HOSPITALITY
2016 PRACTICE EXAM BOOKLETS
AS USED IN DECA’S 2016 INTERNATIONAL CAREER DEVELOPMENT CONFERENCE
Build Students’ Competency Levels • Use as Classroom Practice Tests
100 Questions and Answers • Prepare Students for Competition
Hospitality
2016 EXAM
International Career Development Conference, 2016
This comprehensive exam was developed by MBAResearch
and Curriculum Center®, under contract with DECA, Inc.
Copyright © 2016
Exam Copyright Information It is increasingly important that exams used in DECA’s Competitive Events Program meet criteria for high-­‐stakes testing. DECA has contracted with MBA Research and W!SE to provide high quality comprehensive exams. DECA Images sells these exams for members/chapters to have access to these exams for competition preparation. To help ensure quality, we monitor variables such as reliability, validity, discrimination, fairness and comprehensiveness. Further, we ensure that each exam item is appropriately anchored to performance indicators and curriculum standards derived from formal occupational analysis. Quality testing is expensive. The costs of industry research, item-­‐writing and test development are shared among all participating associations and through the sale of sample exams. To help contain costs, we depend on the participation of chartered associations, chapters and members adhering to all copyright restrictions. Please be certain to adhere to the following: Chapters may duplicate exams as needed for students within their own chapter Under NO CIRCUMSTANCES may this exam, in whole or in part, or any item within be published or posted on any website. Items may NOT be edited nor rewritten for any purpose. Exam items may NOT be banked or used to develop other exams. Exams must be used only as distributed. Failure to follow the above guidelines will result in: Non-­‐participation in the current year’s International Career Development Conference. Not being eligible to purchase exams or scenarios from DECA Inc for a period of one year for the first offense. Please contact DECA Images if you have any questions regarding this copyright information. [email protected] or 703.860.5006 1. If you invent a new type of technological device, what type of intellectual property protection should
you seek to make sure that no one else starts making the same product?
A.Copyright
B.Patent
C.Trademark
D. Trade secret
2. If a court makes a ruling, all other courts must follow its precedent and act in accordance with that
ruling. This is an example of __________ law.
A.civil
B.common
C.criminal
D.substantive
3. Which
A.
B.
C.
D.
of the following is an activity that must take place within a channel of distribution:
Delivering products to customers’ homes
Making payments to retailers
Promoting products
Preparing detailed marketing reports
4. If possible, your company should try to follow up with __________ messages to provide quality
customer service.
A.personalized
B.generic
C.redundant
D.daily
5. Which of the following channels of distribution allows the producer to retain the tightest control over
the distribution process:
A. Producer to agent to retailer to consumer
B. Producer to wholesaler to retailer to consumer
C. Producer to consumer
D. Producer to retailer to consumer
6. In order to book a stay at the prestigious Sparkle Hotel, customers must also purchase an additional
pass to the water park across the street. This arrangement is known as
A. full line forcing.
B. market power.
C. price discrimination.
D. a tying agreement.
7. Herb’s Ketchup supplies grocery stores all over America, but sales are declining. How might the
company get better placement on the shelves of grocery stores?
A. Design its products differently
B. Pay slotting allowances
C. Change its ketchup recipe
D. Create an email campaign
8. Alpha’s Pizza and Bravo’s Pizza are two restaurants that are in a horizontal conflict known as a price
war. This conflict will most likely have a __________ impact on consumers by __________ prices.
A. negative; inflating
B. negative; splitting
C. positive; inflating
D. positive; reducing
1
9. Which of the following is a criterion for evaluating the reliability of a source:
A.Timeliness
B.Length
C.Style
D. Type of source
10. How can you verbally demonstrate your interest in what a speaker is saying?
A. Repeat exactly what the speaker has said back to him/her.
B. Relate what is being said back to your experiences.
C. Ask probing questions to learn more about the speaker’s thoughts.
D. Remain silent, and take thorough notes.
11. In which of the following types of culture are words less important than tone of voice, facial expression,
gesture, posture, or even family history:
A.Low-context
B.High-context
C.Verbal
D.Nonverbal
12. One difference between a memo and a letter is that a memo is usually __________, while a letter is
usually __________.
A. external, internal
B. internal, external
C. formal, informal
D. informal, formal
13. What is the first step to problem-solving in a group?
A. Assessing solutions
B. Defining the problem
C. Determining causes of the problem
D. Implementing solutions
14. Which
A.
B.
C.
D.
of the following is an action employees can take to maintain a customer-service mindset:
Listen to the words of soothing songs
Maximize conversations with coworkers
Devote their full attention to customers
Decide how to spend their break time
15. A taxi service competes with other taxi services, but it also competes with the local bus system. This
second type of competition is known as __________ competition.
A.friendly
B.indirect
C.unnecessary
D.incomplete
16. Which of the following is a function of relative price:
A.Value
B.Information
C.Equilibrium
D. Excess supply
17. Which
A.
B.
C.
D.
2
of the following is a benefit of opening a franchise:
Restrictions on products, prices, and location
Paying royalties
A well-known brand name
Reliance on raw materials
18. The state of Maryland charges businesses a flat tax on income, which means that businesses pay
A. a lower rate as profits increase.
B. no state tax on income.
C. a higher rate as profits increase.
D. the same percentage, no matter how much profit they make.
19. One of Jordan’s employees has become unhappy at work in recent weeks, so Jordan decides to give
the employee more responsibility and decision-making authority. Jordan is increasing the employee’s
job
A.scope.
B.rotation.
C.depth.
D.automation.
20. What is a good way to handle political conflict that may arise in global business relations?
A. Only work with countries that are aligned politically with your business.
B. Avoid discussing political matters that are not related to the business exchange.
C. Agree with what the other party believes.
D. Argue your side respectfully, yet firmly, to show strength.
21. Which
A.
B.
C.
D.
of the following traits differentiates entrepreneurs from small business owners:
Willingness to take risks
Size of workforce
Job creation
Impact on economic growth
22. Penelope pays attention to what’s going on around her, so she notices opportunities in which she can
show initiative. Penelope shows
A.empathy.
B.adaptability.
C.alertness.
D.independence.
23. Dion sometimes says he’s sick when he actually just doesn’t want to go to work. He convinces himself
that what he’s doing is okay by saying, “Everyone else is doing it, and my boss will never know.” Dion is
A. being accountable.
B. behaving ethically.
C. making excuses.
D. acting with integrity.
24. Thomas is not very interested in group accomplishments; instead, he likes to find his own way and
receive credit for his personal achievements. Thomas is likely to be from a(n) __________ culture.
A.collectivist
B.individualist
C.ethnocentric
D.prejudiced
25. Ava makes a mistake on a report at work. Instead of owning up to it, she angrily blames the mistake on
one of her team members. Ava doesn’t care about her team member’s rights because she is
A.passive.
B.assertive.
C.aggressive.
D.respectful.
3
26. Which
A.
B.
C.
D.
of the following is an advantage of consensus building:
It results in decreased creative problem-solving among group members.
It typically involves significant risk and a high probability of failure.
It has a tendency to be extremely labor- and time-consuming.
It encourages commitment and support among group members.
27. People need leaders to
A. provide them with morals.
B. provide them with ideas.
C. tell them what to believe.
D. give them direction.
28. Which
A.
B.
C.
D.
of the following is a benefit of using a debit card instead of a credit card:
You can spend more money at a time.
You can build your financial rating.
Expenses can be paid at a later date.
There is no risk of going into debt.
29. Buying drinks from the local coffee shop is a variable expense because
A. it is less costly than most other expenses.
B. it is not a necessary expense.
C. the amount spent varies from month to month.
D. it is the easiest expense to cut from a budget.
30. The line on a check that reads “Pay to the order of” is where you write
A. your signature.
B. the payment amount in numeric form.
C. the payment amount in word form.
D. the recipient’s name.
31. Under what circumstances should an accountant share confidential business information about a
client?
A. Only under order of a subpoena
B. In any circumstances
C.Never
D. When the client is engaged in a new business venture
32. Which of the following sources of data would be best for a marketer who is looking for trends and
changes in his/her industry:
A. A competitor’s promotional campaign
B. Sales invoice
C. Trade journal
D. Public financial data
33. A primary function of a marketing-information management system is to
A. give managers feedback about marketing efforts.
B. store model and serial numbers for company technology.
C. store financial statements and annual reports.
D. give employees information about their job performance.
34. A hotel manager sends a satisfaction survey to previous customers via email. The message also
includes an advertisement for a holiday promotion that the hotel is offering. The manager must be
careful to avoid
A.SUGGING.
B. violating the CAN-SPAM act.
C.FRUGGING.
D. violating HIPPA.
4
35. If market research yields different results each time it is conducted, the research is not
A.valid.
B.reliable.
C.objective.
D.systematic.
36. To test and validate a hypothesis, market researchers should seek __________ data.
A.external
B.qualitative
C.quantitative
D.internal
37. Jenny owns a chain of luxury resorts. Which of the following is an example of a strategy-oriented
decision problem that she might face:
A. Why are our sales lower in one location than in others?
B. Which location would be the most profitable place to open a new resort?
C. Why are customers less than satisfied with their experiences?
D. What are the key demographics of our target customers?
38. Which of the following research designs would be best suited to determine the reach of an
advertisement in a particular target market:
A.Survey
B. Focus group
C. Test marketing
D.Simulation
39. Which
A.
B.
C.
D.
of the following scenarios would require a non-probability sample design:
An airline wants to learn about the demographics of its customers.
A restaurant owner wants to know if high school students prefer French fries or onion rings.
The marketing manager of a hotel wants to know if an advertisement was effective.
A resort owner wants to research the average cost of hurricane damage in a particular area.
