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Test 808 BUSINESS SERVICES MARKETING

Competency-BasedCompetitive Events *Written Exam*

Test Number 808Booklet Number _____

Business Services Marketing

INSTRUCTIONS:

This is a timed, comprehensive exam for the occupational area identified above. Do not open this booklet until instructed to do so by the testing monitor.

You will have 90 minutes to complete all questions.

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, and marketing specialist 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, 2005. Duplication after this date or for other purposes is expressly prohibited.

Copyright © 2005 by Marketing Education Resource Center®, Columbus, Ohio

1. What kind of employee would a health care business hire to keep track of its finances?A. Researcher C. BuyerB. Accountant D. Salesperson

2. A rental business purchases new microcomputers for use in its credit department. This is an example ofA. financing. C. wholesaling.B. industrial purchasing. D. purchasing for resale.

3. Which of the following is an accurate explanation of services marketing:A. Services are intangible. C. Guarantees are unnecessary.B. Physical handling is required. D. Service advertising is nonaggressive.

4. Which of the following terms is used to describe the process of creating goods and services:A. Marketing C. ResourcesB. Consumption D. Production

5. Which of the following is a reason why most businesses use a check verification system to determine if they should accept customers' personal checks as payment for services:

A. To extend credit C. To prevent robberiesB. To minimize fraud D. To increase expenses

6. The process of transferring charges from one account to another often involves transferring the charges to a(n)A. credit card. C. budget item.B. checking account. D. expense report.

7. Calculate a publishing company's total liability based on the following information in its balance sheet: $46,500 in commissions owed to salespeople, $23,225 payable in income tax, $12,840 in accounts payable, and $37,000 in accumulated depreciation.

A. $69,725 C. $82,565B. $73,065 D. $119,565

8. One reason a physicians' practice might form a partnership as an LLP is toA. ensure that the business experiences unlimited liability. B. take advantage of higher dividend returns on shares of its stock.C. protect innocent partners from the malpractice of another partner.D. permit the general public to purchase licensing rights in the practice.

9. An important issue that currently faces service-based businesses involves how toA. analyze financial reports. C. create a service-based economic system.B. develop service franchises. D. use technology to improve service delivery.

10. When posting information on a web page, the hypertags you will use to mark paragraphs in your document areA. and . C. <para> and <para>.B. and . D. <startP> and <endP>.

11. The first thing an employee should do when an accident occurs in the workplace is toA. call an ambulance. C. file a report.B. determine the severity of the injury. D. administer first aid.

12. When accepting a personal check from a customer, one way to ensure that the beauty salon does not suffer a loss because the check is worthless is to make sure that the

A. customer signs the check as it appears on his/her personal identification.B. check is completed correctly and that your company name is shown as the payee. C. customer is not using low check numbers and has the minimum balance required by the bank. D.identification information on the check matches the identification that is carried by the customer.


13. A new arena football team develops a unique symbol to use as a marketing tool. To prevent competitors from copying its idea, the team should

A. obtain a patent. C. license the design.B. negotiate a copyright. D. register the trademark.

14. The law that requires service businesses to hire, train, transfer, and promote employees without regard to race, color, gender, religion, or national origin is the __________ Act.

A. Robinson-Patman C. Civil RightsB. Sherman Antitrust D. Federal Reserve

15. One way that home security businesses can be ethical when communicating information to customers is by using

A. simple wording. C. everyday slang.B. complex terminology. D. accurate language.

16. "The salespeople in the field has produced many orders. Therefore, the sales manager have awarded many bonus points." To correct this statement, which of the following should be utilized:

A. Objective case C. Proper pronouns B. Proper capitalization D. Subject-verb agreement

17. Which of the following is a true statement about listening skills while handling telephone calls:A. Being a good listener requires active listening skills.B. It is easy to listen while carrying on other activities.C.Listening is a natural skill that doesn't require practice.D.If you listen very carefully, you will not have to ask questions.

18. Communication between employees on the same level but in different departments is known as __________ communication.

A. upward C. downward B. horizontal D. cooperative

19. What should businesses avoid doing in order to be ethical when providing information about services to customers?

A. Overeducating C. OverpromisingB. Overdelivering D. Overproducing

20. What are two factors that service businesses must take into account when developing and selecting a channel of distribution?

A. What channel members to select and what time of the year it isB. What transportation method to use and whether to change the serviceC. Where competitors are located and how they are shipping their servicesD. The location of customers and the number of customers who want the service

21. Technological advances that allow music to be sent and received over the Internet have moved the music industry from physical distribution to __________ distribution.

A. video C. digitalB. analogue D. virtual

22. Which of the following is a marketing function that can be performed by channel intermediaries:A. Promoting products C. Training employees

B. Monitoring union activities D. Recruiting workers

23. A barber shop supplier prepares an invoice with terms of 3/10, net 30 on an order of four items at $178.50 each. What is the total due if the customer takes the discount?

A. $642.60 C. $708.63B. $692.58 D. $714.50

24. When shipments of goods are received by a hospital, receiving workers usually attach a form known as a(n) __________ to the invoice.

A. apron C. waybillB. packing slip D. purchase order


25. When would it benefit a transportation business to use a bonded warehouse over another type of warehouse?A. To add needed securityB. To allow for larger volumes of storageC. To store products that require federal taxD. To move merchandise through the supply chain quickly

26. A channel of distribution that has strong leadership is often able to avoidA. regulation. C. conflict.B. competition. D. publicity.

27. A circular flow of resources, goods, services, and money occurs when producers, consumers, and the owners of resources __________ money payments.

A. produce C. consume B. exchange D. distribute

28. What type of utility is not created by service businesses?A. Time C. Form

B. Place D. Possession

29. The way in which an economic system answers the basic economic questions depends upon the country'sA. supply. C. demand.B. government. D. resources.

30. Cathie and Jane are being considered for employee of the month. Their boss has decided to let their productivity for the previous month determine who will be selected. Cathie worked 178 hours and placed 52,000 calls. Jane worked 170 hours and placed 50,000 calls. Who will be named as employee of the month?

A. Jane, because she overproduced Cathie by two callsB. Cathie, because she overproduced Jane by two callsC. Jane, because the calls she placed were more importantD. Cathie, because the calls she placed were more important

31. Mr. Barnes has purchased several rental properties. The money Mr. Barnes spent to buy these buildings would be included in which category of GDP?

A. Gross private domestic investment C. Personal consumption expendituresB. Net exports of goods and services D. Government purchases of goods and services

32. Which of the following is a factor that might reduce consumers' demand for certain services:A. Lowered prices C. Weather changesB. Increased availability D. Extensive promotion

33. A distinguishing characteristic of credit unions is that they A. offer only credit-card services. C. provide more services than banks.

B. operate as cooperative financial D. are unions for people in the banking institutions. industry.

34. Which characteristic of useful marketing information is represented by the statement, "The benefits of using information should be greater than the expense of gathering it"?

A. Timeliness C. SufficiencyB. Accessibility D. Cost-effectiveness

35. ABC Engineering Corporation is preparing to print the results of a marketing-research project conducted by an external research company. The researcher believes the conclusions that ABC has drawn from the report are not supported by the data. What should the researcher do?

A. The researcher should assume the data involved is incorrect.B. The researcher should change the data to support ABC's conclusions.C. The researcher should let ABC's managers draw whatever conclusions they want.D. The researcher should tell ABC's managers that the data does not support their conclusions.

36. Data collected on the number of single parents, couples without children, and births and deaths would be classified as what type of data?

A. Local C. EconomicB. Geographic D. Population


37. Service businesses can obtain marketing information about customers' discretionary income that might affect their buying power by conducting scans of the __________ environment.

A. social C. economicB. demographic D. political

38. Is marketing research used only by large marketing businesses?A.Yes, small organizations do not use marketing research.B.No, it is used mainly by individuals and small businesses.C.No, it is used by businesses and organizations of all sizes.D.Yes, only large marketing businesses use marketing research.

39. An advantage of using a relational database system to organize marketing information is that insurance businesses can

A. organize data in a simple manner. C. examine many variables at once.B. link information in a single path. D. analyze one variable at a time.

40. One reason why health care businesses often use databases to analyze information about customers is to A. make predictions. C. manage finances.B. prepare invoices. D. prepare reports.

41. Based on the information in the following frequency table, what percentage of the 200 respondents answered "monthly":


Value Label Frequency

Daily 30

Weekly 45

Bi-weekly 50

Monthly 40

Yearly 35


A. 10% C. 20%B. 15% D. 25%

42. Which of the following characteristics is included in demographic segmentation:A. Income C. LocationB. Lifestyle D. Personality

43. Why is it important for accounting firms to regularly analyze the external environment in which they operate?A. To understand change C. To behave ethicallyB. To be socially responsible D. To calculate profit

44. A drawback of using comment cards to evaluate how satisfied customers are with the service they receive is theA. response rate. C. research method is not valid.B. quantity of data collected. D. way the cards offend customers.

