2005 DECA Ontario December Provincials Test 852 BUSINESS SERVICES 1
1. Which of the following is a good guideline for an engineering business that wants to be socially responsible: A. Promise customers what they want C. Limit expensive product testing B. Use unethical business schemes D. Offer a safe work environment
2. What is one reason why the United States is considered to be a service-based economy? A. There is a limited opportunity for U.S. businesses to provide services overseas. B. Service industries do not have to abide by government regulations. C. There is a trend in the U.S. toward the production of tangible products. D. The majority of U.S. jobs are in the service industry.
3. Which of the following is an example of a business involved in services marketing activity: A. Museums C. Engineering firms B. Charitable organizations D. Churches
4. Which of the following is directly affected by a health spa's intelligent purchasing: A. Consumer awareness C. Management B. Customer satisfaction D. Distribution
5. A service business accidentally bills one customer's account for another customer's purchase. To correct the mistake, the business needs to A. close the account. C. transfer the charges. B. cancel the purchase. D. inform the customers.
6. Service businesses that require at least partial payment for their services in advance usually process these payments as A. expenses. C. rebates. B. deposits. D. profits.
7. Interest a consulting business earns from its bank accounts is included in which category of the profit- and-loss statement? A. Assets C. Revenue B. Net income D. Gross sales
8. One way that budgets help to keep service businesses financially sound is by A. regulating assets. C. limiting savings. B. paying bills. D. controlling spending.
9. Which of the following is a current trend in services marketing: A. Advertising C. Positioning B. Franchising D. Discounting
10. One way that technological innovation has changed business is by decreasing the use of A. fax machines. C. paper forms. B. skilled workers. D. phone systems.
11. Which of the following is a standard function of most spreadsheet software programs: A. Creating slide presentations C. Managing database files B. Preparing promotional brochures D. Performing financial calculations
12. One way that technology impacts services marketing is that it A. has slowed down delivery times. B. enables customers to serve themselves. C. has eliminated channels of distribution. D. results in more interaction between customers and employees.
Copyright © 2006 by Marketing Education Resource Center®, Columbus, Ohio 2005 DECA Ontario December Provincials Test 852 BUSINESS SERVICES 2
13. To reduce the risk of financial loss due to unpaid bills or returned checks with insufficient funds, the most appropriate action a marketing research company takes is to A. immediately retain a collection agency to coordinate payment plans from clients. B. retain legal counsel to sue the client before the client signs a contract. C. conduct a credit check and advise the client of payment policies and procedures. D. allow the client to pay invoices when the client has the funds to do so.
14. What procedures should salespeople at a cellular telephone equipment store follow to open the store when they're the first to arrive? A. If the alarm has already been turned off when they open the door, it means simply that another coworker has already arrived. B. Leave the door open as they're going inside the building to make a quick escape if they need to C. Turn off the alarm first; then go back outside to check for signs of suspicious activity D. Check outside and inside for signs of suspicious activity, and if they detect any, don't go in; call for help immediately
15. 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. license the design. C. register the trademark. B. negotiate a copyright. D. obtain a patent.
16. Lately, Tim has been given more and more responsibility at work. He feels that he isn't able to get one job done before his boss gives him more to do. The pressure that he is feeling is called A. horseplay. C. anger. B. stress. D. fatigue.
17. The sender of a verbal message can determine whether s/he is being understood by A. organizing the message. C. observing feedback from the receiver. B. repeating the message. D. using appropriate gestures.
18. What is one way businesspeople can improve their active listening skills? A. Asking questions during the speaker's message to reduce barriers B. Concentrating on remembering what the speaker says C. Controlling the conversation by monitoring their own nonverbal language D. Paying more attention to the speaker's nonverbal cues than to her/his tone of voice
19. Which of the following would be a correct salutation in a business letter when you do not know the name of the person to whom you are writing the letter: A. Dear Accounting Department: C. Dear Sir: B. Dear Madam: D. Dear Accounting Manager:
20. Communication between two employees with the same level of authority in the accounting business is ______communication. A. external C. horizontal B. vertical D. departmental
21. An employee accidentally learns that several coworkers will be fired in the near future. What should the employee do with that information? A. Keep it confidential C. Tell the coworkers B. Verify the information D. Report it to managers
22. It is important to communicate honest information about the types of services customers can expect to receive so that the business can A. identify new ways to promote its services. C. determine its target audience. B. improve its levels of productivity. D. meet the expectations of its customers. 2005 DECA Ontario December Provincials Test 852 BUSINESS SERVICES 3
23. One factor that affects the decision a chain of beauty salons makes about its distribution system is A. company size. C. production. B. staffing arrangements. D. warehouse size.
24. Which of the following is an example of distribution in services marketing: A. A medical office giving flu shots C. A pharmacy filling prescriptions B. A drug company developing vaccines D. A customer buying pain medication
25. What advances in information technology are changing the logistics used in providing services? A. Kiosks that gather customer information via a touch screen B. Use of shelf-talkers in retail stores C. Identification of the most cost-effective routing of delivery vehicles D. Check authorization systems
26. Which of the following is an example of a service intermediary: A. Drugstore clerk C. Sales manager B. Fashion designer D. Insurance broker
27. One reason why distribution arrangements such as exclusive dealing and exclusive territories are often illegal is because they tend to A. eliminate middlemen. C. limit advertising. B. restrict competition. D. regulate marketing.
28. Which of the following benefits of partnerships among channel members in a distribution channel has the most potential for misuse: A. Sharing of sensitive information C. Improved product quality B. Lower inventories and operating costs D. Rapid order fulfillment
29. Goods purchased by producers and used to produce other goods and services are referred to as ______goods. A. industrial C. consumer B. shopping D. production
30. Warm summers and cold, snowy winters are examples of weather factors that have an influence on customers' A. understanding of resources. C. desire to conform. B. concept of value. D. demand for services.
31. The market's way of rationing limited resources, goods, and services to consumers in a market economy is through A. commissions. C. incentives. B. profits. D. prices.
32. Net profit is money left after a health care business has paid A. its operating expenses. C. its employees' salaries. B. the cost of goods for resale. D. all of its expenses.
33. How is productivity different for service marketers than for marketers of more tangible products? A. "Productivity" and "quality" are the same concepts. B. "Output," or final outcome, depends on the perception of the customer. C. Service productivity is more easily measured than is productivity for tangible products. D. Providing services requires far fewer resources than are required for tangible products.
34. Which of the following is not an advantage of labor specialization: A. Increased interdependency C. Increased production rates B. Increased worker efficiency D. Simplified training of workers 2005 DECA Ontario December Provincials Test 852 BUSINESS SERVICES 4
35. What is the term for higher levels of output resulting from putting more workers on the job? A. Return on input C. Increasing returns B. Return on revenue D. Marginal returns
36. Fluctuations in economic activities are referred to as business A. cycles. C. supply. B. demand. D. channels of distribution.
37. When an architectural business uses data from its marketing-information management system to determine the firm's current business position and the direction in which the business is headed, the business is preparing a A. sales forecast. C. data analysis. B. marketing-research report. D. situation analysis.
38. Service businesses that obtain information about competitors with the use of questionable techniques, even though these techniques are legal, are often behaving A. carelessly. C. unethically. B. aggressively. D. recklessly.
39. Which of the following is an overall reason that marketing research is important to rental businesses: A. It contributes to business success. B. It improves financial management. C. It makes competitors take notice of the business. D. It helps the business to base decisions on opinions.
40. A local entertainment venue conducts an initial survey to establish ratings for certain types of service. It plans to evaluate these same elements next year to determine whether the level of satisfaction is the same. This is known as A. communicating with the target market. C. assessing market position. B. benchmarking and evaluating. D. establishing a demographic profile.
41. Which of the following is the process of assigning numeric values to each response on a marketing questionnaire: A. Testing C. Sizing B. Coding D. Marking
42. Which of the following is the most commonly used measurement of central tendency: A. Mode C. Mean B. Median D. Model
43. A combination of the four elements of marketing yields the A. product. C. price. B. marketing mix. D. marketing concept.
44. What basic question should a service business's marketing strategy always answer? A. How much do managers earn? C. Why should the customer choose us? B. Where are our competitors located? D. What service is being offered?
45. Which of the following is an example of a business designing its services to appeal to a specific target market: A. A movie theater featuring multiple screens C. A health club offering early morning aerobics B. A real estate company holding open houses D. A dry cleaner offering discounts 2005 DECA Ontario December Provincials Test 852 BUSINESS SERVICES 5
46. One of the main reasons for developing a marketing plan is to identify the strategies necessary to achieve the marketing A. objectives. C. mix. B. functions. D. share.
47. What does a health care facility try to identify as a result of conducting a situational analysis? A. Threats and opportunities C. Goods and services B. Revenues and expenses D. Profits and losses
48. Which of the following would estimate what a barber shop's dollar sales volume would be for a specified period of time: A. Stock-turnover ratio C. Demand analysis B. Dollar control D. Sales forecast
49. It is important for all team members to contribute their ideas to the team, even when they think their ideas may not be accepted, because this A. helps the team to make a good decision. B. ensures that the team will be objective. C. prevents disagreements among team members. D. demonstrates commitment to the team's goals.