40. Surveys are excellent tools for data collection because they
A. don’t require human input.
B. show cause and effect.
C. dig deep into respondents’ feelings.
D. are easy to analyze.
41. How can researchers maintain respondents’ attention and focus in a survey?
A. Follow a logical question order.
B. Vary question and answer type throughout the survey.
C. Make all questions positive.
D. Group related questions together.
42. Coding data is important in marketing research because it
A. prevents all errors.
B. makes large amounts of data easier to analyze.
C. turns quantitative data into qualitative data.
D. makes data less valid.
43. Marco employs a large number of people at his hotel chain, ranging from many minimum wage hourly
workers to a handful of high-level executives. If Marco needs to find out the typical salary of a hotel
employee, which measure of central tendency should he use?
A.Median
B.Mean
C.Mode
D. Standard deviation
5
44. In which of the following examples might social pressure become a source of error:
A. An interviewer asks respondents how often they smoke cigarettes.
B. A customer satisfaction survey is only sent to repeat customers.
C. An interviewer finds respondents via a telephone directory.
D. Customers entering a hotel are asked to identify which hotel chain they visit most frequently.
45. Which
A.
B.
C.
D.
of the following is a leading question:
When was the last time you visited our restaurant?
How much more satisfied are you with our new prices?
On a scale of 0-10, how would you rate our customer service?
How likely is it that you will return to this hotel?
46. A local business raises money to help people in the community who were affected by a tornado. This is
an example of which of the following positive actions that businesses should take:
A. Providing proper training for employees
B. Demonstrating corporate responsibility
C. Providing excellent customer service
D. Protecting the business’s reputation
47. A restaurant decides to work with a local organic produce supplier, who will deliver fresh produce
weekly. This is an example of __________ strategy.
A.product
B.place
C.promotion
D.price
48. While watching a travel show on television, Alex saw an advertisement for a tropical resort. This is an
example of __________ segmentation.
A.behavioral
B.psychographic
C.demographic
D.geographic
49. Kellen is developing a marketing plan for his restaurant. As part of his situation analysis, he evaluates
the local and national economy and other restaurants in the area to find any threats or opportunities.
Kellen is conducting
A. outside observation.
B. competitive monitoring.
C. business surveillance.
D. environmental scanning.
50. Which of the following is a factor a business should consider when determining how far into the future
to forecast sales:
A. Number of competitors
B. Employee morale
C. Market conditions
D. Product’s price
51. Facts are true outside of the mind and are not based on feelings or biases. Facts are
A.persuasive.
B.positive.
C.theoretical.
D.objective.
6
52. By looking at freely available data, a computer programmer working for a city government was able
to discover that an elected official had several unpaid traffic tickets. The decision to release this
information to the public is an ethical issue of
A.ownership.
B.accuracy.
C.privacy.
D.control.
53. What type of system synchronizes sales and marketing efforts?
A. Customer relationship management
B. Transaction processing
C. Supply chain management
D. Decision support
54. Which
A.
B.
C.
D.
of the following types of data analysis suggests a future course of action:
Descriptive analytics
Predictive analytics
Prescriptive analytics
Instructive analytics
55. After buying a new frying pan online, the website prompts you to purchase a spatula. This suggestion
was probably informed by
A. association rule learning.
B.regression.
C.classification.
D.clustering.
56. One advantage of using robots in production is that they
A. can operate without any human involvement.
B. are inexpensive to program.
C. do not replace jobs.
D. can perform dangerous tasks that are unsafe for people.
57. To prevent security breaches by disgruntled employees, a business can
A. use strong passwords on all accounts.
B. make sure all employees are happy with the company.
C. immediately terminate accounts that are no longer in use.
D. install anti-virus software.
58. Which
A.
B.
C.
D.
bidding method should be used when price is the only factor?
Request for information
Request for proposal
Invitation to bid
Request for qualifications
59. Which
A.
B.
C.
D.
of the following activities is part of a supply chain:
Product development
Creating advertisements
Communicating with customers
Setting prices
60. Which
A.
B.
C.
D.
of the following is a way to protect confidential information:
Documents should never be marked “confidential” to avoid drawing attention to them.
Employees should discuss confidential information in public places.
Confidential information should never be printed out.
Confidential documents should be kept in locked cabinets or rooms.
7
61. Writing down your goals will help you
A. modify or cancel your goals.
B. keep yourself on target.
C. choose your goals.
D. distract yourself from your goals.
62. We need creativity in communication because
A. email makes communication very difficult.
B. most people don’t know how to communicate.
C. not everyone communicates the same way.
D. people get tired of the usual communication methods.
63. Which
A.
B.
C.
D.
of the following is a challenge that entrepreneurs often face:
Increased resources
Potential financial loss
Extra vacation time
Tax breaks
64. Which
A.
B.
C.
D.
of the following is a possible effect of bypassing the chain of command:
Other employees may not trust you.
You may be considered for a promotion.
Your manager will appear to be a strong communicator.
You will appear to be a strong leader.
65. Product, place, promotion, and price are all elements of
A. the marketing mix.
B. profit margins.
C. marketing research.
D. exchange prices.
66. Which
A.
B.
C.
D.
of the following is an example of technology being used in the pricing function:
A restaurant uses computerized pricing models to determine meal prices.
A cruise ship operator offers a limited-time-only deal for a special rate.
A restaurant uses spreadsheets to keep track of inventory.
A hotel needs more bedsheets, so it emails an order to its supplier.
67. A hotel advertises a very low nightly rate. However, this rate is only good for a handful of very small
hotel rooms. When customers come in or call to ask about the low rate, the hotel explains that they
are sold out of the cheap rooms, but they can offer much nicer, larger rooms—at a significantly more
expensive price. This sales tactic is referred to as
A. predatory pricing.
B.bait-and-switch.
C. loss-leader pricing.
D. price fixing.
68. A bed and breakfast wants to increase its total amount of income from sales, so it lowers the prices of
all its rooms in an attempt to attract more customers who are looking for a deal. This pricing objective
is considered __________-oriented.
A.profit
B.sales
C.investment
D.demand
8
69. A restaurant company creates a new dish, but wants to make sure the new entree will be successful
before it introduces the meal to all of its locations. It tries out the dish in one city to see if customers
like it. The restaurant company is engaging in
A. a feasibility analysis.
B. test marketing.
C.licensing.
D. corporate branding.
70. A hotel chain has offered a certain package deal for some time, and the package is now in the maturity
stage of the product life cycle. This most likely means that
A. profits are improving as sales increase rapidly and costs go down.
B. sales for the package are still high, but sales growth has slowed down.
C. customers are just now finding out that the package exists.
D. the package’s sales are decreasing and its profits are eroding.
71. Which of the following is an example of a company using technology in the product/service
management function:
A. A restaurant uses computer software to monitor inventory.
B. A hotel helps a customer decide where to have dinner.
C. A cruise ship runs a television commercial.
D. A company uses pricing software to determine prices.
72. A restaurant chef starts preparing steaks in a new way that customers prefer. What kind of innovation
is this?
A.Prevention
B.Product
C.Position
D.Process
73. A restaurant wants to develop new menu items that will appeal to its customers. A server mentions
that many customers have asked for gluten-free meals, so the restaurant decides to try out a few new
gluten-free menu items. What method of idea generation did the restaurant use?
A. Trend research
B.Brainstorming
C.Observation
D.Customers
74. Shonda works at a hotel, and her boss expects her to book at least 10 rooms every day. What type of
standard is this?
A.Cost
B.Quality
C.Time
D.Quantity
75. How do government regulations that protect consumers most often impact businesses?
A. Businesses are able to carry less insurance.
B. Product development can be less expensive.
C. They allow businesses to avoid correcting problems.
D. They can increase a business’s expenses.
76. An upscale restaurant starts offering a lower priced lunch menu to attract customers who can’t
typically afford its expensive dinner menu. The restaurant is using a(n) __________ product-mix
strategy.
A. trading down
B. trading up
C.alteration
D.contraction
9
77. Which
A.
B.
C.
D.
of the following is an example of product bundling:
A restaurant offers a 50% discount on a steak dinner.
A hotel offers a $200 room and a $50 meal in the hotel restaurant for $225.
A hotel charges a high price for its rooms so customers will think they are higher quality.
A restaurant gives out coupons for buy one, get one free entrees.
78. Which of the following is an employee characteristic that can be useful in positioning:
A.Durability
B. Physical form
C.Responsiveness
D.Repairability
79. Logos, colors, and names are all components of a company’s brand
A.values.
B.identity.
C.personality.
D.distributor.
80. If a company wants to position its restaurant as an upscale alternative to other neighborhood
restaurants, which of the following should it do:
A. Make sure that the “upscale alternative” message is communicated consistently.
B. Allow customers to come up with their own perceptions of the restaurant.
C. Focus only on the food and the quality of service.
D. Communicate the “upscale alternative” message through social media only.
81. A popular hotel gives all of its guests a goodie bag that includes pens and a coffee cup with its logo
and address on them. Most likely, the hotel is using these promotional materials to
A. remind customers.
B. inform customers.
C. get customer feedback.
D. identify customers.
82. A fast-food company sends out coupons for its new burger. This is an example of __________
promotion.
A.effective
B.institutional
C.corporate
D.product
83. At which stage of a product’s life cycle should a company slow or stop production, and instead use
promotional money to maintain a positive company image?
A. Introductory stage
B. Maturity stage
C. Decline stage
D. Growth stage
84. Uncle Chuck is a jerky maker in Montana who’s not getting many visitors to his website. When Uncle
Chuck searches for “beef jerky Montana,” the search engines show his website on the third page of
search results. Which of the following should Uncle Chuck do to increase online traffic to his website
and rank higher in search results:
A. Create a mailing list and send emails to potential customers
B. Optimize keywords on his website for search engines
C. Start a blog about Montana’s beef jerky scene
D. Create a social media campaign on Facebook
10
85. Julie is creating an email to promote her line of baked goods, and she is not offering any type of
incentive for purchasing. According to the CAN-SPAM Act, which of the following email subject lines
could result in Julie being penalized for breaking the law?
