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KEY

Test Number 908

Food Marketing Management Level

This comprehensive exam was developed by the MarkED Resource Center. Items have been randomly selected from the MarkED Resource Center's Test-Item Bank and represent a variety of instructional areas. Competencies for this exam are at the prerequisite, career-sustaining, marketing specialist, marketing supervisor, and manager levels. A descriptive test key, including question sources and answer rationale, has been provided the state DECA advisor.

All test items are copyrighted and are the exclusive property of the MarkED Resource Center. No item may be reproduced in any manner, with the following exception: State DECA advisors or their designees are authorized to duplicate tests, as needed, for one-time use in state-sponsored competitive events prior to May 1, 2007. Duplication after this date or for other purposes is expressly prohibited. Copyright © 2007 by Marketing Education Resource Center®, Columbus, Ohio

Test 908 FOOD MARKETING (MANAGEMENT LEVEL) — KEY 11

1. D Inspect the facilities. There are a variety of health and sanitation laws that affect the food marketing industry. Most of these laws allow the governmental agencies responsible for enforcing the laws to inspect the food marketing facilities. These agencies often conduct routine, as well as unannounced, inspections to make sure the food marketers are complying with the requirements of the law. The intent is to guarantee that the food products sold to customers are safe and do not pose a health threat. The laws do not include provisions that allow governmental agencies to sample the products, terminate the employees, or redesign the stores. SOURCE: BL:063 SOURCE: Ninemeier, J.D. (2000). Management of food and beverage operations (3rd ed.)

[pp. 270, 277-279]. Weimar, TX: Culinary and Hospitality Industry Publications Services. 2. A

Americans with Disabilities Act. The Americans with Disabilities Act (ADA) prohibits supermarket chains from discriminating against disabled individuals who are qualified to do the job. In order to protect these individuals, the ADA also regulates the type of questions that chains may ask potential employees. Chains may not ask questions about medical histories, specific diseases, prescription drug usage, treatment for mental health problems, etc. These are issues that chains should not consider when hiring employees. The Vocational Rehabilitation Act, the Fair Labor Standards Act, and the National Labor Relations Act do not prohibit chains from asking potential employees about their medical history. SOURCE: BL:008 SOURCE: Dessler, G. (2000). Human resource management (8th ed.) [pp. 48-51]. Upper Saddle River,

NJ: Prentice Hall. 3. A

Specific benefits. A proposal is an informational document that presents the reader with a call to action. A proposal often suggests ways to solve a problem or to obtain information by taking a specific course of action. Because the proposal developer's goal is to get his/her suggestions implemented, a well-written proposal will tell the reader how s/he will benefit by implementing the procedures or using the data that the document provides. A well-written proposal does not necessarily include vague goals, previous trends, or contingency data. SOURCE: CO:062 SOURCE: Locker, K.O. (2000). Business and administrative communication (5th ed.) [p. 368].

Boston: Irwin/McGraw-Hill. 4. D

Company policies. Grocery store supervisors and employees need to communicate with each other on a regular basis in order to function effectively. One type of information that supervisors often communicate to employees in writing is information about company policies. Supervisors want to make sure that employees understand company policies so that they will be able to work efficiently and accomplish company goals. Providing this information in writing ensures that it is available to employees at all times. Personal opinions and workplace rumors usually are communicated verbally. Supervisors usually do not communicate community news to employees. SOURCE: CO:014 SOURCE: Hilgert, R.R., & Leonard, E.C. (2001). Supervision: Concepts and practices of management

(8th ed.) [p.185]. Cincinnati: South-Western College Publishing. 5. B

Exchange information and ideas. Conducting staff meetings in such a way that employees can express their ideas and provide feedback to management creates an atmosphere of open communication. This is a more beneficial kind of meeting than one held for the purpose of making announcements. Learning communication skills should help a supervisor to conduct a staff meeting, but it is not a goal of staff meetings. Having a meeting because a certain number are required is not a valid reason for having a staff meeting. SOURCE: CO:140 SOURCE: Hilgert, R.R., & Leonard, E.C. (2001). Supervision: Concepts and practices of management

(8th ed.) [p. 306]. Cincinnati: South-Western College Publishing.


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

7. C

Agent. An agent is a channel member that assists in the sale and/or promotion of goods and services but does not take title to them. A wholesaler is a business that buys goods from producers or agents and sells them to retailers. A retailer is a business that buys goods and sells them to the ultimate consumer. Discounter is not a type of intermediary. SOURCE: DS:055 SOURCE: MB LAP 3—Channels of Distribution

8. D

Long-term partnerships. Most supermarket chains want to develop long-term partnerships with channel members because it is more cost effective to maintain a relationship with an existing member than to locate new channel members. To accomplish this, chains often meet regularly with channel members to discuss problems and evaluate performance. This gives both the chain and the channel members an opportunity to discuss problems and decide on a mutually satisfactory solution. By working together, the chain and the channel members can improve performance and develop a long-term partnership. Supermarket chains and channel members do not meet regularly to develop transportation systems, cost-effective inventories, or routine buying procedures. SOURCE: DS:051 SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 501-502]. Upper Saddle River, NJ:

Prentice Hall. 9. C

Produce. Receiving employees need to be aware of products that must be moved through the receiving process quickly. In most cases, these are perishable or expensive items that should be processed as soon as possible to protect them from spoilage or theft. Produce is perishable and needs to reach the selling floor at its peak of freshness. Paper products, magazines, and canned goods are nonperishable items and more time can be allowed in the receiving process. SOURCE: DS:004 SOURCE: DS LAP 5—The Receiving Process

10. C

Unit price and total amount of credit. Grocery stores often weigh deliveries of ground beef and other food items that are ordered by the pound to make sure the amount ordered is the same as the amount delivered. If a store discovers that a shipment of ground beef is five pounds less than the amount ordered, it might resolve the problem by filling out a request-for-credit form to obtain credit from the vendor. When filling out such a form, a store would indicate the invoice number, the type of product, the amount of shortage, the unit price of the item, and the total amount of credit that is due. For example, if the unit price of ground beef is $1.50 per pound, the store indicates five pounds at $1.50 per pound for a total of $7.50. The store will receive a credit in the amount of $7.50, which resolves the problem with the shipment. A store usually does not need to indicate the prearranged payment terms, the date the order was placed, or the time involved in receiving and checking the order when filling out a request-for-credit form. SOURCE: DS:086 SOURCE: Ninemeier, J.D. (2000). Management of food and beverage operations (3rd ed.)

[pp. 170-171]. Weimar, TX: Culinary and Hospitality Industry Publications Services.


11. C Between restricted hours. Grocery stores that have a large receiving area are able to handle many deliveries at one time. Consequently, they often schedule deliveries between restricted hours when many employees will be available to receive and process the goods. Stores also schedule deliveries during the times when there are not a lot of customers so employees can concentrate on the receiving function. Stores that have limited receiving space usually need to accept deliveries over a longer period of time. Stores usually do not schedule deliveries in the early evening because that is often a busy time in grocery stores. It is impractical to schedule deliveries throughout the day because employees will always be busy receiving goods and not have sufficient time to serve customers. Not all stores have a morning rush. SOURCE: DS:038 SOURCE: Mill, R.C. (1998). Restaurant management: Customers, operations, and employees (p. 198).

