that chains consider when conducting a situational analysis.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.

44. COne major competitor leaves the market. External changes take place that have an effect on a chain's sales forecast. These changes may cause the chain's sales to increase or decrease. Sales forecasts need to be adjusted when competitors leave the market because a chain of menswear stores can expect its sales to rise as major competitors leave. Chains usually decrease their sales forecasts for the coming year if the population of their market area decreases, the inflation rate increases, and demand for their products begins to level off.SOURCE: MP:013SOURCE: IM LAP 3—Nature of Sales Forecasts

45. ATarget the market and improve service. Advances in database technology allow clothing stores to obtain and analyze a variety of information about customers such as zip codes and amount of spending. Stores use the data to more effectively target the market and improve service to customers. By continually obtaining data relevant to the main customer base, stores are able to advertise in the most appropriate areas and offer the goods and services that customers in those areas indicate that they want. The database technology that makes it possible to obtain zip codes and spending information does not help with monitoring inventory, forecasting sales, or ordering merchandise. However, other types of technology help with those activities.SOURCE: NF:041SOURCE: Dunne, P., Lusch, R., & Griffith, D. (2002). Retailing (4th ed.) [pp. 131-132]. Mason, OH: South-Western.

46. AImport penetration. To import a product means that products are made outside a country and brought into another country to be sold. It is estimated that 60% of the United States' textile and garment market is imported from other countries. A factor that has impacted the trade between foreign goods is the North American Free Trade Agreement, which loosened restrictions on the importation of goods. Trade deficit is defined as a state in which the amount of a country's exported goods is greater than its imported goods. Transshipping is an illegal act where companies reroute shipments of goods in order to avoid quota limitations. When one nation has the means to produce goods in a more efficient manner than other countries, it has a comparative advantage.SOURCE: NF:064SOURCE: Wolfe, M.G. (1998). The world of fashion merchandising (pp. 441-442, 445, 447). Chicago: Goodheart-

Willcox.


47. AOpening page. The design and content of the opening page is extremely important because many visitors do not go beyond that page. Therefore, it is important to create an opening page that provides an overview of the web site and links to other pages on the site. If the goal is to have visitors follow links to access additional information or make a purchase, the opening page must generate interest and encourage visitors to continue. A search engine is a software program that automatically crawls the Web looking for information pertaining to specified search terms and displays a list of results. A domain name is a business's web address. A shopping cart is a computer program designed to act as an online catalog and order-processing center.SOURCE: NF:042SOURCE: Locker, K.O. (2000). Business and administrative communication (5th ed.) [pp. 141-142]. Boston:

Irwin/McGraw-Hill.

48. AIncluding it as a file attachment or by pasting it into the body of the e-mail. If the sender is unsure of the receiver's ability to read a document type, pasting the document into the e-mail is the best choice. If maintaining the format is important and the sender knows the receiver can read the document type, a file attachment is best. While rekeying is a possibility, the amount of time required makes this a poor choice. Hyperlinks lead to places on the World Wide Web or to other places in the document, so cannot be used to locate a file on either a local or network computer.SOURCE: NF:004SOURCE: Microsoft Corporation. (2003, August 20). Compose and send e-mail messages using Outlook Express.

Retrieved July 26, 2007, from http://www.microsoft.com/windows/ie/using/howto/oe/composesend.mspx#EAAA

49. CPresentation. Presentation software programs allow businesspeople to create computer-generated presentations that may include graphics, transparencies, slides, text, sound, video, or animation. The advantage of using presentation software is that it enables businesses to develop colorful, eye-catching presentations that display information in an interesting manner. Application, operating, and publishing software programs do not combine graphics, transparencies, slides, and text for an on-screen display of information.SOURCE: NF:008SOURCE: Hair, J.F., Jr., Bush, R.P., & Ortinau, D.J. (2000). Marketing research: A practical approach for the new

millennium (pp. 425-426). Boston: Irwin/McGraw-Hill.