45. Which of the following is a benefit gained from practicing effective interpersonal skills at your place of employment:A. Higher personal standards C. More objective point of view

B. Improved self-understanding D. Increased cooperation from others

46. What action helps a business to develop effective customer/client relations? A. Creating an exclusive image C. Stereotyping customers

B. Hiring indifferent employees D. Treating customers with courtesy


47. Which of the following is the most appropriate way for a businessperson to greet regular customers:A. "Will that be cash or charge, buddy?" C. "Have a seat while I find out for you, lady."B. "Good morning, honey. Can I help you?" D. "Your account is being updated, Mr. Smith."

48. An important legal reason for properties to comply with the requirements of the ADA is so that they can A. be more competitive. C. file lawsuits.B. be socially responsible. D. avoid punishment.

49. An assertive person feels that his/her personal needs are __________ those of anyone else.A. as important as C. superior to

B. less important than D. more important than

50. Besides having a clear understanding of what you want from negotiation, it is important to also knowA. what the other person wants.B. how long negotiation is expected to take.C. how many people you will be negotiating with.D. who will be required to implement the outcome of the negotiation.

51. Five employees regularly use the talent agency's copy machine to make copies for their personal use. If they each make 25 copies a week and the cost of each copy is 3 cents, calculate the amount they are adding to the agency's expense in a year.

A. $175 C. $205B. $195 D. $225

52. A personal characteristic expressed by a consistent pattern of behavior is called a personalA. asset. C. image.

B. trait. D. feature.

53. Which of the following is a trait that employees should possess in order to be successful in many of the jobs available in the services marketing industry:

A. Aggressive behavior C. Manual dexterityB. Defensive attitude D. Outgoing personality

54. Jane has just congratulated herself for getting an A on a test. What kind of feedback is this?A. Internal C. Unusual

B. External D. Indirect

55. Which of the following employees demonstrates good time management:A. Jeff makes a to-do list.B. Sara does all tasks as quickly as she can.C. Karen puts off unpleasant tasks as long as possible.D.Dan is always available to listen to coworkers' personal problems.

56. Employees who work in certain service professions are required to pass an examination and obtain aA. license. C. charter.B. sponsor. D. patent.

57. During a job interview, job applicants can indicate their interest in the job by asking questions about theA. company. C. interviewer.B. vacation policy. D. fringe benefits.

58. What is a factor that many insurance businesses consider when promoting employees?A. Seniority C. FavoritismB. Compensation D. Arbitration

59. What personality trait are health spa employees exhibiting by taking time to learn customers' names, to talk in terms of customers' careers or hobbies, and to listen carefully when customers are talking?

A. Tact C. Interest B. Honesty D. Enthusiasm

60. A local child-care center would benefit professionally by deciding to join which of the following:A. The local chamber of commerce C. Phi Beta Kappa B. The Consumer Product Safety Commission D. The Occupational Health & Safety Administration


61. Which of the following is an area of promotion that is affected by pricing:A. Choice of channels C. Product researchB. Advertising budget D. Customer decisions

62. A goal of many service businesses that affects their pricing is A. obtaining market share. C. stabilizing variable costs.

B. minimizing their profits. D. qualifying for co-op advertising funds.

63. FlightCo. followed the lead of many other airlines by reducing the price of a flight from New York to Florida to $299. This is an example of _________ pricing.

A. prestige C. evenB. cost-based D. competition-based

64. Directing and guiding all stages in the life cycle of a product is part ofA. concept testing. C. product development.

B. product/service management. D. marketing-information management.

65. During which of the following stages in a product's life cycle can home security businesses expect to earn significant profits:

A. Growth C. DeclineB. Introduction D. Maturity

66. What growing trend in new-service development has been especially effective in generating creative ideas?A. Having employees call customersB. Sending surveys to customers' homesC. Observing customers as they use the servicesD. Putting customers on staff in temporary positions

67. Two characteristics of a good guarantee are that it should beA. conditional and understandable. C. unconditional and understandable.B. conditional and easy to implement. D. unconditional and difficult to collect.

68. Which of the following is one reason why service businesses develop service indexes:A. To identify behavior C. To regulate testingB. To control management D. To measure performance

69. One reason why many day spas use product bundling is toA. increase the cost of production.B. make products more expensive to customers.C. satisfy all of the customer's needs with one purchase.D. urge customers to tell their friends about the product.

70. Which of the following provides a product found in the services industry:A. Florist C. Specialty gift catalogB. Tax consultant D. Automobile manufacturer

71. A word or group of words that distinguishes a seller's service from those of competitors is called a(n) __________ name.

A. generic C. brand B. imaginative D. competitive

72. Coupons printed in a newspaper are a form of __________ promotion.A. unusual C. personalB. ineffective D. nonpersonal

73. Which of the following government agencies monitors deceptive and unfair advertising in order to protect consumers and promote competition:

A. Federal Trade Commission C. Better Business BureauB. Federal Communications Commission D. National Advertising Review Council

74. The part of a print advertisement that should make the viewer want to read on is the A. headline. C. body copy. B. typeface. D. features/benefits.


75. Which of the following is a direct advertising strategy:A. Broadcasting C. SyndicatingB. Merchandising D. Telemarketing

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

77. Should a gymnasium that buys advertising from the media expect the media to present its news releases as a favor to a customer?

A.Yes, the advertising contract also covers news releases.B.No, the gymnasium should ask the media to provide publicity.C.Yes, an advertiser should expect the media to use its releases.D.No, there is no connection between news releases and advertising.

78. Beauty salons often coordinate their promotional activities in order to attract customers andA. increase sales. C. collect data.B. survey opinions. D. conduct research.

79. When developing copy for a company's brochure, it is important toA. include the competitor's corporate logo.B. emphasize benefits of the good or service.C. include only one way to contact the company.D. use language that is above the reader's comprehension.

80. One way that insurance salespeople can provide quality service and develop successful relationships with business customers is by

A. making frequent unannounced sales visits. C. working with key people in the organization.B. concentrating on making idle conversation. D. criticizing products offered by competitors.

81. Which of the following is not a category of selling policies:A. Terms-of-sale policies C. Service policiesB. Selling-activity policies D. Operating policies

82. A publishing business's automation system was developed by a task force that included several dominant members

who chose a system most suited to their specific needs. This created a common implementation mistake known asA. bypassing the pilot test. C. overlooking the operating people.B. uncontrolled departmental rivalries. D. failure to win top management support.

83. Movie theaters that have installed electronic kiosks that allow customers to use credit or debit cards to buy tickets without assistance from cashiers is an example of using __________ to deliver services.

A. technology C. cyberspaceB. the Internet D. telegraphy

84. A type of promotional material that is a good source of printed information for the rental business salesperson is a A. sales report. C. rack jobber.B. company catalog. D. product display.

85. A potential customer who considers whether the actual cost of repairs will be more than the estimate is identifying a(n)

A. risk. C. fear.B. price. D. action.

86. When salespeople use a step-by-step selling process, the property management business benefits from having organized salespeople, satisfied customers, and

A. increased profits. C. reduced stockturn.B. increased returns. D. reduced commissions.


87. Why do people buy goods and services?A. To spend available funds C. To satisfy wants and needs

B. To determine wants and needs D. To support the business community

88. Which of the following consumer buying decisions are most affected by the availability of customer services:A. Price and place C. Time and price

B. Place and product D. Product and time

89. During which of the following stages of the buying process do customers determine whether to return to the service provider in the future:

A. Prepurchase stage C. Postpurchase stageB. Service encounter stage D. Service delivery stage

90. Benefits that may not be seen or understood without the assistance of the salesperson are known as __________ benefits.

A. obvious B. exclusive C. unique D. hidden

91. Which of the following is often the last step when answering an objection:A. Empathize with the customers C. Listen carefully

B. Turn objection into selling point D. Restate the objection

92. Which of the following is a guideline to follow in closing sales:A. Use negative closes C. Try to oversell

B. Leave the customer undecided D. Always be closing

93. A business would like to determine how satisfied customers are with its service department. What follow-up activity would be the most efficient way to collect this information from more than 1,000 customers?

A. Telephoning customers who use the service departmentB. Mailing a service questionnaire to current customersC. Sending greeting cards and coupons to current customersD. Visiting customers who have used the service department

94. Which of the following must be on a sales check: A. Department number C. Sales tax amount

B. Address of customer D. Total amount owed by customer

95. The difference between a lead and a prospect is that a prospectA. has been qualified. C. doesn't need your service.

B. is a poor credit risk. D. must get permission to buy.

96. Using the least number of coins and bills, calculate the change a customer would receive if the amount of the sale was $9.52, and the customer gave a $20.00 bill.

A. 2 pennies, 2 dimes, and 1 $10 bill C. 2 pennies, 3 dimes, 1 quarter, and 1 $10 bill B. 3 pennies, 1 half-dollar, and 1 $10 bill D. 3 pennies, 2 dimes, 1 quarter, and 1 $10 bill

97. An important factor that affects the level of cash that a video-rental shop keeps in the cash drawer is theA. net worth of the business. C. value of current assets.B. amount of operating expense. D. type of payment accepted.