A. Children love our delicious baked goods, baked naturally.
B. Our handmade cakes are a great way to start your day.
C. Buy a cake from us today for a chance to win a new car!
D. We use coconut oil to make our baked goods healthier!
86. Billboards, spectaculars, and transit posters are all examples of
A. out-of-home media.
B. directory advertising.
C. product placement.
D.telemarketing.
87. Shaggy Dog Deli creates a Twitter hashtag, #shaggydogdeli, to get customers to share reviews and
promote the business. This is an example of __________ marketing.
A. opt-in email
B. organic word of mouth
C.cause
D. amplified word of mouth
88. Scooter’s Bakery is having trouble selling a certain flavor of pie. Scooter wants to offers a $2.00
reimbursement after, not at the time of, the sale. Which sales promotion would Scooter use?
A.Sweepstakes
B.Coupon
C.Rebate
D.Markdown
89. You are opening your first restaurant and want to get the word out about the grand opening and
signature dishes. Which public relations tool would be most appropriate?
A.Newsletter
B. Trade show
C. Press release
D. Financial report
90. You have just finished creating a magazine print ad for a hotel. When you show the final ad to your
boss, she says, “My eyes don’t know what to look at first. There’s no real focal point!” Which of the
following do you need to adjust:
A. Ad placement
B. Unique selling proposition
C.Layout
D.Logo
91. Shia is in charge of all advertising for Force One Resorts. He hires different designers and writers to
build a print advertisement, an online banner advertisement, and a billboard advertisement. When he
receives the finished advertisements, he notices that Force One’s logo looks drastically different in
each ad. What should Shia create to make sure all the designers and writers have rules for building
logos and advertisements?
A. Brand standards
B. White space
C.Tagline
D.Layout
92. Which of the following is an interactive public relations activity:
A. Social media
B.Newsletter
C.Podcast
D. Search engine optimization
11
93. When Jenny gives a sales presentation, she makes sure to stand up straight, speak clearly, and look
her potential customers in the eye. Customers know that Jenny’s proud of her company’s product
because she shows
A.self-motivation.
B.self-confidence.
C. customer knowledge.
D.creativity.
94. Which
A.
B.
C.
D.
of the following statements is true of quality customer service:
It is primarily a department or business function.
It is one-size-fits-all.
It enhances the customer’s use of a good or service.
It’s only important before the sale is closed.
95. When Marcella participates in an industry trade show to find new customers, she’s obtaining
A. external sources.
B. company leads.
C. personal sources.
D.referrals.
96. The Credit Card Act of 2009 affects a business’s selling policies because it is a(n)
A. internal factor.
B. potential problem.
C. consumer regulation.
D. antitrust regulation.
97. Lauren knows that her potential customer is thinking about placing an order with one of her
competitors, so she offers the potential customer a large sum of money if s/he places the order with
her company. This illegal action is known as
A.negligence.
B.bribery.
C.misrepresentation.
D.slander.
98. A salesperson tells a customer that a product has been in existence for over 100 years. This is an
example of what type of product information?
A. Product history
B. How the product should be used
C. Where the product was made
D. Warranty information
99. To prepare a feature-benefit chart, a salesperson must know facts about
A. his/her own product.
B. the customers’ backgrounds.
C. the current business market.
D. her/his competitors’ feature-benefit charts.
100. Maslow’s hierarchy of needs explains that people will buy things they need to feel __________ before
they will buy things they need to feel __________.
A. liked; sheltered
B. self-actualized; secure
C. secure; self-actualized
D. self-actualized; accepted
Hospitality
2016 EXAM | ANSWER KEY
International Career Development Conference, 2016
This comprehensive exam was developed by MBAResearch
and Curriculum Center®, under contract with DECA, Inc.
Copyright © 2016
13
1.B
Patent. Patents protect processes, methods, and inventions. In contrast, copyrights protect expressions
of ideas, such as literary, musical, and dramatic works. Trademarks protect words and symbols that
represent a product. Trade secrets are not registered with any government office and can refer to any
items that are unique and useful to a business, but are not protected under the other three categories,
such as a secret recipe.
SOURCE:BL:051
SOURCE: Entrepreneur.com. (2015). Intellectual property. Retrieved November 18, 2015, from http://
www.entrepreneur.com/encyclopedia/intellectual-property
2. B
Common. There are two main ideas upon which most legal systems are based: common law and civil
law. Common law includes the rules and principles that come from judgements and decisions in court.
Rulings set a precedent that then must be followed and are the most important source of law. Civil
law is a system in which codes and statutes are the basis of law and the courts have less impact on
its development. Civil law can also refer to cases dealing with private rights. Its opposite is criminal
law, which handles the protection of society from harm and provides punishment to those defy it.
Substantive law is the part of law that creates, defines, and regulates rights.
SOURCE:BL:070
SOURCE: Beatty, J.F., & Samuelson, S.S. (2008). Essentials of business law (3rd ed.) [pp. 12-13]. Mason,
OH: Thomson/South-Western.
3. C
Promoting products. Every channel of distribution promotes products, even if it’s as simple as a direct
distributor of babysitting services putting up fliers in the local ice cream shop. Channel members
generally do not need to make any payments to retailers, as retailers are usually the last intermediary in
the channel. Not all products need to be delivered to customers’ homes. Not all channels of distribution
require detailed marketing reports; sometimes, providing marketing information can be as easy as just
talking or sending a quick email.
SOURCE:CM:001
SOURCE: CM LAP 2—Chart Your Channels (Channel Management)
4. A
Personalized. Personalized messages help guests feel that messages were sent to them personally as
opposed to generic messages sent to an entire list. Generic, redundant, and daily follow up messages
would have a negative impact on customer service.
SOURCE:CM:002
SOURCE: Lowery, S. (n.d.). Part 10: Customer service—Following up with your customers. Retrieved
January 13, 2016, from http://www.web-source.net/followup.htm#.Vpa7jvkrKM9
5. C
Producer to consumer. A producer-to-consumer channel (also known as direct distribution)
allows a producer to retain the tightest control over the distribution process because there are
no intermediaries involved. The other options allow the producer to spread out some of the
responsibilities and risks of distribution; however, the producer does lose some amount of control.
SOURCE:CM:003
SOURCE: CM LAP 1—Channel It (Channels of Distribution)
6. D
A tying agreement. A tying agreement requires a customer to buy other products in order to obtain
desired goods and services. Market power is the level of dominance a company holds in its industry.
Price discrimination is an illegal activity in which a business charges different customers different
prices for similar amounts and types of products. Full line forcing occurs when a seller insists that the
dealer must carry a full line of particular products.
SOURCE:CM:005
SOURCE: Wallace, K. (2016). The wonderful world of tying. Retrieved January 14, 2016 from, http://
www.americanbar.org/groups/young_lawyers/publications/the_101_201_practice_series/
the_wonderful_world_of_tying.html
14
7. B
Pay slotting allowances. Slotting allowances are fees paid to distributors for preferential treatment,
such as better product placement. Better product design, changing the ketchup recipe, and creating an
email campaign could all possibly boost sales but will not ensure better placement.
SOURCE:CM:006
SOURCE: Dye, F., & Wiley, M. (2014). What are slotting allowances? Retrieved January 15, 2016, from
http://www.wisegeek.com/what-are-slotting-allowances.htm
8. D
Positive; reducing. Competition or price wars between two dealers or retailers usually ends up having
a positive impact on customers by reducing prices. Without competition, one company (a monopoly)
would be able to increase prices to any level it wished. This would have a negative impact on
consumers and would inflate market pricing.
SOURCE:CM:008
SOURCE: Herrera, A. (2014). Channel conflict in marketing. Retrieved January 14, 2016, from http://
www.slideshare.net/iamALECXZ/channel-conflict-in-marketing
9. A
Timeliness. For certain types of information, it is crucial for the source to be up to date because data
are always changing. Length and style are not necessarily indicators of reliability, though depending
on the type of source, they may be important. The type of source does not always indicate reliability;
many different types of sources are reliable.
SOURCE:CO:054
SOURCE: Johns Hopkins Sheridan Libraries and Museums. (2015, November 3). Evaluating sources.
Retrieved November 18, 2015, from http://guides.library.jhu.edu/c.php?g=202581&p=1334914
10.C
Ask probing questions to learn more about the speaker’s thoughts. You can encourage a speaker to
share more by asking questions such as “What do you mean by that?” or “How did you feel when that
happened?” Relating what is being said back to your experiences does not demonstrate that you are
an engaged listener; rather, it seems as if you are just waiting for your turn to talk. Repeating exactly
what the speaker has said demonstrates a lack of sincerity or attention, which will discourage your
speaker. Finally, remaining silent can convey disinterest, and taking notes might be inappropriate for
the given situation.
SOURCE:CO:082
SOURCE: Robinson, L., Segal, J., & Smith, M. (2015, October). Effective communication. Retrieved
November 19, 2015, from http://www.helpguide.org/articles/relationships/effectivecommunication.htm
11.B
High-context. People in high-context cultures emphasize interpersonal relationships and trust. They
tend to focus more on relationships and intuition rather than reason. In contrast, low-context cultures
are logical, linear, and action-oriented. People in these cultures value facts and directness rather than
relationships and intuitive nonverbal cues. Most, if not all, cultures have both verbal and nonverbal
communication.