50. "Greeting" guests or clients is important because it can involve not only spoken words but also A. providing a copy of available services. C. singing. B. nonverbal behavior. D. making them find you.
51. Is it appropriate to express empathy about a positive event such as winning a competition or getting a promotion? A. No, empathy is only appropriate in problem situations. B. Yes, you can express empathy by using sympathy. C. Yes, you can give the person supportive feedback. D. No, people who have positive experiences don't need empathy.
52. Which of the following is the best way to handle dishonest customers: A. Don't jump to quick conclusions. B. Never press for sales or decisions. C. Mirror their behavior. D. Explain and demonstrate good service as many times as you need to.
53. If an accounting business is planning a project that will take 40 hours to complete and must be done in one week, which two employees should be assigned the project if the business has four part-time employees who work the following schedule:
Employee Mon. Tues. Wed. Thurs. Fri. Employee A 9-12 9-12 8-12 9-12 9-12 Employee B 1-4:30 1-4:30 1-4:30 1-4:30 1-4:30 Employee C 7:30-12 7:30-12 7:30-12 7:30-12 7:30-12 Employee D 11-2 11-2 11-2 11-2 11-2
A. Employees C & A C. Employees B & C B. Employees A & D D. Employees D & C
54. Employees who serve customers efficiently help to control expenses by A. improving morale. C. reducing complaints. B. increasing returns. D. decreasing volume. 2005 DECA Ontario December Provincials Test 852 BUSINESS SERVICES 6
55. One of the factors that affects the physical image you present to others is your personal A. integrity. C. biases. B. opinions. D. health.
56. Which of the following is likely to be the result when an insurance business loses its reputation for dealing honestly with its customers: A. Increased employee morale C. Reduced business expenses B. Reduced sales and profits D. Increased customer confidence
57. By demonstrating initiative, an employee can usually increase his/her chances of being A. terminated. C. promoted. B. exploited. D. transferred.
58. Which of the following is a personal trait that most often helps employees succeed in the services marketing industry: A. Eye-hand coordination C. Artistic talent B. Verbal ability D. Mechanical skill
59. Comprehending your own interests, abilities, values, attitudes, and personality traits is called A. self-discipline. C. self-esteem. B. self-information. D. self-understanding.
60. You have just had an experience that greatly reduced your level of self-esteem. Which of the following is a constructive action to take: A. Wish it hadn't happened. C. Forget about it. B. Brood about what happened. D. Analyze what happened.
61. Which of the following is a characteristic of a good goal: A. Safe C. Realistic B. Conservative D. Convenient
62. Where could you find up-to-date information about jobs that are available to persons with physical and sensory disabilities? A. Nonprofit vocational training programs C. High school special-education department B. State departments of vocational rehabilitation D. College offices of disability services
63. A true statement about career opportunities in services marketing is that there are jobs available A. in all levels and all pay ranges. C. in a few specialized industries. B. only for highly trained professionals. D. primarily for entry-level workers.
64. What should a job applicant do when there is a question on a job application that does not apply to him/her? A. Draw a line through the blank or mark it NA C. Ask the interviewer what to do B. Create an acceptable answer D. Leave the space blank
65. One of the services that professional organizations provide service marketers is A. assistance with personalized advertising and media campaigns. B. lists of names of competitors' customers. C. information about new trends, products, techniques, and services. D. help with raising operating capital.
66. What business function often is affected by the actions of competitors? A. Financing C. Billing B. Pricing D. Accounting 2005 DECA Ontario December Provincials Test 852 BUSINESS SERVICES 7
67. One variable factor that has a significant impact on the price that a business charges for its services is the A. cost of insurance. C. physical facility. B. number of employees. D. time involved.
68. Which of the following technological tools is commonly used to calculate simple mathematical computations such as unit selling prices: A. Fax machine C. Scanner B. Calculator D. Palm pilot
69. An advantage of profit-oriented pricing is that the consulting business A. can be more competitive. C. is more likely to achieve its profit goals. B. knows what prices will be most profitable. D. is focused on making money.
70. A method of handling new service planning that involves taking over another company is known as A. acquisition. C. development. B. screening. D. commercialization.
71. What is one of the first steps that businesses take when planning what type of new service to offer? A. Monitoring planned changes C. Identifying growth opportunities B. Promoting the idea to customers D. Testing in specific areas
72. During which of the following stages of the product life cycle is competition at its peak: A. Introduction C. Decline B. Growth D. Maturity
73. What is one way that service businesses are using the information that they are able to obtain due to the advances in Internet technology? A. To compile customer databases C. To develop production systems B. To interview potential employees D. To prepare operating policies
74. As individuals and businesses look to develop new services in the future, one of the trends they need to recognize is A. supply and demand. C. training. B. franchising. D. customer satisfaction.
75. Which of the following is an example of a business establishing a service standard based on customer expectations: A. Charging a fee for missed appointments C. Requiring a phone number to process orders B. Providing new eyeglasses in one hour D. Operating from 9:00 a.m. to 5:00 p.m. daily
76. The Federal Trade Commission protects consumers from high-pressure selling tactics by enforcing a regulation that gives consumers a(n) A. three-day cooling-off period. C. update on motor vehicle safety. B. list of harmful ingredients. D. standard for prescription drug use.
77. Which of the following provides a product found in the services industry: A. Automobile manufacturer C. Specialty gift catalog B. Florist D. Tax consultant
78. What strategy can make or break a beauty salon's product mix? A. Positioning C. Altering B. Contracting D. Expanding 2005 DECA Ontario December Provincials Test 852 BUSINESS SERVICES 8
79. What elements of the marketing mix are being used when a rental business positions a product by using high price as a sign of quality? A. Price and promotion C. Price only B. Price and product D. Price and place
80. The name that identifies a company or an organization is a A. trade name. C. brand mark. B. brand. D. trade character.
81. In promotional communication, the feedback that buyers (consumers) give to senders (businesses) is usually in the form of A. suggestions. C. referrals. B. complaints. D. purchases.
82. What is the primary purpose of institutional advertising? A. To increase sales C. To build goodwill B. To introduce new products D. To provide product information
83. A credit-card company offers one month of free credit-card protection to credit-card holders. This promotional technique is called A. a gift premium. C. couponing. B. sampling. D. price/quantity promotion.
84. Which of the following ways of promoting a cleaning business is not a form of advertising: A. Newspaper article C. Billboard B. Television commercial D. Radio spot
85. An advertisement that portrays teenaged boys as lazy and middle-aged men as hard working is an example of A. sexism. C. stereotyping. B. discriminating. D. harassment.
86. One of the advantages to service businesses of using a communication medium made possible by advanced technology to promote products is that the medium is A. inexpensive. C. regulated. B. standardized. D. interactive.
87. If the headline of a print advertisement identifies a problem, then the copy that follows should provide A. reactions. C. examples. B. descriptions. D. solutions.
88. What is a common thread among all direct advertising strategies? A. They try to get consumers' attention by communicating in the most unusual ways possible. B. They use a proven creative technique, with a strong headline and little copy. C. They communicate with all consumers as one group with common likes and dislikes. D. They intend to motivate the consumer to take action.
89. An important way that many lawn care businesses use databases in advertising is to manage A. in-house promotions. C. freelance writers. B. direct-mail lists. D. radio commercials.
90. A barber shop's promotional activities should be coordinated so that they A. function independently. C. are contrasting. B. compete with each other. D. reinforce each other. 2005 DECA Ontario December Provincials Test 852 BUSINESS SERVICES 9
91. A dry cleaner who offers cleaning and pressing is selling something A. intangible. C. tangible. B. nonessential. D. unprofitable.
92. One way that a service business builds a clientele is by establishing desirable business A. slogans. C. budgets. B. policies. D. objectives.
93. By treating customers fairly, salespeople are often rewarded with increased A. corporate privacy. C. customer loyalty. B. customer gifts. D. social responsibility.
94. The modern technology used to deliver services to customers often allows the customers to A. obtain appraisals. C. serve themselves. B. negotiate discounts. D. have personal contact.