98. The owner of a small barber shop often needs cash to make small business purchases. How should the owner handle the need to make these cash payments?

A. Establish a petty-cash fund C. Use a personal checking accountB. Take money out of the cash register D. Send an employee to the bank when cash is

needed

99. What should a processor of telephone orders for a lawn-care business remember to do at the end of the phone call?A. Ask a question B. Explain the charges C. Hang up quickly D. Thank the customer

Test 808 BUSINESS SERVICES MARKETING KEY100. The major purpose of a sales quota is to

A. obtain feedback from the customer. C. increase the salesperson's commission.B. set goals for desired sales performance. D. provide a policy for handling dissatisfied customers.

9

Test 808 BUSINESS SERVICES MARKETING KEY1. B

Accountant. An accountant is an individual who has had specialized training in accounting work. Small health care businesses often hire an outside accountant to take care of their financial records, while a large business would have an accounting department staffed by accountants. A researcher seeks and records information in the marketing-research process. A salesperson is an employee engaged in personal selling. A buyer purchases goods for resale.

SOURCE: BA:002SOURCE: MB LAP 10--Business Activities

2. BIndustrial purchasing. Industrial purchasing is the process of buying goods and services for internal consumption in the rental business or conversion into a final product. Purchasing for resale is the process of purchasing goods in large quantities and reselling them in smaller quantities. Wholesaling is purchasing goods from manufacturers and reselling them to other businesses. Financing is a marketing function that involves understanding the financial concepts used in making business decisions.

SOURCE: BA:005SOURCE: PU LAP 1--Purchasing

3. AServices are intangible. Services are intangible products that cannot be tasted, felt, seen, heard, or smelled; the products are performed rather than produced. Marketing services is often more difficult and time consuming than marketing goods because customers may not understand the need for buying services. There is no physical handling of services. Service advertising usually is extremely aggressive because the products are intangible. Guarantees are often important because consumers want to know that they have some recourse if they are not satisfied with the services they purchase.

SOURCE: BA:106SOURCE: pp. 320-329, Kellogg on Marketing. Iacobucci, D., John Wiley and Sons, 2001.

4. DProduction. The production process turns resources into usable goods and services. Resources are items that are used in the production of goods and services. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. Consumption is the process or activity of using goods and services.

SOURCE: BA:013SOURCE: BA LAP 1--Nature of Production

5. BTo minimize fraud. Most businesses use check verification systems to determine if customers' personal checks are valid and legitimate and should be accepted as payment for services. Businesses run the cus-tomer's check through a point-of-sale device that transmits the information to the verification company. In less than a minute, the check is either declined or approved and a guarantee number is given to the busi-ness. The approval guarantees that the customer's check is valid and acceptable. These systems help to minimize fraud because they detect forged, stolen, or invalid checks for which the business will not receive payment. Businesses do not use check verification systems to extend credit, prevent robberies, or increase expenses.

SOURCE: BA:162SOURCE: pp. 413-414, Check-In: Check-Out. Vallen, G.K.; Vallen, J.J., Prentice Hall, 6th ed., 2000.

6. ACredit card. Service customers include travelers who often pay for vacations, tours, and cruises with a credit card. When this happens, the travel provider maintains an ongoing account of the person's charges and transfers all the charges from that account to a credit-card company. For example, a cruise ship keeps a running account of passengers' charges for extra items such as spa treatments and shore excursions. At the end of the cruise, the charges are transferred from the passenger's account to the specified credit card. At that time, the passenger's account is clear, and all the charges have been transferred to the credit card for payment. If a passenger pays with a check, the charges are not transferred to the account because the check pays the charges at that time. Transferring charges from one account to another does not involve transferring charges to a budget item or an expense report.

SOURCE: BA:109SOURCE: pp. 345-348, Check-In: Check-Out. Vallen, G.K.; Vallen, J.J., Prentice Hall, 6th ed., 2000.

10

Test 808 BUSINESS SERVICES MARKETING KEY 7. C

$82,565. A balance sheet is a financial statement that captures the financial condition of the publishing company at a particular moment. One of the three main components of a balance sheet is the company's liabilities, which are the debts that the company owes. Liabilities include items such as accounts payable, accrued wages and salaries, income tax payable, long-term notes, and mortgages. To determine the com-pany's liabilities, add the amount owed in commissions, the amount payable in income tax, and the accounts payable ($46,500 + $23,225 + $12,840 = $82,565). Depreciation is a reduction in the value of goods occur-ring over a period of time. Depreciation is not a liability but a factor in determining the current value of fixed assets such as equipment.

SOURCE: BA:018SOURCE: pp. 294-297, Small Business Management: An Entrepreneurial Emphasis. Longenecker, J.G.;

Moore, C.W.; Petty, J.W., Thomson/South-Western, 12th ed., 2003.

8. CProtect innocent partners from the malpractice of another partner. LLPs are used primarily by professionals such as doctors, lawyers, and accountants. Because they provide limited liability, innocent partners are pro-tected from loss if another partner is sued. Most LLPs are required to pay the state government annual fees, and each partner (member) must carry malpractice insurance. An LLP does not offer stock and, therefore, cannot pay dividends. Licensing rights are not sold by LLPs to the general public. Members of LLPs have limited liability, not unlimited liability.

SOURCE: BA:028SOURCE: BA LAP 7--Own It Your Way

9. DUse technology to improve service delivery. Because of the intangible nature of services and the speed at which services must be delivered to ensure customer satisfaction, keeping current with technology and learn-ing how to utilize it to provide services in a more efficient manner is a very important issue. As technology continues to improve, businesses will use it to provide better service to customers. Service-based busi-nesses exist in a service-based economy, but they do not create the economy. Franchises currently exist in the services industry. All businesses, not only service-based businesses, must analyze financial reports.

SOURCE: BA:115SOURCE: pp. 534-536, Business Principles and Management. Everard, K.; Burrow, J., South-Western,

11th ed., 2001.

10. B

11

Test 808 BUSINESS SERVICES MARKETING KEY and . The hypertag tells the browser to begin a new paragraph and tells it to end that paragraph. Notice there is a difference; the end symbol includes a slash mark. Both markings are necessary if the browser is to work correctly on the page. Using twice simply repeats the new paragraph hypertag. The symbols <startP> and <endP>, and <para> and <para> are not hypertags.

SOURCE: BA:217

Test 808 BUSINESS SERVICES MARKETING KEYSOURCE: National Center for Supercomputing Applications (NCSA). (n.d.). A Beginner's Guide to HTML.

Retrieved September 8, 2004, from http://archive.ncsa.uiuc.edu/General/Internet/WWW/ HTMLPrimerAll.html#PA

11. BDetermine the severity of the injury. Determining the severity of the injury helps the employee to determine what should be done next. If the injury is severe or life threatening, then an ambulance should be called. Calling an ambulance or notifying a supervisor should not be done until after the severity of the injury is determined. The severity of the accident will indicate whether to administer first aid. Filing a report would generally be the last aspect of handling an accident.

SOURCE: BA:047SOURCE: RM LAP 3--Handling Accidents

12. DIdentification information on the check matches the identification that is carried by the customer. Making sure that the check is completed correctly, signed properly, and that the customer is not using low numbers will not provide the same protection as having accurate identification on the check that matches what the person was carrying. If the check is worthless, the best way to collect is to have full identification in order to contact the customer or to prosecute him/her.

SOURCE: BA:084SOURCE: pp. 161-163, The Teller's Handbook: Everything a Teller Needs to Know to Succeed. German-

Grapes, J., McGraw-Hill, 1997.

Test 808 BUSINESS SERVICES MARKETING KEY13. D

Register the trademark. A trademark is a symbol, design, or word used by a producer to identify a good or service and registered with the government to prevent use by others. The unique symbol developed by the arena football team is a trademark. To prevent competitors from copying the trademark, which is considered intellectual property, the team should register it. Today, there is global protection for intellectual property as more and more countries agree to abide by the same rules and regulations. A patent is legal protection of an invention or a process rather than of a symbol or idea. A copyright is legal protection of books and other artistic works rather than of a symbol or idea. A football team might license its symbol, which means another business pays the team for the right to use the symbol, perhaps on clothing.

SOURCE: BA:173SOURCE: pp. 363-375, Sport Marketing. Mullin, B.J.; Hardy, S.; Sutton, W.A., Human Kinetics, 2nd ed.,

2000.

14. CCivil Rights. The Civil Rights Act requires service businesses to hire, train, transfer, and promote employees without regard to race, color, gender, religion, or national origin. The Robinson-Patman Act deals primarily with pricing practices. The Sherman Antitrust Act deals with monopolies and competition. The Federal Reserve Act created the Federal Reserve.

SOURCE: BA:053SOURCE: pp. 264-265, Introduction to Business: Our Business and Economic World: Teacher's

Wraparound Edition. Brown, B.J.; Clow, J.E., Glencoe/McGraw-Hill, 1997.

15. D

Accurate language. Being ethical when communicating information to customers involves telling the truth and not misrepresenting the home security business or its products. One way that businesses can be ethical is by using accurate language that clearly explains or describes products or other issues. The use of accurate language helps businesses to avoid providing misleading information. The use of simple wording, complex terminology, and everyday slang may be unethical if the language is inaccurate and people are misled.