SOURCE:CO:059
SOURCE: College of Marin. (n.d.). High-context and low-context culture styles. Retrieved November 19,
2015, from http://www.marin.edu/buscom/index_files/Page605.htm
12.B
Internal, external. Memos are usually internal communications between members of the same
workplace. Business letters are generally sent to someone external to the workplace. In a professional
writing scenario, both memos and letters are formal in tone, though the level of formality depends on
the specific situation.
SOURCE:CO:088
SOURCE: Danley, L., & Hagemanm, J. (2008, July). A brief guide to professional writing. Retrieved
November 19, 2015, from http://www.add.devry.edu/PDFs/Writing_Guide.pdf
15
13.B
Defining the problem. Understanding and agreeing upon the details of the problem at hand are crucial
to eventually developing a feasible and effective solution. This step must be done before any causes or
solutions can be discussed. Assessing solutions, determining causes, and implementing solutions are all
steps in the group decision-making process, but cannot be done until the problem has been defined.
SOURCE:CO:067
SOURCE: Bowen-Ellzey, L., Lukshin, D., & Raison, B. (2013). Group problem solving process. Retrieved
November 19, 2015, from https://u.osu.edu/raison/files/2014/02/FACT-SHEET-GroupProblem-Solving-CDFS_13_13-1cqoba2.pdf
14.C
Devote their full attention to customers. Maintaining a customer-service mindset requires employees to
set their minds on customers. They should not become distracted by other things around them such as
songs on the radio, conversations with coworkers, the amount of work piling up on their desks, or what
they will be doing after work or during breaks. Distractions turn their focus away from customers and
prevent them from providing quality service.
SOURCE:CR:004
SOURCE: CR LAP 4—Set Your Mind to It (Customer-Service Mindset)
15.B
Indirect. A taxi service and a bus service compete with each other indirectly. They are not the same
type of product, but they still strive to win scarce customer dollars. Understanding competition—
both direct and indirect—is an important step in identifying and carrying out brand promise. Indirect
competition is not referred to as friendly, unnecessary, or incomplete.
SOURCE:CR:001
SOURCE: CR LAP 6—Share the Promise (Identifying Brand Promise)
16.B
Information. Relative prices provide information to consumers, producers, and resource owners that
help them make economic decisions, such as whether to buy, what to buy, and how much to buy.
Value is the amount of satisfaction a good or service will provide and is indicated by price. Equilibrium
occurs when the quality of a product that buyers are willing to buy is equal to the quantity that sellers
are willing to sell at a certain price. Excess supply results when supply is greater than demand and the
price is set higher than the equilibrium price.
SOURCE:EC:006
SOURCE: EC LAP 12—When More Is Less (Functions of Price)
17.C
A well-known brand name. Often, opening a franchise brings an existing customer base that is
familiar with the brand name, which can increase the possibility of success in comparison to a new,
unknown business. Paying royalties and restrictions on products, prices, and location would be
considered disadvantages of opening a franchise. Reliance on raw materials is a disadvantage of the
manufacturing business model.
SOURCE:EC:138
SOURCE: Entrepreneur.com. (2015). Franchising. Retrieved November 19, 2015, from http://www.
entrepreneur.com/encyclopedia/franchising
18.D
The same percentage, no matter how much profit they make. A flat tax uses a consistent rate for all
income brackets. Although some states do not charge income taxes, Maryland’s flat rate is not one of
them. When tax rates increase as profits increase, the state is using a graduated scale. In rare instances,
profits over a certain amount are taxed at a lower rate. Any rates that change depending on the
amount of profit are not flat rates.
SOURCE:EC:072
SOURCE: EC LAP 27—Pay Your Share (Business Taxes)
16
19.C
Depth. Job depth is the amount of control and decision-making authority an employee has in a job.
Job rotation is an instructional method in which employees are rotated periodically from one job
to another to broaden the employees’ perspective of the business. An employee’s job scope is the
number of tasks involved in a job and the frequency with which they occur. Automation is a method
of operating or controlling a process in which tasks are completed by automatic means such as
technology, reducing human effort and labor.
SOURCE:EC:014
SOURCE: EC LAP 7—Divide and Conquer (Specialization and Division of Labor)
20. B
Avoid discussing political matters that are not related to the business exchange. Because political
beliefs will always differ between people and cultures, it is impossible to avoid conflict, but there is no
need to bring up issues that are not pertinent to the exchange. If you limit yourself to only working
with countries that are politically aligned with you, you may have difficulty finding global business
relationships. If you agree indiscriminately with the other party, it may come off as insincere or force
you to compromise your principles. Finally, arguing your side might lead to further conflict and damage
your chances for business success, even if you are respectful.
SOURCE:EC:110
SOURCE: Brown, J. (2015). How can cultural differences affect business communication? Retrieved
November 20, 2015, from http://smallbusiness.chron.com/can-cultural-differences-affectbusiness-communication-5093.html
21.A
Willingness to take risks. Risk is one of the defining traits of entrepreneurship. Entrepreneurs must
be willing to take risks as they begin new ventures. Small business owners do not necessarily have
the same level of risk because they are not always focused as strongly on innovation. The size of the
workforce does not necessarily differentiate between small business owners and entrepreneurs. Both
small businesses and entrepreneurs create jobs and have a positive impact on economic growth.
SOURCE:EC:065
SOURCE: Sea, S. (2010, August 10). Entrepreneurship defined - entrepreneur vs. small business.
Retrieved November 19, 2015, from http://ezinearticles.com/?Entrepreneurship-Defined—Entrepreneur-Vs-Small-Business&id=4897485
22.C
Alertness. People who are alert are tuned in and aware of what is going on around them at all times.
They are more aware of the opportunities they might have to take initiative. Adaptable people are
flexible and able to adjust to changes that occur. People with empathy can put themselves in another
person’s place and imagine how s/he feels even if they haven’t had the same experience. Independent
people set goals for themselves and work on their own to carry them out. Adaptability, empathy, and
independence are all related to initiative, but Penelope is not showing them in this example.
SOURCE:EI:024
SOURCE: EI LAP 2—Hustle! (Showing Initiative at Work)
23. C
Making excuses. Making excuses often means you are trying to convince yourself that what you are
doing is okay. Dion may be tempted to think that it’s all right to skip work because everyone is doing
it or because his boss will never know. However, these are just excuses to justify making the wrong
choice. Dion is not behaving ethically, being accountable, or acting with integrity.
SOURCE:EI:004
SOURCE: EI LAP 4—Work Right (Ethical Work Habits)
17
24. B
Individualist. In individualist cultures, people are expected to find their own way and to work hard
and receive credit for their achievements. Collectivist cultures are geared more towards group
accomplishments. Ethnocentrism is the belief that your culture is naturally better than other cultures.
Prejudices are judgments based on feelings rather than facts.
SOURCE:EI:033
SOURCE: EI LAP 11—Getting to Know You (Cultural Sensitivity)
25. C
Aggressive. Aggressive behavior is conduct based on a willingness to ignore the rights of others and
to take advantage of them to achieve personal goals. When Ava blames her mistake on her team
member without considering her/his rights, she is being aggressive. Assertiveness is the ability to
express yourself, communicate your point of view, and stand up for your rights, principles, and beliefs.
Passive behavior is conduct in which people fail to exercise their own rights or respect their own needs.
A passive person usually displays an attitude based on the desire to avoid conflict at all costs. Ava’s
behavior is not respectful.
SOURCE:EI:008
SOURCE: EI LAP 18—Assert Yourself (Assertiveness)
26. D
It encourages commitment and support among group members. When each group member agrees, s/
he is committed to the decision and supports putting the decision into action. This ownership means
that the group can, and wants to, bring about change. Consensus building is relatively low risk and
doesn’t necessarily have a high probability of failure. Consensus building can take a great deal of labor
and time, but this is not an advantage. Consensus building increases creative problem solving.
SOURCE:EI:011
SOURCE: EI LAP 19—It’s a Group Thing (Consensus Building)
27.D
Give them direction. Humans have always needed strong leaders to give them direction, whether that
direction is big (organizational goals) or small (how to perform a single task). However, people still
need to create their own ideas, determine their own beliefs, and define their own morals. Leadership
can help with these tasks, but they are personal responsibilities.
SOURCE:EI:009
SOURCE: EI LAP 16—Lead the Way (Concept of Leadership)
28. D
There is no risk of going into debt. Debit cards withdraw money from your account in real time, so you
will be cut off and notified if you spend too much. The most you will pay is an overdraft fee. In contrast,
credit cards allow you to borrow money and pay it back later, with interest. You can spend more than
you actually have, which results in debt. Credit cards, rather than debit cards, allow you to build your
credit score to prove your financial stability to future employers and landlords. Debit cards do not allow
you to pay expenses at a later date or to spend more money at a time than credit cards.
SOURCE:FI:058
SOURCE: Audette, J. (2015). What is a debit card? Retrieved November 20, 2015, from http://www.
nerdwallet.com/blog/nerdscholar/debit-card/
29. C
The amount spent varies from month to month. Variable expenses differ from fixed expenses because
fixed expenses are the same each month, whereas variable expenses change. Not all variable expenses
are unnecessary. In addition, not all variable expenses are less costly and easy to cut. For example,
grocery shopping is a variable expense, but it is also necessary, sometimes expensive, and not
necessarily easy to cut from a budget.
SOURCE:FI:066
SOURCE: Pant, P. (2015). What’s the difference between fixed and variable expenses? Retrieved
November 20, 2015, from http://budgeting.about.com/od/budget_definitions/g/Whats-TheDifference-Between-Fixed-And-Variable-Expenses.htm
18
30. D
The recipient’s name. When you see the phrase “Pay to the order of”, ask yourself, “To whom do I make
this check out?” and fill in the answer. The payment amount in numeric form, the payment amount in
word form, and your signature are all components of a signed check, but they go in different places on
the check.