95. Under what law is it illegal for U.S. executives of publicly traded companies to bribe government officials of other countries in order to obtain business? A. Foreign Corrupt Practices Act C. Clayton Act B. Sherman Antitrust Act D. Unethical Business Practices Act
96. Which of the following would be appropriate individuals from whom a new insurance salesperson could quickly obtain up-to-date information about the services s/he will be selling: A. Producers of the office supplies C. Receiving department employees B. Experienced salespersons within the firm D. New purchasers of the policies
97. Which of the following is a risk that customers might think they will encounter as a result of purchasing services: A. Tangibility C. Cancellation B. Profitability D. Deregulation
98. Having what type of information about a product tends to give a salesperson confidence? A. Promotional materials C. Industry data B. Manufacturer's publications D. Firsthand knowledge
99. Obtaining business and personal information about potential clients is part of the ______phase of the selling process. A. approach C. prospecting B. follow-up D. closure
100. During which of the following stages of the buying process do customers determine whether to return to the service provider in the future: A. Service delivery stage C. Prepurchase stage B. Service encounter stage D. Postpurchase stage 2005 DECA Ontario December Provincials Test 852 BUSINESS SERVICES 10
1. D Offer a safe work environment. Engineering businesses on local, state, and national levels are becoming increasingly aware of the importance of being responsible to consumers, to the community, and to their employees. These businesses offer employees safe, secure places to work; and they follow ethical business practices in developing and maintaining good customer relations. This includes offering honest values and testing products thoroughly. SOURCE: BA:001 SOURCE: MB LAP 6—Business and Society
2. D The majority of U.S. jobs are in the service industry. More than 70% of U.S. jobs are held by people who work in the service industry. These people and their employers pay taxes to the U.S. government, and they spend their income in ways that further support the U.S. economy. The Internet and lenient trade regulations have actually created boundless opportunities for U.S. businesses, such as Hertz and American Express, to sell their services overseas. In many cases, the government imposes stricter regulations on service industries, such as telecommunication companies, in order to prevent monopolies from forming. The U.S. is moving away from a manufacturing economy to a service-based economy as businesses move their operations oversees to find cheaper labor. SOURCE: BA:104 SOURCE: Zeithaml, V.A., & Bitner, M.J. (2000). Services marketing: Integrating customer focus across the firm (2nd ed.) [pp. 5-6]. Boston: Irwin/McGraw-Hill.
3. C Engineering firms. These types of businesses are involved in services marketing. They do not sell tangible products but provide design and consulting services. Their primary goal is to make a profit. Charitable organizations, museums, and churches are nonprofit or "nonbusiness" organizations. Although these nonbusiness organizations perform most of the same activities that regular businesses do, their primary goal is NOT to make a profit. SOURCE: BA:106 SOURCE: Etzel, M.J., Walker, B.J., & Stanton, W.J. (2001). Marketing (12th ed.) [pp. 124-125]. Boston: Irwin.
4. B Customer satisfaction. In order to satisfy customers, health spas must make wise decisions as to what, when, and how much to buy. Promotion is used to create consumer awareness. Management is the process of coordinating resources in order to accomplish an organization's goals. Distribution involves moving, storing, locating, and/or transferring ownership of goods and services. SOURCE: BA:005 SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [pp. 547-548]. Cincinnati: South-Western.
5. C Transfer the charges. On occasion, a business might accidentally bill the wrong account. When this happens, the business needs to transfer those charges from one account to another in order to bill the correct account. The process often involves crediting one account and transferring the charge to the other account. It is not necessary to cancel the purchase or close the account in order to correct the mistake. Informing the customers will not correct the mistake. SOURCE: BA:109 SOURCE: Vallen, G.K., & Vallen, J.J. (2000). Check-in: Check-out (6th ed.) [pp. 344-345]. Upper Saddle River, NJ: Prentice Hall.
Copyright © 2006 by Marketing Education Resource Center®, Columbus, Ohio Test 852 BUSINESS SERVICES — KEY 11
6. B Deposits. Some businesses require customers to make advance payments for services to be provided in the future. In many cases, these payments are in the form of deposits which may be a flat fee or a percent of the total price. Businesses often require deposits to guarantee that customers will pay for the services or to offset the expense if customers cancel. Expenses are monies that a business spends. A rebate is a return of part of the price a customer pays for a good or service, usually offered by the product's manufacturer. Profits are the monetary rewards business owners receive for taking the risk of investing in business. SOURCE: BA:112 SOURCE: Vallen, G.K., & Vallen, J.J. (2000). Check-in: Check-out (6th ed.) [pp. 148-149]. Upper Saddle River, NJ: Prentice Hall.
7. C Revenue. The revenue category of the profit-and-loss statement includes the total amount of money earned by a consulting business. It includes interest earned from bank accounts, returns on investments, sale of assets, and sales of the business's goods and services. Assets are anything of value that the business owns and are included on a balance statement. Net income is the money remaining after operating expenses are subtracted from gross profit. Gross sales is the total value of goods or services sold in a period of time. SOURCE: BA:020 SOURCE: MN LAP 61—Profit-and-Loss Statements
8. D Controlling spending. Budgets act as lifelines for businesses by helping to control spending. Some service businesses spend money without thinking about paying their expenses. A budget helps to keep businesses financially sound by preparing for bills and expenses ahead of time. Budgets prepare for bills but do not actually pay them. Budgets list assets but do not regulate them. Effective budgets help to increase profits, which enable businesses to increase savings. SOURCE: BA:024 SOURCE: FI LAP 3—Money Talks (Nature of Budgets)
9. B Franchising. Franchising is a method of distributing goods and services through a licensing arrangement between the franchisor and franchisee. The franchising of services is a growing trend, and in many areas it is replacing the small, independent service business. For example, the service of tax preparation is being taken over by a few, large chains that have franchised locations. The advantage of franchising is that the service is consistent because of procedures required by the franchisor. Positioning is a product mix strategy in which a business creates a certain image or impression of a product in the minds of consumers. Advertising is any paid form of nonpersonal presentation of ideas, goods, or services. Discounting is reducing the price of services. Positioning, advertising, and discounting are ongoing processes and activities rather than being current trends. SOURCE: BA:115 SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (p. 10). Upper Saddle River, NJ: Prentice Hall.
10. C Paper forms. Technological innovation is greatly reducing the need for paper forms because much of the information that previously was stored and transmitted on paper is now being sent by computer. Businesses often send e-mails rather than letters or printed documents. Various types of disks store vast amounts of data that once were housed in file cabinets. Computerized invoices enable businesses to send bills and receive payment without the need for printed forms. As technology continues to advance, the need for paper forms will continue to decrease. Technological innovation has increased the use of skilled workers. Technological innovation has not decreased the use of phone systems and fax machines. SOURCE: BA:030 SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [p. 195]. Cincinnati: South-Western. Test 852 BUSINESS SERVICES — KEY 12
11. D Performing financial calculations. Spreadsheet software enables businesses to perform accounting, financial, and other mathematical functions. A user can enter numerical information in rows and columns, and the software will perform various calculations or analyses. For example, spreadsheet programs can calculate sales forecasts and develop budget projections. Presentation software is used to create slide presentations. Desktop publishing software is used to prepare promotional brochures. Database software is used to manage database files. SOURCE: BA:034 SOURCE: Longenecker, J.G., Moore, C.W., & Petty, J.W. (2000). Small business management: An entrepreneurial emphasis (11th ed.) [pp. 461-463]. Cincinnati: South-Western College.
12. B Enables customers to serve themselves. Technological advancements have made it possible for customers to serve themselves by doing such things as tracking their orders and buying their airline tickets on the Internet. Because of this ability to provide self-service, there is actually less of a need for employees to interact with customers. Technology has resulted in new channels of distribution for service delivery (e.g., mortgage quotes can be delivered via e-mail), but it has not eliminated the need for them altogether. Technology has made it possible for services to be delivered 24 hours a day, seven days a week, thereby, expanding upon the times in which services can be delivered. SOURCE: BA:160 SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (pp. 213-214). Upper Saddle River, NJ: Prentice Hall.
13. C Conduct a credit check and advise the client of payment policies and procedures. As a professional organization, many marketing research companies invoice clients when work is complete. By conducting a credit check on the client before beginning a project, a company can identify the client's past payment history. If the client's history shows a record of prompt payment, then the client might be considered a good risk. It is also important to make sure the client understands the company's payment expectations and requirements before the company performs any service for the client. Sometimes the companies require contracts to be signed. Allowing the client to pay invoices at the client's convenience is not an ideal option. The company runs the risk of never being paid. The company needs the incoming payments to pay salaries and other operating expenses related to the company. Although some businesses do outsource accounts-receivable functions, many collection agencies are not contacted to collect funds until a client has not paid fees over a specific period of time. In addition, this option can be very expensive. Businesses do not sue clients prior to signing a contract or providing a service for the clients. SOURCE: BA:084 SOURCE: Eckhoff Accountancy Corporation. (n.d.). Collecting accounts receivable. Retrieved October 31, 2005, from http://www.eckhoff.com/Forum/forum_401_ar.htm
14. D Check outside and inside for signs of suspicious activity, and if they detect any, don't go in; call for help immediately. Technical salespeople should always be alert as they are coming to work, especially if they are first to arrive. A break-in could have occurred during the night, and even worse, the criminal could still be in or around the building. If they detect even the slightest sign of unusual activity, they should not go into the building. Instead, they should call for help and wait until the police can accompany them into the building. If they've gone into the building and turned off the alarm, they should not go back outside. They should always check outside for suspicious activity before they enter the building. They shouldn't leave the door open when they go inside the building. If someone is outside, they do not want them to be able to come in. If they believe they are the first to arrive at work but discover that the alarm has already been turned off, they should exercise caution. While it is likely that a coworker has simply arrived before them, there could also be an intruder inside. SOURCE: BA:086 SOURCE: German-Grapes, J. (1997). The teller's handbook: Everything a teller needs to know to succeed. (p. 255). McGraw-Hill, 1997. Test 852 BUSINESS SERVICES — KEY 13
15. C 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:173 SOURCE: Mullin, B.J., Hardy, S., & Sutton, W.A. (2000). Sport marketing. (2nd ed.) [pp. 363-375]. Champaign, IL: Human Kinetics.