SOURCE: CO:043SOURCE: p. 10, Communicating for Success. Hyden, J.S.; Jordan, A.K.; Steinauer, M.H.; Jones, M.J.,

South-Western Educational Publishing, 2nd ed., 1999.

16. D Subject-verb agreement. Salespeople is plural, so "have" would be the correct verb. Manager is singular, so "has" would be correct. Pronouns are not part of the statement; neither is the objective case. The proper capitalization has been used in this case. SOURCE: CO:004 SOURCE: pp. 127-128, Business English and Communication. Clark, L.R.; Zimmer, K.; Tinervia, J.,

Glencoe/McGraw-Hill, 8th ed., 1995.

17. ABeing a good listener requires active listening skills. In order to be a good listener while handling telephone calls, you need to learn to shut out distractions, put aside what you are working on, and focus on what the speaker is saying. This is not a natural skill, but it is one that can be learned through practice. There will still be times when, no matter how carefully you listen, you will have to ask questions.

SOURCE: CO:114SOURCE: Hotel LAP: Answering the Property's Telephone. Marketing Education Resource Center, 1998.

18. B Horizontal. Communication between employees who have similar or the same positions of authority is referred to as horizontal communication. Upward communication moves from employees up to management; down-ward communication moves from management down to employees. Cooperative describes a positive attitude toward working with others.

SOURCE: CO:011 SOURCE: pp. 16-17, Communicating at Work: Principles and Practices for Business and the Professions.

Adler, R.B.; Elmhorst, J.M., McGraw-Hill College, 6th ed., 1999.

19. COverpromising. Because services are intangible, it is often difficult for consumers to completely understand exactly what they are buying. An example is a complicated medical procedure. Businesses that sell services should avoid overpromising what the services can do in order to be ethical. In the medical example, a health care provider should not promise that a certain procedure will result in a cure if that is not entirely accurate. It

Test 808 BUSINESS SERVICES MARKETING KEYis unethical to overpromise in order to generate sales or attract customers. It is ethical for businesses to try to educate customers as much as possible about services and to provide customers with more service than they expected. Services are not overproduced because they are not produced until a customer buys them.

SOURCE: CO:050

SOURCE: pp. 405-409, Services Marketing: Integrating Customer Focus Across the Firm. Zeithaml, V.A.; Bitner, M.J., Irwin/McGraw-Hill, 2nd ed., 2000.

20. DThe location of customers and the number of customers who want the service. Where the customers are located and how many of them wish to purchase the service is important when selecting how long the dis-tribution channel will be and who needs to participate. If most customers are centrally located, a business might be able to provide services directly rather than using intermediaries to provide services to customers who are located worldwide. Competitors' location is not important when selecting a channel of distribution. Transportation and time of year usually are not issues because of the intangible nature of services. The important consideration is to deliver when and where the customers need the service.

SOURCE: DS:071SOURCE: pp. 576-577, Business Principles and Management. Everard, K.; Burrow, J., South-Western,

11th ed., 2001.

21. CDigital. Digital technology allows music to be downloaded over the Internet and saved to disk, thereby eliminating intermediaries, cutting cycle time, and moving the music industry away from traditional physical distribution methods. Video and virtual usually refer to image information, and analogue is used in wireless telephone communication.

SOURCE: DS:054SOURCE: pp. 355-356, Marketing Essentials. Farese, L.S.; Kimbrell, G.; Woloszyk, C.A., Glencoe

McGraw-Hill, 3rd ed., 2002.

22. A Promoting products. Channel intermediaries are persons or businesses that perform channel functions in an indirect channel of distribution. They can be responsible for such marketing functions as buying, selling, pricing, marking, storing, packaging, promoting, and financing. Recruiting workers for the business, training employees, and monitoring union activities are human resource activities, not marketing functions.

SOURCE: DS:055 SOURCE: MB LAP 3--Channels of Distribution

23. B$692.58. Invoices list the quantity of items purchased, unit price, and terms that indicate when payment is expected. In this situation, there are four items at $178.50 each for a total of $714 ($178.50 x 4 = $714). The terms are 3/10, net 30, which means the customer may take a 3% discount if the invoice is paid within 10 days of the invoice date. To calculate the discount, multiply the net amount by 3% ($714 x 3% or .03 = $21.42). Subtract this figure from the net amount to calculate the total after discount ($714.00 – $21.42 = $692.58).

SOURCE: DS:030SOURCE: pp. 72-73, Marketing and Essential Math Skills: Teacher's Edition. Stull, W.A., South-Western

Educational Publishing, 1999.

24. A Apron. An apron is a short receiving form that is attached to the invoice in the receiving department and used to record information about the shipment throughout the receiving process. A packing slip is a ship-per's form that usually accompanies incoming merchandise that describes the type and number of each item in a shipment. A waybill is used by the carrier to keep track of goods in shipment. A purchase order is the original order form filled out by the buyer. SOURCE: DS:004 SOURCE: DS LAP 5--The Receiving Process

25. C

Test 808 BUSINESS SERVICES MARKETING KEYTo store products that require federal tax. Merchandise that requires taxes to be paid can be stored in a bond-ed warehouse until the goods are ready to be sold. Payment of the taxes is postponed until the merchandise is to be moved from the bonded warehouse, which saves money for the business. Security and space for larger volumes of merchandise are considerations for all types of warehouses. Speedy movement through the supply chain is not as much of a concern when dealing with merchandise that is typically stored in a bonded warehouse.

SOURCE: DS:032SOURCE: pp. 403-406, Marketing Essentials. Farese, L.S.; Kimbrell, G.; Woloszyk, C.A., Glencoe McGraw-

Hill, 3rd ed., 2002.

26. C

Test 808 BUSINESS SERVICES MARKETING KEYConflict. A channel of distribution that has strong leadership is often able to manage or avoid conflict because the leadership has the power to assign specific responsibilities to each channel member. Strong leadership has the authority to set goals for the entire channel and demand cooperation, which reduces the possibility of conflict. In this situation, channel members work for the good of the channel rather than for their individual goals. A certain amount of competition is healthy for a channel of distribution. Depending on the type of goods and services being distributed, it may not be possible to avoid some regulation or publicity regardless of the strength of the leadership.

SOURCE: DS:049

Test 808 BUSINESS SERVICES MARKETING KEYSOURCE: pp. 358-359, Marketing: An Introduction. Kotler, P.; Armstrong, G., Prentice-Hall, 4th ed., 1997.

27. B Exchange. Exchange is the process of trading one good/service for another. Producers, consumers, and the owners of resources exchange money payments in order to acquire the resources, goods, and services they need. This exchange creates a circular flow of resources, goods, services, and money between the producers, consumers, and the owners of resources. Consumption is the process or activity of using goods and services. Production is the making of goods and services, while distribution examines how money pay-ments are divided between producers and resource owners.

SOURCE: EC:001 SOURCE: EC LAP 6--Economics

28. C

Test 808 BUSINESS SERVICES MARKETING KEYForm. Form utility is usefulness created by changing the shape or form of a tangible good to make it more useful to the consumer. Services are productive acts that satisfy economic wants, or intangible activities performed by other people for a certain amount of money. Time utility refers to having the goods/services available at the time they are needed or wanted by consumers. Place utility is usefulness created by making sure that goods or services are available at the place where they are needed or wanted by consumers. Possession utility is usefulness created when ownership of a product is transferred from the seller to the user.

SOURCE: EC:004

Test 808 BUSINESS SERVICES MARKETING KEYSOURCE: EC LAP 13--Utility

29. B

Test 808 BUSINESS SERVICES MARKETING KEYGovernment. Each economic system must operate within the laws of the country. In some countries, govern-ment not only runs the country but also makes economic decisions. In other countries, government runs the country and allows the people to make their own economic decisions. Supply, demand, and resources aid in determining the answers to economic questions but only within the laws of the country.

SOURCE: EC:007

Test 808 BUSINESS SERVICES MARKETING KEYSOURCE: EC LAP 17--Economic Systems

30. AJane, because she overproduced Cathie by two calls. Productivity is determined by dividing the outputs of the employee by the inputs. Jane's productivity was 294 calls per hour (50,000 ÷ 170 = 294), and Cathie's was 292 calls per hour (52,000 ÷ 178 = 292). Because they were otherwise considered equally qualified, the quality of their work was not a factor in the decision.

SOURCE: EC:013SOURCE: EC LAP 18--Productivity

31. A

Test 808 BUSINESS SERVICES MARKETING KEYGross private domestic investment. Gross private domestic investment includes investment in both residential and nonresidential buildings and equipment as well as changes in the value of business inventories. Resi-dential investment is the money landlords invest in the buildings and the equipment they own and rent to tenants. Government purchases of goods and services include everything purchased by local, state, and federal governments. Net exports of goods and services is the difference between what the U.S. buys from other countries and what it sells to other countries. Personal consumption expenditures include the final market value of all services and new and used goods purchased for consumption by individuals and nonprofit institutions.

