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2005 DECA Ontario December ProvincialsTest 854 FOOD MARKETING (ASSOCIATE LEVEL) 1

1. Competition among international companies involved in food marketing has resulted in a __________ of the industry.

A. deregulation C. consolidationB. segmentation D. diversification

2. Making the right goods and services available to the customer at the right time, price, and place definesA. sales promotion. C. merchandising. B. financing. D. personal selling.

3. Purchasing goods and services to be used in the operation of a grocery store is one purpose of the __________ process.

A. selling C. buying B. promotion D. distribution

4. Following up with customers when the supermarket supply product they ordered is delivered and used will often result in

A. frustration for you and the customer. C. returned merchandise. B. repeat orders. D. intervention by your supervisor.

5. When choosing a vendor, which of the following is not a major consideration for the grocery store:A. Available discounts C. Delivery datesB. Invoice dating terms D. Direct-sales premiums

6. Calculate a bakery'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. $615 C. $590 B. $640 D. $775

7. What a butcher shop earns from the sale of goods and services isA. revenue. C. capital.B. profit. D. net income.

8. Which of the following is information about employees that supermarkets are required by law to maintain:A. List of references C. Identification numbersB. Educational histories D. Names of relatives

9. Many supermarkets reduce the amount of time they spend completing lengthy bank-deposit slips by encouraging their customers to

A. visit ATM machines. C. shop online.B. pay in cash. D. use debit cards.

10. Limited liability is a characteristic of what form of business ownership?A. Partnership C. Sole proprietorshipB. Corporation D. Joint proprietorship

11. What technology do the convenience store and the vendor both need to have to take advantage of the quick response (QR) system of ordering and delivering products?

A. Digital imaging capability C. Videoconferencing programsB. Interactive multimedia centers D. Electronic data interchange

12. Why do some gourmet markets install electronic video monitor systems for surveillance of the premises?A. For communication C. For managementB. For security D. For maintenance

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


13. Which of the following categories of food items require a holding temperature ranging from 32°F to 37°F:A. Frozen goods C. Refrigerated goods B. Dry goods D. Canned goods

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

15. The employee didn't listen to the supermarket manager's explanation about how to perform a certain task because s/he had done a similar job before. Which of the following factors caused the employee not to listen effectively:

A. Age differences C. Past experiences B. Attention span D. Language skills

16. Which of the following is likely to be the result when coworkers do not communicate well with each other:A. Human relations problems C. Efficient work areaB. Shared job responsibilities D. Increased job understanding

17. One way that wholesale produce businesses can protect the privacy of their customers is to limit the number of employees who have access to the customers'

A. purchasing history. C. identification code.B. personal information. D. telephone numbers.

18. Distribution can help a supermarket supply business to gain a competitive edge over its nearest competitors by providing

A. form utility. C. new customers.B. fast delivery. D. successful products.

19. Which of the following factors could determine legal ownership of food products in the distribution process:

A. Physical characteristics of the product C. Country in which the product is producedB. Availability of the product D. Involvement of agents

20. Which of the following is a function of an information system that supermarket supply businesses use to fill customers' orders:

A. To prepare shipping instructions C. To answer related questionsB. To evaluate pricing standards D. To organize valuable inventory

21. Why should a grocery store quickly process a shipment of frozen foods?A. To store equipment C. To clear the dockB. To speed up delivery D. To prevent damage

22. Supermarkets generally arrange the warehousing of dry goods by consideringA. convenience and accessibility.B. vendor and sales volume.C. distribution channels and availability.D. product classification and delivery charges.

23. Which of the following is an important reason for accurately completing inventory-control records:A. To determine profit C. To forecast risksB. To calculate salaries D. To meet competition

24. The only way that inventory shrinkage can be found is byA. examining shoplifting reports. C. analyzing profits.B. predicting future sales. D. accurately counting stock.


25. Calculate a grocery store's inventory shrinkage if it has opening stock value of $345,000, stock purchases of $62,500, net sales transactions of $287,250, and periodic stock count of $116,400.

A. $4,450 C. $3,850 B. $2,250 D. $5,750

26. Maintaining the unit inventory control system is important to food markets because it tells them the exact number of each item on hand so they don't __________ stock.

A. display too much C. have to give awayB. run out of D. need to advertise

27. Which of the following is a marketing activity that a supermarket should coordinate with distribution in order to successfully sell its product:

A. Competition C. Production B. Orientation D. Promotion

28. Cooperative relationships with third-party organizations, such as trucking companies and warehouses, that are intended to reduce marketing channel costs and improve service and customer satisfaction are known as

A. shipping terminals. C. market research.B. electronic data interchange. D. outsourcing.

29. What might cease if producers decide that their incomes are inadequate to continue making goods and services?

A. Competition C. CompensationB. Consumption D. Communication

30. An important economic concept that determines what will be produced and how much of it, is the law ofA. producers and consumers. C. market price.B. supply and demand. D. equilibrium price.

31. Who answers the basic economic questions in a private enterprise economic system?A. Businesses and individuals C. Government agencies B. Influential citizens D. Entrepreneurs and producers

32. The act of reducing or removing risks by shifting the risk factor to another person or business is referred to as ____________ risk.

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

33. An increase in the amount of production per worker represents an increase in workerA. terminations. C. originality.B. productivity. D. inputs.

34. Which of the following is a cause of inflation:A. Increasing aggregate demand C. Decreasing aggregate demandB. Increasing inventory levels D. Decreasing standard of living

35. Which of the following is a situation that might make businesspeople from other countries feel uncomfortable and impact their ability to conduct business:

A. Offering to take others to lunch or dinnerB. Calling in advance to schedule appointmentsC. Standing very close to others during conversationsD. Wearing business-type clothing that is conservative


36. Marketing information obtained from trade publications for use by a chain of grocery stores is consideredA. a trademark. C. secondary data. B. primary data. D. internal information.

37. One way that researchers can protect the integrity of the marketing information they collect is toA. interpret it correctly. C. publish it openly.B. review it frequently. D. organize it logically.

38. A marketing manager is seeking information about the convenience store chain's three biggest competitors. What is an excellent source of information that may include such data as new products, sales and revenue goals, changes in the organization, and current hiring needs?

A. Better Business Bureau C. Local newspaperB. Department of Commerce D. Competitors' web sites

39. Which of the following is essential to all marketing research:A. Primary data C. Frequency B. Accuracy D. Secondary data

40. Researchers should physically review the questionnaires that consumers fill out in order to make sure that the forms are

A. completed properly. C. signed and dated. B. arranged alphabetically. D. organized by region.

41. The marketing mix consists of the 4 P's, which areA. product, price, place, and promotion.B. promotion, profit, price, and positioning. C. profit, price, place, and promotion. D. product, place, price, and possession utility.

42. A marketing plan is an important part of the overall __________ plan.A. promotional C. salesB. business D. management

43. An international soft-drink company that wants to add bottled spring water to its product mix has determined there are four major brands that currently hold the majority of the market share for that product. The strengths and weaknesses of each potential competitor have been examined. This is an example of a(n)

A. marketing strategy. C. action plan.B. situation analysis. D. purpose and mission.

44. A cereal manufacturer expects product sales to decrease during the coming year. How does this information affect product production?

A. Production should remain the same. C. Production should increase. B. Production should decrease. D. Production should not be affected.

45. The most common reason for job termination is workers' inability toA. follow directions. C. arrive at work on time.B. perform job tasks. D. get along with coworkers.

46. In order to handle customer inquiries, supermarket supply employees should have information aboutA. personal backgrounds. C. financial condition. B. product maintenance. D. expense projections.


47. What should supermarket employees do when customers ask for directions, but the employees are unsure of the answer?

A. Give approximate information C. Ask coworkers for assistanceB. Say they don't know D. Send customers to the office

48. Which of the following techniques help to build trust in negotiations:A. Always have an answer ready B. Provide a lot of documentation C. Tell the truth and respect confidencesD. Share information that may be threatening

49. A food marketing employee who is trying to reduce the level of stress s/he is experiencing focuses on a peaceful beach scene and tries to imagine the sights and sounds of the scene. This is an example of which stress management and relaxation technique?

A. Visualization C. Positive self-talkB. Deep breathing D. Muscular relaxation

50. To control various business activities in an effective manner, supermarket managers must firstA. identify communication channels. C. request employee feedback. B. set appropriate standards. D. initiate corrective action.