50. DGood health habits. Practicing good health habits helps reduce the risk of carelessness, which commonly causes workers to make errors that result in accidents. People who eat a balanced diet, get plenty of sleep, and exercise regularly are more rested, alert, and able to concentrate on their work. Practicing first-aid techniques, emergency methods, and security procedures will not help employees to prevent accidents, but they should be trained in those areas in order to properly deal with accidents once they have occurred.SOURCE: OP:009SOURCE: RM LAP 3—Handling Accidents

51. BCustomer's signature. The back of a credit card contains a place for the customer's signature. When accepting credit cards for payment, jewelry store employees should check the signature on the back of the card to make sure it matches the customer's signature on the charge slip. Carefully checking signatures on credit cards is one way for employees to help prevent fraud by detecting customers who are trying to use stolen cards. The expiration date and account number usually appear on the front of a credit card. A credit card's identification code usually is its account number.SOURCE: OP:013SOURCE: RM LAP 4—Security Precautions

52. AAuthority. To be able to manage projects effectively, clothing store managers need authority. When they have authority, they have the power to make decisions and put those decisions into effect. They use their authority to influence project members to follow their lead. Managers do not have the freedom to change the goals. They must follow certain guidelines. Self-interest is giving priority to what benefits oneself. Pessimism is a negative attitude.SOURCE: OP:002SOURCE: QS LAP 18—Make It Happen


53. CBy treating customers efficiently. Treating customers efficiently and in a professional manner is one way that employees can help a bridal salon to control expenses. When employees serve customers efficiently and courteously, the customers are not likely to have complaints. Since handling complaints is an expense to the bridal salon, this effort saves money. It also means the salon will retain customers, and it costs less to keep existing customers than to try to attract new ones. Overcharging customers for services would create complaints and eventually cost the salon money. Not holding up coworkers' projects and not borrowing company property are other ways that employees can help bridal salons to control expenses.SOURCE: OP:025SOURCE: MN LAP 56—Employee Role in Expense Control

54. CA clean store is more appealing to customers. Most customers prefer to shop in a clothing store that is clean, neat, and has an overall appealing appearance. This can increase customer traffic and sales. There are no specific housekeeping standards that stores are required to meet. Good housekeeping may reduce customer complaints, but it will not prevent them entirely. Good housekeeping should be used to support an image, but the image is created by the brands, prices, and atmosphere of the store.SOURCE: OP:032SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)

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

55. BObjective. Objectivity is viewing things in an unbiased manner. It helps individuals to see themselves clearly because emotions do not get in the way. Subjectivity is viewing matters strictly from one's personal experience or point of view. Creativity is the ability to generate unique ideas, approaches, solutions, etc. Adaptability is the ability to adjust to changing circumstances.SOURCE: PD:013SOURCE: HR LAP 2—Self-Understanding

56. AWrite the interviewer a follow-up letter. Expressing appreciation for the interview is just as important when you know you won't get the job as it is when you believe you might be hired. It makes a good impression on the company, puts your name into their files, and in some cases, may make them reconsider their decision. The letter should be written while the details of the interview are fresh in your mind. After that, you might want to find out about training for the skill you lack and to look for a similar job opportunity. There is no basis for filing a complaint in this case.SOURCE: PD:029SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [p. 71]. Mason, OH: South-

Western.

57. CTrade show. Suppliers provide buyers with information regarding new apparel items and accessory products and/or trends in the industry at trade shows. A career fair involves a gathering of company representatives from various occupational fields whose objective is to provide information for people interested in pursuing careers in those occupations. A union meeting is a formal gathering of individuals who belong to an organized workers' group. A planning session involves a group of people gathering together to decide tasks to complete and ways to accomplish them.SOURCE: PD:036SOURCE: CD LAP 1—Trade Associations and Professional Organizations

58. AFashion director. Apparel retailers often employ a fashion director who is responsible for keeping the store updated on current styles and trends and informing buyers about new fashions. Fashion directors visit the fashion centers of the world to stay informed about new ideas and clothing developments. Their function is to make sure the store buys the latest merchandise so customers will be able to buy current styles. Fashion directors make this information available to buyers to assist them in obtaining new fashions. The operations manager is involved with managing the sales staff and store operations. The distribution planner is responsible for keeping track of merchandise.SOURCE: PD:038SOURCE: Wolfe, M.G. (1998) The World of Fashion Merchandising (pp. 523-525).