16. B Stress. Stress is a mental or emotional feeling of pressure or tension. Stress can cause behavior problems such as carelessness or inattention on the job. Fatigue is a state of mental or physical tiredness. Horseplay is behavior such as running, jumping, wrestling, or showing off. Anger is a high level of displeasure often accompanied by hostility. SOURCE: BA:046 SOURCE: RM LAP 2—Following Safety Precautions
17. C Observing feedback from the receiver. The way in which listeners react to what they hear is a form of feedback. Feedback can be expressed through words or gestures. For example, a puzzled expression may indicate lack of understanding, while a nod of the head or a positive comment such as "Yes, I see" would indicate the receiver feels s/he understands what the speaker is saying. In some cases, repeating the message may be necessary but does not tell the speaker whether the message was understood. Organizing the message and using appropriate gestures are good communication techniques. SOURCE: CO:015 SOURCE: Hyden, J.S., Jordan, A.K., Steinauer, M.H., & Jones, M.J. (1999). Communicating for success (2nd ed.) [pp. 80-82]. Cincinnati: South-Western Educational.
18. B Concentrating on remembering what the speaker says. One technique people use to improve listening skills is to make a conscious effort to try to focus and remember what the speaker says. Staying focused on the message and filtering out noise as much as possible improves the chances of remembering and accurately understanding the message. Listeners may want to be aware of their own body language (e.g., facial expressions, crossed arms) because their nonverbal cues are also being interpreted by the speaker and can affect communication. However, monitoring one's own nonverbal cues does not necessarily mean that the listener takes control of the conversation. Asking questions during the speaker's message does not necessarily reduce listening blocks or barriers. To decipher a message accurately, the listener must not only pay attention to the speaker's words but also to her/his nonverbal cues and voice tone. Nonverbal cues are not necessarily more important than tone of voice. SOURCE: CO:017 SOURCE: Lesikar, R.V., Pettit, J.D., Jr., & Flatley, M.E. (1999). Lesikar's basic business communication (8th ed.) [pp. 432-433]. Boston: Irwin/McGraw-Hill.
19. D Dear Accounting Manager:. The salutation addresses the person to whom you are writing, either by name or by title. It is generally followed by a colon. "Dear Sir" or "Dear Madam" would be incorrect since the gender of the individual is unknown. "Dear" would not be used in writing to a department. A more appropriate form would be "Attention: Accounting Department." SOURCE: CO:133 SOURCE: Hyden, J.S., Jordan, A.K., Steinauer, M.H., & Jones, M.J. (1999). Communicating for success (2nd ed.) [pp. 307-308]. Cincinnati: South-Western Educational. Test 852 BUSINESS SERVICES — KEY 14
20. C Horizontal. Such communication is essential to efficient business operation. Vertical communication may move upward from employees to management, or the reverse. Departmental communication occurs within the boundaries of one department. External information comes into the company from the outside. SOURCE: CO:014 SOURCE: Lehman, C.M., & DuFrene, D.D. (1999). Business communication (12th ed.) [p. 72]. Cincinnati: South-Western College.
21. A Keep it confidential. Employees sometimes learn information that they were not intended to know, such as information about coworkers being fired. In some cases, this information is confidential, and repeating it may harm the business or other employees. Employees have an obligation to behave ethically and keep this type of information confidential. Employees should not tell coworkers that they are being fired because it is not their responsibility, and the information may be incorrect. Employees probably will not be able to verify information about possible firings. If workers are going to be fired, managers will already have that information. SOURCE: CO:043 SOURCE: Kimbrell, G., & Vineyard, B.S. (1998). Succeeding in the world of work: Teacher's wraparound edition (6th ed.) [pp. 185-186]. New York: Glencoe/McGraw-Hill.
22. D Meet the expectations of its customers. When customers are given honest information, they know exactly what to expect from the service provider. Thus, they will not feel as if their time and money have been wasted upon completion of the service. Determining a target audience is a function of marketing- information management, not communications. Service businesses can improve their productivity levels by speeding up their actions without sacrificing quality. Service providers can identify new ways to promote their services by carefully studying the advertising media available to them. Only when a selection is made is it necessary to communicate the message in an honest, ethical manner. SOURCE: CO:050 SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (pp. 248-249). Upper Saddle River, NJ: Prentice Hall.
23. A Company size. Company size is very important to the distribution decision. A large chain of beauty salons would have more assets to work with and may distribute goods to a larger area than would a small chain. A small chain might need to lease rather than own space. Warehouse size is one of those decisions made based on company size. Staffing arrangements and production are other decisions that depend on company size. SOURCE: DS:001 SOURCE: DS LAP 1—Distribution
24. A A medical office giving flu shots. Distribution in services marketing involves making the services available at a place where customers can obtain the service. A medical office giving flu shots is an example of distribution because the office is providing the service to patients. In order to obtain the shots, patients need to visit the medical office, the place where the shots are distributed. A drug company developing vaccines is a research and manufacturing process. Filling prescriptions is a retail function. When customers buy pain medication, they are purchasing a good rather than a service. SOURCE: DS:071 SOURCE: Zeithaml, V.A., & Bitner, M.J. (2000). Services marketing: Integrating customer focus across the firm (2nd ed.) [p. 287]. Boston: Irwin/McGraw-Hill. Test 852 BUSINESS SERVICES — KEY 15
25. C Identification of the most cost-effective routing of delivery vehicles. Logistics deals with the distribution of products, such as through effective use of delivery vehicles. Efficient delivery systems are key components of a customer-service strategy. The other responses are technology-related but do not deal with distribution. SOURCE: DS:054 SOURCE: Lovelock, C.H. (1996). Services marketing (3rd ed.) [p. 271]. Upper Saddle River, NJ: Prentice Hall.
26. D Insurance broker. Insurance brokers usually represent one or more insurance companies. They are the intermediaries, or middlemen, who perform the activities needed in getting the service from the insurance companies to consumers. Insurance brokers are paid by the insurance companies based on the type and amount of insurance they sell. They sell the service but do not provide the service; they are the intermediaries between the insurance companies and the consumers. Drugstore clerks, fashion designers, and sales managers are not service intermediaries, although they may provide some type of service to customers in the course of performing their jobs. SOURCE: DS:072 SOURCE: Zeithaml, V.A., & Bitner, M.J. (2000). Services marketing: Integrating customer focus across the firm (2nd ed.) [pp. 355-356]. Boston: Irwin/McGraw-Hill.
27. B Restrict competition. An exclusive dealing arrangement between a supplier and an intermediary states that the intermediary will distribute only that supplier's products and will not handle a competitor's products. An exclusive territory gives one business the right to sell a product in a certain area, thereby preventing other businesses from selling that product. Both arrangements restrict competition because they put controls on who may sell products and what products they may sell. These types of distribution arrangements do not eliminate middlemen, regulate marketing, or limit advertising. SOURCE: DS:058 SOURCE: Zikmund, W.G., & d'Amico, M. (1999). Marketing (6th ed.) [pp. 390-391]. Cincinnati: South-Western College.
28. A Sharing of sensitive information. The sharing of sensitive information between channel members is necessary to insure lower inventories and operating costs, to improve product quality, and to fill orders quickly. However, this type of customer information can be easily misused or even wind up in the hands of competitors. As a result, actions by channel partners should be closely monitored to prevent the misuse of sensitive information. Lower inventories and operating costs, improved product quality, and rapid order fulfillment are not benefits that are often misused. SOURCE: DS:049 SOURCE: Etzel, M.J., Walker, B.J., & Stanton, W.J. (2001). Marketing (12th ed.) [pp. 417-419]. Boston: Irwin.
29. A Industrial. Industrial goods are goods purchased by producers for resale, for use in the production of other products, and/or to use in business operations. Consumer goods are goods purchased and used by consumers. Bread and clothes would be examples. Shopping goods are consumer goods purchased by consumers after comparing goods and stores in order to get the best quality, price, and/or service. Production is the process or activity of producing goods and services. SOURCE: EC:002 SOURCE: EC LAP 10—Goods and Services Test 852 BUSINESS SERVICES — KEY 16
30. D Demand for services. Weather conditions often have an influence on customers' demand for certain services. In cold weather, people may need snow removal services, may want to travel to warmer climates, or may decide to buy additional insurance to cover possible property damage. On the other hand, there is little demand for these services in warm weather. However, warm weather increases demand for other services such as lawn care, pool maintenance, and outdoor recreation. Many businesses sell services that are affected by the weather and often sell alternative services in the off- season. For example, a lawn care business might also provide snow removal in order to even out demand for its services. Weather factors do not influence customers' concept of value, desire to conform, or understanding of resources. SOURCE: EC:046 SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (pp. 293-296). Upper Saddle River, NJ: Prentice Hall.