SOURCE:FI:560
SOURCE: Pritchard, J. (2015). How to write a check - step-by-step with pictures. Retrieved November
19, 2015, from http://banking.about.com/od/checkingaccounts/ig/How-to-Write-aCheck/1write_a_check_step2.htm
31.A
Only under order of a subpoena. Accountant-client privilege does not exist, so an accountant may be
forced to disclose information about a client in a court of law. However, in other cases, accountants are
ethically obligated to keep client information confidential from all unauthorized third parties. It does
not matter whether or not the client is engaged in a new business venture.
SOURCE:FI:351
SOURCE: Freedman, J. (2015). Ethical responsibility in accounting. Retrieved November 19, 2015, from
http://smallbusiness.chron.com/ethical-responsibility-accounting-58071.html
32. C
Trade journal. A trade journal is an industry-specific publication that keeps readers up-to-date on what
is happening in the field. If a marketer wants to know about trends and changes in his/her industry, a
trade journal would be a useful source of data. A sales invoice is a valuable source of data for customer
information. A competitor’s promotional campaign is beneficial when gathering data about the
competition’s strategy. Finally, public financial data can inform marketers about competitors.
SOURCE:IM:012
SOURCE: IM LAP 12—Data Do It! (Need for Marketing Data)
33. A
Give managers feedback about marketing efforts. A marketing-information management system
serves three basic functions: data gathering, data processing, and information reporting. Managers can
use the information, or feedback, that the system provides to monitor marketing efforts. Marketinginformation management systems are not used to store model and serial numbers for company
technology, financial statements and annual reports, or reports of employee performance.
SOURCE:IM:001
SOURCE: IM LAP 2—Get the Facts Straight (Marketing-Information Management)
34. B
Violating the CAN-SPAM act. The CAN-SPAM act is a law passed by the Federal Trade Commission
that regulates commercial emails sent from businesses to customers. Any emails sent with the primary
purpose of advertisement or promotion must follow a set of rules. A customer satisfaction survey
email is not subject to these rules, but if it includes a commercial message, such as an advertisement
for a holiday promotion, the manager should use his/her judgement to determine whether or not s/he
should follow the regulations of the CAN-SPAM act. SUGGING is “selling under the guise of research.”
It occurs when companies use the pretense that they are conducting market research with the sole
intent of gaining customer information. FRUGGING is “fundraising under the guise of research.” It is
similar to SUGGING, but in the nonprofit world. The hotel manager is not in danger of engaging in
these two practices in this case because s/he already has the customer information from a previous
interaction. HIPPA is the Health Insurance Portability and Accountability Act, which is not applicable to
this situation.
SOURCE:IM:419
SOURCE: Federal Trade Commission. (2009, September). CAN-SPAM Act: A compliance guide for
business. Retrieved December 8, 2015, from https://www.ftc.gov/tips-advice/businesscenter/guidance/can-spam-act-compliance-guide-business
19
35. B
Reliable. Reliable research brings about the same results when repeated or conducted by different
researchers. Valid research measures what the researchers intended to measure. Objective research
is free from bias. Systematic research follows a step-by-step process of gathering, recording, and
analyzing information. Research can be valid, objective, and systematic without being reliable.
SOURCE:IM:010
SOURCE: IM LAP 5—Seek and Find (Marketing Research)
36. C
Quantitative. Quantitative data are objective and based on statistics and/or facts. They are usually
represented numerically. This type of data helps to test and validate hypotheses. Qualitative data are
subjective and based on thoughts, feelings, and experiences. They are less likely to provide the facts
necessary to validate a hypothesis. External data are gathered from sources outside of the company,
whereas internal data come from company sources. These types of data do not necessarily help to test
and validate a hypothesis.
SOURCE:IM:281
SOURCE: IM LAP 15—What’s the Source? (Obtaining Marketing-Research Data)
37.B
Which location would be the most profitable place to open a new resort? Strategy-oriented decision
problems are linked to strategic business decisions and usually answer the questions “how?” or
“which?” If Jenny wants to choose between several locations to open a new resort, she is facing a
strategy-oriented decision problem. The questions “Why are our sales lower in one location than in
others?” and “Why are customers less than satisfied with their experience?” are discovery-oriented
decision problems. The question “What are the key demographics of our target customers?” is a
research problem.
SOURCE:IM:282
SOURCE: IM LAP 13—What’s the Problem? (Marketing-Research Problems)
38. A
Survey. Determining the reach of an advertisement is a specific issue that involves quantitative data,
which categorizes it as a descriptive research study. A survey is the most appropriate research design
because surveys are in-depth, specific, and quantitative, which makes them well-suited for descriptive
research. Focus groups are suitable for exploratory research because exploratory research requires a
smaller scale with less structure. Test marketing and simulations are appropriate for causal research
studies because they show a cause and effect relationship between independent and dependent
variables.
SOURCE:IM:284
SOURCE: IM LAP 14—Better by Design (Marketing-Research Designs)
39. D
A resort owner wants to research the average cost of hurricane damage in a particular area. A nonprobability sample is useful when the sample does not need to be representative of the whole
population. For example, judgement sampling is a technique that involves hand-picking respondents
based on expertise. The average cost of hurricane damage is information that only a select group of
people would know, so a representative probability sample would not be as useful as a non-probability
sample. A restaurant owner who wants to know if high school students prefer French fries or onion
rings, a marketing manager of a hotel looking to determine the effectiveness of an advertisement,
and an airline that wants to learn about customer demographics would all be better suited to conduct
probability sampling so that the data is representative of the whole target population.
SOURCE:IM:285
SOURCE: IM LAP 16—Take Your Pick (Nature of Sampling Plans)
20
40. D
Are easy to analyze. Surveys are excellent tools for data collection because they are simple, reliable,
and easy to analyze. Unlike experiments, they do not show cause and effect. Unlike personal interviews,
they do not dig deep into respondents’ feelings. And, unlike tracking, they do require some amount of
human input.
SOURCE:IM:289
SOURCE: IM LAP 17—Hunting and Gathering (Data-Collection Methods)
41.B
Vary question and answer type throughout the survey. When a survey includes a series of similar
questions that all have the same answer choices, participants may begin to answer them in the same
way out of habit. This can result in less accurate answers. If the question and answer types are varied
throughout, this type of inaccuracy is less likely to occur. While following a logical question order is
a characteristic of a good survey, it does not necessarily do anything to maintain respondents’ focus.
Making all questions positive and grouping related questions together could reduce respondents’ focus
rather than maintaining it.
SOURCE:IM:418
SOURCE: Creative Research Systems. (2014). Survey design. Retrieved December 9, 2015, from http://
www.surveysystem.com/sdesign.htm
42. B
Makes large amounts of data easier to analyze. Coding is the process of assigning a numerical or
symbolic value to marketing research data such as questionnaire responses. Coding allows information
to be more easily analyzed and processed by a computer, as well as by researchers. Coding does not
prevent all errors, though it does reduce them. Coding does not turn quantitative data into qualitative
data or make data less valid.
SOURCE:IM:062
SOURCE: California State University, Long Beach. (n.d.). Data entry issues. Retrieved December 10,
2015, from http://web.csulb.edu/~msaintg/ppa696/696codes.htm
43. A
Median. Median measures the middle score for a set of data that have been arranged in order of size.
Median is less affected by outliers, so it is a good way to understand the central tendency of salaries
when there are some very high or very low salaries included in the data set. On the other hand, mean,
which is the average of all numbers, can be affected by outliers. In the case of salary, a high-level
employee who makes double what everyone else makes will cause the average salary to be higher
than what is truly representative of most employees. Mode is the most frequently occurring number in
a data set. Mode is not the best way to analyze salaries because there might be more than one mode,
which can distort central tendency. Mode can also be affected by outliers. Standard deviation is the
average distance of all scores from the mean. It is not considered a measure of central tendency.
SOURCE:IM:191
SOURCE: Laerd Statistics. (2013). Measures of central tendency. Retrieved December 10, 2015, from
https://statistics.laerd.com/statistical-guides/measures-central-tendency-mean-modemedian.php
44. A
An interviewer asks respondents how often they smoke cigarettes. Smoking cigarettes is sometimes
considered to be an unwelcome social behavior. Participants might feel pressure to say that they do
not smoke cigarettes, whether or not it is true. This can affect the accuracy of the results. Sending a
customer satisfaction survey to repeat customers is an example of selection bias. If an interviewer finds
respondents via a telephone directory, the sample will not be representative of the whole population
because many people do not have listed numbers. Finally, customers who are entering a particular
hotel are more likely than the general population to pick that hotel chain as the one that they visit most
frequently, which creates an unrepresentative sample.
SOURCE:IM:292
SOURCE: Stat Trek. (2015). Bias in survey sampling. Retrieved December 11, 2015, from http://stattrek.
com/survey-research/survey-bias.aspx
21
45. B
How much more satisfied are you with our new prices? Leading questions suggest the answer that the
author of the questionnaire is looking for. They reflect the author’s bias, which can influence answers
and yield inaccurate results. This question is leading because it implies that the participants are, in fact,
more satisfied with the new prices, without giving them the option to express dissatisfaction. The other
three questions do not suggest an answer that the author is looking for, making it more likely that the
respondents will answer without the influence of bias.
SOURCE:IM:293
SOURCE: Henning, J. (2013, July 31). Ask me no leading questions, and I’ll tell you no lies. Retrieved
December 14, 2015, from http://researchaccess.com/2013/07/leading-questions/
46. B
Demonstrating corporate responsibility. Companies, large and small, have an impact on the
communities around them, and they should take action to make sure that impact is positive rather
than negative. Companies can demonstrate corporate responsibility by showing concern for their
communities, and raising money for people who were affected by a tornado is one way of doing this.