Upper Saddle River, NJ: Prentice Hall. 12. D

Insurance business. Insurance companies sell services rather than goods; therefore, no inventory records of goods available for sale would be possible or needed. The other alternatives do offer goods for sale. SOURCE: DS:019 SOURCE: DS LAP 2—Inventory Control Systems

13. C

Most customers are only willing to pay a certain price. Grocery stores not only need to make their products available, but they also must sell them at a price that customers are willing to pay. If a product is not priced appropriately, customers usually will not buy even if the product is widely distributed. Therefore, it is important for stores to coordinate the marketing activity of price with distribution. Grocery stores must set appropriate prices that customers are willing to pay, and have the products in stock when customers want them in order to successfully sell to customers. Paying transportation charges and obtaining warehouse space are not reasons why stores coordinate distribution with pricing. Not all customers expect to receive significant discounts. SOURCE: DS:048 SOURCE: Evans, J.R., & Berman, B. (1997). Marketing (7th ed.) [pp. 654-655]. Upper Saddle River,

NJ: Prentice Hall. 14. D

Intermediaries. Intermediaries are distribution channel members operating between the producer and the consumer or industrial users to help in the movement of goods and services. Technological advancements have not reduced the need for suppliers. Manufacturers still need raw materials to produce their goods. Technological advancements have not necessarily reduced the need to use warehouse personnel and freight carriers in relation to communicating with customers. SOURCE: DS:054 SOURCE: Coyle, J.J., Bardi, E.J., & Langley, C.J. (2003). The management of business logistics: A

supply chain perspective (7th ed.) [p. 460]. Mason, OH: South-Western. 15. C

Maintaining the freshness of inventory in stock. The FIFO (first-in, first-out) method of valuing inventory assumes that merchandise is sold in the order in which it is purchased-that is, that older stock is sold before newer stock purchased at a later date. That means regular turnover in inventory, which keeps the inventory in stock fresh. FIFO increases, not decreases, the company's tax liability, and although it does overstate benefits, this is a disadvantage, not a benefit. FIFO does not require a physical count of the merchandise; however, the LIFO method of inventory valuation (last-in, first-out) does require a physical count of inventory, which is one of its disadvantages. SOURCE: DS:052 SOURCE: Lewison, D.M. (1997). Retailing (6th ed.) [p. 587]. Upper Saddle River, NJ: Prentice Hall.


16. D Lower prices for quick sale. When grocery stores have excessive quantities of items that are not selling as well as expected, they often lower the prices to encourage quick sales. Most stores develop a system for handling excessive quantities of a product, and the most common procedure is to lower prices. The lower prices often appeal to customers who will now buy the products because of the discount. Moving the items to another location is not effective unless there is also an incentive to buy—such as lower prices. Warehousing items is expensive, and there is no guarantee that demand will increase. Stores cannot return items to a vendor simply because the items are not selling well. SOURCE: DS:094 SOURCE: Lambert, D.M., Stock, J.R., & Ellram, L.M. (1998). Fundamentals of logistics management

(p. 120). Boston: Irwin/McGraw-Hill. 17. C

Coding. Produce items often go through many distribution channels before grocery store customers purchase and consume them. It is important for grocers to be able to trace how the product moves through the distribution system in the event a safety problem, such as contamination, occurs during the product movement process. Because contaminated food can create widespread health problems, many produce channel members use a bar coding system to track the movement of each logistic unit of the produce. This way, channel members know where the produce currently is and where it has been. Counting, measuring, and alternating are not systems that efficiently trace produce items through distribution channels. SOURCE: DS:121 SOURCE: EAN International. (n.d.). Fresh produce traceability guidelines . Retrieved November 6,

2006, from http://www.ean-int.org/docs/traceability/GS1_fresh_produce_traceability.pdf 18. C

Receiving, return handling, and moving. Warehousing involves placing goods in safe locations until they are needed or are ready to be sold. There are many areas or components of warehousing that keep the supermarket operating efficiently. Warehouse personnel receive merchandise from vendors, mark prices on items if needed, move stock to the appropriate location for storage or sale, and handle returned items. Slotting allowances, negotiations, and merchandise classification are management functions, but not always part of actual warehouse operations. Hiring is a personnel activity. Merchandising is a promotional activity. Invoicing and accounting are financial functions. SOURCE: DS:135 SOURCE: Integrated Warehousing Solutions. (n.d.). Foundations of warehouse management systems.

Retrieved November 6, 2006, from http://buyersguide.softwaremag.com/softwaremag/search/viewabstract/73328/index.jsp

19. C

Specialty. Specialty goods are consumer goods with special or unique characteristics consumers are willing to exert special efforts to obtain. A special kind of car would fit in this category. Shopping goods are consumer goods that are purchased by consumers after comparing goods and stores in order to get the best quality, price, and/or service. Convenience goods are consumer goods purchased quickly and without much thought or effort. Industrial goods are goods purchased by producers for resale and to make other goods. SOURCE: EC:002 SOURCE: EC LAP 10—Goods and Services

20. B

Place and time. Place utility is usefulness created by having products available at the location where they are wanted or needed by consumers. Time utility is created when products are made available at the time they are needed or wanted by consumers. The milk was not available at the right place at the right time. Form utility is usefulness created by changing the shape or form of a good to make it more useful to the consumer. The form of the milk is not affected. SOURCE: EC:004 SOURCE: EC LAP 13—Use It (Utility)


21. A Do not always benefit consumers. A monopoly exists when a single business influences the entire production of a particular good or service. This means that any major competitors are eliminated, and the monopoly can control the price of the product by restricting production. Government regulates monopolies to protect consumers except in cases in which it is best to have a single provider of a good or service, e.g., utilities. Monopolies do not reduce the power of the government and are not necessarily hard to manage. They do pay taxes. SOURCE: EC:008 SOURCE: EC LAP 16—Government and Business

22. B

Quality circles. Giving employees the opportunity to contribute ideas and to use their creativity to solve problems can increase productivity. Many food marketing companies do this by establishing quality circles, problem-solving groups of eight to ten coworkers who are given work situations/problems to consider and recommend solutions to management. Training programs, company newsletters, and recreation areas may increase production by improving employee morale, but they are not ways of encouraging employees to contribute ideas to solve problems. SOURCE: EC:013 SOURCE: EC LAP 18—Productivity

23. D

Average price per unit. Total revenue is one of the two key measures of revenue that businesses use to decide what amount of output will produce the greatest profits. It is calculated by multiplying the number of units sold by the average price per unit. Marginal revenue, on the other hand, is the extra revenue associated with the production and sale of one additional unit of output. Marginal revenue is not used to calculate total revenue. Fixed costs are costs that do not change, even if output is zero, and are not used to calculate total revenue. Marginal costs are the extra costs incurred when a business produces one additional unit of a product. Marginal costs are not used to calculate total revenue. SOURCE: EC:023 SOURCE: Gottheil, F.M. (1999). Principles of economics (2nd ed.) [pp. 188-189]. Cincinnati:

South-Western College. 24. C

Reduce their labor costs. Many multinational firms locate facilities in foreign countries because of lower labor costs. Workers in many underdeveloped foreign countries often expect lower wages and fewer benefits than their counterparts in more developed countries. Businesses locating in these countries are able to pay lower wages and, therefore, reduce their labor costs. Businesses do not move their facilities in order to deal with unstable governments or help underdeveloped nations. Trade centers are offices and display rooms set up by a government in foreign cities. SOURCE: EC:016 SOURCE: EC LAP 4—Beyond US (International Trade)

25. A

Being irritated when dealing with customers. Interaction with customers is a major cause of stress in the workplace. Customers are not always polite and understanding. Sometimes they are demanding, unrealistic, and angry. Convenience store employees who are not experiencing a lot of stress usually are able to handle these types of situations with customers and resolve the problem. However, when employees are under a lot of stress, they often feel annoyed and irritated when dealing with customers—even those customers who are behaving appropriately. Routinely feeling this way is an indication that an employee is stressed, in which case management should take steps to help the employee reduce the level of stress. Concentrating on doing the job correctly, drinking one or two cups of coffee a day, and having occasional conversations with coworkers are not indications that employees are under a lot of stress. SOURCE: EI:028 SOURCE: DuBrin, A.J. (2003). Essentials of management (6th ed.) [pp. 478-481]. Mason, OH:

South-Western.


26. A Consideration. Grocery store employees should treat others, whether they are customers, coworkers, or supervisors, with consideration. This means being helpful and respectful and not being prejudiced. Business image, work environment, and employees' personal images are all reflected in the manner in which people are addressed. Empathy is the ability to put oneself in another's place. Honesty and integrity refer to a person's truthfulness and ethics. SOURCE: EI:031 SOURCE: Daggett, W.R., & Miles, J.E. (1998). The dynamics of work: Introduction to occupations

(2nd ed.) [pp. 354-355]. Cincinnati: South-Western Educational. 27. D

Achievement of common goals and mutual benefits. The main goal of group interdependence is to have employees rely upon fellow workers in order to achieve a common goal. These employees work together for a common purpose, not for the satisfaction of individual workers. Feelings of self-reliance are not characteristic of interdependence. Because of the uniqueness of individuals, it would be impossible to develop a common perspective, or outlook, among them. SOURCE: EI:037 SOURCE: HR LAP 9—Positive Working Relationships

28. C

Credibility. Credibility is believability. In order to convince others of your point of view, you need to be believable. In this case, Brian's coworkers need to believe that he knows how to keep records before they can be persuaded to try his method. None of the other alternatives would help Brian to convince others of his point of view. Initiative is the willingness to act without having to be told to do so. Passiveness is the failure to exercise personal rights and a lack of respect for personal needs. Aggressiveness is the willingness to ignore the rights of and exploit others in order to achieve personal goals. SOURCE: EI:012 SOURCE: Hyden, J.S., Jordan, A.K., Steinauer, M.H., & Jones, M.J. (1999). Communicating for

success (2nd ed.) [pp. 326-327]. Cincinnati: South-Western Educational. 29. A

Complaints can often be opportunities. Supermarket supply salespeople should view customers' complaints as opportunities to impress customers positively. Customers whose complaints are handled satisfactorily often become repeat customers. This benefits the business and the salesperson. Most supermarket supply businesses expect salespeople to handle routine complaints as part of their selling responsibilities. Management often provides assistance if the problem is difficult to resolve. There is no way to prevent all customer complaints. Complaints can cause problems for both the salesperson and the business if they result in lost sales, income, and profits. SOURCE: EI:043 SOURCE: HR LAP 23—Handling Customer Complaints

30. B

Budget. The best credit account that Hanson Supermarket could establish with Smith Wholesale Company is a budget account. A budget account is a form of short-term credit often set up for 60- or 90-day periods with a payment due every 30 days. A regular credit account is a credit account which allows credit users to buy at any time during a set time period, usually 30 days. It is also called an open account. A revolving credit account is a type of credit account that limits the total amount of money that may be owed and charges interest on outstanding balances. An installment credit account is a type of credit account set up to handle one total amount of credit which is to be paid in regular installments. SOURCE: FI:002 SOURCE: FI LAP 2—Credit and Its Importance


31. B Allocate their funds. Grocery store managers use the accounting information that tells them the amount of funds available in order to develop operating budgets. These budgets specify how much money may be spent for such expenses as rent, salaries, insurance, etc. Insurance premiums are the monies paid to cover a contractual agreement in which one party will pay for specified losses incurred by the other party. Excise taxes are determined by government. They apply to certain items, such as gasoline, and are paid by the buyer. Labor union dues are paid by the union members. SOURCE: FI:085 SOURCE: FI LAP 5—Show Me the Money (Nature of Accounting)

32. D

Cost of goods sold. Cash payments are the specific sources of money flowing out of a food market. Cash payments include cost of goods sold, variable expenses, and fixed expenses. Cost of goods sold is the amount of money a market pays for the product it will sell and often is a sizeable expense. Previous month's balance is the amount of cash a market has left at the end of the previous month. Total credit sales are the amount of purchases that customers make on credit and will pay later. Interest from loans is income, often from credit sales. SOURCE: FI:091 SOURCE: MN LAP 60—Cash Flow

33. A

$264,717.50. One of the main functions of an operating budget is to plan for income. Gourmet markets want to know that they are generating a sufficient income to make operating worthwhile. Budgeting for anticipated increases in sales and expenses helps a market to budget income for the coming year. In this situation, sales are expected to increase by 6% and expenses are expected to increase by 5%. To calculate the increase in sales, multiply last year's sales by 6% ($720,500 x 6% or .06 = $43,230), and add that figure to the amount of sales ($720,500 + $43,230 = $763,730). To calculate the increase in expenses, multiply last year's expenses by 5% ($475,250 x 5% or .05 = $23,762.50), and add that figure to the amount of expenses ($475,250.00 + $23,762.50 = $499,012.50). Subtract anticipated expenses from anticipated sales to determine the amount the market should budget for income ($763,730.00 - $499,012.50 = $264,717.50). SOURCE: FI:098 SOURCE: Kuratko, D.F., & Hodgetts, R.M. (2001). Entrepreneurship: A contemporary approach

(5th ed.) [pp. 257-260]. Mason, OH: South-Western. 34. D

Income is greater than expenses. If the statement shows that expenses are greater than income, a loss has occurred. The break-even point is when income and expenses are equal. SOURCE: FI:102 SOURCE: Lange, W.H., Rousos, T.G., & Mason, R.D. (1998). Mathematics with business applications:

Teacher's wraparound edition (4th ed.) [pp. 519-520]. New York: Glencoe/McGraw-Hill. 35. C

High profit margin. Grocers often make a higher profit margin, or profit per dollar of sales, on nongrocery items such as beauty and health care products. This may be because the markup on nongrocery products is often higher than on grocery items. The flip side is that nongrocery items do not sell very quickly because they do not need to be replaced as often as products such as milk and bread. Also, many people buy nongrocery products at discount stores where they can get a better price. Therefore, the demand for these products is not as strong as for grocery items. Many nongrocery products don't have expiration dates, and those that do usually don't expire for a very long period of time. Therefore, nongrocery products have a long shelf life rather than a short one. SOURCE: FI:299 SOURCE: Kahn, B.E., & McAlister, L. (1997). Grocery revolution: The new focus on the consumer

(pp. 107-108). Reading, MA: Addison-Wesley Educational.