SOURCE: EC:017

Test 808 BUSINESS SERVICES MARKETING KEYSOURCE: EC LAP 1--Gross Domestic Product

32. CWeather changes. Changes in weather conditions often have an influence on customers' demand for certain services. When the weather is cold and rainy, many people prefer to stay home rather than use local bus service. In cold weather, people do not use pool services or lawn-mowing services. On the other hand, people do not usually visit tanning salons or need snow removal services during warm weather. Lowering prices, increasing availability, and increasing promotion tend to increase consumer demand.

SOURCE: EC:046SOURCE: pp. 293-296, Principles of Service Marketing and Management. Lovelock, C.; Wright, L.,

Prentice Hall, 1999.

33. B Operate as cooperative financial institutions. Credit unions are nonprofit lending institutions owned by their members. They provide loans to members and may offer a variety of services, but they do not offer more services than banks. The members of a credit union could be individuals who work for the same company, are in the same profession, or belong to the same union.

SOURCE: FI:002 SOURCE: FI LAP 2--Credit and Its Importance

34. D Cost-effectiveness. Marketing information must provide more or greater benefits to the user than the costs of

gathering it, or it becomes useless. Timely data must be up-to-date and gathered at a time when they will be of most value to businesses. Accessible data should be readily available so that they can be gathered with-out excessive cost or effort. Sufficient data should provide enough material to enable marketers to make decisions.

SOURCE: IM:001SOURCE: IM LAP 2--Marketing-Information Management

35. DThe researcher should tell ABC's managers that the data does not support their conclusions. It would be unethical for the researcher to knowingly allow the dissemination of conclusions from a marketing-research project that are not supported by the data. The researcher has collected accurate data and should not change it to support the company's conclusions.

SOURCE: IM:025SOURCE: European Society for Opinion and Marketing Research (ESOMAR). (n.d.). International Code

of Marketing and Social Research Practice. Retrieved August 20, 2004, from http://www.esomar.org/index.php

36. DPopulation. Population data include vital statistics, types of households, ethnic or racial backgrounds, number of current residents, and forecasts of population increases or decreases. Economic data include the percent of unemployment, number of individuals working in each major area of employment, number of working women, average pay, retail sales figures, cost of living, consumer buying power, prices, and taxes. Geographic data include climate, local levels of air pollution, amount of land used for farming, location of shopping centers, and such natural features as mountains and lakes that attract visitors. Local data include all information that is specific to a particular area such as a city, county, or state.

SOURCE: IM:011SOURCE: IM LAP 6--Sources of Secondary Data

37. CEconomic. Scanning the economic environment provides service businesses with information about the overall economy, business cycles, and consumer income. Businesses are interested in obtaining information about customers' incomes, especially their discretionary income, because it is an indication of whether they will buy products. The amount of discretionary income is so important because it is the income people have left to spend or dispose of after they have paid their taxes. If people have very little discretionary income left because of current economic conditions, businesses know that sales will probably decrease. Scanning the social environment provides businesses with demographic information about customers. The political environment involves governments, laws, regulations, and political issues.

SOURCE: IM:188SOURCE: pp. 28-33, Marketing: Creating Value for Customers. Churchill, G.A.; Peter, J.P.,

Irwin/McGraw-Hill, 2nd ed., 1998.

Test 808 BUSINESS SERVICES MARKETING KEY38. C

No, it is used by businesses and organizations of all sizes. Businesses and organizations of all sizes, as well as individuals, use marketing research. Anyone who needs information that will help to solve problems or make decisions can use and benefit from marketing research.

SOURCE: IM:010SOURCE: IM LAP 5--Nature of Marketing Research

39. CExamine many variables at once. Relational databases allow insurance businesses to examine the relation-ships between many variables at one time. In relational databases, information is set up in tables with rows and columns. The rows represent a category and the columns represent the variables. For example, a busi-ness could develop a relational database with a row for each of its salespeople and columns across for sales by month. The business then would be able to examine the relationship between each salesperson's sales according to month and make comparisons between salespeople. A sequential database organizes data in a simple manner, links the information in a single path from one factor to the next, and allows businesses to analyze one variable at a time.

SOURCE: IM:063SOURCE: pp. 160-165, Marketing Research: A Practical Approach for the New Millennium. Hair, J.F.;

Bush, R.P.; Ortinau, D.J., Irwin/McGraw-Hill, 2000.

40. AMake predictions. A database is a collection of facts and information arranged in a logical order so that it can be accessed and used when needed. Health care businesses often maintain a vast amount of informa-tion about customers in databases and analyze the information to make predictions about how customers will respond in the future. For example, businesses might analyze customers' purchases to predict the products they will, or will not, buy in the future and the amount they are likely to spend. A business might use this information to make changes in its products based on what customers were buying. Businesses use spread-sheet software programs to prepare invoices and manage finances. Businesses use word-processing pro-grams to prepare reports.

SOURCE: IM:190SOURCE: p. 172, Marketing Research: A Practical Approach for the New Millennium. Hair, J.F.;


41. C20%. Frequency tables are a type of graphic that researchers use to visually show the number of respon-dents who reacted to a question in a certain way. Frequency tables can be in the form of bar charts, line charts, and pie charts that indicate numbers and/or percentages of respondents who gave a certain answer to a specific question. In this example, 40 of the 200 respondents answered "monthly." To convert that figure to a percentage, divide the number of responses to the question by the total number of respondents (40 ÷ 200 = .20 or 20%).

SOURCE: IM:192SOURCE: pp. 522-525, Marketing Research: A Practical Approach for the New Millennium. Hair, J.F.;


42. A

Test 808 BUSINESS SERVICES MARKETING KEYIncome. Demographic segmentation is the division of a market on the basis of characteristics people have in common that affect their purchasing power. Income is one of those characteristics. Geographic segmenta-tion divides markets according to where consumers are located. Lifestyle and personality are psychographic segmentation factors that group markets according to people's interests, values, activities, traits, and behavior.

SOURCE: IM:196

Test 808 BUSINESS SERVICES MARKETING KEYSOURCE: MB LAP 5--Market Identification

43. ATo understand change. Accounting firms need to understand changes in their external environment in order to adapt and remain competitive. To do this, they often conduct situational analyses to gather information about changes or trends that are beginning to develop in the environment or marketplace. This procedure allows firms to identify changes at an early stage and decide if they present a threat to the way the business is currently operating. Firms do not analyze their external environment in order to be socially responsible, behave ethically, or calculate profit.

SOURCE: IM:140SOURCE: pp. 41-42, Marketing: Creating and Keeping Customers in an E-commerce World.

Zikmund, W.; d'Amico, M., South-Western, 7th ed., 2001.

44. AResponse rate. Comment cards typically have low response rates because many customers do not take the time to fill them out. In turn, this leads to an inaccurate representation of how most customers feel about a business. Comment cards allow businesses to obtain the answers to a wide variety of questions relating to customer satisfaction levels, including how customers feel about the friendliness of employees and the service offerings. Any type of information-gathering practice that does not impose on the rights of individuals is appropriate, especially one that encourages people to complain when they might not otherwise feel com-fortable doing so. Some customers actually appreciate having a forum to complain and provide their feed-back on comment cards. Besides, customers who don't like them don't have to fill them out.

SOURCE: IM:204SOURCE: pp. 225-227, Check-In: Check-Out. Vallen, G.K.; Vallen, J.J., Prentice Hall, 6th ed., 2000.

45. D Increased cooperation from others. Practicing effective interpersonal skills often has a mirror effect. When you are helpful to others, they will generally be helpful to you. This creates an atmosphere of cooperation among workers that helps to get the work done. Ways that you can develop good interpersonal skills are by improving your self-understanding, setting higher personal standards, and having a more objective point of view.

SOURCE: IS:003 SOURCE: HR LAP 1--Human Relations: What, Why, How

46. D Treating customers with courtesy. Many factors can contribute to good relations between a business and its customers or clients. Among these are carrying reliable, quality products that satisfy purchasers; treating each customer/client with consideration and good manners; and offering special services that meet the needs of the business's customers/clients. Creating an exclusive image will attract a certain kind of cus-tomer but does not necessarily help the business to develop an effective relationship with that customer. Hiring indifferent employees who exhibit no interest in customers and stereotyping customers according to their personal characteristics are likely to prevent good customer relations.

SOURCE: IS:005SOURCE: pp. 52-54, Customer Service: Business 2000. Rokes, B., South-Western, 2000.

47. D

Test 808 BUSINESS SERVICES MARKETING KEY"Your account is being updated, Mr. Smith." The most appropriate way for a businessperson to greet regular customers is to address them by name. Businesspeople should know the names of their regular customers and greet them in that manner in order to make the sales presentation more personal. Customers appreciate being greeted by name and often return to a business that makes them feel comfortable and important. Using nicknames or slang terms, such as buddy, honey, and lady, are inappropriate ways to greet customers, and the use of those terms may even offend some customers.

SOURCE: IS:028

Test 808 BUSINESS SERVICES MARKETING KEYSOURCE: pp. 71-72, Speaking for Success. Miculka, J.H., South-Western Educational Publishing, 1999.