31. D Prices. Generally, the higher the price of anything, the less of it people will buy. The lower the price, the more of it people will be willing and able to buy. In a market economy, the incentives that keep producers constantly changing and reallocating their resources are known as profits. Commissions are a form of income for salespersons that are calculated as a percentage of sales. SOURCE: EC:006 SOURCE: EC LAP 12—Price
32. D All of its expenses. These would include salaries; the costs of running the business, known as operating expenses; and the cost of goods. SOURCE: EC:010 SOURCE: EC LAP 2—Risk Rewarded
33. B "Output," or final outcome, depends on the perception of the customer. A key challenge for service providers is increasing productivity in ways that won't have a negative impact on customer satisfaction or perceived quality. Unfortunately, the two are not always compatible. While marketers of tangible products have some similar issues, the assessment of "quality" by the consumer is far less subjective. Resources required to provide services vs. tangible products vary according to the specific service or product; but, in general, providing services does not require fewer resources than tangible products and in many cases may require more. "Productivity" and "quality" are not the same concepts, but are closely related. Productivity is transforming "inputs" into "outputs," while the quality is the degree to which a service satisfies customers by meeting their needs, wants, and expectations. SOURCE: EC:052 SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (pp. 103-106). Upper Saddle River, NJ: Prentice Hall.
34. A Increased interdependency. Increased interdependency means workers need to rely on each other. It is a disadvantage of specialization. All of the other alternatives are advantages of specialization. Production rates increase because the speed with which workers perform their specific tasks increases. Workers become highly skilled as job tasks are performed repeatedly, and this results in increased efficiency. Training of workers is simplified due to the limited nature of the tasks to be performed. SOURCE: EC:014 SOURCE: EC LAP 7—Specialization of Labor Test 852 BUSINESS SERVICES — KEY 17
35. C Increasing returns. When there are too few workers, they may not be able to handle resources well. So, companies choose to add workers which makes everyone more efficient and productive. This is called increasing returns. The company may continue to add workers, believing that output will continue to rise, which is not the case. At some point, too many workers will again become inefficient, and although output may still rise, it will be at a diminishing rate. This is known as diminishing returns. Marginal returns, return on revenue, and return on input are all fictitious terms. SOURCE: EC:023 SOURCE: Arnold, R.A. (2004). Economics (6th ed.) [pp. 498-501]. Cincinnati: Thomson/South-Western.
36. A Cycles. Business cycles are periods of expansion and contraction in economic activities. The phases of a business cycle are expansion, peak, contraction, and trough. Channels of distribution are the paths products take in going from producer to consumer. Supply is the quantity of a good or service that sellers are willing and able to offer for sale at a specified price in a given time period. Demand is the quantity of a good or service that buyers are ready to buy at a given price at a particular time. SOURCE: EC:018 SOURCE: EC LAP 9—Business Cycles
37. D Situation analysis. The marketing-information management system can provide the internal and external data used in a situation analysis: a determination of an architectural firm's current business situation and the direction in which the business is headed. A sales forecast is a prediction of future sales over a specific period of time. Marketing-research reports result from the systematic gathering, recording, and analyzing of data about a specific problem. Data analysis is the function of a marketing-information management system that involves evaluating information and putting it in a format that is useful to a business. SOURCE: IM:001 SOURCE: IM LAP 2—Marketing-Information Management
38. C Unethically. Unethical behavior is behavior that is wrong or immoral. It is often considered unethical to obtain information about competitors with the use of questionable techniques, even though these techniques are legal. For example, it is illegal to take aerial photographs of a competitor's facility, but it is not illegal to purchase aerial photographs from governmental agencies that have obtained them for other purposes. However, buying those photographs with the intent of obtaining information about a competitor's operation is usually considered to be unethical. Using questionable techniques to obtain information is not an example of being reckless, aggressive, or careless. SOURCE: IM:025 SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [p. 229]. Upper Saddle River, NJ: Prentice Hall.
39. A It contributes to business success. Marketing research contributes to business success because rental businesses that obtain reliable marketing-research data are better able to make good decisions because their decisions are based on fact, not opinion. Whether marketing research improves a business's financial management would depend upon the kind of problem the business is trying to solve and the data gathered. Competitors are often unaware of a business's marketing-research efforts. SOURCE: IM:010 SOURCE: IM LAP 5—Nature of Marketing Research Test 852 BUSINESS SERVICES — KEY 18
40. B Benchmarking and evaluating. This procedure allows an organization to conduct an initial survey to establish a "benchmark" by which to measure future performance or service. The key to benchmarking and evaluating is conducting an initial survey and comparing results to those obtained at a future time. Communicating with the target market may simply mean providing a written or oral survey. Assessing market position involves comparing an entertainment venue to its competitors. A demographic profile describes the characteristics of the audience. SOURCE: IM:204 SOURCE: Mullin, B.J., Hardy, S., & Sutton, W.A. (2000). Sport marketing (2nd ed.) [p. 89]. Champaign, IL: Human Kinetics.
41. B Coding. Coding is the process of assigning a numeric value to the various responses on a marketing questionnaire or survey. Some questionnaires contain built-in codes such as when the respondent is asked to rate agreement with a question on a scale of 1 to 5. The numbers from 1 to 5 are the numeric codes. For other types of questionnaires, researchers often establish a master code. For example, there are six possible responses to a certain question and the third answer has a numeric value of 3, but that number is not printed on the questionnaire. Testing, sizing, and marking do not assign numeric values to each response on a marketing questionnaire. SOURCE: IM:062 SOURCE: Hair, J.F., Jr., Bush, R.P., & Ortinau, D.J. (2000). Marketing research: A practical approach for the new millennium (pp. 482-491). Boston: Irwin/McGraw-Hill.
42. C Mean. The mean is the arithmetic average of all the responses in a sample. It is the most commonly used measurement of central tendency because it indicates the group average. For example, the mean indicates the average number of times that consumers visit a particular business within a given period of time. Some consumers will visit a business more or less often, but the mean is the average for all consumers. The mode is the response most often given to a question. The median is the middle value. Model is not a measurement of central tendency. SOURCE: IM:191 SOURCE: Hair, J.F., Jr., Bush, R.P., & Ortinau, D.J. (2000). Marketing research: A practical approach for the new millennium (pp. 525-527). Boston: Irwin/McGraw-Hill.
43. B Marketing mix. A combination of the four elements of marketing yields the marketing mix. The marketing concept is about considering the customer's perspective before making marketing decisions. Product and price are two elements of the marketing mix. SOURCE: IM:194 SOURCE: IM LAP 7—Pick the Mix
44. C Why should the customer choose us? A service business's marketing strategy should be the clear and concise formula for delivering the service that establishes the business's competitive position. A service strategy should answer the question of why the customer should choose that business. A company must first know what service it is offering and what companies it is competing against before developing the marketing strategy. Managers' salaries are not part of a business's marketing strategies. SOURCE: IM:211 SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (pp. 155-158). Upper Saddle River, NJ: Prentice Hall. Test 852 BUSINESS SERVICES — KEY 19
45. C A health club offering early morning aerobics. Many service businesses are in a position to tailor their services to appeal to specific target markets. In this example, a health club is offering early morning aerobics classes in order to target businesspeople who often work from 8:00 a.m. to 5:00 p.m. The workout classes are available before the regular workday begins. The health club can target other specific markets by offering classes at different times throughout the day. A dry cleaner offering discounts, a movie theater featuring multiple screens, and a real estate company holding open houses are not examples of target marketing. SOURCE: IM:214 SOURCE: Zeithaml, V.A., & Bitner, M.J. (2000). Services marketing: Integrating customer focus across the firm (2nd ed.) [pp. 147-149]. Boston: Irwin/McGraw-Hill.
46. A Objectives. Marketing objectives are the goals a business seeks to reach with its marketing plan which is a set of strategies for attracting the target customer to the business. One of the main reasons for developing a marketing plan is to identify those strategies that are the plans of action for achieving marketing goals and objectives. Marketing functions are interrelated activities that must work together to get goods and services from producers to consumers. Marketing mix is the combination of the four elements of marketing—product, place, promotion, and price. Market share is an organization's portion of the total industry sales in a specific market. SOURCE: IM:197 SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 88-90]. Upper Saddle River, NJ: Prentice Hall.
47. A Threats and opportunities. One of the purposes of conducting a situational analysis is to identify the threats and opportunities in the business environment. The changing nature of the business environment brings with it many opportunities for health care facilities as well as potential threats. For example, a change in customers' physical condition might present an opportunity for some health care facilities but be a threat to other facilities. In order to be prepared to take advantage of the opportunities or deal with the threats, a health care facility must first analyze the environment to find out exactly what those opportunities or threats are. A health care facility does not conduct a situational analysis to identify profits and losses, revenues and expenses, or goods and services. SOURCE: IM:140 SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an e-commerce world (7th ed.) [pp. 41-44]. Mason, OH: South-Western.