51. Most people have consistent patterns of behavior that are based on their personal characteristics known as personal

A. skills. C. abilities.B. traits. D. affirmations.

52. The term "attitude" refers to an individual's personalA. behavior. C. skills. B. habits. D. outlook.

53. Which of the following is an essential element of responsible behavior:A. Flexibility C. Honesty B. Determination D. Leadership

54. The overall goal of your efforts to get organized on the job should be toA. reduce your workload. C. impress your supervisor.B. create a work system appropriate for you. D. make your work area look attractive.

55. People who rely on family and friends to help them make decisions are being influenced by theirA. location. C. education.B. government. D. environment.

56. Individuals who lose their jobs due to no fault of their own are entitled to receiveA. workers' compensation. C. insurance coverage.B. unemployment benefits. D. disability payments.

57. Planning special promotions for the supermarket bakery or deli usually is the responsibility of the __________ manager.

A. customer-service C. inventoryB. advertising D. department

58. Marie was asked to pay a fee to the source that had helped her find a job. Which of the following sources had Marie probably used:

A. Public employment agency C. School career centerB. Private employment agency D. Vocational guidance counselor


59. When writing letters of application, job applicants should avoid being overlyA. precise. C. humorous. B. formal. D. accurate.

60. Under which of the following circumstances might a gourmet market consider increasing its prices:A. Earnings are decreasing. C. Growth is declining. B. Unemployment is rising. D. Economy is booming.

61. One way that many grocery stores use technology to reduce the costs associated with marking prices on products is by using

A. preprinted gummed labels. C. computer-generated tags. B. automated inventory systems. D. electronic scanning devices.

62. In determining the selling price of a good or service, most of the factors to be considered by the seller are internal to the food marketing business.

A. False, most factors affecting price are not controlled by the firm.B. True, most factors affecting price are internal to the business.C. True, most factors affecting price are directly controlled by the business.D. False, most factors affecting price are directly controlled by the business.

63. Which of the following is the correct sequence of steps in the development of new food products:A. Concept testing, idea generation, product screening, test marketing, commercializationB. Idea generation, product screening, concept testing, test marketing, commercializationC. Commercialization, test marketing, idea generation, product screening, concept testingD. Product screening, idea generation, concept testing, commercialization, test marketing

64. Which of the following is a decision a company might make during the decline stage of a health food product's life cycle:

A. How to fend off the competition C. Whether to change the productB. How to increase awareness of the product D. What production schedule to follow

65. What is one way that businesses are using the information that they are able to obtain due to the advances in Internet technology?

A. To interview potential employees C. To develop production systemsB. To compile customer databases D. To prepare operating policies

66. Why do many food processing companies package their food products in tamper-resistant containers?A. To recycle plastic C. To protect customers B. To save the environment D. To promote social issues

67. Supermarkets package various cuts of meats with gummed labels showing the store's name, type of meat, unit price, weight, and total price of the item. Which of the following federal laws is being carried out:

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

68. Which of the following is a reason why a cereal manufacturer might choose to expand its product mix:A. To reduce costs C. To increase risksB. To increase sales D. To reduce liability

69. In what department of a grocery store would a customer most likely find freshly sliced, uncooked tuna for grilling?

A. Seafood C. Frozen foodsB. Canned goods D. Delicatessen


70. Company XYZ sells condensed soups and promotes them by saying, "Great taste, great price." Company XYZ is positioning its product according to what strategy?

A. Features and benefits C. Unique characteristicsB. Price and quality D. Relationship to other products

71. Why are individuals considered the "drivers" of food brands?A. Ideally, they demonstrate brand values to customers in everything they do.B. They often have excellent skills in developing brand names and logos.C. They usually come from bigger companies and bring brand values with them.D. They alone decide what the brand's values and promise will be.

72. Which of the following is an important part of developing the supermarket's merchandising plan:A. Calculating the value of coupons that will be redeemedB. Predicting the availability of vendor discountsC. Forecasting the number of first-time customersD. Estimating the amount of money needed to buy inventory

73. A supermarket wants to reduce the price of overstocked one-gallon cartons of milk by 35% that regularly sold for $2.79. Calculate the markdown amount.

A. $.98 C. $.97B. $.95 D. $.92

74. In determining what specific items of merchandise to purchase for resale, the convenience store should look at

A. records of past sales. C. the balance sheet.B. the promotional budget. D. all available brands.

75. What does a gourmet market that features nonperishable, specialty food items from around the world need to consider to determine when to buy those items?

A. Fluctuating prices C. Staffing proceduresB. Advertising deadlines D. Shipping complications

76. What internal marketing factor should a local gourmet market consider when deciding how to promote a new delivery service that will be available only to customers in the downtown area?

A. Social C. LegalB. Price D. Place

77. A supermarket chain that needs to create a new company image or repair a damaged image will often use __________ promotions.

A. patronage C. primaryB. secondary D. public relations

78. The use of samples or cents-off coupons on grocery items is an example ofA. advertising. C. sales promotion.B. personal selling. D. publicity.

79. How have technological advancements enhanced a small food marketing business's ability to promote its products?

A. Most companies need fewer channels to coordinate and carry out promotional activities.B. Small companies now have more money to spend on promotional activities.C. Less time and creativity are required to develop effective promotional campaigns.D. Information can be communicated by more venues, and messages can be customized.

80. Which of the following is an example of specialty advertising:A. Billboards C. Key rings bearing a company's nameB. A postcard announcing a special sale D. Skywriting


81. Your grocery store manager has asked you to create a newspaper ad which would introduce a new food product. What part of the advertisement will contain the sales message?

A. Identification B. Headline C. Layout D. Copy

82. One of the advantages of using databases in advertising is that it allows supermarkets to developA. news releases. C. targeted messages.B. promotional brochures. D. publicity campaigns.

83. Gloria's Supermarket sells Swiss cheese spread that the producer packs in a reusable crock. The cheese crock is an example of a __________ premium.

A. mail-in C. directB. continuity D. contest

84. A type of display arrangement in which no two items in the display are at the same height, and the highest item is at the back, is a __________ arrangement.

A. zigzag C. stepB. fan D. pyramid

85. Since displays are a valuable selling tool, it is important that they should beA. kept up as long as possible. C. pointed out to customers.B. filled with informative signs. D. kept clean and well maintained.

86. When creating displays in grocery stores, which of the following is often an effective technique to use in order to sell more products:

A. Group together many types of foods C. Arrange fruits in a basketB. Organize related items by brand D. Place canned goods on shelves

87. A guideline to follow when building food marketing displays is to useA. many competing elements. C. an abundant amount of product. B. an overwhelming number of props. D. several dominant themes.

88. Which of the following promotional activities should be coordinated with a convenience store's advertising:

A. Target markets C. Trade shows B. Special orders D. Visual displays

89. Which of the following statements is true about the theme of a grocery store display:A. Selecting a theme is the last step in building a store display.B. Each display should have at least two themes.C. Themes that customers have to figure out are most successful.D. Store promotions are a good source of display themes.

90. Which of the following should be the goal of all supermarket supply salespeople:A. To satisfy customers C. To suggest substitutesB. To handle complaints D. To demonstrate products

91. An employee at a large discount grocery store was abrupt with a customer who was returning an item and disconnected another customer who had called to ask a question about a special sale. What type of attitude was the employee failing to exhibit?

A. Service C. HonestB. Ethical D. Personal


92. Which of the following examples demonstrates ethical responsibility to the company:A. When Mary's friends ask her how much the bakery she works for marks up its wedding cakes,

she does not divulge that information. B. The local Pepsi plant operates an aluminum-recycling center and donates the proceeds to the

local homeless shelter. C. In comparing his company's luggage to the competition, Mitch relies on factual information that

can be substantiated. D. The Central Gourmet Market gives money to a law enforcement agency to sponsor a child at

Christmas.

93. Which of the following is an example of a tying arrangement that would be considered illegal:A. Offering some customers special discounts and price reductionsB. Requiring customers to buy extra products to obtain the desired product C. Charging different customers different prices for the same productsD. Agreeing to buy products in exchange for selling products

94. Which of the following sources of information might provide supermarket supply salespeople with the most information about actual product performance:

A. Tours of the manufacturing facilityB. Merchandise labels and tagsC. Manufacturers' pamphletsD. Customers

95. Why is having a great deal of information about produce display cases advantageous to making sales?A. Because display case information is not readily available to final consumers B. So that the salesperson will have the ability to tailor sales presentations to individual customersC. Because salespeople will be able to send the information to consumers rather than meet with

themD. So that salespeople can use jargon to impress customers

96. What do most supermarkets carry in order to provide customers with a wide variety of choices?A. Many foods produced by local companiesB. Mainly quality items at high prices C. Extensive selection of imported goodsD. All categories of branded products

97. A supermarket supply salesperson can discover customer needs during the sales process byA. showing the customer a small selection of products. B. using suggestion selling. C. conducting a good product demonstration.D. skillful questioning and careful listening.