Providing proper training for employees, providing excellent customer service, and protecting the
business’s reputation are all positive actions businesses should take, but they are not illustrated in this
example.
SOURCE:MK:019
SOURCE: MK LAP 3—Just Do It…Right (Company Actions and Results)
47.B
Place. Place strategy includes getting products in the right place at the right time. One aspect of place
strategy is selecting companies to supply products and resources. Choosing a local organic produce
supplier is a decision that supports place strategy because the restaurant is deciding how to get the
products it needs to produce its dishes. Product strategy includes decisions about the goods, services,
or ideas a business offers its customers. Promotion strategy refers to the types of communication that
marketers use to inform, persuade, or remind customers about their products. Price strategy is the
process of determining how much money to ask for in exchange for products.
SOURCE:MP:001
SOURCE: MP LAP 2—Pick the Mix (Nature of Marketing Strategies)
48. B
Psychographic. Psychographic segmentation is based on the lifestyles and personalities of customers.
Because Alex demonstrated an interest in a travel show, marketers can deduce that traveling is
a part of his lifestyle. Thus, Alex would be an appropriate market for a tropical resort. Behavioral
segmentation occurs when customers are grouped based on what they are looking for in a product
and why they buy the product. Demographic segmentation divides the market on the basis of physical
and social characteristics. Geographic segmentation groups customers based on where they are
located.
SOURCE:MP:003
SOURCE: MP LAP 3—Have We Met? (Market Identification)
49. D
Environmental scanning. A situation analysis is a determination of a company’s current business
situation and the direction in which the business is headed. Environmental scanning (collecting
information about the environment surrounding your business) is an important part of situation
analysis. This involves looking for threats or opportunities in the economy and other businesses.
Environmental scanning is not referred to as competitive monitoring, business surveillance, or outside
observation.
SOURCE:MP:008
SOURCE: Clark, B., Basteri, C.G., Gassen, C., & Walker, M. (2014). Marketing dynamics (3rd ed.)
[pp. 70-71]. Tinley Park, IL: The Goodheart-Willcox Co.
22
50. C
Market conditions. When determining how far into the future to forecast sales, a business should
consider market conditions. If conditions are stable, it might be feasible to forecast for a longer period
of time. Employee morale, number of competitors, and the product’s price typically do not have any
bearing on the period of time a sales forecast covers.
SOURCE:MP:013
SOURCE: MP LAP 5—Futurecast (Nature of Sales Forecasts)
51.D
Objective. In general, facts should be objective, which means that they are true from anyone’s point of
view and are not based on emotions or personal standpoints. Facts are not always positive. Theoretical
information is based on a system of ideas, rather than proven through experiment. From a scientific
standpoint, facts should be provable. Finally, facts should not necessarily be persuasive because
persuasion usually goes hand-in-hand with opinion.
SOURCE:NF:077
SOURCE: Wisegeek. (2003-2015). What is the difference between fact and opinion? Retrieved
November 20, 2015, from http://www.wisegeek.org/what-is-the-difference-between-factand-opinion.htm
52.C
Privacy. With the availability of more information than ever, privacy has become an important ethical
issue. In this case, the programmer had to weigh the ethics of privacy verses the public’s right to
know about its elected officials. Accuracy, ownership, and control are also ethical issues related to
information management. Accuracy deals with whether or not data is correct. Ownership refers to the
right to own information. Control involves what type of information a person or organization has a right
to obtain.
SOURCE:NF:111
SOURCE: Relkin, J. (2006, August 15). 10 ethical issues confronting IT managers. Retrieved November
20, 2015, from http://www.techrepublic.com/article/10-ethical-issues-confronting-itmanagers/
53. A
Customer relationship management. Customer relationship management systems accumulate and
track customer activities and allow for interactions between customers and businesses. Transaction
processing systems collect data from user inputs and generate outputs that assist in the core
operations of a business. Supply chain management systems allow companies to work with suppliers
and partners to improve operations. Decision support systems give companies access to financial,
marketing, and operational data that helps them to make better decisions.
SOURCE:NF:083
SOURCE: Davoren, J. (2015). Types of information systems in an organization. Retrieved
November 20, 2015, from http://smallbusiness.chron.com/types-information-systemsorganization-43097.html
54. C
Prescriptive analytics. Prescriptive analysis is a form of predictive analysis. Predictive analysis attempts
to predict possible future outcomes. Prescriptive analysis takes it further and suggests one or more
future courses of action, based on the predictions of possible future outcomes. Descriptive analysis, on
the other hand, summarizes what has already happened by making raw data easy to understand and
useful. Instructive analytics is not a form of data analysis.
SOURCE:NF:139
SOURCE: Bertolucci, J. (2013, December 31). Big data analytics: descriptive vs. predictive vs.
prescriptive. Retrieved November 20, 2015, from http://www.informationweek.com/bigdata/big-data-analytics/big-data-analytics-descriptive-vs-predictive-vs-prescriptive/d/did/1113279
23
55. A
Association rule learning. Association rule learning is a data mining technique that finds relationships
between pieces of data. In this scenario, data mining revealed that people who buy frying pans
are more likely to buy spatulas. There is a proven relationship between frying pans and spatulas.
Regression, classification, and clustering are all data mining techniques. Regression predicts a number
based on certain data points. Classification assigns items to pre-determined categories. Clustering
finds items that are similar to one another to create groupings.
SOURCE:NF:149
SOURCE: Furnas, A. (2012, April 3). Everything you wanted to know about data mining but were
afraid to ask. Retrieved November 20, 2015, from http://www.theatlantic.com/technology/
archive/2012/04/everything-you-wanted-to-know-about-data-mining-but-were-afraid-toask/255388/
56. D
Can perform dangerous tasks that are unsafe for people. Robots are able to work in difficult and
dangerous conditions that would not otherwise be accessible. They are expensive to program but save
money in the long run. They do replace some jobs in certain industries. Finally, robots cannot operate
without human involvement; they need to be programmed, operated, and repaired by people.
SOURCE:OP:191
SOURCE: Business Knowledge Source. (2003-2010). The benefits and disadvantages of using robotics
in manufacturing. Retrieved November 23, 2015, from http://www.businessknowledgesource.
com/manufacturing/the_benefits_and_disadvantages_of_using_robotics_in_
manufacturing_033176.html
57.C
Immediately terminate accounts that are no longer in use. If an employee leaves the company, his/her
account should be removed so that it cannot be used to access secure information. Although ideally
all employees would be happy with the company, it is not always possible to please everyone. Strong
passwords and anti-virus software are important security measures but will not necessarily protect the
business from a disgruntled employee.
SOURCE:OP:152
SOURCE: Schiff, J. (2015, Jan 20). 6 biggest business security risks and how you can fight back.
Retrieved November 23, 2015, from http://www.cio.com/article/2872517/data-breach/6biggest-business-security-risks-and-how-you-can-fight-back.html
58. C
Invitation to bid. An invitation to bid is based strictly on price and does not usually include any
negotiations. In contrast, a request for proposal is a type of bidding solicitation in which a company
announces that funding is available for a project and companies can bid for the project’s completion.
Many factors are evaluated, and there is room for negotiation. A request for information is used when
there is insufficient information to write specifications for any procurement method and is generally
done before a complete bid or proposal. A request for qualifications is used when the selection is made
based on the skills of the contractor, rather than price.
SOURCE:OP:160
SOURCE: Youens, E. (2010, Sept 1). The ABCs of IFBs, RFPs, RFQs, and RFIs. Retrieved November 23,
2015, from http://canons.sog.unc.edu/?p=3098
59. A
Product development. Early stages in the supply chain involve procuring raw materials and developing
them into a valuable product. Creating advertisements, communicating with customers, and setting
prices are all aspects of marketing, rather than of supply chain management.
SOURCE:OP:443
SOURCE: Krajewski, L.J., Ritzman, L.P., & Malhotra, M.K. (2007). Operations management: Processes
and value chains (8th ed.) [pp. 393-405]. Upper Saddle River, NJ: Pearson Education.
24
60. D
Confidential documents should be kept in locked cabinets or rooms. Limiting access to confidential
documents is a good way to protect them. Employees should not discuss confidential information in
public places because they might be overheard. Confidential information can be printed out, but it
should be kept secure or shredded when no longer needed. Documents should be marked confidential
to ensure that their recipients are aware of the need for security.
SOURCE:OP:441
SOURCE: Jules Halpern Associates LLC. (2010, October). Why is confidentiality important? Retrieved
November 23, 2015, from http://www.halpernadvisors.com/why-is-confidentiality-important/
61.B
Keep yourself on target. It’s important to put your goals on paper. If you form an idea of what you want
to do, but neglect to write it down, you could forget it. But, a written goal is something you can refer
back to at any time. You can look it over to keep yourself on target as you work toward achieving it.
You should choose your goals before you write them down. Writing down your goals does not help you
modify or cancel them. It should help you focus on your goals, not distract you from them.
SOURCE:PD:018
SOURCE: PD LAP 16—Go for the Goal (Goal Setting)
62. C
Not everyone communicates the same way. We need creativity in communication because not
everyone communicates the same way. For example, there are cultural differences in nonverbal
communication that may require you to get creative when sending and receiving messages from
certain people. Most people know the basics of communication and don’t necessarily get tired of the
usual methods. Email can make communication more difficult, but it can also make it easier!
SOURCE:PD:012
SOURCE: PD LAP 12—Imagine That (Demonstrating Creativity)
63. B
Potential financial loss. Entrepreneurs face the possibility of uncertain income, irregular paychecks, and
potential financial loss. Increased resources and tax breaks are opportunities for would-be business
owners. Entrepreneurs do not usually have extra vacation time; instead, they may have to work long
hours and give up vacation time.