36. B Estimated turnover. Grocery store chains plan for future hiring needs in order to have enough employees on hand to fill available positions. One consideration when identifying future hiring needs is estimated employee turnover as a result of resignations, retirements, terminations, etc. For example, if a chain knows that five supervisors will be retiring within the coming year, it will be able to plan to hire replacements. Once chains have identified future hiring needs, they can begin the recruitment, selection, and interview processes. SOURCE: HR:353 SOURCE: Dessler, G. (2000). Human resource management (8th ed.) [pp. 124-125]. Upper Saddle

River, NJ: Prentice Hall. 37. A

Personal interview. This is a widely used employee-selection tool that allows the employer to evaluate the applicant's appearance, oral communication skills, and ability to respond quickly. A letter of application or of inquiry is a letter that is written by an applicant who is interested in a prospective job. A job analysis outlines the duties and tasks of a particular job. SOURCE: HR:356 SOURCE: Dessler, G. (2000). Human resource management (8th ed.) [pp. 216-223]. Upper Saddle

River, NJ: Prentice Hall. 38. D

To ensure that the program will run smoothly. The implementation checklist identifies areas of consideration that should be carefully examined before the training and development program begins, e.g., equipment, materials, room arrangement, etc. Reviewing the implementation checklist helps managers to provide an optimum learning environment for the participants. This list does not determine objectives, examine costs, or provide measurable data. SOURCE: HR:363 SOURCE: MN LAP 50—Manager/Supervisor Training

39. C

Identify the problem behind the complaint. Employee complaints do not always address the actual problem but only the results of a problem. Before a complaint can be resolved, the problem that has caused the complaint must be identified. The individual investigating the complaint should do so in an objective manner without letting personal judgment interfere in the investigation. Considering all possible solutions and documenting the resolution to the complaint are later steps in dealing with complaints. SOURCE: HR:366 SOURCE: MN LAP 45—Handling Employee Complaints

40. A

Corrective counseling. Personal circumstances may arise which are at the heart of disciplinary problems. One such personal circumstance is the death of a spouse. This may cause the supermarket employee to seem emotionally detached and unmotivated as evidenced by declining productivity and irregular attendance at work. To help the employee deal with the loss, corrective counseling might be used since its intent is to be positive and fact-finding with regard to employee behavior. By guiding employees toward acceptable workplace behavior, rather than penalizing their behavior, supervisors can preserve employees' dignity. In this way, corrective counseling tends to foster supervisor-employee cooperation. Progressive discipline involves giving increasingly more severe penalties each time an offense is repeated. It would help the employee recognize that there is a problem; however, it would not help the employee deal with the loss. Preventive discipline is used before an infraction has occurred. Constructive criticism is a form of corrective discipline which involves providing feedback on their workplace behavior as a means of fostering improved performance. It plays an important role in maintaining employee discipline on a day-to-day basis. SOURCE: HR:369 SOURCE: MN LAP 53—Remedial Action


41. A Predict and control risks. Marketing information is all of the marketing-related data available from inside and outside the grocery store. It includes information about past situations and what is happening now. By obtaining and using marketing information, store managers can predict the risks that might occur in the future and take steps to control those risks. For example, if current marketing information indicates that one product is losing popularity, a store can modify the product or repackage it to be more appealing. As a result, the store might avoid losing customers, which is a future risk. Managers often use marketing information to prepare documents and reports, but that is not an advantage of obtaining and using the information. Store managers do not obtain and use marketing information to train and direct employees, or to review and understand regulations. SOURCE: IM:012 SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an

e-commerce world (7th ed.) [p. 124]. Mason, OH: South-Western. 42. A

Conduct exploratory research. In some cases, convenience store chains know there is a problem, but they are not sure exactly what the problem is or how significant it is. Then, chains need to conduct exploratory research to determine the exact nature of the problem before obtaining marketing information to help solve the problem. For example, a chain might know there is a problem because sales are down, but it might need to explore the situation more to pinpoint the cause of the problem. Once the problem is clearly defined, a chain can decide exactly what type of marketing information will help solve the problem. Exploratory research helps a chain investigate a situation before beginning an extensive search for information. Chains often are unable to obtain confidential data. Developing a valid questionnaire and preparing an experiment are research techniques that a chain might use to obtain marketing information after conducting exploratory research to clearly understand the problem. SOURCE: IM:182 SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an

e-commerce world (7th ed.) [pp. 132-133]. Mason, OH: South-Western. 43. C

Customer profile. Customer profiles are used by companies to create a clear picture of their target market for use in decision making. A customer profile contains a variety of information about customers, such as age, income level, ethnic background, occupation, etc. This type of record is not known as a preference list, a demographic breakdown, or a consumer composite. SOURCE: IM:160 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 525].

Woodland Hills, CA: Glencoe/McGraw-Hill. 44. A

Promotion. The promotion element of marketing refers to the various types of strategies that marketers use to communicate information about goods, services, images, and/or ideas to achieve a desired outcome. Product refers to what goods, services, or ideas will be offered to customers. Price involves determining and adjusting prices to maximize return and meet customers' perceptions of value. Place, or distribution, involves moving, storing, locating, and/or transferring ownership of goods and services. SOURCE: IM:194 SOURCE: IM LAP 7—Pick the Mix (Marketing Strategies)

45. B

Money to spend. A market is a customer or potential customer who has an unfulfilled desire and is financially able and willing to satisfy that desire. Home ownership, incomes over $20,000, and college educations could be factors to consider when identifying and segmenting the market, depending on the product being sold. SOURCE: IM:196 SOURCE: IM LAP 9—Have We Met? (Market Identification)


46. A Operating. Operating information includes such data as production reports, budgets, profit-and-loss statements, and cost figures. Marketing personnel provide information about customer comments and complaints. Sales data include sales records for specific products and product lines, sales call reports, past sales trends, sales forecasts, order sizes, sales quotas and information as to how those quotas were met, market share percentages, and promotional records. Inventory records show the stock on hand, stock on order, how long stock has been held, and the value of the stock. SOURCE: IM:001 SOURCE: IM LAP 2—Marketing-Information Management

47. A

To remain competitive. When a supermarket's external environment changes, it should evaluate its internal environment in order to remain competitive. External changes, such as industry growth or a slowdown in the economy, often make it necessary for a company to change the way it does business. These types of external changes might make it more difficult for a supermarket to compete and remain successful. In response to external changes, a supermarket might update its advertising, revise its pricing, and improve its distribution in order to remain competitive. SOURCE: IM:140 SOURCE: Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd ed.)