98. When a supermarket supply salesperson opens a conversation with a customer by referring directly to the shopping cart the customer is examining, the salesperson is using a __________ selling approach.

A. knowledge C. familiarityB. merchandise D. referral

99. Which of the following closing techniques reviews the information the supermarket supply salesperson has given the customer during the sales presentation:

A. Narrative C. Summary B. Bonus D. Closing on objection


100. An effective way to accurately process special orders for food items is toA. commit the customer's order to memory.B. have the manager sign off on the order form.C. ask the customer to verify the information written on the order form.D. read over the order form to make certain that proper grammar has been used.


1. CConsolidation. The food marketing industry has become more consolidated as international corporations buy supermarket chains, food producers, and wholesalers throughout the world. Today, a few giant corporations own a variety of food marketing companies that operate in countries throughout the world. The international conglomerates compete with each other for worldwide markets. As consolidation continues, small local markets often go out of business because they are unable to compete with large corporations that have the buying power to offer an enormous range of products at low prices. Competition among international food marketing companies has not resulted in deregulation, segmentation, or diversification of the industry.SOURCE: BA:067SOURCE: Kahn, B.E., & McAlister, L. (1997). Grocery revolution: The new focus on the consumer

(pp. 6-7). Reading, MA: Addison-Wesley Educational.

2. CMerchandising. Buying and selling are the basic activities involved in merchandising. Sales promotion is promotional activities other than advertising, personal selling, and publicity which stimulate consumer purchases. Personal selling is the form of promotion that uses planned, personalized communication in order to influence purchase decisions and to enhance future business opportunities. Financing is a marketing function which involves understanding the financial concepts used in making business decisions.SOURCE: BA:068SOURCE: Lewison, D.M. (1997). Retailing (6th ed.) [pp. 362-363]. Upper Saddle River, NJ: Prentice

Hall.

3. CBuying. The buying process includes purchasing goods and services to be used in the operation of a grocery store as well as purchasing merchandise for the purpose of resale. Selling includes helping customers make buying decisions. Promotion communicates information about goods, services, images, or ideas to achieve a desired outcome. Distribution is primarily concerned with the movement and storage of goods and services.SOURCE: BA:007SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 482-484).

New York: Glencoe/McGraw-Hill.

4. BRepeat orders. Since successful selling is all about building customer relationships, it is important not to end contact with your customers once the supermarket supply product they ordered is delivered. What you do after the sale is as important as the steps leading up to it. The customer will appreciate the fact that you followed up afterwards, which will frequently lead to repeat orders. There is no evidence to suggest that following up with customers results in returned merchandise or frustration for either you or the customer. Additionally, there is no reason to think that following up with customers will cause your supervisor to intervene. Following up after orders are delivered is a practice that supervisors wholeheartedly encourage!SOURCE: BA:073SOURCE: Greene, C. (2000). Selling: Business 2000 (p. 39). Mason, OH: South-Western.

5. DDirect-sales premiums. A direct-sales premium is a gift given to a customer for participating in a sales demonstration or for purchasing a particular product. The grocery store who is selecting a vendor should be concerned about applicable discounts for which the store may qualify. Invoice dating terms affect the time period in which the bill must be paid. Stores should also consider a vendor's delivery service to determine whether the vendor can provide the merchandise in a timely manner.SOURCE: BA:010SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)

[pp. 368-370]. Upper Saddle River, NJ: Prentice Hall.

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

Test 854 FOOD MARKETING (ASSOCIATE LEVEL) — KEY 12

6. B$640. Ending cash balance is the amount of cash a bakery 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: BA:016SOURCE: MN LAP 60—Cash Flow

7. ARevenue. Other sources of revenue might include income from investments, interest on bank accounts, or royalties. Profit and net income are synonymous terms referring to what is left over after operating expenses and cost of goods sold are subtracted from revenue. Capital is how much a business is worth.SOURCE: BA:020SOURCE: MN LAP 61—Profit-and-Loss Statements

8. CIdentification numbers. Supermarkets are required by law to maintain certain information about their employees such as their identification numbers. These numbers might be Social Security numbers and employee ID numbers that clearly identify each employee. Supermarkets use these numbers when reporting wage and salary information to the government for tax purposes. Many supermarkets maintain data about their employees' nearest relatives, educational histories, and references; but this information is not required by law.SOURCE: BA:023SOURCE: MN LAP 58—Business Records

9. DUse debit cards. Debit cards are a type of electronic funds transfer (EFT) process which makes it easy to move money from one bank to another through the use of computers. Debit cards access a customer's checking or savings account and automatically transfer funds from the account to the supermarket's account. The use of debit cards reduces the amount of time supermarket employees spend completing bank-deposit slips because there are fewer personal checks to record and tabulate. A lot of supermarket customers do not pay in cash. However, when supermarkets receive cash, they must count it and complete deposit slips for the amount. Most customers prefer to buy their groceries in person rather than online. Supermarkets do not encourage their customers to visit ATM machines.SOURCE: BA:076SOURCE: Schultheis, R.A., & Kaczmarski, R.M. (1997). Applied business mathematics (14th ed.)

[pp. 22-23]. Cincinnati: South-Western Educational.

10. BCorporation. Stockholders in corporations have limited liability; that is, their losses are limited to the amount of money that they have invested in the business. Partnerships and sole proprietorships have unlimited liability, meaning that the business owners are personally liable for debts incurred by the business. Joint proprietorship is not a form of business ownership.SOURCE: BA:028SOURCE: BA LAP 7—Own It Your Way


11. DElectronic data interchange. An electronic data interchange (EDI) system enables convenience stores to place orders electronically, which is an important part of the quick response (QR) system. However, both the store and the vendor must have the technology to take advantage of the quick response (QR) system. With the use of EDI technology, a store uses a computer system to monitor inventory levels and automatically send electronic purchase orders to vendors when new products are needed. The vendors receive the orders and their computer systems automatically generate the response. As a result, orders are processed immediately and delivered when needed. Quick response (QR) systems do not rely on interactive multimedia centers, videoconferencing programs, or digital imaging capability.SOURCE: BA:080SOURCE: Lewison, D.M. (1997). Retailing (6th ed.) [pp. 438-439]. Upper Saddle River, NJ: Prentice

Hall.

12. BFor security. Some gourmet markets use electronic video monitor systems to watch the interior and exterior of the property in order to make sure these areas are secure for customers and employees. These systems record on videotape any breakdowns in security and can be used to identify suspects in the event of theft. Communication involves the exchange of information between individuals or groups. Maintenance involves the upkeep and repair of equipment and facilities. Management involves overseeing the operation of a business or a certain aspect of a business.SOURCE: BA:041SOURCE: RM LAP 4—Security Precautions

13. CRefrigerated goods. Goods including fresh meat, milk, and cheese require food-holding temperatures between 32°F and 37°F to prevent food spoilage. Dry goods such as canned peas, ketchup, and pasta should be held in areas where the temperature ranges from 50°F to 70°F. Ice cream and other frozen goods require holding temperatures ranging from -10°F to -15°F. Canned goods are dry goods, and they should be held at 50°F to70°F.SOURCE: BA:089SOURCE: Mill, R.C. (1998). Restaurant management: Customers, operations, and employees

(pp. 202-203). Upper Saddle River, NJ: Prentice Hall.

14. DBias. 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.

15. CPast experiences. People often think they know what someone is going to say before they say it and as a result do not listen well. People's past experiences may influence how well they listen because they think they already know the answer or understand the explanation. Effective listeners try to block out past experiences and focus on what the speaker is saying. Age differences, attention span, and language skills are other factors that may affect how well people listen.SOURCE: CO:119SOURCE: Miculka, J.H. (1999). Speaking for success (pp. 37-41). Cincinnati: South-Western

Educational.


16. AHuman relations problems. Workers who lack good communication skills have trouble making themselves understood and sharing information with others. This can cause problems among employees, especially those who work closely together. Job understanding might decrease if a supervisor has poor communication skills. Shared job responsibilities and efficiency in the work area are benefits of good communication among employees.SOURCE: CO:014SOURCE: Daggett, W.R., & Miles, J.E. (1998). The dynamics of work: Introduction to occupations

(2nd ed.) [pp. 342-343]. Cincinnati: South-Western Educational.