48. D Sales forecast. The sales forecast predicts what a barber shop's sales volume should be at a predetermined level of marketing support and economic conditions. Accurate sales forecasts are important tools used for marketing strategy and financial strategy decision making. Demand analysis is a process that involves using various sources of information to guide the development and adjustment of merchandise offerings. A stock-turnover ratio is a comparison of the number of units sold to the average units of stock. Dollar control is keeping track of inventory according to the dollar value of the stock. SOURCE: IM:003 SOURCE: IM LAP 3—Nature of Sales Forecasts
49. A Helps the team to make a good decision. Teams need the input of all members in order to make good decisions. One member's thoughts may throw new light on the situation or present a solution that hasn't occurred to the others. Having each member contribute does not ensure that the team will be objective or demonstrate commitment to the team's goals. Considering everyone's thoughts and ideas is more likely to create disagreements than to prevent them. SOURCE: IS:004 SOURCE: HR LAP 26—Teamwork Test 852 BUSINESS SERVICES — KEY 20
50. B Nonverbal behavior. Many view greeting guests face-to-face as something that is done verbally. Spoken words are frequently part of a greeting, but many other factors can be a part of the "greeting"—or the first encounter that is made with a client or guest. These may include a range of nonverbal behaviors, such as walking toward the guest, waving, or smiling. All these factors and even the physical surroundings contribute to the greeting the client receives. Singing is not generally part of the greeting process but in special situations could be considered part of the "verbal" components of a greeting. Providing a copy of available services is not part of the greeting but would come afterwards to help the guest become comfortable and acclimated in the surroundings. Making guests or clients find you should not be a part of any greeting! This creates a negative perception of customer service provided and creates a sense of frustration for the guest. SOURCE: IS:028 SOURCE: Zeithaml, V.A., & Bitner, M.J. (2000). Services marketing: Integrating customer focus across the firm (2nd ed.) [pp. 88-90]. Boston: Irwin/McGraw-Hill.
51. C Yes, you can give the person supportive feedback. One of the differences between empathy and sympathy is that empathy is not limited to problem situations. You can also express empathy toward someone who has had a positive experience. Most people like to share their successes with others and receive supportive feedback from them. SOURCE: IS:009 SOURCE: HR LAP 17—Empathy
52. A Don't jump to quick conclusions. Don't jump to conclusions when dealing with dishonest customers. Remember that compromising and negotiating are part of normal procedure in serving customers. Mirroring behavior is the best way to deal with slow/methodical customers. Never pressing for sales or decisions is the best way to deal with leave-me-alone customers. Explaining and demonstrating good service as many times as you need to is the best way to deal with suspicious customers. SOURCE: IS:013 SOURCE: EI LAP 1—Making Mad Glad
53. C Employees B & C. An important part of developing a project plan is determining how much time it will take to perform and which employees are available to complete the project on time. If the accounting business only has part-time employees, it needs to consider which combination of workers will be able to do the project within the one-week time frame. In this example, Employee B is working 3 1/2 hour days from 1 to 4:30 for a total of 17.5 hours a week. Employee C is working 4 1/2 hour days from 7:30 to 12 for a total of 22.5 hours a week. Together, these employees are working a 40-hour week (17.5 + 22.5 = 40). Employees A and D are each working three hours a day for a total of 15 hours a week. SOURCE: MN:153 SOURCE: Loy, G. (n.d.). ToDo project plan. Retrieved October 28, 2005, from http://www.cc.gatech.edu/classes/cs3302_97_spring/projects/team2/project-plan.html
54. C Reducing complaints. Treating customers in a professional manner often helps to control business expenses. When employees serve customers efficiently, the customers are not likely to have complaints. Since handling complaints is an expense to the business, this effort saves money. Serving customers efficiently may increase volume rather than decrease it. Improved morale may result from serving customers efficiently, but it will not control expenses. Hopefully, efficient service will reduce returns; however, its impact cannot be specified. SOURCE: MN:016 SOURCE: MN LAP 56—Employee Role in Expense Control Test 852 BUSINESS SERVICES — KEY 21
55. D Health. Your personal appearance is affected by your health, dress, and grooming. People who are in good health usually have more energy to spend on their jobs and on their dress and grooming. Personal appearance can be enhanced by using specific techniques for self-improvement. Your integrity, your opinions, and any biases you may have are all part of your personality, but they are not reflected in your physical image. SOURCE: PD:002 SOURCE: PD LAP 5—Brand ME!
56. B Reduced sales and profits. When an insurance company loses its reputation of dealing honestly with customers, it is very likely to lose customers and thus have reduced sales and profits. It may take quite a while for the business to regain its reputation and recoup its losses. Losing its honest reputation would also reduce customer confidence and employee morale. Efforts to regain its former reputation through promotion and other means are likely to increase business expenses. SOURCE: PD:006 SOURCE: HR LAP 19—Honesty and Integrity
57. C Promoted. Employees with initiative have a much better chance of being selected for promotion or advancement because they have shown their willingness to do more. They also enjoy greater job security and, therefore, are much less likely to be threatened by exploitation, termination, or transfer. SOURCE: PD:010 SOURCE: HR LAP 14—Initiative
58. B Verbal ability. A personal trait is a personal characteristic expressed by a consistent pattern of behavior. A person who has verbal ability is able to communicate effectively by using words. Many of the jobs in the services marketing industry involve talking to customers, answering their questions, and providing information. People who have good verbal ability are often successful in these jobs because they are able to communicate effectively with customers. Eye-hand coordination is an aptitude rather than a personal trait. Artistic talent and mechanical skill are abilities rather than personal traits. SOURCE: PD:049 SOURCE: Daggett, W.R., & Miles, J.E. (1998). The dynamics of work: Introduction to occupations (2nd ed) [pp. 129-133]. Cincinnati: South-Western Educational.
59. D Self-understanding. Self-understanding is knowing yourself. It goes beyond self-information, because it means that you not only have information about yourself, but you know what that information means. Self-understanding is important because it helps you in all areas of your life. It can raise the level of your self-esteem, which is the way you feel about yourself at any given time. Self-discipline is training yourself to act in ways that will further your development. SOURCE: PD:013 SOURCE: HR LAP 2—Self-Understanding
60. D Analyze what happened. Try to analyze what happened and determine what damaged your self-esteem. When you have done that, try to figure out how to handle things differently next time. Forgetting about it won't help you to avoid having the same thing happen again. Brooding about it won't help, and wishing won't undo what has been done. SOURCE: PD:014 SOURCE: HR LAP 12—Self-Esteem Test 852 BUSINESS SERVICES — KEY 22
61. C Realistic. One of the characteristics of a good goal is that it should be realistic and attainable. Your goals must be appropriate to you and your abilities. You must set goals that you are capable of reaching. These goals do not necessarily have to be conservative, convenient, or safe. SOURCE: PD:018 SOURCE: HR LAP 6—Goal Setting
62. B State departments of vocational rehabilitation. These departments provide current information about the physical requirements of many jobs and suggestions about other agencies to contact. College and high school services for persons with disabilities focus on access to education rather than on career planning. Nonprofit vocational training programs offer limited types of training to persons with disabilities and usually have relatively few job openings. SOURCE: PD:022 SOURCE: U.S. Dept. of Labor. (2000). Occupational outlook handbook 2000-2001 (pp. 8-9). Washington: U.S. Government Printing Office.
63. A In all levels and all pay ranges. Services marketing includes a wide range of industries such as transportation, finance, health care, tourism, and research. Within these industries, there are all levels of jobs—from trainee to chief executive officer—and all ranges of pay. For example, a new employee might start as a teller in a small branch of a major bank and work up to being branch manager, then regional manager, and finally vice president. There are career opportunities in most industries because services marketing is the fastest growing sector of the economy. Opportunities are not limited only to highly trained professionals or entry-level workers. SOURCE: PD:056 SOURCE: Zeithaml, V.A., & Bitner, M.J. (2000). Services marketing: Integrating customer focus across the firm (2nd ed.) [pp. 3-9]. Boston: Irwin/McGraw-Hill.
64. A Draw a line through the blank or mark it NA. It is important for job applicants to let prospective employers know that they have read the entire application. The job applicant who encounters a question that s/he cannot answer should draw a line through the blank to indicate that s/he read the question. If the question does not apply to the applicant, NA (not applicable) can be written in the blank. Such questions can be discussed with the interviewer after the application is complete, but the applicant should know how to fill out the application without having to ask anyone. Creating an answer is deceptive, and leaving the space blank might give the impression that the question had been overlooked. SOURCE: PD:027 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [pp. 715-718]. Woodland Hills, CA: Glencoe/McGraw-Hill.