Goodheart-Willcox Co.


59. DApparel. Fashion is a particular style of something that is popular at a certain time. Apparel is clothing. Some apparel items include pants, shirts, suits, dresses, sweaters, and jackets. Because apparel designers are constantly changing and updating clothing styles, apparel is a segment of the fashion industry. Accessory items are fashion goods and include items such as scarves and belts. Clothing is made from fabric, which consists of fibers. An adornment is an embellishment or a trim that is on a garment or accessory.SOURCE: PD:102SOURCE: Wolfe, M.G. (1998). Fashion! (3rd ed.) [p. 22]. Chicago: Goodheart-Willcox.

60. AManaging time effectively will increase personal stress and frustration. Time management will actually decrease personal stress and frustration. Because you are more organized, you accomplish more in less time. When your work is completed on the job, you won't have to bring work home.SOURCE: PD:019SOURCE: OP LAP 1—About Time (Time Management in Business)

61. CProfits. Profit is the monetary reward a business owner receives for taking the risk involved in investing in a business. Specialty boutiques set prices on goods and services that will make a profit. Boutiques expect that the sale of goods and services will generate sufficient profit to achieve the return on investment they want. If boutiques can't set prices high enough to make a profit, they probably won't market those goods and services. Boutiques do not expect to make salaries or payments when they set prices on goods and services. Quotas are specific goals to be met.SOURCE: PI:001SOURCE: PI LAP 2—Pricing

62. DUniversal Product Codes. Universal Product Codes (UPCs) are bar type symbols that provide information such as pricing, model, size, type, and color of specific items. Employees scan bar codes into their electronic cash registers. The registers translate the code into the selling price of the item. Uniform Resource Locators (URLs) are computer-based codes that locate web pages on the Internet. Unified Pricing Criteria and United Rating Systems are not terms used to describe technological functions as they relate to pricing issues.SOURCE: PI:016SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 442]. Woodland

Hills, CA: Glencoe/McGraw-Hill.

63. AVariable costs. Companies change the selling prices of their products, such as leather purses, for a variety of reasons. Variable costs are costs that change according to changes in sales volume. Variable costs include such expenses as cost of goods for resale, labor, shipping, sales commissions, and raw materials. When the seller must pay a higher price for the raw materials to produce the leather purses, the cost increase is often passed along to the end user. Although government regulation, consumer demand, and economic conditions are often factors that affect price, they are not are the primary reasons for increasing the selling price of the product.SOURCE: PI:002SOURCE: PI LAP 3—Factors Affecting Selling Price

64. BMarketing information. Market research is often used to aid product planners in gathering information concerning consumer needs and preferences. Marketers must be knowledgeable about the market and about consumers' buying habits in order to offer products, such as watches, that will be purchased. Market information helps planners to predict whether a new watch will be successful before the firm makes a major investment. Product monitoring, on the other hand, takes place after a product is established in the market and after monies have been invested in a product. A company's goals influence the choice of products to offer and suggest ways for the business to grow and remain competitive either by developing entirely new products or developing products similar to those being introduced by the competition. After products are introduced on the market, they move through life cycles: the courses that products follow in the market including their introduction, growth, maturity, and decline.SOURCE: PM:001SOURCE: PP LAP 5—Product/Service Planning


65. BIntranet. Intranet refers to a business's network of computers that are linked so that the employees can retrieve the same business information. For example, a software program that tracks inventory may be available for the sales department, the shipping department, and the purchasing department to review. A discount clothing store that uses an Intranet system to manage products maximizes its communications and response time. Generators and memory cards do not allow a business's employees to simultaneously access the product information. Micro-portal is a fictitious term.SOURCE: PM:039SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an

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

66. BMarket opportunity. When a situation exists to fulfill a market's unmet needs, there is a market opportunity. Entrepreneurs and 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)

67. BIncreases. Grades and standards have increased in importance as international trade has increased. This relationship will continue because people need to be able to rely on the products that they buy. They also need to be able to rely on the businesses from which they buy. The use of grades and standards enables them to do just that.SOURCE: PM:019SOURCE: PM LAP 8—Grades and Standards