17. BPersonal information. Many wholesale produce businesses gather personal information about their customers that they store in a database. This might include information about a customer's credit rating, financial status, education, etc. Such information should be available only to employees who need to know it in order to do their jobs. Businesses should limit the number of employees who have access to customers' personal information in order to protect the privacy of their customers and prevent unauthorized persons from obtaining and using this information. A customer's telephone number, purchasing history, and identification code are types of routine business information that usually are not considered to be private.SOURCE: CO:042SOURCE: Lehman, C.M., & DuFrene, D.D. (1999). Business communication (12th ed.) [pp. 244-245].

Cincinnati: South-Western College.

18. BFast delivery. When supermarket supply companies offer nearly identical products, differences in distribution methods can be very important. One company can gain a competitive edge over another by offering such distribution benefits as faster delivery, accurate billing, reliability, or economical service. Good distribution can make or break a product, but it does not provide the products. Distribution creates time and place utility, not form utility. Distribution helps to retain current customers, not to find new ones.SOURCE: DS:001SOURCE: DS LAP 1—Distribution

19. DInvolvement of agents. Agents typically do not take ownership of a food product. They are representatives of the buyer or seller and do not take title to the items. During the distribution process, either the buyer or the seller owns the items rather than the agent. Availability of the product, country in which the product is produced, and the physical characteristics of the product are factors when determining the best physical distribution path to follow. They do not determine legal ownership.SOURCE: DS:058SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an

e-commerce world (7th ed.) [pp. 351-352]. Mason, OH: South-Western.

20. ATo prepare shipping instructions. All supermarket supply businesses use some type of information system when filling customers' orders. These systems may be manual or computerized, but their main purpose is to create channel efficiency. One function of an information system is to prepare shipping instructions to make sure that the right product is delivered to the correct customer. The information system also generates shipping documents that need to accompany the order. An information system is not intended to evaluate pricing standards, answer related questions, or organize valuable inventory.SOURCE: DS:056SOURCE: Lambert, D.M., Stock, J.R., & Ellram, L.M. (1998). Fundamentals of logistics management

(pp. 82-83). Boston: Irwin/McGraw-Hill.


21. DTo prevent damage. Frozen foods are perishable and require priority processing in order to prevent damage. A grocery store should quickly process frozen foods and move them either to cold storage or the sales floor. Any delay might cause the foods to begin to thaw which could create spoilage. Speeding up delivery, storing equipment, and clearing the dock are not reasons why a grocery store should quickly process frozen foods.SOURCE: DS:085SOURCE: Ninemeier, J.D. (2000). Management of food and beverage operations (3rd ed.)

[pp. 256-259]. Weimar, TX: Culinary and Hospitality Industry Publications Services.

22. AConvenience and accessibility. To maneuver larger, bulkier products and quick-selling items from the warehouse to the selling floor, it is best to warehouse the items in convenient and easy-to-reach locations. For example, 75-pound bags of dog food might be stored in a warehouse location that is close to the selling floor instead of the very back of the storage area. Sales volume might be considered when arranging the warehousing of dry goods, but vendors or suppliers are not usually considered. Distribution channels are the means in which products are moved from the manufacturers to the end users. Although space availability might be a consideration, distribution channels do not determine how products are warehoused. Product classification (e.g., canned goods) might be considered when arranging warehouse storage, but delivery charges are not.SOURCE: DS:087SOURCE: Mill, R.C. (1998). Restaurant management: Customers, operations, and employees

(pp. 100, 202). Upper Saddle River, NJ: Prentice Hall.

23. ATo determine profit. Food marketing businesses maintain accurate inventory-control records in order to determine profit. A business needs to know the value of the inventory in stock in order to calculate the amount of profit for a given period of time. Accurately maintaining inventory records allows a business to track profit in relation to the amount of money invested in inventory. Businesses do not maintain accurate inventory records in order to calculate salaries, meet competition, or forecast risks.SOURCE: DS:023SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an


24. DAccurately counting stock. Physically counting the stock on hand is the only way to discover shrinkage. Businesses need to determine shrinkage because it reduces their profits. Predicting future sales is known as forecasting which is based partly on inventory control information. Analyzing profits will not indicate the amount of shrinkage unless an inventory had been performed. Shoplifting reports would identify items that were known to have been stolen by customers but would not identify the shrinkage resulting from employee theft, breakage, misplaced goods, or poor record keeping.SOURCE: DS:019SOURCE: DS LAP 2—Inventory Control Systems

25. C$3,850. Inventory shrinkage is the difference between what the company's inventory records show is in stock and what actually is in stock. One way to calculate inventory shrinkage is to begin with the opening stock value from the previous count and add the purchases made since that count was taken to determine total dollar value of stock ($345,000 + $62,500 = $407,500). Then, subtract net sales transactions from that figure to determine the dollar amount that should be in stock, or the perpetual inventory ($407,500 - $287,250 = $120,250). If the periodic stock count is less than that figure, then inventory shrinkage has occurred ($120,250 - $116,400 = $3,850).SOURCE: DS:026SOURCE: DS LAP 4—Inventory Shrinkage


26. BRun out of. The unit inventory control system keeps track of the exact number of each item sold over a certain period of time, such as a month or a season. Food markets rely on this system to tell them what items are selling quickly so they can reorder and not run out of stock. Markets do not use the unit inventory control system to decide how many items to put on display. Markets rarely give away goods. Knowing how much stock is on hand doesn't eliminate the need to advertise.SOURCE: DS:091SOURCE: Lewison, D.M. (1997). Retailing (6th ed.) [pp. 583-585]. Upper Saddle River, NJ: Prentice

Hall.

27. DPromotion. Promotion is a marketing function that communicates information about goods, services, images, and/or ideas to achieve a desired outcome. In order to successfully sell its product, a supermarket needs to coordinate all the components of marketing, which include distribution, promotion, product, and price. For example, if a supermarket develops an effective distribution system but fails to promote the product, customers will not know about the product or want it although it is readily available. Orientation is job preparation or induction training for new employees. Production is the creation of goods and services from economic resources. Competition is the rivalry between two or more businesses to attract customer dollars.SOURCE: DS:048SOURCE: Evans, J.R., & Berman, B. (1997). Marketing (7th ed.) [pp. 654-655]. Upper Saddle River,

NJ: Prentice Hall.

28. DOutsourcing. At times, it is more efficient to use an outside company that specializes in a service needed by the manufacturer to deliver the product. Third-party organizations, such as trucking companies and warehouses, often are able to handle products faster and more cost-effectively than the manufacturer. EDI is the electronic sharing of information between businesses. Market research does not involve relationships with trucking companies or warehouses. Shipping terminals are the areas from which products are shipped to other locations.SOURCE: DS:049SOURCE: Pride, W.M., & Ferrell, O.C. (2000). Marketing: Concepts and strategies (2000e)

[pp. 382-384]. Boston: Houghton Mifflin..

29. BConsumption. Consumption is the process or activity of using goods and services. If producers decide that their incomes are not adequate, they may choose not to make goods and services. If goods and services are not available, consumption would cease. Competition is rivalry between two or more businesses to attract customer dollars. Competition is good for the economy because it helps strong businesses to thrive and prosper and make more goods and services available for consumption. Compensation is wages, salary, incentives, and benefits offered to employees. Communication is an exchange of information in which the words and gestures are understood in the same way by both the speaker and the listener.SOURCE: EC:001SOURCE: EC LAP 6—Economics

30. BSupply and demand. The law of supply and demand is an economic principle which states that the supply of a good or service will increase when demand is great and decrease when demand is low. Producers and consumers generally control supply and demand. Market price is the price that exists in the marketplace at any particular moment. Equilibrium price is the price at which the quantity of a good that buyers want to buy and the quantity that sellers are willing to sell are equal.SOURCE: EC:005SOURCE: EC LAP 11—Supply and Demand


31. ABusinesses and individuals. In a private enterprise system, businesses and individuals own or control the economic resources. All citizens play a role in determining what will be produced, how it will be produced, and who will consume it. These decisions are not controlled by government agencies, influential citizens, entrepreneurs, or producers.SOURCE: EC:009SOURCE: EC LAP 15—Private Enterprise