[pp. 98-99]. Boston: Irwin/McGraw-Hill. 48. A

Business planning. A food marketing business uses the projected sales income to make major business decisions such as scheduling production, setting prices, purchasing materials and equipment, and hiring staff. Information used in training staff and preparing advertising copy comes from other sources within the business. Analyzing past sales, rather than forecasting sales, would be helpful in evaluating salespersons. SOURCE: IM:003 SOURCE: IM LAP 3—Nature of Sales Forecasts

49. B

Financial benefits. Costs are associated with carrying out a marketing plan; therefore, marketing managers should identify the financial benefits and compare them to the costs involved. The financial benefits of implementing a marketing plan usually are increased sales and profits. However, if the costs are so great that the expected increase in revenues will be small, marketers probably will modify the plan in order to bring costs in line with expected profits. Businesses often conduct research in order to gather important information before starting to develop a marketing plan. Once a marketing plan has been developed, a business might identify the necessary sales personnel. Accounting methods are ways of recording income and expenditures. SOURCE: IM:198 SOURCE: Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd ed.)

[pp. 98-100]. Boston: Irwin/McGraw-Hill. 50. C

Increasing availability. Improving availability is generally the easiest adjustment you can make in your place strategy. Revising service policies is a change in product strategy. Reacting to market prices is a change in pricing strategy. Placing new advertisements is a change in promotional strategy. SOURCE: IM:199 SOURCE: Meyer, E.C., & Allen, K.R. (2000). Entrepreneurship and small business management:

Teacher's manual (2nd ed.) [p. 175]. New York: Glencoe/McGraw-Hill.


51. C Advertising. When grocery stores conduct a marketing audit, they evaluate and analyze all of the activities that pertain to the marketing effort. Advertising is an important part of marketing because it promotes the store's goods and services to customers. During a marketing audit, a store would analyze the overall objectives and goals of the advertising program and evaluate its effectiveness in accomplishing those goals. The marketing audit can identify problems with the advertising program and make recommendations for change. Purchasing, staffing, and invoicing are not factors that stores evaluate and analyze when conducting a marketing audit. SOURCE: IM:162 SOURCE: Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd ed.)

[pp. 552-554]. Boston: Irwin/McGraw-Hill. 52. D

Buying goods. An important merchandising activity involves buying the right goods in the right quantities that will satisfy customers' wants and needs. The purpose of merchandising is to have the right goods in the right place at the right time in order to make a profit. Actually selecting and buying those goods are critical in order for food retailers to be able to sell the goods. Hiring staff is a management activity. Sending bills and paying vendors are accounting activities. SOURCE: MK:009 SOURCE: Wolfe, M.G. (1998). The world of fashion merchandising (pp. 56-57). Chicago:

Goodheart-Willcox. 53. D

Product/Service management. This marketing function involves obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities. Financing is not a marketing function but a business function that involves understanding the financial concepts used in making business decisions. Purchasing is a business activity rather than a marketing function. Marketing-information management involves gathering, accessing, synthesizing, evaluating, and disseminating information for use in making business decisions. SOURCE: MK:002 SOURCE: MK LAP 1—Work the Big Six (Marketing Functions)

54. D

Self-scan registers. Many large supermarket chains are implementing self-checkout register terminals for the sales transaction process. Self-checkout often reduces the contact between customers and cashiers because the customers scan, bag, and pay for grocery items. Many grocery stores with self-checkout stations limit the amount of items that can be scanned at self-scan registers. As a result, the time that customers spend waiting for checkout is often reduced. Electronic shelf labels are devices affixed to display shelving or fixtures that provide product information (e.g., price, weight). The use of electronic shelf labels does not necessarily influence the efficiency of the checkout process or the need for interaction with supermarket personnel. To conduct grocery bagging activities, manual labor is generally required. Personal shoppers are individuals who are hired by customers to conduct purchasing activities on their behalf. SOURCE: NF:057 SOURCE: Food Marketing Institute. (n.d.). Backgrounder: Supermarket technology firsts. Retrieved

November 7, 2006, from http://www.fmi.org/media/bg/supermarkettechnologyfirsts.htm 55. B

Attachment. An attachment is a computer file that is sent with an e-mail message. In business, it is common to send information, such as business reports, as e-mail attachments. A postscript is an "afterthought" that the sender includes after the message or letter closing. A memo is a short, informational document that an employee often sends within the company. A fax is a document that is transmitted through telephone wires. SOURCE: NF:004 SOURCE: Hyden, J.S., Jordan, A.K., Steinauer, M.H., & Jones, M.J. (1999). Communicating for

success (2nd ed.) [pp. 301-302]. Cincinnati: South-Western Educational.


56. B Washing hands in designated sink. Usually, there are several sinks in the supermarket deli department. One sink is designated as the hand-washing sink while the others are used to rinse food, or rinse and wash cooking utensils. To maintain food product safety, employees should always wash their hands in the designated sink rather than in the sinks used for food preparation. Employees should dry their hands with disposable paper towels rather than using their aprons. Employees should never taste food with their fingers. Employees should wear a clean apron every day. SOURCE: OP:072 SOURCE: Ninemeier, J.D. (2000). Management of food and beverage operations (3rd ed.)

[pp. 260-261]. Weimar, TX: Culinary and Hospitality Industry Publications Services. 57. C

Follow the alarm procedures. Most bakeries have alarm systems that are activated when employees close the facility. When employees arrive to open the bakery the next day, they should follow the designated procedures for turning off the alarm. Frequently, there is a code that an employee must enter to deactivate the alarm. If someone enters the wrong code, the system sends a signal that alerts authorities that an unauthorized person is attempting to access the bakery. The employee who arrives first to open a small local bakery would not wait for coworkers to arrive. The employee may, or may not, lock the door after entering depending on when other employees are expected. Some bakeries leave their outside lights on all the time. SOURCE: OP:131 SOURCE: German-Grapes, J. (1997). The teller's handbook: Everything a teller needs to know to

succeed (p. 255). New York: McGraw-Hill. 58. A

Regularly remove the excess from registers. Supermarkets often take in large amount of cash every day and more during busy times such as holidays. To protect the cash, many supermarkets establish a procedure that requires the excess to be regularly removed from registers. Keeping the cash in the register at a minimum helps to protect large amounts of cash from employees or customers who may have access to the registers. Supermarkets might install interior surveillance cameras, rather than exterior ones, to protect cash. It is not realistic to ask customers to pay with exact change only or to place small safes at each checkout stand. The excess cash is kept in a safe in the supermarket office. SOURCE: OP:100 SOURCE: German-Grapes, J. (1997). The teller's handbook: Everything a teller needs to know to

succeed (pp. 151-152). New York: McGraw-Hill. 59. C

Personal habits can create safety hazards. Personal or family problems, stress, anger, fatigue, and alcohol and drug abuse can cause behavior problems that can lead to unsafe situations. Keeping work areas clean and putting things away reduces the risk of injuries. Tools and equipment should not be used without prior training. They can be hazardous to workers who don't know how to use them properly. For their own safety, employees should wear the appropriate clothing their employers designate. SOURCE: OP:007 SOURCE: RM LAP 2—Following Safety Precautions