68. AFederal Trade Commission. The Federal Trade Commission (FTC) is the regulatory agency established by the federal government and given the authority to enforce consumer-protection laws. It enforces laws governing advertising, sales and credit practices, marketing practices, and warranties. The Food and Drug Administration is the regulatory agency established by the federal government to enforce laws that protect consumers' health. The Consumer Product Safety Commission is the regulatory agency established by the federal government to enforce product safety laws. The Federal Communications Commission is a government regulatory agency that grants licenses to radio and television stations and regulates interstate telephone and telegraph rates and service.SOURCE: PM:017SOURCE: PP LAP 7—Consumer Protection in Product Planning

69. BTo increase sales. Expanding the product mix with successful new clothing items or clothing lines should increase sales for most menswear stores. Profits should also increase as a result of increased sales. A store that expands its product mix often increases its costs and liability because more items are available. Expanding the product mix reduces risks by spreading the risk over a wider area.SOURCE: PM:003SOURCE: PP LAP 3—Product Mix

70. A$9,200. The open-to-buy formula is planned purchases minus (merchandise received + merchandise on order). OTB would be $24,500 minus ($8,900 + $6,400 = $15,300) or $24,500 - $15,300 = $9,200.SOURCE: PM:058SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 414]. Woodland

Hills, CA: Glencoe/McGraw-Hill.


71. DReduced price. Product bundling is the practice of putting together a number of goods/services to create a one-price package. Most often, the bundled package is priced so it costs the customer less than if s/he purchased each product separately. The goal of product bundling is to increase sales and to get customers to try something that they normally wouldn't purchase. The interest rate is the percentage figure used in calculating interest charges, which are money payments for borrowed money. Product bundling does not always provide the accessory store with a higher profit margin, nor does it always require the store to consider interest rates. The amount of time a store bundles particular products depends on the type of product and the store's objectives. SOURCE: PM:041SOURCE: Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [pp. 333-334]. Upper Saddle River, NJ:

Prentice Hall.

72. ASuccess of the ready-to-wear industry. The success of the ready-to-wear industry has caused many of the haute couture houses to alter their marketing strategies in order to remain competitive. A large number have licensed their products, and some have added ready-to-wear lines or fragrances in order to keep the couture side of the business alive. All of the other alternatives are characteristics of the fashion industry, but they have not brought about the changes in marketing strategies.SOURCE: PM:060SOURCE: PU LAP 2—Fashion Designers

73. CAlso have customer perceptions and associations. Brands that are known nationally and even internationally tend to be top-of-mind with customers. But, whether they are aware of it or not, small apparel businesses and services have brands, as well. The dress shop, the market, and the dentist all have established expectations in their customers' minds, based on customers' experiences with those businesses and services. How well businesses and services deliver on these expectations and how customers experience their values determine the "brands" as customers see them. Small businesses and services are necessary to the economy, but this is not why they are brands; customer perceptions and feelings toward them shape their brands. Small businesses and services are not universally preferred by customers over larger companies and products. Customers' brand preferences are shaped by experience and how consistently and effectively businesses of all sizes deliver on their brand promise. Some small businesses and services will grow into larger, well-known organizations, others will not. Regardless, the possibility of future growth does not make a small business or service a brand.SOURCE: PM:021SOURCE: PM LAP 6—It's a Brand, Brand, Brand World! (The Nature of Branding)

74. DInterest rates go down. By waiting until the interest rates go down, the retailer can make a greater profit because it will not have to pay as much money on the monthly loan payment. The fashion retailer should order merchandise months in advance of a selling season. Otherwise, it will pay a higher price and likely be stuck with merchandise that is out-of-style. When storage space is filled, it is often necessary to either rent additional storage space or eliminate some of what is already there. In either case, the fashion retailer will probably lose money. A high stock turnover suggests that the retailer must replenish the inventory as soon as possible rather than waiting.SOURCE: PM:262SOURCE: Wolfe, M.G. (1998). The world of fashion merchandising (p. 280). Chicago: Goodheart-Willcox.