32. CTransferring. Three well-known ways of transferring risk are through contractual agreements, the type of business organization, and insurance purchased. Retaining is keeping the risk. Avoiding is recognizing and taking measures to eliminate or avoid the risk completely. Controlling is recognizing the risk and then taking measures to reduce the risk.SOURCE: EC:011SOURCE: EC LAP 3—Business Risk

33. BProductivity. Worker productivity is the amount of work a worker can perform in a given period of time. An increase in worker productivity is likely to increase profits. Inputs are those resources used in producing a good or service. Terminations are discharges of employees. Originality is a form of creativity.SOURCE: EC:013SOURCE: EC LAP 18—Productivity

34. AIncreasing aggregate demand. Aggregate demand is the total demand for an economy's goods and services. If growth in the aggregate demand is continuous and production cannot meet the demand, a rapid rise in prices (inflation) occurs. Increasing inventory levels and decreasing aggregate demand will result in a surplus and lower prices. Standard of living is the general conditions in which people live and would be affected by inflation rather than causing it.SOURCE: EC:018SOURCE: EC LAP 9—Business Cycles

35. CStanding very close to others during conversations. In some countries, it is socially accepted and appropriate for businesspeople to stand very close together when conversing. However, people from other cultures often prefer to keep more distance and feel uncomfortable when someone stands very close. These types of cultural differences often create problems for people who do business in foreign countries if they are not aware of the differences. Their reactions to certain situations, such as moving away from a customer who is standing very close, may unintentionally offend the customer and have a negative impact on business. Offering to take others to lunch or dinner, calling to schedule appointments, or wearing business-type clothing usually do not make businesspeople from other countries feel uncomfortable.SOURCE: EC:045SOURCE: Johansson, J.K. (2000). Global marketing: Foreign entry, local marketing & global

management (2nd ed.) [pp. 61-62]. Boston: Irwin/McGraw-Hill.

36. CSecondary 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


37. AInterpret it correctly. Marketing-information managers can protect the integrity of the information they collect by interpreting it correctly and not manipulating it in such a way that it agrees with a predetermined conclusion. Protecting the integrity of marketing information is sometimes difficult because researchers often can make the information support either side of an issue depending on how they interpret it. Most researchers try to interpret the information correctly because consumers are sometimes suspicious of research findings that seem to support the opinions of the business that sponsors the research. Researchers do not protect the integrity of marketing information by reviewing it frequently, publishing it openly, or organizing it logically.SOURCE: IM:025SOURCE: Kotler, P., & Armstrong, G. (1997). Marketing: An introduction (4th ed.) [pp. 132-133].

Upper Saddle River, NJ: Prentice Hall.

38. DCompetitors' web sites. Web sites provide volumes of information designed to attract customers, partners, and suppliers; but they are also available to competitors. Information available includes new products, sales and revenue figures, hiring needs, organizational changes, company philosophy, and goals. The Better Business Bureau and Department of Commerce do not provide this information on individual companies. The local newspaper may provide some information on local competition but not to the extent available on web sites.SOURCE: IM:184SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [p. 229]. Upper Saddle River, NJ:

Prentice Hall.

39. BAccuracy. Accuracy is absolutely essential in gathering, recording, and analyzing marketing-research data if the data are to be of value to the business. Inaccurate data can cause the business to make incorrect or unwise decisions. The frequency with which research is conducted would depend upon the needs of the business. Primary data are facts collected specifically for the problem or project at hand. A marketing-research project may require either or both kinds of data. Secondary data are facts that have been collected for purposes other than the project at hand.SOURCE: IM:010SOURCE: IM LAP 5—Nature of Marketing Research

40. ACompleted properly. Researchers often use paper-based forms, such as questionnaires, in order to obtain marketing information from consumers. Before reviewing and tabulating this information, researchers should physically review the questionnaires to make sure that consumers completed them properly. Researchers may not be able to use all of the questionnaires if consumers left blank spaces or filled in more than one response to a question. Most questionnaires are anonymous and do not require consumers to sign and date them. Researchers do not arrange questionnaires in alphabetical order because they do not contain names. Questionnaires usually are not organized by region unless a study is being conducted on a regional basis.SOURCE: IM:062SOURCE: Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd ed.)

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

41. AProduct, price, place, and promotion. Product is the goods, services, or ideas a business offers its customers. Price is the amount of money marketers ask in exchange for their products. Place focuses on getting products in the right place at the right time. Promotion communicates information about goods, services, images, and/or ideas to achieve a desired outcome. Product, price, place, and promotion are called the 4 P's of marketing. Together they comprise the marketing mix. The remaining alternatives do not include the 4 P's of the marketing mix.SOURCE: IM:194SOURCE: IM LAP 7—Pick the Mix


42. BBusiness. A marketing plan is a set of procedures or strategies for attracting the target customer to a business. The marketing plan is one part of the overall business plan that identifies the nature of the company, how it will operate, and what its goals and objectives are. The purpose of the marketing plan is to identify how the business will achieve its goals. The promotional plan is part of the marketing plan and is the framework for the business's promotional activities. A marketing plan is not part of the management plan or the sales plan.SOURCE: IM:197SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an


43. BSituation analysis. Information regarding competitors, their products, and their strengths and weaknesses is collected as part of an external environment analysis. This type of analysis is one aspect of the overall situation analysis. Gathering such information is not an example of marketing strategy, action plans, or purpose and mission.SOURCE: IM:140SOURCE: Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd ed.)

[pp. 141-142]. Boston: Irwin/McGraw-Hill.

44. BProduction should decrease. Cereal manufacturers need to forecast the amount of products they can expect to sell in order to plan the most efficient production of those products. In this case, anticipated decreases in sales should be matched by decreased production in order to meet the shift in demand. Increasing production or keeping it at the same level will create too much inventory. The manufacturer might have to reduce its prices in order to sell the inventory.SOURCE: IM:003SOURCE: IM LAP 3—Nature of Sales Forecasts

45. DGet along with coworkers. The most common reason that people lose their jobs is because they have difficulties getting along with other workers. Not arriving on time, following directions, or performing job skills are other reasons employees are not satisfactory. However, those are not the main reasons for termination.SOURCE: IS:003SOURCE: HR LAP 1—Human Relations: What, Why, How

46. BProduct maintenance. Supermarket supply employees should possess certain information in order to satisfactorily handle routine customer inquiries. Customers often ask questions about how certain products should be maintained, and they expect supermarket supply employees to be able to provide the answers. If the employees do not have this type of information, they may lose sales because customers will feel frustrated by the lack of assistance. Employees are not expected to possess specific information about the business's financial condition, its expense projections, or the personal background of other employees and managers.SOURCE: IS:007SOURCE: Stull, W.A., & Crow, D.E. (1996). Superior customer service (p. 73). Cincinnati: South-

Western Educational.


47. CAsk coworkers for assistance. Employees of large supermarkets may not know exactly where each product is located. If customers ask these employees for directions and the employees are unsure of the answer, they should ask their coworkers for assistance. Customers should be given complete and accurate directions, and it is the responsibility of employees to obtain the correct information and provide it to customers. Employees might say they don't know, but then they should tell the customers that they will obtain the information for them. Employees should not give approximate information because it may be inaccurate. They should not send customers to the office in search of directions.SOURCE: IS:025SOURCE: Hyden, J.S., Jordan, A.K., Steinauer, M.H., & Jones, M.J. (1999). Communicating for

success (2nd ed.) [pp. 110-113]. Cincinnati: South-Western Educational.

48. CTell the truth and respect confidences. The only way to build trust is to be trustworthy, which involves telling the truth. If you do not know the answer to a question, it is best to admit it. It is also important to keep certain information confidential. It is not possible to have an answer for all questions. Documentation will not be convincing if you have not shown yourself to be trustworthy. Threatening people is not an effective negotiation technique.SOURCE: IS:012SOURCE: Barbara Braham & Associates. (n.d.). Negotiation tips. Retrieved October 25, 2005, from

http://www.bbraham.com/html/negotiation.html

49. AVisualization. The visualization technique of stress management involves imagining a pleasant scene and invoking as many senses as possible in order to imagine being in the scene. Deep breathing involves taking deep, slow breaths to physiologically relax the body. Positive self-talk involves asking yourself questions about what is important and what you can realistically accomplish. Muscular relaxation involves focusing on relaxing muscle groups in order to reduce stress.SOURCE: IS:019SOURCE: Sarmiento, R.F. (n.d.). Stress management. CyberPsychologist. Retrieved October 25, 2005,

from http://www.cyberpsych.com/stress.html

50. BSet appropriate standards. To control business activities effectively, supermarket managers must set appropriate standards to be able to measure the productivity of a specific activity. Although controlling business activities might require managers to identify communication channels, request employee feedback, and initiate corrective action, standards must be in place to understand the type of control that is needed.SOURCE: MN:135SOURCE: Kleindl, B.A. (2001). Strategic electronic marketing: Managing e-business (pp. 626-627).