SOURCE:PD:066
SOURCE: PD LAP 66—Own Your Own (Career Opportunities in Entrepreneurship)
64. A
Other employees may not trust you. If you do not follow the organizational structure that has been set
up, other employees may not trust your intentions and reliability. Going against the chain of command
will not necessarily lead to a promotion; in fact, it might keep you from being promoted. Your
manager will not appear to be a strong communicator; rather, his or her communication skills may be
questioned. Finally, you will not necessarily be considered a strong leader; it is more likely, depending
on the situation, that your reputation will be damaged.
SOURCE:PD:252
SOURCE: Emisar, O. (2011, June 17). Should you go over the boss’s head? Retrieved November 23,
2015, from http://www.brighthub.com/office/career-planning/articles/119628.aspx
65. A
The marketing mix. The marketing mix is the combination of the four elements of marketing—product,
place, promotion, and price. A profit margin is a ratio of net profit (after taxes) divided by net sales
that reflects the profit per dollar of sales. Marketing research is the systematic gathering, recording,
and analyzing of data about a specific issue, situation, or concern. An exchange price is the amount of
money that the buyer is willing to pay and the seller is willing to accept for a good or service.
SOURCE:PI:001
SOURCE: PI LAP 2—The Price Is Right (Nature of Pricing)
25
66. A
A restaurant uses computerized pricing models to determine meal prices. Some companies use
technology, such as computerized pricing models, to help determine prices. A cruise ship offering
a limited-time-only deal, a restaurant keeping track of inventory using a spreadsheet, and a hotel
emailing an order to a supplier are not examples of technology in the pricing function.
SOURCE:PI:016
SOURCE: Bass, B. (2015). Technological factors that impact pricing strategies. Retrieved December
9, 2015, from http://smallbusiness.chron.com/technological-factors-impact-pricingstrategies-22398.html
67.B
Bait-and-switch. Bait-and-switch advertising occurs when a business promotes a low-priced item to
attract customers, then tries to sell a higher priced item. Predatory pricing occurs when a company
sells its product at a loss in an attempt to push competition out of the market. Price fixing is an illegal
business agreement in which businesses agree on prices of their goods or services, resulting in little
choice for the customer. Loss-leader pricing is a pricing strategy in which products are sold below cost
to attract customers, who will then make additional purchases in the store.
SOURCE:PI:017
SOURCE: Ellis-Christensen, T. (2015, November 9). What is a bait and switch? Retrieved December 9,
2015, from http://www.wisegeek.org/what-is-a-bait-and-switch.htm
68. B
Sales. The purpose of sales-oriented pricing objectives is to increase the total amount of income
from sales. A business might do this by charging lower prices in an effort to increase sales volume.
Profit-oriented pricing objectives focus on creating profits for the business. This is not considered an
investment-oriented or a demand-oriented pricing objective.
SOURCE:PI:002
SOURCE: PI LAP 3—Make Cents (Factors Affecting Selling Price)
69. B
Test marketing. Test marketing involves introducing the product to a limited market to see how it will
be accepted. It serves to guide product/service managers in planning actual marketing strategies.
The product is tried out in specific locations to get customers’ reactions before starting a wider
distribution. A feasibility analysis is an in-depth analysis that takes many factors into account, such
as demand, costs, competition, required investment, and potential profit. Licensing occurs when a
company buys permission to sell a product but does not actually own it. A corporate brand is all the
combined impressions and experiences associated with a company.
SOURCE:PM:001
SOURCE: PM LAP 17—Rapping Up Products (Nature of Product/Service Management)
70. B
Sales for the package are still high, but sales growth has slowed down. In the maturity stage of the
product life cycle, sales for the product are still high, but sales growth slows down. In the introduction
stage, customers are just finding out that the product exists. In the growth stage, profits improve as
sales increase rapidly and costs go down. In the decline stage, a product’s sales decrease, and its
profits begin to erode.
SOURCE:PM:024
SOURCE: PM LAP 18—Get a Life (Cycle) (Product Life Cycles)
71.A
A restaurant uses computer software to monitor inventory. Product/service management is a marketing
function that involves obtaining, developing, maintaining, and improving a product or service mix in
response to market opportunities. Using software to monitor inventory lets a restaurant be sure it has
enough product to sell. A hotel helping a customer decide where to have dinner, a cruise ship running
a television commercial, and a company using pricing software to determine prices are not examples of
technology in the product/service management function.
SOURCE:PM:039
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2012). Marketing essentials (pp. 721-723).
Columbus, OH: Glencoe/McGraw-Hill.
26
72.D
Process. Process innovation occurs when a business changes how something is done. If a restaurant
chef changes the way steaks are prepared, this is considered process innovation because the cooking
process has changed. Product innovation occurs when a business either creates or improves a product.
This is not referred to as position or prevention innovation.
SOURCE:PM:134
SOURCE: Naidu, M. (2013, May 26). What is the difference between a process innovation and a
product innovation? Retrieved December 9, 2015, from https://www.quora.com/What-is-thedifference-between-a-process-innovation-and-a-product-innovation
73.D
Customers. Companies often rely on input and feedback from customers to generate new product
ideas. In this example, the restaurant gets feedback from customers and decides to introduce new
menu items based on that feedback. This is not an example of brainstorming, observation, or trend
research.
SOURCE:PM:128
SOURCE: Clark, B., Basteri, C.G., Gassen, C., & Walker, M. (2014). Marketing dynamics (3rd ed.)
[p. 314]. Tinley Park, IL: The Goodheart-Willcox Co.
74.D
Quantity. Quantity standards specify the amount of work to be done. If Shonda’s boss expects her to
book at least 10 rooms every day, then she is being judged by a quantity standard. Quality standards
indicate the degree of excellence to be expected from a good or service. Time standards monitor the
amount of time it takes to complete an activity. Cost standards are used to specify project or product
costs.
SOURCE:PM:019
SOURCE: PM LAP 8—Raise the Bar (Grades and Standards)
75.D
They can increase a business’s expenses. Government regulations often increase a business’s expenses.
These added expenses may result from efforts to comply with the law and to produce safe products.
Or they may result from failing to comply with the law and producing unsafe products. Product
development can become more expensive because of government regulations. Because of government
regulations, businesses often have to spend time and money to correct problems. Businesses must
often carry more insurance to protect themselves.
SOURCE:PM:017
SOURCE: PM LAP 7—Protect and Serve (Consumer Protection)
76. A
Trading down. When a company decides to add a lower priced product or line to its mix, it is using a
trading down strategy. This is also sometimes called stretching down. A company might decide to do
this when it wants to attract a new target market. When a company decides to add a higher priced
product or line to its mix, it is using a trading up strategy. Alteration involves making changes in the
company’s products or lines. Contraction means removing product items or lines from the product mix.
SOURCE:PM:003
SOURCE: PM LAP 3—Mix & Match (Nature of the Product Mix)
77.B
A hotel offers a $200 room and a $50 meal in the hotel restaurant for $225. Bundling is a marketing
strategy that involves offering several products for sale as one combined product. The hotel in the
example offers a $200 room and a $50 meal in the hotel restaurant for $225. A restaurant offering a
discount or giving out coupons for buy one, get one free entrees are not examples of bundling. A hotel
charging a high price for its rooms so customers will think they are higher quality is an example of
prestige pricing.
SOURCE:PM:041
SOURCE: Clark, B., Basteri, C.G., Gassen, C., & Walker, M. (2014). Marketing dynamics (3rd ed.)
[p. 373]. Tinley Park, IL: The Goodheart-Willcox Co.
27
78. C
Responsiveness. Responsiveness—responding quickly and helpfully to customer needs, concerns, and
requests—is an employee characteristic that can be useful in positioning by people (service). Physical
form, durability, and repairability are all characteristics of product.
SOURCE:PM:042
SOURCE: PM LAP 19—Getting Piece of Mind (Factors Used to Position Products/Services)
79.B
Identity. A brand identity consists of those elements that are instantly recognizable as representing a
particular business or product, including logos, colors, and names. Brand values are beliefs or qualities
that a corporate brand stands for and is built around. Brand personality is the projection of a brand
that encompasses its values and emotional connections with consumers. Distributor brands are owned
by the retailer or wholesaler that sells the brands, rather than the manufacturer.
SOURCE:PM:206
SOURCE: PM LAP 20—Corporate Identity (Nature of Corporate Branding)
80. A
Make sure that the “upscale alternative” message is communicated consistently. When positioning
a brand, it’s important to be sure that the same message is communicated consistently through all
customer touchpoints. The restaurant should focus both on the quality of the food/service and social
media. The restaurant should not allow customers to come up with their own perceptions of the
restaurant.
SOURCE:PM:207
SOURCE: Management Study Guide. (2015). Brand positioning-Definition and concept. Retrieved
December 9, 2015, from http://www.managementstudyguide.com/brand-positioning.htm
81.A
Remind customers. Reminder promotions seek to reinforce a favorable company image that is already
present in customers’ minds. Because the guest is already staying at the hotel and the promotional
materials do not include unknown information, the hotel would not be using the materials to inform.
These specific promotional materials are not being used to collect feedback or identify customers.
SOURCE:PR:001
SOURCE: PR LAP 2—Razzle Dazzle (Nature of Promotion)
82. D
Product. The specific goal of product promotion is to persuade customers to buy a particular good
or service. A fast food company promoting a specific burger is an example of product promotion. The
primary goal of institutional (or corporate) promotion is to create a certain image of the company in the
customers’ eyes. Sending out coupons is not necessarily effective or ineffective.
SOURCE:PR:002
SOURCE: PR LAP 4—Know Your Options (Types of Promotion)
83. C
Decline stage. During a product’s decline stage, newer products enter the market, taking the place
of existing ones. Companies may slow or stop production of the product and the money invested
in promotional activities is often aimed at maintaining a positive image for the company. During
the maturity stage, the product is well-established on the market and promotion is used to remind
customers of the product’s benefits. During the introductory stage, a new product is introduced to the
market and promotional efforts inform customers of its existence. During the growth stage, competing
products appear and promotional activities focus on pointing out differences between products.