75. CThe accessory shop and its products. The primary goal of advertising is to stimulate sales by informing customers about the accessory shop and its products. Specific information about the use of products would be supplied to the purchasers of those products. An accessory shop would not advertise its income from sales or competitors' products.SOURCE: PR:001SOURCE: PR LAP 2—Promotion


76. AManipulate consumers. Some individuals and groups are critical of promotional practices because they think that promotions manipulate consumers. Critics feel that promotions persuade people to buy goods or services they do not want or need. Promotion does appear to have some influence on the purchase behavior of consumers. Critics of promotion also believe that promotions create and reinforce stereotypes and play upon people's fears. They also think that promotions are not infallible, but that the promotions often make false or exaggerated claims about a product and/or contain errors.SOURCE: PR:002SOURCE: PR LAP 4—Know Your Options (Types of Promotion)

77. AA clothing business must understand that the laws governing promotional activities vary by country. Some countries have strict promotional laws that marketers must follow, while other countries' laws are lenient. A clothing business that breaks a promotional law may have to pay government fines, which is costly to the business. Therefore, it is important for marketers to understand which promotional activities are, and are not, permissible in the countries where they sell and promote products. The International Ad Coalition is a fictitious organization. In some countries, industry and consumer groups influence how the governments regulate promotion. Some, rather than most, countries have a system of checks and balances to verify that promotion regulations are fair.SOURCE: PR:101SOURCE: Arens, W.F. (2004). Contemporary advertising (9th ed.) [pp. 74-76].

Boston: Irwin/McGraw Hill.

78. BFrequency of publication. Newspapers are published daily, weekly, biweekly, or monthly. Broadcast media are concerned with the type of programming, day parts, and purchase options.SOURCE: PR:007SOURCE: PR LAP 3—Ad-quipping Your Business (Types of Promotional Media)

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

80. ASelf-mailers. Direct mail is a promotional medium that comes to consumers' homes and businesses. Self-mailers are forms of direct mail that do not require an envelope. Self-mailers are usually sealed or stapled and have a designated space for the mailing label, return address label, and postage. Clothing businesses can save money by using self-mailers because they do not need to purchase envelopes. Color catalogs are expensive to produce. Sales packets and computer disks require envelopes or wrappers and often weigh a lot, which tends to increase postage amounts. Therefore, sales packets and computer disks are not options that are most likely to save money for businesses.SOURCE: PR:089SOURCE: Arens, W.F. (2004). Contemporary advertising (9th ed.) [p. 574]. Boston: Irwin/McGraw Hill.

81. CSell themselves. Visual merchandising is display. It is extremely important in self-service retailing because accessory products are arranged for customers to serve themselves. If the displays of merchandise are not attractive and appealing, customers may not be persuaded to buy. In the self-service situation, visual merchandising is the way that products sell themselves because there is only a limited amount of personal selling involved. In self-service retailing, products may be in all price ranges. The products do not need to fit in containers or look identical.SOURCE: PR:023SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 385-387).



82. APrevent injuries. Nails and other items used in display construction contain sharp points that may cause injuries to workers if not carefully removed. Display workers remove these items to prevent injuries to themselves and others. A display worker would not be concerned with saving nails to use again. Cleaning the fixtures and storing the props does not necessarily involve removing nails.SOURCE: PR:054SOURCE: Diamond, J., & Diamond, E. (1999). Contemporary visual merchandising (pp. 12-13). Upper Saddle River,

NJ: Prentice Hall.

83. DCoit pen. A Coit pen is preferred for hand lettering signs because it can be used to make highly readable letters and numbers. If Coit pens are not available, then wedge-shaped felt pens or nylon-tipped pens can be used. Camel's hair brushes would be difficult to use in hand lettering. Ball-point and radiograph pens make lines that are too fine for signs.SOURCE: PR:109SOURCE: Blick Art Materials. (n.d.). Coit lettering pens. Retrieved July 26, 2007, from

http://www.dickblick.com/zz209/07/

84. AEvaluating the results. The last step in the promotional planning process usually involves evaluating the results to determine if the objectives were met. Businesses evaluate the results of promotional plans in order to decide if their tactics were effective or if they should be changed. Businesses want to make sure that they spent their money wisely and reached their target market before using the same type of promotional plan in the future. Allocating the funds, implementing the plan, and paying for advertising are actions that take place before a business evaluates the results of the promotional plan.SOURCE: PR:073SOURCE: Burrow, J.L. (2002). Marketing (pp. 420-421). Mason, OH: South-Western.