Cincinnati: South-Western College Publishing.

51. BTraits. Personal traits can be divided into three basic categories: emotional, physical, and mental. An individual's personality is a combination of traits in these categories. Abilities are skills which enable people to perform certain tasks or functions. Affirmations are statements about a present or desired strength that you want to accept, develop, and incorporate into your life.SOURCE: PD:001SOURCE: HR LAP 10—Personal Traits

52. DOutlook. Attitude is the way you look at life. It is based on your thoughts and emotions. Attitude influences your behavior—the way you act. It may also influence your habits and skills.SOURCE: PD:003SOURCE: HR LAP 11—Positive Attitude


53. CHonesty. Responsible behavior is made up of five essential elements—honesty, compassion/respect, fairness, accountability, and courage. Determination, flexibility, and leadership are all great characteristics to cultivate, but they are not elements of responsible behavior.SOURCE: PD:005SOURCE: PD LAP 7—Make the Honor Role

54. BCreate a work system appropriate for you. Arrange the items you need on a regular basis in a manner that is convenient for you. This will not reduce your workload, but it will make your work go more smoothly. Your efforts may make your work area more attractive or impress your supervisor, but those are not overall goals for getting organized.SOURCE: PD:009SOURCE: HR LAP 4—Orderly and Systematic Behavior

55. DEnvironment. Environment is a person's surroundings and includes family, friends, and neighborhood. A person's environment often influences decision making because it has helped to form his/her attitude and opinions. Family and friends frequently affect decision making because they are important factors in most peoples' lives. Location is a specific place. Government is a country's arrangement for making and enforcing laws. Education is the learning that people acquire in the classroom and from daily living.SOURCE: PD:017SOURCE: PD LAP 10—Make Decisions

56. BUnemployment benefits. Employees have certain rights on the job, and one of these is to receive unemployment benefits if they lose their jobs for no fault of their own. Employers pay the cost of unemployment insurance so that employees can receive benefits if they lose their jobs. For example, employees who are terminated because the business is losing money and needs to restructure are entitled to receive unemployment benefits. Workers' compensation is insurance purchased by employers to provide benefits such as disability payments to employees who are injured on the job. Individuals often purchase insurance coverage to protect themselves from various mishaps.SOURCE: PD:021SOURCE: Daggett, W.R., & Miles, J.E. (1998). The dynamics of work: Introduction to occupations


57. DDepartment. Most supermarkets are organized by department such as bakery, deli, produce, dairy, etc., with a manager in charge of each department. One of the responsibilities of these managers is to plan and carry out special promotions for the department to attract customers and increase sales. The department managers also handle customer service in their areas and the overall operations of the department. As a result, the position of department manager is often a stepping-stone to the position of store manager. The store manager often is responsible for advertising and monitoring inventory levels. Most supermarkets have a customer-service manager.SOURCE: PD:039SOURCE: Ferguson Publishing. (2001). Careers in focus: Food (pp. 170-171). Chicago: Author.

58. BPrivate employment agency. Private employment agencies usually charge fees for connecting applicants with employers. The amount of the fee can be small or quite large, depending on the salary of the position that is filled. Public employment agencies, school career centers, and vocational guidance counselors are funded by the government; therefore, individuals using their services are not charged fees.SOURCE: PD:026SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [p. 35].

Mason, OH: South-Western.


59. CHumorous. In most cases, job applicants are writing letters of application to strangers, people they do not know. Also, these letters concern important issues that may have a long-term effect on an individual's life. Therefore, applicants should avoid being overly humorous, funny, or cute, which might give the impression that they are not serious about the job. Businesses expect letters of application to be formal, precise, and accurate because they use them as a guide in hiring employees.SOURCE: PD:030SOURCE: Daggett, W.R., & Miles, J.E. (1998). The dynamics of work: Introduction to occupations


60. DEconomy is booming. Gourmet markets should understand that prices are flexible and can be increased or decreased depending on certain circumstances. One circumstance under which markets might consider increasing prices is when the economy is booming. If economic conditions are good, a market might increase its prices because customers are less cautious with their spending and more willing to pay higher prices. Markets would not increase prices when growth is declining or unemployment is rising because customers would be more cautious about spending their money. Market would not increase prices when their earnings are declining.SOURCE: PI:001SOURCE: PI LAP 2—Pricing

61. CComputer-generated tags. Many grocery stores buy computer systems that allow them to generate their own price tags. These systems enable stores to print price tags that are unique to them and contain the information that they need. The computerized systems help stores reduce the costs associated with marking prices because they are quick and efficient. Also, stores are able to easily change prices at various times because the computerized systems are in-house. Automated inventory systems and electronic scanning devices are not used to mark prices on products. The use of preprinted gummed labels is a manual way of marking prices that is not associated with technology.SOURCE: PI:016SOURCE: Berman, B., & Evans, J.R. (1998). Retail management: A strategic approach (7th ed.)


62. AFalse, most factors affecting price are not controlled by the firm. Most of the factors to be considered in setting prices are external to the food marketing business. These factors are not controlled by the firm and include such factors as supply and demand, economic conditions, competition, and channel members.SOURCE: PI:002SOURCE: PI LAP 3—Factors Affecting Selling Price

63. BIdea generation, product screening, concept testing, test marketing, commercialization. Ideas for new food products can come from employees, customers, or research. After ideas are generated, they are screened to determine which ones may warrant further investigation. The screened ideas are then carefully tested with consumers, and a finished product is introduced to a limited test market. Commercialization is the point at which the product goes into full-scale production, and the product's life cycle begins.SOURCE: PM:001SOURCE: PP LAP 5—Product/Service Planning


64. CWhether to change the product. Whether to change the health food product is one of the choices that needs to be made during the decline stage. During this stage in the product life cycle, the producer 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.)

[pp. 558-559]. Woodland Hills, CA: Glencoe/McGraw-Hill.

65. BTo compile customer databases. Businesses often use Internet technology to obtain valuable information about customers. Today, many businesses maintain web sites that are visited by many users who may be potential customers. When users visit the sites, the businesses often ask them to register in order to access the site. Then, the registration process involves answering a series of questions such as name, street address, e-mail address, personal interests, business associations, etc. The businesses compile this information into customer databases that they can use to send additional information to those visitors who fit the criteria of their target markets. Businesses do not use the information that they are able to obtain due to the advances in Internet technology to develop production systems, interview potential employees, or prepare operating policies.SOURCE: PM:039SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an


66. CTo protect customers. Many food processing companies have developed ethical standards to follow in an effort to protect their products and ensure the safety of their customers. One method being used to protect consumers is tamper-resistant containers. Customers are able to easily determine if this type of packaging has been tampered with which warns them not to buy the product. Food processing companies do not use tamper-resistant packaging in order to save the environment, recycle plastic, or promote social issues. The purpose of the tamper-resistant packaging is to protect consumers and the food supply.SOURCE: PM:040SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)


67. AFair Packaging and Labeling Act. This law requires product labels to identify the product, provide the name of the producer or distributor, and describe the contents. The Food, Drug, and Cosmetic Act bans the production, transportation, and sale of misbranded or adulterated foods, drugs, cosmetics, and medical devices. The Consumer Product Safety Act established the Consumer Product Safety Commission which administers laws governing hazardous substances, flammable fabrics, refrigerator safety, and the prevention of poisoning. The Magnuson-Moss Warranty Act regulates the warranties provided by businesses and requires them to provide more and better warranty information that is easy for consumers to understand.SOURCE: PM:017SOURCE: PP LAP 7—Consumer Protection in Product Planning

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


69. ASeafood. The seafood department in a grocery store usually receives fresh seafood items such as salmon, shrimp, lobster, and tuna on a daily basis. Tuna might be purchased as canned or frozen goods, but it is only available freshly sliced in the seafood department. Delicatessens might have tuna (e.g., salad), but it is usually cooked.SOURCE: PM:057SOURCE: Lewison, D.M. (1997). Retailing (6th ed.) [pp. 366-367]. Upper Saddle River, NJ: Prentice

Hall.