48. DAvoid punishment. Properties that are not in compliance with the ADA face severe legal consequences. The government can bring federal charges against them, or individuals can file civil lawsuits. These cases are expensive and damaging to the property's image. Complying with the ADA may enable properties to be more competitive or to be socially responsible, but those are not legal reasons for compliance. Properties can file lawsuits, whether or not they are in compliance, if circumstances warrant.

SOURCE: IS:046SOURCE: Hotel LAP: ADA and Customer Service. Marketing Education Resource Center, 1998.

49. A As important as. Assertive behavior is characterized by respect for personal rights as well as for the rights of others. Passive people tend to see their needs as being less important, while aggressive people see their needs as being more important or superior.

SOURCE: IS:010 SOURCE: HR LAP 16--Assertiveness

50. AWhat the other person wants. Knowing what the other person wants allows you to identify the common ground between the two viewpoints. How long negotiation will take is seldom determined ahead of time. Although it may be nice to know, the number of people attending is not a crucial factor in negotiations. The task at hand is the negotiation. It is unwise to divide your focus between the negotiation and implementing the outcome.

SOURCE: IS:012SOURCE: Barbara Braham & Associates. (n.d.). Negotiation Tips. Retrieved September 8, 2004, from

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

51. B$195. Employees should obtain permission before using company equipment, such as the copy machine, for personal use in order to help control expenses. Over a period of time, personal use of the company copy machine costs the talent agency money because it must buy the paper and toner and pay for necessary repairs. In this example, five employees make 25 copies a week for a total of 125 copies (25 x 5 = 125). If each copy costs 3 cents, calculate the weekly expense by multiplying the number of copies by the cost (125 x 3 cents or .03 = $3.75). Determine the yearly cost by multiplying the weekly cost by the number of weeks in a year ($3.75 x 52 = $195).

SOURCE: MN:016SOURCE: MN LAP 56--Employee Role in Expense Control

52. B Trait. There are three types of personal traits: physical, mental, and emotional. A particular trait may or may not be an asset. The term "feature" is used more commonly to refer to physical characteristics, as opposed to behavioral characteristics. A person's image is influenced by all of his/her personal traits.

SOURCE: PD:001 SOURCE: HR LAP 10--Personal Traits

53. DOutgoing personality. Many jobs in the services marketing industry require frequent contact with customers; therefore, it is important for employees in these positions to have outgoing personalities. They need to enjoy working with people, be friendly, and be able to communicate effectively. Businesses have found that they need to recruit employees who have outgoing personalities because it is an intrinsic trait that cannot be taught. Aggressive behavior is conduct that ignores the rights of others or exploits them in order to achieve personal goals. A defensive attitude involves having a negative feeling toward criticism or suggestions. Manual dexterity is skill in using your hands.

SOURCE: PD:049SOURCE: pp. 332-334, Principles of Service Marketing and Management. Lovelock, C.; Wright, L.,


54. A Internal. The judgments that you make about yourself are referred to as internal feedback because their source is within you. It is not unusual because, whether you are fully conscious of it or not, you are involved in a process of self-evaluation almost all of the time. External feedback comes from sources outside your-self. Internal feedback is direct rather than indirect.

Test 808 BUSINESS SERVICES MARKETING KEYSOURCE: PD:015 SOURCE: HR LAP 3--Handling Feedback

55. AJeff makes a to-do list. A to-do list is a list of activities that an individual plans to accomplish during a certain period of time, and it is a good technique for using time wisely. Sara is working quickly but not necessarily efficiently. Karen is procrastinating and may end up with no time or less time to complete the tasks she keeps putting off. Dan allows others to take up his time.

SOURCE: PD:019SOURCE: PD LAP 1--Time Management

56. ALicense. Employees in certain service professions must be licensed, which means that they must pass an examination to prove that they are qualified. The license verifies that the individual has completed the nec-essary training and met specific state, local, or professional requirements. Some careers that require licensing include nursing, medicine, teaching, engineering, cosmetology, and child care. A sponsor is a business, individual, or organization that pays the costs of promotion. A charter, or certificate of incorpor-ation, is a permit issued to operate as a corporation. A patent is legal protection of an invention or a process granted by government to its owners for a certain number of years.

SOURCE: PD:025SOURCE: pp. 42-43, The Dynamics of Work: Introduction to Occupations. Daggett, W.R.; Miles, J.E.,


57. A

Test 808 BUSINESS SERVICES MARKETING KEYCompany. Asking questions about the company and the job tells the interviewer that the applicant is very interested in the position. Oftentimes, the applicant will obtain advance information about the company in order to be able to ask good questions. Questions about fringe benefits, such as the business's vacation policy, may be appropriate, but they indicate the applicant's interest in what the job will provide, not the applicant's interest in the job itself. Questions about the interviewer would be inappropriate.SOURCE: PD:028

Test 808 BUSINESS SERVICES MARKETING KEYSOURCE: pp. 67-69, Working: Career Success for the 21st Century. Bailey, L.J., Thomson/South-

Western, 3rd ed., 2003.

58. ASeniority. Seniority involves the length of time that a person has been employed by one company. The longer people have been employed, the more seniority they have. Insurance businesses often consider seniority when selecting employees to promote. Often, they try to promote the more senior employees because they have more experience on the job and have demonstrated long-term loyalty to the business. Compensation is pay and benefits. Favoritism involves granting special favors to certain people. Arbitration is a method of settling a labor dispute.

SOURCE: PD:034SOURCE: p. 461, The Dynamics of Work: Introduction to Occupations. Daggett, W.R.; Miles, J.E.,


59. C

Test 808 BUSINESS SERVICES MARKETING KEYInterest. Loyal customers are developed by salespeople who show sincere interest in their customers. Sales-people can win friends, as well as sales, by showing interest in customers and their problems. Enthusiasm refers to the excitement that a salesperson shows toward the product being sold. Honest salespeople never misrepresent or knowingly deceive customers. Tact is the skill of being able to do or say the proper thing in any given situation.

SOURCE: PD:004

SOURCE: HR LAP 20--Interest and Enthusiasm

60. A The local chamber of commerce. Most cities have a chamber of commerce, an organization of businesses and companies that make known to the government the recommendations of the business community and help local businesses solve common problems. Phi Beta Kappa is an honorary organization with educational requirements at the college level. The Consumer Product Safety Commission and the Occupational Safety and Health Administration are government agencies, not organizations.

SOURCE: PD:036 SOURCE: CD LAP 1--Trade Associations/Professional Organizations

61. BAdvertising budget. Companies that sell items at low prices will not have as large an advertising budget as companies that sell items at high prices. None of the other alternatives is an area of promotion. The choice of channels is a place decision. Customer decisions and product research are product-related decisions.

SOURCE: PI:001SOURCE: PI LAP 2--Pricing

62. A Obtaining market share. Marketers may use selling price to obtain a share of the market, to enlarge the share they already have, or to maintain that share. Service businesses with profit-oriented pricing try to maximize their profits by setting prices that will bring in the maximum amount of profit in the shortest time. Variable costs cannot be stabilized since by their nature they fluctuate with changes in sales. Cooperative advertising is funds provided to retailers by the producers of goods to help pay the retailers' advertising expenses and is not dependent on prices.

SOURCE: PI:002 SOURCE: PI LAP 3--Factors Affecting Selling Price

63. DCompetition-based. When a company observes how the competition sets is prices and then follows suit, it is practicing competition-based pricing. This is very common in the airline industry as airlines lower their prices to avoid empty seats and raise prices to cover higher fuel costs. Prestige pricing refers to deliberately put-ting an artificially high price on a good or service to suggest high quality or service. An example would be charging more for first-class seats in order to appeal to travelers seeking a high-status image. An airline that practices cost-based pricing would set its prices according to how much it actually costs to get travelers to their destinations. With even pricing, the airline would use an even number at the end of a price to suggest high quality. Thus, the airline ticket to Florida would cost $298 or $300 rather than $299.

SOURCE: PI:030SOURCE: p. 231, Principles of Service Marketing and Management. Lovelock, C.; Wright, L., Prentice

Hall, 1999.

64. B Product/Service management. Product/Service management involves obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities. It involves decision making— from the development of a product until it is removed from the market. Concept testing is the process of exploring the concept, or idea, for a product in order to obtain feedback. Product development is the stage in the creation of a new product in which a working model may be tested, modified, and retested. Marketing- information management is the marketing function that involves gathering, accessing, synthesizing, evaluat-ing and disseminating information for use in making business decisions.

SOURCE: PM:001 SOURCE: PP LAP 5--Product/Service Planning

65. AGrowth. Growth is the product life-cycle stage in which sales rise rapidly. During that stage, home security

Test 808 BUSINESS SERVICES MARKETING KEYbusinesses can expect an increase in sales which results in significant profits. The introduction stage is when the product first appears in the marketplace. Decline is the stage in which sales and profits fall rapidly. Maturity is the stage where the product reaches a plateau.