65. C Information about new trends, products, techniques, and services. One very important benefit of trade associations and professional organizations is the dissemination of information. They publish newsletters and journals that contain articles about industry trends, new products, materials, techniques, and services. This is invaluable information to all businesses. Professional organizations do not help their members raise operating capital, provide them with competitors' customer lists, or assist with advertising and media campaigns. SOURCE: PD:063 SOURCE: Wolfe, M.G. (1998). The world of fashion merchandising (pp. 131-132). Chicago: Goodheart-Willcox. Test 852 BUSINESS SERVICES — KEY 23
66. B Pricing. Pricing is the marketing function that involves determining and adjusting prices to maximize return and meet customers' perceptions of value. There are many factors that affect the final price that is set by a business. One of these factors is the actions of competitors who are trying to attract the same customer dollars. If a competitor lowers prices on similar goods, a business usually is forced to follow suit in order to compete. Billing is sending an invoice to a customer for payment. Financing is a marketing function which involves understanding the financial concepts used in making business decisions. Accounting is the process of keeping financial records. SOURCE: PI:001 SOURCE: PI LAP 2—Pricing
67. D Time involved. The services that businesses sell often involve varying amounts of time that may make pricing the services extremely difficult. Therefore, many businesses are unable to establish firm prices for their services because some will take longer to perform based on the circumstances. For example, a business that repairs office equipment might not be able to give a customer a firm price until the service is complete because there is no way to know for sure how long it will take to do the work. The number of employees, the physical facility, and the cost of insurance are fixed expenses that have an impact on the price that a business charges for its services. SOURCE: PI:030 SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (pp. 221-223). Upper Saddle River, NJ: Prentice Hall.
68. B Calculator. Calculators are devices that are used to compute numerical data. Calculators are widely used and are available in many forms, including battery-operated models and traditional electrical models. They are often found on computers and personal organizers such as palm pilots. A fax machine is used to transmit documents via telephone lines. Scanners are technological devices that transmit images or information to computers. SOURCE: PI:016 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [pp. 126-127]. Woodland Hills, CA: Glencoe/McGraw-Hill.
69. C Is more likely to achieve its profit goals. The consulting business is more likely to earn the amount of profit it wants because it has set specific profit goals. Since market conditions are always changing, it is difficult for businesses to predict what prices will be profitable over time. The fact that the business is focused on making money can be a disadvantage if not enough attention is paid to other areas such as the activities of competitors. SOURCE: PI:002 SOURCE: PI LAP 3—Factors Affecting Selling Price
70. A Acquisition. The process of taking possession of something is acquisition. Some firms acquire new services by taking over a company that is already offering the service in which they are interested. In many cases, acquisition of other firms can be less expensive than developing a new service. Screening is reviewing in order to make a decision as to what should be kept and what should be discarded. Commercialization is the point at which a product goes into full-scale production, the marketing plan is put into place, service and sales training are done, and the product's life cycle begins. Development is the stage in the creation of a new product in which a working model may be tested, modified, and retested. SOURCE: PM:001 SOURCE: PP LAP 5—Product/Service Planning Test 852 BUSINESS SERVICES — KEY 24
71. C Identifying growth opportunities. Before developing a new service, businesses usually examine the market and identify growth opportunities. For example, an insurance company might analyze customers in a certain part of the country to decide if it would be profitable to offer a new type of coverage. If the company finds that there is a sizeable market for that type of coverage, it would proceed with the development. Service businesses realize that there is no point to offering a new service if there is no demand for it. Once a business develops a new service, it often tests it in specific areas. Once the service is made available, businesses promote the idea to customers and continually monitor the service for any needed changes. SOURCE: PM:071 SOURCE: Zeithaml, V.A., & Bitner, M.J. (2000). Services marketing: Integrating customer focus across the firm (2nd ed.) [pp. 200-202]. Boston: Irwin/McGraw-Hill.
72. D Maturity. Maturity is the product life-cycle stage in which sales peak and then increase at a slower rate or start to decline. Since sales are high, many businesses are in competition for those sales. Growth is the product life-cycle stage in which sales rise rapidly. Introduction is the product life-cycle stage when the product first appears in the marketplace. Decline is the product life-cycle stage in which sales and profits fall rapidly. SOURCE: PM:024 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 557]. Woodland Hills, CA: Glencoe/McGraw-Hill.
73. A To compile customer databases. Service businesses often use Internet technology to obtain valuable information about customers. Today, many businesses maintain web sites that are visited by many users who may be potential customers. When users visit the sites, the businesses often ask them to register in order to access the site. Then, the registration process involves answering a series of questions such as name, street address, e-mail address, personal interests, business associations, etc. The businesses compile this information into customer databases that they can use to send additional information to those visitors who fit the criteria of their target markets. Businesses do not use the information that they are able to obtain due to the advances in Internet technology to develop production systems, interview potential employees, or prepare operating policies. SOURCE: PM:039 SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an e-commerce world (7th ed.) [pp. 127-128]. Mason, OH: South-Western.
74. B Franchising. Franchising is a method of distributing goods and services through a licensing arrangement between the franchisor and franchisee. Franchises for services are becoming more common and allow services to be provided in many locations while maintaining consistency and quality. Supply and demand certainly must be matched, and it is not a new trend. Training of employees and customer satisfaction are crucial to success but, again, these are not trends. SOURCE: PM:072 SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [p. 536]. Cincinnati: South-Western. Test 852 BUSINESS SERVICES — KEY 25
75. B Providing new eyeglasses in one hour. Many businesses that sell services establish standards based on what customers want and expect. If businesses know that customers want quick turnaround, they might set time standards for those services. For example, an optical business might provide new eyeglasses in one hour, or a camera shop might develop photographs in 55 minutes. Businesses strive to meet these standards in order to provide the quality of service their customers expect. Operating from 9:00 a.m. to 5:00 p.m., charging a fee for missed appointments, and requiring a phone number to process orders are examples of standards that are based on company needs rather than on the needs and expectations of customers. SOURCE: PM:073 SOURCE: Zeithaml, V.A., & Bitner, M.J. (2000). Services marketing: Integrating customer focus across the firm (2nd ed.) [pp. 224-229]. Boston: Irwin/McGraw-Hill.
76. A Three-day cooling-off period. The Federal Trade Commission enforces a regulation that gives consumers a three-day cooling-off period after signing a purchase contract for consumer goods or services. Consumers cannot be penalized by the seller for canceling a contract within the three-day period. This protects consumers from their own hasty decisions or from high-pressure selling tactics that have influenced them. The Consumer Product Safety Commission requires businesses to list harmful ingredients. The National Highway Traffic Safety Administration provides updates on motor vehicle safety. The Food and Drug Administration issues standards for prescription drug use. SOURCE: PM:017 SOURCE: PP LAP 7—Consumer Protection in Product Planning
77. D Tax 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 consultant 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:080 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [pp. 83-84]. Woodland Hills, CA: Glencoe/McGraw-Hill.
78. A Positioning. Positioning is a product mix strategy in which a beauty salon creates a certain image or impression of a product in the minds of consumers. Beauty salons must determine the best position to seek for their products because correct positioning is necessary to sales and profits. Positioning can make or break a salon's product mix. Contraction is a product mix strategy in which a beauty salon removes, or deletes, product items or product lines from its product mix. Alteration is a product mix strategy in which a salon makes changes to its products or product lines. Expansion is a product mix strategy in which a business expands its product mix by adding additional product items or product lines. SOURCE: PM:003 SOURCE: PP LAP 3—Product Mix
79. B Price and product. The marketing elements of price and product are being used to position the product by emphasizing the quality that is available at a high price. The rental business is combining product and price. The business is not using promotion or place to position the product. SOURCE: PM:042 SOURCE: Burrow, J.L. (2002). Marketing (pp. 171-173). Mason, OH: South-Western. Test 852 BUSINESS SERVICES — KEY 26
80. A Trade name. Trade names are used to identify companies or organizations. The brand is the name, term, symbol, or design that identifies a product. A trade character is a brand mark that has been personified, e.g., the Keebler elves. The brand mark is a distinctive symbol, design, or group of letters that can be seen but not spoken, e.g., the Keebler hollow tree. SOURCE: PM:021 SOURCE: PP LAP 6—It's a Brand, Brand, Brand World!
81. D Purchases. Promotion is the communication of information about goods, services, images, and/or ideas to achieve a desired outcome. Businesses use promotion to inform buyers about goods and services in order to encourage them to buy. By purchasing the goods or services, buyers give feedback to senders. Buyers let the senders know that they received the promotional message and respond by making purchases. A complaint is a customer's expression of a dissatisfaction. A suggestion is a recommendation. Referrals are individuals or businesses to whom salespeople are recommended. SOURCE: PR:001 SOURCE: PR LAP 2—Promotion
82. C To build goodwill. Institutional advertising builds goodwill but does not attempt to sell merchandise. The purposes of promotional advertising include providing consumers with information about products, introducing new products, and increasing overall sales for the business. SOURCE: PR:002 SOURCE: PR LAP 4—Types of Promotion
83. B Sampling. Sampling allows a customer to try a service for free. Coupons often provide a customer with a price cut or a free service with a purchase. A price/quantity promotion is a limited-time offer that usually lowers the price if the service is purchased in quantity. A gift premium is being used when a free product is given to the customer at the time a service is purchased. SOURCE: PR:120 SOURCE: Lovelock, C.H. (1996). Services marketing (3rd ed.) [pp. 385-386]. Upper Saddle River, NJ: Prentice Hall.