70. BPrice and quality. The promotional slogan is positioning the product as having great taste at a great price. The taste is a quality. The promotion does not address specific features and benefits of the product such as "30% more chicken than the competition" or "Helps lower cholesterol." The company is not claiming that its soups have a characteristic that is different than that of competitors. The soups are not positioned according to other products because the slogan does not include information about other products that the company produces.SOURCE: PM:042SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 560].

Woodland Hills, CA: Glencoe/McGraw-Hill.

71. AIdeally, they demonstrate brand values to customers in everything they do. Behind all successful food brands are people—people at all levels in business who are the walking, talking personification of the brand's values on a daily basis. Although there may be a host of other, more "tangible" elements representing the brand—a name, a logo, advertising, to name a few—the people who embody the values are the real foundation, or drivers, of a brand. Employees generally do not decide what brand values and promises will be. They may participate in this process in some way; however, values must originate with the business's leadership, who must also make a firm and long-term commitment to them in order for these to be effective. Employees in any business come from a variety of backgrounds, including large and small businesses; they do not generally come from one size company. There may be instances in which employees can effectively participate in the development of a business's name or logo. However, because developing the elements that make up the brand's identity is critical to their success, most businesses should hire professionals to develop a name and logo.SOURCE: PM:021SOURCE: PM LAP 6—It's a Brand, Brand, Brand World!

72. DEstimating the amount of money needed to buy inventory. Merchandising is the process of having the right goods in the right place at the right time in order to make a profit. To do that, supermarkets develop merchandising plans, or budgets, which are estimates of the amount of products expected to be sold to customers. Part of developing the plan is estimating the amount of money needed to buy the correct type and amount of inventory. Supermarkets often base these estimates on previous sales figures, and take into consideration any changes in the economy as well as the amount of profit the supermarket plans to earn. Developing a merchandising plan does not involve forecasting the number of first-time customers, predicting the availability of vendor discounts, or calculating the value of coupons that will be redeemed.SOURCE: PM:061SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


73. A$.98. When a supermarket lowers the price of milk, a price reduction must be made, and the reduction is based on the retail price of the milk. To calculate this reduction in price, multiply the markdown percentage by the retail price (35% x $2.79 = $.9765 or $.98).SOURCE: PM:063SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (p. 108). Cincinnati:

South-Western Educational.


74. ARecords of past sales. These records can help the convenience store decide what to buy for resale because they show what consumers bought in the past. It would be impractical, if not impossible, for most stores to consider all available brands of the products they sell. The promotional budget allocates funds for promotions of the products the store selects for resale. The balance sheet is a financial statement that captures the financial condition of the store at that particular moment.SOURCE: PM:120SOURCE: Berman, B., & Evans, J.R. (1998). Retail management: A strategic approach (7th ed.)


75. DShipping complications. Determining when to buy is as important as determining what to buy. A gourmet market that features specialty food items from around the world wants to make sure that those items are in stock when needed. A major consideration when dealing with products from foreign countries is the possibility of shipping complications that might delay delivery. To eliminate that problem, a gourmet market would probably buy nonperishable food items well in advance to make sure they arrive on time. Gourmet markets expect price fluctuations when buying specialty food items from foreign countries and adjust their selling prices accordingly. Therefore, they do not consider prices when deciding when to buy. Advertising deadlines and staffing procedures are not factors that gourmet markets consider when deciding when to buy items.SOURCE: PM:122SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


76. DPlace. Place is the internal marketing factor that involves promoting a product only where and when it is available. A local gourmet market that will be offering a new delivery service in only one area should consider targeting customers in that section of town. It would be useless for the market to promote the service in a place where customers are unable to use it. Price is a marketing element requiring marketers to determine the amount of money they will ask in exchange for their products. Legal and social are external factors that a business should consider when deciding which promotional tools to use.SOURCE: PR:001SOURCE: PR LAP 2—Promotion

77. DPublic relations. Public relations promotions are institutional promotions created to deal with controversial public issues that are related to a supermarket chain or its products. Patronage promotions are designed to promote a firm's prestige, or its features. Primary promotion is intended to stimulate demand for an entire class of goods or services. Secondary promotion is intended to stimulate demand for a particular brand of product.SOURCE: PR:002SOURCE: PR LAP 4—Types of Promotion

78. CSales promotion. Sales promotion is promotional activities other than advertising, personal selling, and publicity which stimulate consumer purchases. It is used to supplement advertising and selling efforts. Advertising is any paid form of nonpersonal presentation of ideas, goods, or services. Personal selling is the use of planned, personalized communication in order to influence purchase decisions and to ensure satisfaction. Publicity is nonpersonal promotion which is not paid for by the company or individual which benefits from it. An example would be a newspaper article about the opening of a new business.SOURCE: PR:003SOURCE: PR LAP 1—Promotional Mix


79. DInformation can be communicated by more venues, and messages can be customized. Since there are more people who are using personal computers, new computer software programs are being developed to help food marketing businesses of all sizes to personalize promotional messages. Personalized messages can be developed for specific target market members and can be communicated through traditional direct mail or Internet (e.g., electronic mail, web sites) channels. Although technological advancements often help companies become more productive and cost-efficient, it does necessarily mean that the businesses have additional funds to spend on promotional activities. Although computer advancements have helped accelerate the time to develop promotional campaigns, it does not necessarily affect creativity. The number of channels needed to carry out promotional plans is highly dependent on the type of promotional activity.SOURCE: PR:100SOURCE: Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [p. 438]. Upper Saddle

River, NJ: Prentice Hall.

80. CKey rings bearing a company's name. Specialty advertising is the use of small items that contain the company's name and/or a brief promotional message. The items are usually given to customers to remind them of the business. Examples of other specialty advertising items are pens, matchbooks, calendars, etc. A postcard announcing a special sale is an example of direct mail. Skywriting and billboards are examples of outdoor media.SOURCE: PR:007SOURCE: PR LAP 3—Ad-quipping Your Business

81. DCopy. Copy is the text of an advertisement that delivers the sales message. It includes whatever the advertiser wishes to say about the food product. Layout is the way in which the elements of an ad are arranged. The headline is text set in large type and usually positioned at the top of an advertisement to catch readers' attention. Identification is the element that identifies the product or the advertiser and may include additional information about the business.SOURCE: PR:014SOURCE: PR LAP 7—Parts of Print Ads

82. CTargeted messages. Database files contain information about customers such as names; addresses; telephone numbers; and demographic, geographic, and psychographic data. As a result, supermarkets can use this information to develop messages that are targeted to specific consumers. For example, a supermarket might send a direct-mail piece only to customers who had purchased party trays within the last year. The advantage of targeting messages is that supermarkets do not waste time and money sending information to customers who are not prospects. Supermarkets do not use databases to develop news releases, promotional brochures, or publicity campaigns.SOURCE: PR:091SOURCE: Wells, W., Burnett, J., & Moriarty, S. (2000). Advertising principles and practice (5th ed.)


83. CDirect. Direct premiums are items that are given away at the time of purchase. In this case, the customer who buys the cheese spread receives a container that s/he may use again. This kind of premium is sometimes called a value pack, particularly if the premium is attached to the product, e.g., a bar of soap shrink-wrapped with bubble bath. A mail-in premium requires the customer to fulfill certain requirements when s/he submits a request for a premium. A continuity premium requires ongoing purchases in order for the customer to benefit. A contest is not a premium but a chance for customers to win products or cash.SOURCE: PR:065SOURCE: Lewison, D.M. (1997). Retailing (6th ed.) [pp. 656-657]. Upper Saddle River, NJ: Prentice

Hall.


84. AZigzag. A zigzag arrangement is not as rigid as a pyramid and is often constructed with pedestals to display products at different heights. A fan, or radiation, arrangement fans items out from the base in a fan shape. A step arrangement looks like the steps in a set of stairs. A pyramid has a broad base and comes to a point at the top.SOURCE: PR:026SOURCE: Lewison, D.M. (1997). Retailing (6th ed.) [p. 290]. Upper Saddle River, NJ: Prentice Hall.

85. DKept clean and well maintained. Once a display is in place, it is important to keep it looking as appealing as possible in order to attract customers. This may involve dusting props, rearranging display items, and/or replacing the products on display. A display should not be filled with informative signs and in some cases will not need any signs. A well-executed display will attract customers and not need to be pointed out to them. Displays should be changed after a reasonable length of time, not kept up as long as possible or customers will lose interest in them.SOURCE: PR:052SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 330].