SOURCE: PM:024SOURCE: pp. 334-337, Contemporary Marketing. Boone, L.E.; Kurtz, D.L., Thomson/South-Western, 11th

ed., 2004.

66. CObserving customers as they use the services. Observing customers and the ways in which they actually use the services have helped marketers generate creative ideas for new services. It is often especially effective in instances when customers may not be able to recognize or verbalize their observations or needs. Surveys have long been used by marketers as a research technique but have several drawbacks. Response rate is generally low, and responses can be more contrived when respondents have time to think about their answers. Information gleaned from surveys, as well as calls, is not as rich and honest as that gathered from observation in a natural setting. Marketers usually do not bring customers on staff during the new-service development process.

SOURCE: PM:072SOURCE: pp. 201-203, Services Marketing: Integrating Customer Focus Across the Firm. Zeithaml, V.A.;

Bitner, M.J., Irwin/McGraw-Hill, 2nd ed., 2000.

67. C Unconditional and understandable. A good guarantee should be unconditional. In other words, there should

be no conditions that the customer must meet in order for the guarantee to be in effect. It should be under-standable. The language should be clear and the promises specific. The customer should not have to fill out a great many forms, see several different people, or travel to different locations in order to obtain satisfaction. It should be easy for the customer to implement and to collect. Whenever possible, the customer's money should be refunded on the spot.

SOURCE: PM:020SOURCE: PP LAP 4--Warranties and Guarantees

68. DTo measure performance. Service indexes are composites of important performance standards. Service businesses develop indexes in order to identify the standards that the business should try to achieve in order to satisfy customers. Businesses use the indexes to measure their actual performance against the identified standards. If businesses find that their performance is not measuring up to customers' expectations, they can make adjustments in order to improve operations. Businesses do not develop service indexes in order to identify behavior, control management, or regulate testing.

SOURCE: PM:074SOURCE: pp. 247-248, Services Marketing: Integrating Customer Focus Across the Firm. Zeithaml, V.A.;

Bitner, M.J., Irwin/McGraw-Hill, 2nd ed., 2000.

69. CSatisfy all of the customer's needs with one purchase. Product bundling is the practice of putting together a number of goods/services to create an attractive one-price package for consumers. By offering a number of goods/services for one price, day spas can satisfy all of their customers' needs and prevent them from taking their business elsewhere. The cost of a product bundle is usually less than the cost of purchasing all of the components separately. Spas do not use product bundling to urge customers to tell their friends or increase the cost of production.

SOURCE: PM:041SOURCE: pp. 351-352, Marketing: Creating Value for Customers. Churchill, G.A.; Peter, J.P.,

Irwin/McGraw-Hill, 2nd ed., 1998.

70. BTax consultant. A service business performs intangible activities to satisfy the wants of consumers. Taxes are intangible. They are not something that can be touched, smelled, tasted, seen, or heard. A tax consul-tant is an expert in answering questions about taxes and tax preparation. A florist provides flowers, which are tangible items. Products ordered from a gift catalog are tangible, as well as the car that is produced by an automobile manufacturer.

SOURCE: PM:080SOURCE: pp. 83-84, Marketing Essentials. Farese, L.S.; Kimbrell, G.; Woloszyk, C.A., Glencoe McGraw-

Hill, 3rd ed., 2002.

Test 808 BUSINESS SERVICES MARKETING KEY71. C

Brand. A brand is a name, term, symbol, or design (or combination of them) that identifies a good or service and distinguishes it from competitors' products. Some brand names are imaginative, but not all. One of the purposes of a good brand is to be competitive. Generic products have no brand names and are usually priced lower than brand-name products.

SOURCE: PM:021 SOURCE: PM LAP 6--It's a Brand, Brand, Brand World!

72. D Nonpersonal. Any promotional method that does not involve direct contact between people is considered to be

nonpersonal. Personal promotion occurs when people are involved in the promotional effort. Coupons can be very effective in some cases, and they would not be considered unusual since they are frequently used.

SOURCE: PR:001SOURCE: PR LAP 2--Promotion

73. A

Test 808 BUSINESS SERVICES MARKETING KEYFederal Trade Commission. The Federal Trade Commission (FTC) administers and enforces antitrust laws and consumer-protection laws. It is the agency with the most influence on marketing activities such as pro-motion and advertising. The FTC prohibits businesses from misrepresenting their products in advertisements, making unsubstantiated claims, and otherwise misleading consumers. The FTC may require businesses to place corrective ads to explain deceptive information. The Federal Communications Commission (FCC) grants licenses to radio and television stations and regulates interstate telephone and telegraph rates and service. The Better Business Bureau and the National Advertising Review Council are nongovernmental agencies.

SOURCE: PR:101

Test 808 BUSINESS SERVICES MARKETING KEYSOURCE: pp. 64-67, Contemporary Advertising. Arens, W.F., Irwin/McGraw-Hill, 7th ed., 1999.

74. A Headline. The headline should be written to appeal to the reader and to interest him/her in reading more of the ad. The body copy should expand the theme of the headline and stress the benefits of the product. The typeface refers to the design of the letters used in an ad. SOURCE: PR:014 SOURCE: PR LAP 7--Parts of Print Ads

75. DTelemarketing. Telemarketing is a promotional medium grouped with "other media" that utilizes telephone service to promote a product either by phoning prospective customers or providing a number for them to call. Telemarketing is considered a direct advertising strategy because it provides direct contact between the business and the customer. Many businesses use telemarketing to inform customers of new goods and services and encourage them to buy. Broadcasting is a promotional media that uses radio waves to reach consumers. Merchandising is the process of having the right goods in the right place at the right time in order to make a profit. Syndicating is not a direct advertising strategy.

SOURCE: PR:089SOURCE: pp. 360-361, Kleppner's Advertising Procedure. Russell, J.T.; Lane, W.R., Prentice Hall, 14th

ed., 1999.

76. CTargeted messages. Database files contain information about customers such as names; addresses; tele-phone numbers; and demographic, geographic, and psychographic data. As a result, service businesses can use this information to develop messages that are targeted to specific consumers. For example, a business might send a direct-mail piece only to customers who live in the Pacific Northwest and who had purchased lawn-care services within the last year. The advantage of targeting messages is that businesses do not waste time and money sending information to customers who are not prospects. Businesses do not use databases to develop news releases, promotional brochures, or publicity campaigns.

SOURCE: PR:091SOURCE: pp. 376-377, Advertising: Principles and Practice. Wells, W.; Burnett, J.; Moriarty, S., Prentice

Hall, 5th ed., 2000.

77. DNo, there is no connection between news releases and advertising. Gymnasiums should not use the terms "publicity" or "advertising" in any conversations with an editor because these two functions are completely separate. The gymnasium job is to provide the media with news they can present, not to try to get them to give the gymnasium publicity.

SOURCE: PR:057SOURCE: PR LAP 10--Writing News Releases

78. A

Test 808 BUSINESS SERVICES MARKETING KEYIncrease sales. One of the main reasons that beauty salons coordinate promotional activities is to attract customers and increase sales. For example, a radio commercial promoting a special sale of hair products could be coordinated with an in-store display reminding customers of the sale. Consumers who are attracted by the promotions often make purchases and may frequent the salon again. Surveying opinions and collecting data are part of conducting research and are not part of coordinating promotional activities.SOURCE: PR:076

Test 808 BUSINESS SERVICES MARKETING KEYSOURCE: pp. 302-304, Marketing Essentials. Farese, L.S.; Kimbrell, G.; Woloszyk, C.A., Glencoe

McGraw-Hill, 3rd ed., 2002.

79. BEmphasize benefits of the good or service. The primary objective is to create a need or desire for the reader to purchase the good or service. By stating the positive attributes of the good or service, the reader knows why and how the good or service is good for her/him. Logos are generally considered a graphic element, and a company would most likely include its own logo, not the competitors. The brochure should provide more than one way to contact the company. More contact options might result in higher inquiries and sales. Telephone, (local and toll-free), street address, mailing address, fax, e-mail, or web site are all acceptable modes of contact to include in brochures. By using language that is above the reader's comprehension, the message runs the risk of being misunderstood by the audience or lost altogether.

SOURCE: PR:141SOURCE: p. 531, Contemporary Advertising. Arens, W.F., Irwin/McGraw-Hill, 7th ed., 1999.

80. CWorking with key people in the organization. Insurance salespeople need to understand the needs and problems of key people in the organization in order to provide quality service. Salespeople will be able to gain information about how the business operates by contacting and working with these people. When salespeople are knowledgeable about a business's needs, they are able to satisfy those needs and provide quality service. The result usually is a successful relationship that benefits both the salesperson and the business customer. Salespeople should not make unannounced sales visits, criticize competitors' products, or make idle conversation during sales calls.

SOURCE: SE:076SOURCE: pp. 406-412, Fundamentals of Selling: Customers for Life. Futrell, C.M., Irwin/McGraw-Hill, 6th

ed., 1999.