60. A

Robbery. Cash drop boxes are built into the floor of the convenience store and cannot be removed or opened by employees. Convenience stores using drop boxes often attempt to prevent robberies by posting a sign indicating that they use a drop box. Fraud, deceiving or cheating an individual or a business out of money; burglary, any illegal entry into a building to commit a theft; and pilferage, theft of small sums of money or inexpensive items, are all types of losses that stores try to prevent. SOURCE: OP:013 SOURCE: RM LAP 4—Security Precautions


61. B Making sure that production deadlines were met. Follow-up is the last production activity. Its purposes include making sure production was carried out according to plan, that production schedules met customers' deadlines, and products met company standards. Projecting sales for products is sales forecasting. Estimating the number of steps in the production process is part of scheduling. Making sure that production steps follow the proper sequence is routing. SOURCE: OP:017 SOURCE: BA LAP 1—Nature of Production

62. A

James. Flextime is a scheduling procedure in which employees select their own working hours as long as they work the required number of hours. Most food marketing businesses that offer flextime allow employees to either start their day earlier and leave earlier or come in later and stay later. In this example, James is coming in at 7:00 a.m. and leaving at 4:00 p.m., which is considered a flexible schedule. This arrangement benefits businesses as well as employees because some employees are available to answer phones and perform tasks before and after regular hours. Mason is working a traditional 8 to 5 schedule. Adams and Smith are working a compressed workweek which allows employees to work 40 hours in 10-hour shifts over four days. SOURCE: OP:023 SOURCE: Hilgert, R.R., & Leonard, E.C. (2001). Supervision: Concepts and practices of management

(8th ed.) [pp. 217-218]. Cincinnati: South-Western College Publishing. 63. A

Does the cost of the contract exceed the cost of possible repairs? The grocery store should estimate the costs of the most expensive possible repairs and calculate if these expenses would be more or less than the cost of the service or maintenance contract. If the cost of the repair would be less than the cost of the contract, it may be wise to forgo the contract. The store would consider the need for installation and the availability of training and technical assistance when purchasing equipment. A store does not consider how much profit the seller will make on the contract. SOURCE: OP:027 SOURCE: Foreman, G. (n.d.). Service contracts and warranties. Retrieved November 7, 2006, from

http://www.stretcher.com/stories/960923b.cfm 64. C

Specific. Setting a specific goal is much more effective than setting a vague or general goal. An ambiguous goal would be difficult to understand. SOURCE: PD:018 SOURCE: HR LAP 6—Goal Setting

65. A

Yes, creative people blossom in an atmosphere of safety and cooperation. A life of fear and isolation means certain death for creativity. When creative people hide their ideas from others, they are missing out on opportunities to enhance their ideas. Although creative people often work independently, they still need to enhance their ideas by trusting and cooperating with others. People with an "expert" mindset often cannot envision new ideas because they are so accustomed to the accepted way of doing things. SOURCE: PD:012 SOURCE: PD LAP 2—Creativity


66. A Personalized. Some jobs have certain requirements that applicants should respond to by preparing personalized resumes that provide specific information about the applicant's qualifications. For example, a person applying for a sales position might mention experience in the food marketing business if the job was related to selling supplies to supermarkets. Making the resume more personal for specific types of jobs might give an applicant an advantage over someone who provided a general resume. A chronological resume lists an applicant's education and experience in order according to date, beginning with the most recent. A functional resume emphasizes major accomplishments according to importance rather than date. A generalized resume contains broad, general information rather than specific information. SOURCE: PD:031 SOURCE: Adler, R.B., & Elmhorst, J.M. (1999). Communicating at work: Principles and practices for

business and the professions (6th ed.) [p. 454]. Boston: McGraw-Hill College. 67. C

Distribution. There are a variety of distribution paths, or routes, that a food producer can use to move its goods to their final destination. Food producers use trucks, planes, trains, and ships to move products. The cost of each type of transportation varies. Producers choose the method that fits within their price range because the distribution costs are built into the price of the product. Receivables are all monies owed to a food producer by its customers. Consignment is a purchase arrangement whereby products are sent to a retailer who pays for the products only upon their sale. Orientation is job preparation or induction training for new employees. SOURCE: PI:001 SOURCE: PI LAP 2—Pricing

68. D

Agreeing on the price of a certain product. Price fixing is an illegal business agreement in which businesses agree on prices of their goods or services, resulting in little choice for the consumer. An example of price fixing is all of the local supermarket supply companies agreeing on the price to charge for a certain product. Supermarkets will pay the same price regardless of the company because all of the companies are charging the same price. Charging different supermarkets different prices for the same product is price discrimination. Selling one product below cost is loss-leader pricing. Putting pressure on supermarkets to buy an expensive product is high-pressure selling. SOURCE: PI:017 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 460].

Woodland Hills, CA: Glencoe/McGraw-Hill. 69. A

To get a fair share of the market. Gaining market share is often an important pricing goal. Convenience stores may lower prices in order to attract new customers and increase their market share. This could create goodwill in the community, but that is not the purpose of the tactic. Price levels are not used to attract employees. Competitors' activities would be tracked before prices were set. SOURCE: PI:002 SOURCE: PI LAP 3—Factors Affecting Selling Price

70. B

Cumulative quantity discount. A cumulative quantity discount is a volume-based discount because it is based on the quantity of a supermarket's total purchases. In other words, the more a supermarket buyer buys from a seller during the year, the higher the discount becomes. This becomes an incentive for buyers to buy from the same seller. Promotional and trade discounts are function-based discounts based on marketing functions the buyer agrees to perform for the seller. A cash discount is a time-based discount given to buyers who pay the invoice amount within a specifi ed time. SOURCE: PI:022 SOURCE: PU LAP 3—Merchandising-Related Discounts


71. B Reduce prices. During the maturity stage of a product, sales peak and then increase at a slower rate or start to decline. During this stage, food marketing businesses often reduce the price of products in order to appeal to customers and maintain sales. Inventory increases in direct proportion to the amount of goods a business estimates it will sell. Raising salaries and lowering overhead will not affect the level of sales. SOURCE: PM:001 SOURCE: PP LAP 5—Product/Service Planning

72. D

Competitors enter the market. The growth stage is the food product life-cycle stage in which sales rise rapidly. As a result of increased sales, new competitors enter the market to take advantage of the opportunity for profit. The market continues to expand because the product is popular. During the growth stage, prices remain the same or are lowered slightly. A fad is a style or design that gains and loses its popularity within a brief period of time. Promotional budgets remain steady or increase a little to build product awareness. SOURCE: PM:024 SOURCE: Kotler, P., & Armstrong, G. (1997). Marketing: An introduction (4th ed.) [pp. 300-301].

Upper Saddle River, NJ: Prentice Hall. 73. D

U.S. Department of Agriculture. Federal law states that all meat that is shipped across state lines is subject to inspection by the U.S. Department of Agriculture (USDA). The U.S. Department of Commerce grades fish that is sold for commercial consumption, but this is a voluntary program. The Interstate Commerce Commission regulates rates and other aspects of commercial transportation between states. The Federal Trade Commission administers and enforces antitrust laws to prevent price fixing and to prohibit unfair competitive practices. SOURCE: PM:019 SOURCE: PM LAP 8—Grades and Standards

74. C

Spraying or misting the vegetables regularly. If vegetables were not sprayed or misted on a regular basis, they would dry out and wither. Keeping the vegetables on ice does not maintain high humidity levels. Vegetables are not separated in produce displays since this would take too much space. Removal of dried-out leaves will improve the appearance of the produce display. The appearance of dried-out leaves could indicate that the temperature is too high or that the humidity level is too low. SOURCE: PM:053 SOURCE: Ninemeier, J.D. (2000). Management of food and beverage operations (3rd ed.)