85. BPersistence and patience. Josh displays persistence and patience when he refuses to give up and continues to look for ways to make sales after hearing "no" several times in one day. Product knowledge, personal appearance, and ethics are all characteristics of successful salespeople, but they are not displayed by Josh in this situation.SOURCE: SE:017SOURCE: SE LAP 117—Sell Away (The Nature and Scope of Selling)

86. CCurrent customers. Sportswear store salespeople often try to increase sales to current customers by providing quality service on a consistent basis. Current customers who are satisfied with the level of service often become lifetime customers and buy additional goods and services. Salespeople realize that it may be easier to sell more to current customers than to identify new customers. However, current customers probably will not buy more if they are not satisfied with the service. New prospects are potential customers—ones who might buy. First-time buyers are those who are buying from a salesperson for the first time and who do not yet know what type of service they will receive. Providing quality customer service on a consistent basis might increase sales to major corporations if those corporations are also current customers rather than new prospects or first-time buyers.SOURCE: SE:076SOURCE: Futrell, C.M. (1999). Fundamentals of selling: Customers for life (6th ed.) [pp. 411-412]. Boston:

Irwin/McGraw-Hill.

87. DReferrals from loyal customers. Loyal customers often provide shoe manufacturer salespeople with leads for locating and gaining access to new clients. This can greatly increase the salesperson's opportunities for making sales. All of the other alternatives are benefits to the business of building a clientele. It can help to hold down selling costs because it costs more to make an initial sale than a repeat sale. It also can provide word-of-mouth advertising that builds and promotes company image and convinces loyal customers that higher prices are acceptable because of other benefits they receive from dealing with the business.SOURCE: SE:828SOURCE: SE LAP 115—Keep Them Loyal (Building Clientele)


88. BFirm's research and development efforts. A clothing company's research and development efforts are internal factors that affect the way a business determines its selling policies. Based on its research, a firm might modify or change its selling policies. The other alternatives are examples of external factors that could affect selling policies but over which the firm has little or no control.SOURCE: SE:932SOURCE: SE LAP 121—Selling Policies

89. ACommunicate instantly. E-mail technology makes it possible for salespeople to communicate with customers instantly. Many salespeople for apparel manufacturers use e-mail to follow up with customers because it is a fast and efficient method of communication. For example, a salesperson e-mails a customer about a product that is on sale, and the customer receives the message instantly. The customer can review the information and make a decision without waiting for information to arrive in the mail, for the salesperson to schedule an appointment, or for the salesperson to place a phone call. Salespeople might use e-mail to arrange for delivery of an order, or to schedule training for a customer's employees. E-mail is not used to organize information.SOURCE: SE:107SOURCE: Futrell, C.M. (2001). Sales management: Teamwork, leadership, and technology (6th ed.) [pp. 133-134].

Mason, OH: South-Western.

90. CCustomer. Customers often are a good source of useful information about an accessory product because they use the goods. Salespeople can obtain useful information from customers such as how and why they use the products. Customers have firsthand knowledge of the advantages and disadvantages of the products which they are able to share with salespeople. An advertiser places advertisements in the media. Salespeople might visit competitors to comparison shop, but they probably would not discuss products with them. An exporter sells goods or services to other countries.SOURCE: SE:062SOURCE: Burrow, J.L. (2006). Marketing: Instructor's wraparound edition (2nd ed.) [pp. 465-466]. Mason, OH:

Thomson/South-Western.