81. D Operating policies. These policies guide the general operation of the business. A salesperson's selling

activities, terms of sales, and services a salesperson can offer are basic groups of selling policies.SOURCE: SE:932SOURCE: SE LAP 121--Selling Policies

82. BUncontrolled departmental rivalries. Task force members who can look beyond their own needs to those of the entire organization should be selected to make these decisions so that the system is beneficial to all. Otherwise, the system may be ineffective and increase rivalry between departments. Some organizations make the mistake of selecting a system and implementing it company-wide before conducting a pilot test to correct mistakes. Overlooking the people who will operate the system may cause the system to fail. Top management support is crucial since management will be paying the bills and making sure the system is utilized properly.

SOURCE: SE:107SOURCE: p. 118, Managing Salespeople: A Relationship Approach. Hite, R.; Johnston, W., South-

Western, 1998.

83. ATechnology. Advances in technology have made it possible for customers to serve themselves and buy products, such as tickets to movies, without the assistance of cashiers. Many movie theaters have installed electronic kiosks that allow customers to use credit or debit cards to buy tickets. This technology makes it easy for customers to buy tickets quickly and at times that are convenient to them, rather than stand in line and deal with a cashier. For example, a customer might stop by a theater at 5:00 p.m., buy two tickets to an 8:00 p.m. showing, go to dinner, return at the correct time, and go directly to the seats. The Internet is a worldwide network of computers that enables users to access information and communicate with others. Cyberspace is the term used to describe the area where electronic communications occur. Telegraphy involves the use of a telegraph machine.

SOURCE: SE:164SOURCE: pp. 213-214, Principles of Service Marketing and Management. Lovelock, C.; Wright, L.,


84. B Company catalog. A company catalog is a form of promotional material that is an excellent source of product information since most of the rental business's products will be described on its pages. Studying the com-pany catalog is especially helpful for new salespersons. Sales reports contain numerical information about sales. A

Test 808 BUSINESS SERVICES MARKETING KEYrack jobber is a vendor who delivers stock to the business and puts it in racks. A product display provides visual information, not printed.

SOURCE: SE:062 SOURCE: p. 105, Selling Today: Building Quality Partnerships. Manning, G.L.; Reece, B.L., Prentice Hall,

1998.

85. ARisk. A risk is uncertainty; not knowing what the outcome will be. In some situations, risk is the possibility of financial loss. When customers consider whether the actual cost of repairs will be more than the estimate, they are identifying risks because there may be unexpected costs that they did not anticipate. Price is the amount of money paid for a service. Fear is an emotion. An action is a deed or something that is done.

SOURCE: SE:187SOURCE: pp. 72-74, Principles of Service Marketing and Management. Lovelock, C.; Wright, L., Prentice

Hall, 1999.

86. A Increased profits. A step-by-step selling process is considered the path to successful selling. Increased sales

usually mean increased profits. Better selling also means fewer returns, increased stockturn, and greater commissions for salespeople.

SOURCE: SE:048SOURCE: SE LAP 126--The Selling Process

87. C To satisfy wants and needs. As a salesperson, you should always keep in mind that customers make pur-chases to satisfy their individual wants and needs. These wants and needs vary from customer to customer and from time to time. People decide what they want and need before they make purchases. They do not buy goods and services in order to spend available funds or support the business community.

SOURCE: SE:883 SOURCE: SE LAP 102--Using Buying Motives (Part I)

88. A Price and place. For some customers, customer services are a factor in making the place decision. Cus-tomers may choose to buy at one store rather than at another because of the customer services available. Customer services are also a factor in making a price decision. For example, a customer may be willing to pay more for a product if good customer service will be provided. The decisions of what product to buy and when to buy it are usually not affected by the availability of customer services.

SOURCE: SE:811 SOURCE: SE LAP 108--Customer Buying Decisions

89. CPostpurchase stage. The postpurchase stage is the final stage of the buying process. Since it occurs after the performance of a service, customers have the opportunity to think about whether the service met their expectations. If it does, they will likely return in the future. The prepurchase stage is the first stage of the buying process, and it is during this time that customers think about their needs and identify possible service providers. During the service encounter stage, the chosen service provider actually carries out the performance of the service. Service delivery occurs during the service encounter stage when the customer receives the service.

SOURCE: SE:210SOURCE: pp. 72-76, Principles of Service Marketing and Management. Lovelock, C.; Wright, L., Prentice

Hall, 1999.

90. D Hidden. Unlike obvious benefits, which require little explanation by the salesperson, hidden benefits may not be seen or understood without the salesperson's assistance. Unique or exclusive benefits are advantages that are available only from the salesperson's good or service.

SOURCE: SE:115 SOURCE: SE LAP 113--Feature-Benefit Selling

91. B Turn objection into selling point. All of these are appropriate procedures in handling objections. It is critical, however, that the salesperson first listen carefully, then restate and empathize in a manner that assures the customer that the objection is thoroughly understood. Only at this point can the objection be turned into a valid selling point.

Test 808 BUSINESS SERVICES MARKETING KEYSOURCE: SE:874 SOURCE: SE LAP 100--Converting Objections

92. D Always be closing. Since the best time to close the sale may come at any time during the presentation, you must always be alert for these opportunities. You should avoid negative closes, trying to oversell, and leaving the customer in a state of indecision.

SOURCE: SE:895 SOURCE: SE LAP 107--Closing Sales

93. BMailing a service questionnaire to current customers. A service questionnaire would be the most cost-efficient and time-saving follow-up activity. Once the mailing was completed, the customers would do part of the work in recording the data. Visiting or telephoning customers would take a lot of time and be costly. Sending greeting cards and coupons to customers is a nice gesture but does not obtain information.

SOURCE: SE:057SOURCE: SE LAP 119--Follow-up Strategies

94. D Total amount owed by customer. This figure is essential to completing the sales transaction. Additional information that may be found on sales checks includes: sales check number, name and address of cus-tomer, salesperson's number, kind of sale, quantity of merchandise purchased, description of merchandise purchased, unit price of each item, extension, and subtotal. Sales tax would be listed if the item purchased was taxable. Department number would be used in a large business with several different departments.

SOURCE: SE:117SOURCE: MA LAP 48--Completing Sales Checks

95. A Has been qualified. A qualified prospect is an organization or individual who has need for a service, has the ability to pay, has the authority to buy, and is accessible to the salesperson. The salesperson should qualify all leads, organizations, or individuals that might be interested in the salesperson's service(s), in order to keep from wasting time on sales calls that are not likely to result in sales.

SOURCE: SE:001 SOURCE: SE LAP 116--Prospecting

96. D 3 pennies, 2 dimes, 1 quarter, and 1 $10 bill. This amount equals $10.48 in change ($20.00 – $9.52 = $10.48). Remember to use the least number of coins and bills when making change.

SOURCE: SE:245SOURCE: MA LAP 50--Making Change

97. D

Test 808 BUSINESS SERVICES MARKETING KEYType of payment accepted. Video-rental shops decide what type of payment they will accept such as cash, checks, or credit. This is a factor that has an effect on the level of cash that the shops need to keep in the cash drawer. If a shop accepts only cash, it will need to keep more cash on hand to make change for cus-tomers. If a shop accepts checks and credit cards, it might need less cash on hand because it does not need to make change for customers. The goal is to have an appropriate cash level to accommodate customers without having too much on hand. The net worth of the business, the amount of operating expense, and the value of current assets are not factors that affect the level of cash that a shop keeps in the cash drawer.

SOURCE: SE:248

Test 808 BUSINESS SERVICES MARKETING KEYSOURCE: pp. 105-106, Retail in Detail: How to Start and Manage a Small Retail Business. Bond., R.,

Oasis Press, 2nd ed., 2001.

98. AEstablish a petty-cash fund. A petty-cash fund is kept to make small cash payments. One person should be responsible for the fund, and written records of money put in or taken out must be kept. Taking money out of the cash register may cause the daily cash fund to be depleted. Using a personal checking account mingles personal and business funds. Sending an employee to the bank would be time consuming and inconvenient.

SOURCE: SE:249SOURCE: p. 388, Business Principles and Management. Everard, K.; Burrow, J., South-Western, 11th

ed., 2001.

99. DThank the customer. Processors of telephone orders should always remember to thank the customers for their orders at the end of the phone call. Expressing appreciation for their business leaves customers with a pleasant and satisfied feeling. Satisfied customers are more likely to order goods by telephone in the future. Processors of telephone orders explain the charges and ask questions during the conversation. They are not required to hang up quickly.

SOURCE: SE:835

Test 808 BUSINESS SERVICES MARKETING KEYSOURCE: pp. 108-110, Speaking for Success. Miculka, J.H., South-Western Educational Publishing, 1999.

Test 808 BUSINESS SERVICES MARKETING100. B

Set goals for desired sales performance. Sales quotas specify, either in physical units or dollars, the amount of sales for which the salesperson is responsible during a specific time period. This gives salespersons a goal for which to strive. A commission is the amount of money received by the salesperson on each sale. The busi-ness's customer-service policy determines the procedure for handling a dissatisfied customer. A customer survey or questionnaire obtains feedback from the customer.

SOURCE: SE:864 SOURCE: SE LAP 118--Sales Quotas

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