[pp. 192-195]. Weimar, TX: Culinary and Hospitality Industry Publications Services. 75. A

Make improvements. Businesses receive benefits from offering warranties and guarantees. One benefit is getting feedback from grocery stores about unsatisfactory display products. Without this feedback, the company would not be able to make corrections and improvements in its products. Companies do not use information about problems with products to increase prices, hire employees, or organize meetings. SOURCE: PM:020 SOURCE: PP LAP 4—Warranties and Guarantees

76. B

Loyalty. Brand loyalty is customers' allegiance to a particular brand. Businesses attempt to create brand loyalty to increase repeat sales and to presell items. Brand preference is the stage of brand loyalty in which consumers prefer to purchase a certain brand but will accept substitutes if the brand is not available. Brand recognition is the stage of brand loyalty in which consumers are made aware of a brand's existence. A brand name is the part of the brand that can be spoken, such as a word, a phrase, a letter, a number, or any combination of these. SOURCE: PM:021 SOURCE: PM LAP 6—It's a Brand, Brand, Brand World!


77. A Draw customers away from. Food marketing businesses match the services of their competitors or offer more services to take customers away from the competition. They would never attempt to attract customers to the competition because it would result in fewer profits. Studying the traits of the competition is accomplished through marketing research and direct observation, not by offering superior service. Businesses would need to engage in a negative word-of-mouth campaign to purposely harm the competition's reputation; this is not the intent of offering superior service. SOURCE: PM:013 SOURCE: PM LAP 1—Customer Service Supersized!

78. B

It helps the supermarket to make lasting emotional and rational connections with customers. Successful supermarkets understand everything possible about their customers—their likes, dislikes, habits, and preferences. With this information, supermarkets can ensure that their operations and touch points, in particular, are customer centric, or built around the customer. This helps build lasting emotional and rational connections between the supermarket's brand and its customers. Understanding customers is not a direct determinant in helping employees buy into brand values, nor is it a direct factor in developing brand names, which are based on brand values and brand promises. Understanding customers does not necessarily lead to making brand decisions that are profitable. In fact, some decisions that are customer focused are not profitable in the short term but lead to long-term relationships. SOURCE: PM:126 SOURCE: PM LAP 10—Building Your Business's Brand

79. B

Private. Many grocery stores carry their own private-label brands because their gross margin averages between 20% and 30% more than for national brands. Customers typically prefer to buy national brands, but the markup on these products is not as profitable for grocers. Generic brands have really never been well-received by customers, and so their gross margin is typically not very high. Corporate brands is another name for national brands. SOURCE: PM:065 SOURCE: Kahn, B.E., & McAlister, L. (1997). Grocery revolution: The new focus on the consumer

(p. 154). Reading, MA: Addison-Wesley Educational. 80. C

Inventory. The inventory component of a merchandise plan identifies all of the stock that the grocer has on hand that can be sold to customers. The purchases component identifies the planning and procedures necessary to obtain goods and services for use in the grocery store or for resale. The sales component identifies how much money the grocer expects to make by selling merchandise to customers. The profit component identifies all of the income that is likely to remain once all of the grocer's expenses have been paid. SOURCE: PM:067 SOURCE: Lewison, D.M. (1997). Retailing (6th ed.) [pp. 363-364]. Upper Saddle River, NJ:

Prentice Hall. 81. B

Personal. Personal promotion is done face-to-face. Nonpersonal promotion includes promotion such as coupons in the newspaper, special signs, or special displays. Sales promotion is a promotional tool that includes activities such as coupons, contests, free samples, or rebates that are used to stimulate purchases. Publicity is any nonpersonal presentation of ideas, goods, or services that is not paid for by the company or individual which benefits from it. SOURCE: PR:001 SOURCE: PR LAP 2—Promotion


82. B Inability to achieve certain goals. The disadvantages of promotional activities include the fact that some critics think that promotions are deceptive, manipulative, and offensive. Others feel that promotions create and reinforce stereotypes and play upon people's fears. Increased sales would help the economy and company; therefore, this would be an advantage. Promotions educate society and encourage a higher standard of living. They also create awareness of the company and enhance the company's image. These are believed to influence sales positively. SOURCE: PR:002 SOURCE: PR LAP 4—Know Your Options (Types of Promotion)

83. D

Truthful. Comparative advertising involves comparing one product to another product. As a rule, comparative advertising must be truthful and not misrepresent the advertiser's product or the product of a competitor. For example, one ad cannot claim that a product is preferred by more customers than another product unless there is legitimate documentation to support that claim. Comparative ads can claim superiority to other products only if such a statement is truthful. It is perfectly acceptable for an advertiser to develop a negative ad or an unrealistic ad as long as the advertising is truthful. Regulations cannot make an ad efficient, although that is usually one of the goals of the advertiser. SOURCE: PR:101 SOURCE: Arens, W.F. (1999). Contemporary advertising (7th ed.) [pp. 63-64]. Boston:

Irwin/McGraw-Hill. 84. C

Suburban newspapers. Newspapers are the main advertising media for supermarkets. Suburban newspapers are intended for audiences within a certain geographic area. These newspapers contain articles that appeal to customers who live in that area and attract advertisers who want to reach that specific market. A statewide chain of supermarkets might choose to advertise in suburban newspapers in order to reach a large number of potential customers who live in the area that the chain services. Transit advertising serves certain city areas and would not reach customers in the chain's entire area. Regional magazines and national television would reach customers far beyond the chain's geographic area. SOURCE: PR:007 SOURCE: PR LAP 3—Ad-quipping Your Business

85. A

There is an opportunity for the business to build an ongoing relationship with customers. The use of databases helps food marketers to direct their promotional efforts to specific target markets—markets that hold the most promise for product purchases. Customizing and/or directing promotional efforts often creates ongoing business relationships and customer loyalty. Although using databases for advertising purposes can often increase brand loyalty, it does not necessarily enhance the business's image. Follow-up procedures are actions a business takes to determine the level of customer satisfaction with a good or service after a sales presentation, regardless of whether or not a sale was made. Follow-up procedures vary by business, and different methods of follow-up might cost more than others to execute. Therefore, the use of database advertising strategies does not necessarily reduce follow-up expenses. Some businesses spend a lot of money to purchase data (e.g., mailing lists) for advertising purposes. Depending on the method of message delivery (e.g., direct mail), it is possible that the cost per exposure is more than other advertising media (e.g., television). SOURCE: PR:091 SOURCE: Semenik, R.J. (2002). Promotion and integrated marketing communications (p. 355).

Mason, OH: South-Western.