SOURCE:PR:003
SOURCE: PR LAP 1—Spread the Word (Nature of the Promotional Mix)
28
84. B
Optimize keywords on his website for search engines. Keyword optimization helps a company’s site
to include words that people are typing into search engines. This increases online traffic and helps
companies rank higher in search results. Sending emails to potential customers, starting a blog, and
creating a social media plan are all promotional methods that may increase online traffic but would not
necessarily help the site rank higher in search results.
SOURCE:PR:100
SOURCE: Boundless.com. (n.d.). Social media. Retrieved January 14, 2016, from https://www.
boundless.com/marketing/textbooks/boundless-marketing-textbook/integrated-marketingcommunications-12/the-promotion-mix-83/social-media-417-10592/
85. C
Buy a cake from us today for a chance to win a new car! This subject line is deceptive because Julie
is not actually offering a chance to win a new car. Deceptive subject lines are illegal and could result
in penalties. All other headlines in this scenario are accurate and do not mislead customers to think
they’re getting something that they aren’t.
SOURCE:PR:101
SOURCE: Bureau of Consumer Protection. (2009). CAN-SPAM Act: A compliance guide for business.
Retrieved January 20, 2016, from https://www.ftc.gov/tips-advice/business-center/
guidance/can-spam-act-compliance-guide-business
86. A
Out-of-home media. Out-of-home media, including billboards, spectaculars, and transit posters,
are promotional media that are delivered to consumers when they are away from home. Directory
advertising includes promotional messages found in directories of a general nature such as the Yellow
Pages or in specialized listings of companies in an industry. Product placement is a type of “other”
media that uses products as props in movies, television shows, and computer games. Telemarketing
is an advertising 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.
SOURCE:PR:007
SOURCE: PR LAP 3—Ad-Quipping Your Business (Types of Advertising)
87.D
Amplified word of mouth. Amplified word of mouth marketing occurs when a marketer launches a
campaign to accelerate or encourage existing word of mouth marketing. Organic word of mouth
marketing is natural promotion and publicity for a business provided by customers who tell others of
their satisfaction with the business. Cause marketing involves cooperation with a nonprofit organization
and benefits both parties. Opt-in email marketing takes place when a company sends electronic
promotional messages with a recipient’s permission, allowing the recipient to request removal from the
subscriber list at any time.
SOURCE:PR:247
SOURCE: University College Falmouth. (2011). Introducing word of mouth marketing. Retrieved
January 20, 2016, from http://www.slideshare.net/UCFadvertising/introducing-word-ofmouth-marketing
88. C
Rebate. A rebate is a return of part of the price a customer pays for a good or service after the sale,
usually offered by the product’s manufacturer. A coupon is a certificate that discounts a good or
service when redeemed. A sweepstakes is a game of chance in which a customer wins a prize. A
markdown is a reduction in the selling price of goods at the point of sale.
SOURCE:PR:249
SOURCE: Inc.com. (2014). Rebates. Retrieved January 20, 2016, from http://www.inc.com/
encyclopedia/rebates.html
29
89. C
Press release. A press release is written information provided to the media in order to obtain publicity.
This is a great tool to gain publicity about grand openings and newsworthy events. A trade show is an
event where businesses display and/or demonstrate their products to build sales leads and interest.
A newsletter is a message that provides information of interest to particular groups, such as a current
customer base. A financial report is a document containing information related to the overall income
and expenses of a business.
SOURCE:PR:250
SOURCE: IPR.org.uk. (2012). PR tools and techniques. Retrieved January 20, 2016, from http://www.ipr.
org.uk/pr-tools-and-techniques.html
90. C
Layout. The layout is the way in which the elements of an advertisement are arranged. The layout
establishes the focal point of the ad and the organization and flow of information. The unique selling
proposition is the one-of-a-kind attribute of a product or brand that separates it from the competition.
Ad placement is the medium and position where you place your advertisement. A logo is a business’s
distinctive symbol, design, or group of letters.
SOURCE:PR:014
SOURCE: Hudgins, C. (n.d.). 7 elements of print advertising. Retrieved January 15, 2016, from http://
yourbusiness.azcentral.com/7-elements-print-advertising-5911.html
91.A
Brand standards. Brand standards are the rules for designing and writing advertising and brand
materials. White space is blank space in a print advertisement that is unoccupied by text or
illustrations. A tagline is a company’s slogan used in an advertisement. The layout is the way in which
the elements of an advertisement are arranged.
SOURCE:PR:251
SOURCE: Berry, T. (n.d.) Brand standards create consistent image and identity. Retrieved January 15,
2016, from http://www.mplans.com/articles/brand-standards-create-consistent-image-andidentity/
92. A
Social media. Social media are interactive forms of electronic communications through which users
build communities, network, share information, etc. A newsletter, a podcast, and search engine
optimization are one-way public relations activities and are not interactive.
SOURCE:PR:252
SOURCE: Meranus, R. (n.d.). Developing a PR plan. Retrieved January 15, 2016, from http://www.
entrepreneur.com/article/173460
93. B
Self-confidence. When Jenny stands up straight, speaks clearly, and looks her potential customers
in the eye, she’s showing self-confidence. Self-confidence shows that Jenny believes in her product,
which leads customers to trust her. Self-motivation, customer knowledge, and creativity are all
important characteristics of successful salespeople, but they are not shown by Jenny in this example.
SOURCE:SE:017
SOURCE: SE LAP 117—Sell Away (The Nature and Scope of Selling)
94. C
It enhances the customer’s use of a good or service. Quality customer service should enhance the
customer’s use of a good or service. Customer service encompasses all activities and benefits provided
by a business to its customers to create goodwill and customer satisfaction. It isn’t one-size-fits-all—
instead, it means different things to different people. Customer service should be more of a relationship
than a department or a mere business function. Customer service actually becomes especially
important after the sale is closed—that’s when a salesperson is able to take advantage of many postsale opportunities.
SOURCE:SE:076
SOURCE: SE LAP 130—Go Beyond the Sale (Customer Service in Selling)
30
95. B
Company leads. When Marcella participates in an industry trade show, she’s obtaining company leads.
Company leads can come from information provided by a company, its advertising, participation in
trade shows, telemarketing, social media campaigns, and direct-mail marketing. External sources are
people and organizations outside the business used for locating potential customers. Personal sources
are contacts that each individual has through his/her customers, friends, or relatives. Referrals are
individuals or businesses to whom salespeople are recommended by loyal customers.
SOURCE:SE:828
SOURCE: SE LAP 115—Keep Them Loyal (Building Clientele)
96. C
Consumer regulation. The Credit Card Act of 2009 affects a business’s selling policies because it
is a consumer regulation. Antitrust regulations are also regulatory factors, but they focus on fair
competition between businesses. Internal factors are under the business’s own control. The Credit Card
Act should not be a potential problem for businesses if they intend to treat their customers fairly.
SOURCE:SE:932
SOURCE: SE LAP 121—Sell Right (Selling Policies)
97.B
Bribery. Making illegal payments intended to secure business or products in return is known as bribery.
When Lauren bribes a potential customer, she’s engaging in unfair competition. It’s hard for one
company to behave honestly and legally when other companies are engaging in bribery. Negligence,
misrepresentation, and slander are all illegal activities, but Lauren isn’t engaging in them in this
example.
SOURCE:SE:108
SOURCE: Korver, C.D. (2008, October 22). Sales commission or bribe? Retrieved January 13, 2016,
from https://hbr.org/2008/10/sales-commission-or-bribe-1
98. A
Product history. The fact that a product has been around for over 100 years is part of its product
history. This information does not tell a customer how the product should be used, where it was made,
or anything about its warranty.
SOURCE:SE:062
SOURCE: SE LAP 131—Get Informed (Acquiring Product Information for Use in Selling)
99. A
His/Her own product. Customers depend on salespeople for information and advice. That’s why it’s
so important to be completely familiar with your product and be prepared to translate features into
benefits for individual customers. To do this, it’s helpful to create a feature-benefit chart. To do this,
a salesperson must know facts about his/her own product. When making a feature-benefit chart,
a salesperson does not need to know facts about the customers’ background, the current business
market, or her/his competitors’ feature-benefit charts.
SOURCE:SE:109
SOURCE: SE LAP 113—Find Features, Boost Benefits (Feature-Benefit Selling)
100. C
Secure; self-actualized. Maslow’s hierarchy of needs explains that some needs must be satisfied before
others. First, physical needs (such as air, water, food, shelter, and clothing) must be satisfied. The need
for security and safety is next. This must be satisfied before self-actualization can be attempted. Selfactualization is the last level of need. It comes after love and acceptance. People must satisfy their
need for shelter before they can satisfy their need to be liked.
SOURCE:SE:359
SOURCE: Clark, B., Basteri, C.G., Gassen, C., & Walker, M. (2014). Marketing dynamics (3rd ed.)
[p. 243]. Tinley Park, IL: The Goodheart-Willcox Co.
31
NOTES
NOTES
NOTES
HOSPITALITY
2016 PRACTICE EXAM BOOKLETS
This publication is designed to assist DECA members and their local chapter
advisors in preparing for the DECA Career Cluster Exams. This booklet will be
useful in preparing students for local, state and international competition by
familiarizing them with the format and structure of DECA’s Career Cluster Exams.
FOLLOW DECA IMAGES
ON PINTEREST FOR
EVENT SPECIFIC MATERIALS
ORDERING INFORMATION
703-860-5006
8:30 AM – 4:30 PM EST
www.shopdeca.org