91. DProvides a quick reference to the salesperson about the watch. In creating the feature-benefit chart, a salesperson can be better prepared in the selling process. Preparing a chart will help salespeople remember the features and benefits and should aid in developing meaningful selling sentences. A feature-benefit chart does not help a salesperson to determine which features and benefits appeal to each customer, evaluate customer reaction to the sales presentation, or explain the store's compensation rate.SOURCE: SE:109SOURCE: SE LAP 113—Find Features, Boost Benefits (Feature-Benefit Selling)

92. AThe garment can be lengthened. In some cases, the fact that it is possible to lengthen a garment helps to make a sale if the customer is pleased with everything except the garment's length. Hems are turned up only once as a double turn would be too bulky. Most hems are made with a single row of stitches which should not be visible from the right side. All raw edges should be covered, bound, or turned under.SOURCE: SE:122SOURCE: Wolfe, M.G. (1998). Fashion! (3rd ed.) [pp. 276-280]. Chicago: Goodheart-Willcox.

93. CTrench coat. The classic trench coat is popular with many men because of its traditional style that is appropriate for any occasion. Many trench coats also are available with zip-out linings which make them warm as well as attractive. They are made in a variety of materials, some of which are waterproof. Ski jackets and rain ponchos are casual outerwear rather than traditional. A denim blazer is casual wear rather than outerwear.SOURCE: SE:125SOURCE: Wolfe, M.G. (1998). Fashion! (3rd ed.) [pp. 45-48]. Chicago: Goodheart-Willcox.


94. DTrial. This is a sales close, not an approach. A merchandise approach is used by the clothing store salesperson when making immediate reference to the merchandise. The welcome approach refers to an approach that greets the customer. The service approach indicates the salesperson's willingness to be of service to the customer.SOURCE: SE:110SOURCE: SE LAP 101—Opening the Retail Sale

95. CEuropean. Each of the three models has its own characteristics which appeal to certain kinds of customers. French suits would be included in the European category. A designer suit is one that has been designed by and carries the name of a clothing designer. A custom-tailored suit is made for a specific customer.SOURCE: SE:139SOURCE: Wolfe, M.G. (1998). Fashion! (3rd ed.) [pp. 46-47]. Chicago: Goodheart-Willcox.

96. DPoint out specials. Many customers who say they are just looking are in the mood to buy but aren't sure what they want. Menswear store salespeople can point out special items that are unique or on sale in order to encourage customers to buy. Just-looking customers appreciate being told about special items and good bargains and may decide that one of those items is right for them. Salespeople should never ask personal questions. Following around customers who are just looking may irritate them and cause them to leave without buying. Customers who are just looking should not be left alone entirely, but the salesperson should check with them occasionally and be available to answer questions.SOURCE: SE:046SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)

pp. 231-233]. Woodland Hills, CA: Glencoe/McGraw-Hill.

97. CLess money invested in offering delivery services. Independent delivery services are owned and operated independently from the retailer. They offer the services on a contractual basis. The retailer is not responsible for the financial operations of that service. Therefore, retailers have less control over the services offered, and it becomes more difficult to adjust delivery services to customers' needs. In-store delivery systems are more expensive to operate but usually produce a higher level of satisfaction since specific customer needs can more easily be met.SOURCE: SE:023SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.) [p. 28]. Upper

Saddle River, NJ: Prentice Hall.

98. CTo decrease wrinkling. Delicate apparel items, such as silk blouses, will wrinkle if not packed properly. Clothing store employees should know how to pack each item correctly so the item is in good condition when it arrives at its destination. Customers expect their purchases to be wrapped appropriately. Delicate apparel items are not breakable. In many cases, customers buy apparel items for themselves so the items are not prepared for shipment or wrapped as a present. However, if the items are to be shipped or are presents, the employee should wrap them properly to decrease wrinkling.SOURCE: SE:887SOURCE: SE LAP 105—Packing/Wrapping Merchandise

99. BTo exchange the dress for another dress. The customer can receive immediate satisfaction with an exchange. No sale is made with a cash refund. The customer may postpone the purchase with a gift certificate.SOURCE: SE:162SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 340). New York:

Glencoe/McGraw-Hill.

2007 DECA Ontario Regionals AAMTest 924 Apparel and Accessories Marketing 26100. C

Controlling. Controlling is the management function that monitors the work effort. Planning is the management function of deciding what will be done and how it will be accomplished. Directing is the management function of providing guidance to workers and work projects. Organizing is the management function of setting up the way the business's work will be done.SOURCE: SM:001SOURCE: BA LAP 6—Manage This!

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