86. B Ensuring the safety of customers and employees. Supermarket management must ensure that every display in the store is set up properly and has safeguards to prevent accidents. The supermarket's accounting department would be responsible for processing any payment due to the vendor. The supermarket's maintenance or operations department would be responsible for assisting with electrical requirements for the display and for providing routine maintenance, such as replacing light bulbs. SOURCE: PR:049 SOURCE: Bell, J., & Ternus, K. (2002). Silent selling: Best practices and effective strategies in visual

merchandising (2nd ed.) [p. 88]. New York: Fairchild. 87. B

Develop a main theme. An effective food marketing display should be based on a main theme that attracts customers' attention and compels them to stop and look. Many supermarkets build displays based on seasonal themes, holidays, or types of food such as Italian or French. These displays include a variety of appropriate products and are intended to stimulate a desire to buy. Supermarkets should avoid using too many props or a lot of competing elements in a display because they are confusing and detract from the main theme. Colorful displays are often interesting and appealing to customers. SOURCE: PR:110 SOURCE: 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. A

Store's marketing objectives. The promotional plan should help the grocery store to reach its own marketing objectives. The marketing objectives should be reviewed as part of the process of creating a promotional plan. The state of the economy, competitors' promotional activities, and target market's location are external factors to consider in promotional planning. SOURCE: PR:073 SOURCE: Burrow, J.L. (2002). Marketing (pp. 418-421). Mason, OH: South-Western.

89. B

Outside agencies. Coordinating large promotional events is an important responsibility that may require the food marketing business to engage the assistance of outside agencies. Many businesses do not have sufficient in-house staff to handle the everyday promotional activities as well as special events. The responsibility for coordinating large promotional events would not be given to part-time employees or executives even though they are already on the payroll. Businesses seldom have volunteers on staff. SOURCE: PR:076 SOURCE: Mill, R.C. (1998). Restaurant management: Customers, operations, and employees

(pp. 82-83). Upper Saddle River, NJ: Prentice Hall. 90. B

Constantly providing new choices for consumers. There is much competition between supermarket supply businesses which leads to increased competition to produce better products. Businesses need to develop new or improved products in order to make more sales than their competitors. A company that raises or lowers the prices of existing products may make temporary sales gains, but only a company that provides choices based on the needs of its consumers will enjoy a long-term sales increase. Elimination of a slow-selling product line may not increase sales for a business. SOURCE: SE:017 SOURCE: SE LAP 117—Sell Away (The Nature and Scope of Selling)

91. A

Actions of competitors. Johnny's Apples and Seeds is offering a special service to customers. Adam's Fruit Market should consider the actions of its competitors when developing its new selling policies in order to stay competitive. Corporate objectives, financial resources, and production capacity are internal factors that affect selling policies. SOURCE: SE:932 SOURCE: SE LAP 121—Selling Policies


92. C Provides customers with product information. Computer technology makes it possible for food marketing businesses to develop web pages that are located on the World Wide Web. Many businesses have developed web pages for their companies that contain a variety of information, such as product information, that is useful to customers. The customers can access the business's web page to find out the location of branch offices, what products are for sale, and the prices of those products. Some web sites even allow customers to place orders online, which has a positive effect on the business's sales. Many businesses have web pages as well as a sales force, although some businesses sell entirely online. However, more traditional businesses still need a sales force to meet with customers. Having a web page does not mean that a business can charge higher prices for its products. An employee's specific job responsibilities determine if s/he needs to access the business's web pages on the Internet to complete work-related tasks. SOURCE: SE:107 SOURCE: Futrell, C.M. (1999). Fundamentals of selling: Customers for life (6th ed.) [pp. 188-189].


Experienced salespeople. Salespeople who have sold a particular display product for a period of time usually are a good source of information about that product. They are familiar with specific benefits of the product and the type of information that is useful to customers. Experienced salespeople can help new salespeople learn about the product and how to sell it to customers. Company account ants, warehouse employees, and personnel officers usually do not have selling information about products. SOURCE: SE:062 SOURCE: Burrow, J.L. (2002). Marketing (pp. 465-466). Mason, OH: South-Western.

94. C

Check availability of the requested item. There are several steps involved in offering substitute products. The first step is to check availability of the requested item in order to satisfy customers' requests. If the item is unavailable or out of stock, supermarket supply salespeople should explain that to the customers and continue with the substitute selling process. Clarifying customers' needs is the second step in substitute selling. Pointing out features and benefits is the fourth step, and reinforcing the customer's decision is the fifth step. SOURCE: SE:114 SOURCE: SE LAP 111—Using Substitute Selling

95. C

After the candy store customer has made a buying decision and before the purchase is paid for. The customer may become confused if additional purchases are suggested before the original request is satisfied. Once the original purchase is paid for, a new sales check would have to be written for additional purchases. SOURCE: SE:875 SOURCE: SE LAP 110—Using Suggestion Selling

96. B

To record departmental sales. Department keys show the department from which goods were sold. Management can analyze these records to pinpoint departmental problems. Clerk keys are used to keep a record of who makes the sale. The register tape shows total sales. SOURCE: SE:153 SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 126-128).

Cincinnati: South-Western Educational. 97. C

Right to left. As you move across the cash drawer from right to left, the monetary value of coins should increase. Therefore, you should arrange pennies in the far right-hand front compartment, then nickels, then dimes, and then quarters. SOURCE: SE:156 SOURCE: MA LAP 47—Preparing Cash Drawers


98. C Training salespeople. Sales managers for supermarket supply businesses are responsible for making sure that salespeople know what they are expected to do and how to do it. As a result, they are often responsible for training salespeople and helping them to develop the skills they need to be productive. Sales managers make sure that salespeople possess the necessary product information and selling tools. They may conduct on-the-job training with new or inexperienced salespeople. The business, rather than sales managers, usually develops compensation plans. Salespeople recruit customers and are responsible for routine selling. SOURCE: SE:079 SOURCE: Stanton, W.J., & Spiro, R. (1999). Management of a sales force (10th ed.) [p. 347].


Planning, organizing, staffing, directing, and controlling. These are considered to be the primary functions of management. The purpose of carrying out management functions is to achieve the goals and objectives of the business. Interviewing, hiring, evaluating, and testing job applicants may be aspects of the staffing function. Supervising, monitoring, and training may be aspects of the directing function. SOURCE: SM:001 SOURCE: BA LAP 6—Manage This!

100. C

Each salesperson sells 85% of quota. One of the purposes of developing a business plan that includes quarterly sales quotas is to provide the produce supply company with a tool for tracking its progress. An effective business plan includes a way to measure performance on a regular basis rather than waiting until the end of the year to find out if the goals have been met. Many plans contain quarterly sales quotas that can be compared to actual sales to determine if the business is on track or needs to make adjustments. If each salesperson sells only 85% of the quarterly quota, the business will want to make changes to improve its performance. A business plan might set the same sales quotas for several consecutive quarters. Business plans usually take into consideration seasonal fluctuations in sales. Each salesperson may have a specific territory, but that is not a way that businesses track their progress. SOURCE: SM:007 SOURCE: CCH Inc. (n.d.). Tracking your progress. Business owner's toolkit. Retrieved November 7,

2006, from http://www.toolkit.cch.com/text/P02_2401.asp

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