Woodland Hills, CA: Glencoe/McGraw-Hill.

86. BOrganize related items by brand. Creating related-item displays that feature one brand is an effective way to attract customers' attention and sell more products. It reminds customers of additional products and encourages them to buy items that are featured together. For example, a display of a specific brand of canned fruits, vegetables, and juices promotes the sale of the related items that customers might not otherwise think to buy because the items usually are not displayed together. Grouping together many types of foods might confuse customers and discourage them from buying. Arranging fruits in a basket or placing canned goods on shelves does not promote the sale of additional products.SOURCE: PR:047SOURCE: Wemischner, R., & Karp, K. (1998). Gourmet to go: A guide to opening and operating a

specialty food store (pp. 242-244). New York: John Wiley & Sons.

87. CAn abundant amount of product. Food marketing displays should be stocked with an abundant amount of the product that is being promoted. This makes the display look appealing. Displays that contain a limited amount of product often appear picked over or poorly maintained. They are not as attractive, or as inviting, as displays that contain a lot of product. The store is selling food rather than props so the props should not overwhelm the food items. Many competing elements and dominant themes are confusing and distract from the food items. An effective display should have one main theme and elements that complement each other rather than compete.SOURCE: PR:110SOURCE: Wemischner, R., & Karp, K. (1998). Gourmet to go: A guide to opening and operating a

specialty food store (pp. 244-245). New York: John Wiley & Sons.

88. DVisual displays. All aspects of a promotional campaign should be coordinated in order to obtain maximum results. Convenience stores should reinforce their advertising with visual displays of the goods featured in the ads. The advertising attracts customers' interest and draws them to the store while the coordinated displays encourage the customers to buy. Trade shows are exhibitions at which manufacturers and suppliers in a particular industry display their goods. Special orders are orders placed to meet customers' specific wants. Target markets are particular groups of customers that stores seek to attract.SOURCE: PR:076SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)

[pp. 308, 319]. Woodland Hills, CA: Glencoe/McGraw-Hill.


89. DStore promotions are a good source of display themes. Ideas for themes can come from many sources. Grocery store promotions that might include sales or special events are often a good source. Themes that are easy to understand are considered most effective. Selecting a theme is the first step in building a store display, and a single theme for a display is preferred.SOURCE: PR:077SOURCE: Diamond, J., & Diamond, E. (1999). Contemporary visual merchandising (p. 175). Upper

Saddle River, NJ: Prentice Hall.

90. ATo satisfy customers. The goal of all supermarket supply salespeople should be to satisfy customers in order to gain repeat business and advance in selling. Salespeople satisfy customers' needs by providing accurate product information which will enable customers to make wise buying decisions. A salesperson who tries to satisfy customers will succeed in a sales career. Handling complaints, suggesting substitutes, and demonstrating products are selling skills.SOURCE: SE:017SOURCE: SE LAP 117—Selling

91. AService. A service attitude is a grocery store employee's commitment to the client's needs as expressed through his/her professional behavior. This attitude is frequently revealed by the way an employee treats customers. Employees who are polite, handle difficult situations tactfully, and show an interest in the customer are exhibiting a service attitude. Employees who do not exhibit this type of behavior may offend customers and cause them to take their business elsewhere. Personal attitude is the way a person looks at life. Honest is truthful. Ethical is moral.SOURCE: SE:828SOURCE: SE LAP 115—Building Clientele

92. AWhen Mary's friends ask her how much the bakery she works for marks up its wedding cakes, she does not divulge that information. Mary is demonstrating ethical responsibility to the company by protecting confidential information. When Mitch uses facts that can be substantiated to compare his company's product to another, he is showing ethical responsibility to the competition. Both the example of the recycling proceeds and the sponsorship of a child at Christmas are benefits to the community and demonstrate ethical responsibility towards its citizens.SOURCE: SE:106SOURCE: Ingram, T.N., LaForge, R.W., Avila, R.A., Schwepker, C.H., & Williams, M.R. (2001).

Professional selling: A trust-based approach (p. 72). Mason, OH: South-Western.

93. BRequiring customers to buy extra products to obtain the desired product. A tying arrangement is an illegal agreement requiring a customer to buy other products in order to obtain desired goods and services. An example of a tying arrangement is a salesperson's requiring a customer to buy the company's copy paper and toner in order to obtain the desired copier machine. The copy paper and toner are the products tied to the main product. Agreeing to buy products in exchange for selling products is not necessarily illegal unless it restricts competition. Charging different customers different prices for the same products and offering some customers special discounts and price reductions are examples of price discrimination.SOURCE: SE:108SOURCE: Futrell, C.M. (2001). Sales management: Teamwork, leadership, and technology (6th ed.)

[pp. 38-39]. Mason, OH: South-Western.


94. DCustomers. An excellent source of information about what a product can or cannot do is customers who have actually used the product. For example, supermarkets know how well certain types of refrigerated display cases perform under normal circumstances. The other alternatives provide excellent information about other aspects of the product such as care, proper usage, construction, price, and size.SOURCE: SE:062SOURCE: Manning, G.L., & Reece, B.L. (1998). Selling today: Building quality partnerships (p. 108).

Upper Saddle River, NJ: Prentice Hall.

95. BSo that the salesperson will have the ability to tailor sales presentations to individual customers. In order for salespeople to be effective, they must be able to determine the needs and wants of their customers and match the features and benefits of the product to those needs and wants. Salespeople would be unable to do this if they were uninformed about the product. Although product information is available to consumers, they often count on salespeople to act as their experts. Jargon usually should not be used in sales presentations, especially if the customer is not very familiar with the product. Product information is not used in place of a sales presentation, but rather as an aid to make the presentation better.SOURCE: SE:109SOURCE: Lamb, C., Hair, J., & McDaniel, C. (2002). Marketing (6th ed.) [pp. 465-466]. Mason, OH:

South-Western.

96. DAll categories of branded products. Most supermarkets carry all categories of branded products: manufacturer or national brands, private or store brands, and generic brands. The reason for this is to provide customers with more choices. Some customers always buy national brands, while others prefer the supermarket's private brand. Other customers prefer generic products because they usually are the least expensive. If a supermarket sells all the categories of brands, it has a better chance of appealing to a wider market. Customers have more choices and are more likely to find the product they want in the price range they want. Specialty food markets, rather than supermarkets, often carry mainly quality items at high prices. Supermarkets do not carry an extensive selection of imported goods or many foods produced by local companies.SOURCE: SE:019SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)


97. DSkillful questioning and careful listening. By asking questions of undecided customers and listening to the answers, supermarket supply salespeople can tailor each sales presentation to meet the specific needs of the customer. Conducting a good product demonstration is part of prescribing solutions to customer needs. Showing the customer a few products may not give the salesperson enough information about the customer's needs. Using suggestion selling is part of reaffirming the buyer-seller relationship.SOURCE: SE:048SOURCE: SE LAP 126—The Selling Process

98. BMerchandise. The merchandise approach is used by supermarket supply salespeople primarily when customers are already examining an item such as a shopping cart. The salesperson should be familiar with the items s/he sells and be prepared to use his/her knowledge in making the sale. A referral occurs when a salesperson is given the name of a prospective customer.SOURCE: SE:110SOURCE: SE LAP 101—Opening the Retail Sale


99. CSummary. A summary close is a closing technique in which the supermarket supply salesperson reviews the features and benefits at the close of the sales presentation. This technique helps to ensure that the customer has all the basic facts in order to make a decision to buy. A narrative close describes another customer's experience, a bonus close offers a free gift, and closing on objection makes positive use of the customer's objection, none of which would be appropriate in this case.SOURCE: SE:895SOURCE: SE LAP 107—Closing Sales

100. CAsk the customer to verify the information written on the order form. The grocery employee who takes the special order should restate the information on the order form at least once—if not twice. This will give the customer the opportunity to determine if the delivery date, pick-up time, price, and requested food item have been properly recorded. If not, the necessary changes can be made so that the customer is serviced properly. Memory is fleeting, and important details about the order may be forgotten when things get hectic during busy times. Proper grammar is one of the least important details on an order form. What matters most is that the customer gets the right product at the right time and place. Unless the manager calls the customer to verify the information on the order form before signing it, there is still a chance that there will be a problem with the order.SOURCE: SE:009SOURCE: Wemischner, R., & Karp, K. (1998). Gourmet to go: A guide to opening and operating a

specialty food store (p. 224). New York: John Wiley & Sons.

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