84. A Newspaper article. A newspaper article would not be considered advertising because it is publicity—a non-personal form of promotion that is not paid for by the company or individual that benefits from it. Television commercials, radio spots, and billboards are all advertising because they are paid forms of non-personal presentations of ideas, images, goods, or services. SOURCE: PR:003 SOURCE: PR LAP 1—Promotional Mix
85. C Stereotyping. A stereotype is a set image or an assumption about a person or thing. An ad that portrays teenaged boys as lazy and middle-aged men as hard working is stereotyping, because that image is not accurate. Most businesses try to avoid stereotyping in ads because it may offend certain groups. Discrimination is unfair treatment of a person or a group based on the person's or group's characteristics. Sexism involves portraying men and women in traditional roles. Harassment is any kind of behavior toward another person that is carried out for the purpose of annoying or threatening the individual. SOURCE: PR:099 SOURCE: Arens, W.F. (1999). Contemporary advertising (7th ed.) [pp. 53-55]. Boston: Irwin/McGraw-Hill. Test 852 BUSINESS SERVICES — KEY 27
86. D Interactive. One of the advantages of using the new communication technology to promote products is that it is interactive, thereby allowing service businesses to deal directly with consumers. Many businesses use the technology to create web sites that contain features that allow users to provide comments or ask questions. Other businesses use advertising kiosks that provide information or print coupons for customers at the touch of a finger. Other types of interactive communication include CD- ROMs and online magazines. Disadvantages of the new communication technology are that it is not standardized, is unregulated, and is expensive. SOURCE: PR:100 SOURCE: Arens, W.F. (1999). Contemporary advertising (7th ed.) [pp. 518-525]. Boston: Irwin/McGraw-Hill.
87. D Solutions. All the elements of a print ad must be coordinated to produce the effect desired for the advertisement as a whole. If the headline identifies a problem, the copy should tell how the product will solve the problem. By solving the problem raised in the headline, the copy completes the intended message of the advertisement. Providing examples, descriptions, or reactions does not coordinate the copy with the headline. SOURCE: PR:014 SOURCE: PR LAP 7—Parts of Print Ads
88. D They intend to motivate the consumer to take action. This is a key difference between direct strategies and other types of advertising or promotion. Direct advertising strategies try to make the consumer do something immediately: pick up the phone, go online, drive to the mall, etc. Its immediacy and strong persuasiveness distinguish effective direct advertising strategies from other types of communication. Creative techniques vary widely among different direct advertising strategies and are determined by such factors as the objectives, the product being advertised, and the budget. Direct advertising strategies are effective because they communicate with consumers on a more individual basis, not as one large group. Some direct strategies get consumers' attention through the use of unusual copy and graphics. However, some of the most effective direct strategies are also more straightforward—for example, letters with long copy and few, if any, graphics. What works varies from situation to situation, product to product. SOURCE: PR:089 SOURCE: Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th ed.) [pp. 415-418]. Upper Saddle River, NJ: Prentice Hall.
89. B Direct-mail lists. A database is a collection of information that is stored electronically. The use of databases is extremely important in direct-mail advertising because it allows the lawn care business to collect and sort a wide variety of information about customers such as their names, addresses, demographic characteristics, etc. Businesses then use the databases to prepare different direct-mail lists based on specific criteria such as zip code or recent purchases. The use of databases to manage direct- mail lists enables businesses to target specific consumers and send them personalized advertising messages. Businesses do not use databases to manage in-house promotions, freelance writers, or radio commercials. SOURCE: PR:091 SOURCE: Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th ed.) [pp. 402-403]. Upper Saddle River, NJ: Prentice Hall.
90. D Reinforce each other. Each promotional activity should support the other. For example, displays should feature the products being promoted in advertisements. Promotional activities should not compete with each other, present contrasting views, or function independently. SOURCE: PR:076 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [pp. 302-304]. Woodland Hills, CA: Glencoe/McGraw-Hill. Test 852 BUSINESS SERVICES — KEY 28
91. A Intangible. Intangible items are those that cannot be detected through the senses. Services provided to consumers are considered to be intangible. Tangible items are those that can be seen, touched, and/or smelled. Dry cleaning service is both profitable and essential. SOURCE: SE:017 SOURCE: SE LAP 117—Selling
92. B Policies. Business policies are statements outlining practices the business follows, such as warranties and maintenance contracts. By establishing desirable business policies and services, the company provides an environment which helps to build a loyal clientele. These policies make an important contribution to the creation of goodwill and the cultivation of client loyalty. A slogan is a phrase that is easy to remember. A budget is an estimate of what income and expenses will be for a specific period of time. Objectives are goals the business wants to achieve. SOURCE: SE:828 SOURCE: SE LAP 115—Building Clientele
93. C Customer loyalty. Customers are less likely to buy from salespeople who are not honest or treat them differently than other customers. By treating customers fairly, salespeople often get repeat business from customers. As a result, the salesperson experiences customer loyalty. Although it is possible to receive gifts from customers, it is often considered unethical behavior by many organizations because it may appear to be a bribe. Corporate privacy is the extent that an organization shares information with others. Therefore, corporate privacy is not considered a reward for treating customers fairly. Social responsibility refers to each person's respect for the rights of other individuals. Treating customers fairly is an element of appropriate social responsibility. SOURCE: SE:106 SOURCE: Futrell, C.M. (2001). Sales management: Teamwork, leadership, and technology (6th ed.) [pp. 28-30]. Mason, OH: South-Western.
94. C Serve themselves. Advances in technology have changed the way that many businesses provide services to customers. Today, customers are able to serve themselves and obtain many services without the assistance of business employees. For example, customers complete banking transactions by using ATM machines and access the Internet to place orders for stocks and bonds. Businesses are taking advantage of the technology in order to allow customers to serve themselves at their convenience. The technology does not allow customers to negotiate discounts although some businesses give discounts to customers who buy services online. Obtaining appraisals involves having an expert examine an object to determine its value. The use of modern technology often reduces the level of personal contact. SOURCE: SE:164 SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (pp. 213-215). Upper Saddle River, NJ: Prentice Hall.
95. A Foreign Corrupt Practices Act. The Foreign Corrupt Practices Act makes it a crime to bribe foreign officials in order to obtain business—even if competitors are doing so. The international community has followed suit and passed antibribery laws that help to "level" the international-sales playing field. The Sherman and Clayton Acts refer to laws passed to prohibit monopolies. The Unethical Business Practices Act does not exist. SOURCE: SE:108 SOURCE: Czinkota, M.R., & Kotabe, M. (2001). Marketing management (2nd ed.) [p. 105]. Mason, OH: South-Western Publishing Co. Test 852 BUSINESS SERVICES — KEY 29
96. B Experienced salespersons within the firm. Other insurance salespersons who are already experienced in selling the services can provide the new salesperson with a wealth of information in a very short time. Since new salespersons are usually assigned to work with someone who has experience, this provides them with an easily accessible source of information. Customers are good sources of information about policies they have purchased, but new purchasers might not be well informed. Receiving department employees handle incoming shipments of office supplies and are not likely to be knowledgeable about specific services. Producers of office supplies are not likely to be helpful to the salesperson. SOURCE: SE:062 SOURCE: Burrow, J.L. (2002). Marketing (pp. 465-466). Mason, OH: South-Western.
97. C Cancellation. Cancellation is a risk that many customers face when they purchase services, particularly services associated with certain industries such as travel, hospitality, and entertainment. Examples of cancellation include airlines canceling flights, hotels losing customers' reservations, and performers canceling concerts. Although these industries usually have provisions for dealing with cancellations, customers are still concerned with the risk of not being able to obtain the service when they want or need it. Profitability and deregulation are risks to businesses. Services are intangible rather than tangible. SOURCE: SE:187 SOURCE: Zeithaml, V.A., & Bitner, M.J. (2000). Services marketing: Integrating customer focus across the firm (2nd ed.) [pp. 336-337]. Boston: Irwin/McGraw-Hill.
98. D Firsthand knowledge. Firsthand knowledge, gained by experience, tends to give a salesperson confidence. For example, salespeople who use the products are able to answer specific questions because they have learned about the products by trying them. Then, salespeople can use their own experiences to explain the benefits of the products to customers. They have confidence in their answers because of personal experience. Manufacturer's publications, industry data, and promotional materials are other sources of product information; but they do not give salespeople the confidence that they obtain from firsthand knowledge. SOURCE: SE:109 SOURCE: SE LAP 113—Feature-Benefit Selling
99. C Prospecting. Prospecting is the process of identifying and locating potential clients. It enables sales representatives to tailor their sales calls to the prospects' needs. The approach is the initial contact with the customer. Reaching closure is the phase of the selling process in which the salesperson addresses customer objections and asks the customer to buy. Follow-up includes all the activities that occur after a sale to ensure customer satisfaction. SOURCE: SE:048 SOURCE: SE LAP 126—The Selling Process
100. D Postpurchase 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:210 SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (pp. 72-76). Upper Saddle River, NJ: Prentice Hall.