Exams/… · Web view20. Don likes to have lunch with coworkers every day, and they usually take...

2007 DECA Ontario Provincials HBCTest 900 HUDSON’S BAY COMPANY EVENT 1

1. What type of property is a clothing manufacturer protecting when it registers its trademark?A. Intellectual B. Tangible C. Statutory D. Administrative

2. An advantage of a sole proprietorship is that itA. has limited liability for debts. C. can obtain unlimited capital.B. is easy to start and to control. D. must pay high taxes.

3. Which of the following is a guideline that apparel store employees should follow to be effective listeners:A. Interrupt often C. Ask questions B. Ignore body language D. Read directions

4. Which of the following statements about following directions is true:A. Hearing directions is the same as listening to them.B. Most people don't need to ask questions about directions.C. Restating directions in your own words helps clarify them.D. You should avoid taking notes while listening to directions.

5. Which of the following is an incorrect way of giving directions to a person with disabilities:A. Keeping eye contact C. Speaking at a normal volumeB. Looking at the person's companion D. Speaking clearly

6. The marketing activity concerned with making apparel and accessory goods and services available when and where they are needed is

A. the marketing concept. C. exchange. B. planning. D. distribution.

7. In order to purchase on a timely basis, in small quantities, and on credit, accessory stores usually buy goods from

A. order selectors. B. appraisers. C. producers. D. wholesalers.

8. Some large apparel retailers have successfully integrated information sharing between channel members by incorporating __________ between suppliers, warehouse, and store checkout.

A. PLUs and invoices C. outsourcing and EDIB. bar codes and EDI D. bar codes and PLUs

9. One reason why distribution arrangements such as exclusive dealing and exclusive territories are often illegal is because they tend to

A. regulate marketing. C. limit advertising.B. eliminate middlemen. D. restrict competition.

10. Where do many T-shirt shops store the extra items they need to replenish the shelves during the day?A. Adjacent stockrooms C. Nearby warehouses B. Sales floor displays D. Distribution centers

11. Why is it important for shoe stores to maintain unit control records that indicate how much stock is on hand at all times?

A. To monitor receiving areas C. To prevent shopliftingB. To assign numbers to items D. To meet consumers' needs

12. Calculate inventory shrinkage if a dress shop's opening stock value is $28,750, it has purchased $3,600 in stock, had net sales transactions of $26,140, and the periodic stock count is $5,925.

A. $315 B. $275 C. $260 D. $285

13. Why is it important for clothing stores to coordinate distribution with their promotional activities?A. To select the most efficient transportation formB. To spend money on warehousing surplus productsC. To offer products at extremely low pricesD. To make sure that products are available on time


14. What type of channel conflict often occurs between apparel manufacturers and their authorized dealers?A. Vertical B. Horizontal C. Indirect D. Corporate

15. In economics, the gap between unlimited wants for goods/services and limited resources creates a condition known as

A. exchange. B. production. C. scarcity. D. consumption.

16. Consumers and businesses buy everything they own fromA. chain stores. B. trade industries. C. specialty shops. D. independent merchants.

17. The government owns or controls most resources and businesses in a __________ economic system.A. capitalistic B. market C. communist command D. mixed

18. Ben is just starting his career as a carpenter for a large chain of discount clothing stores. Ben will most likely take directions from a(n)

A. journeyman. B. apprentice. C. steward. D. master.

19. During which business-cycle phase are shoe factory closings quite common?A. Trough B. Recovery C. Peak D. Expansion

20. Don likes to have lunch with coworkers every day, and they usually take a longer lunch break than the clothing store allows. What are Don and his coworkers doing?

A. Acting in a trustworthy manner C. Stealing from the store B. Following ethical principles D. Misusing their fringe benefits

21. In order to avoid any negative consequences of taking initiative, bridal salon employees shouldA. analyze the situation before acting. C. offer help only to supervisors.B. ask coworkers for their advice. D. wait to see what happens to others.

22. What is the best type of feedback to use to reinforce a behavior?A. Internal B. Negative C. Positive D. Critical

23. Why should a menswear store chain inform employees that their e-mail will be monitored?A. To control operating costs C. To reduce its liabilityB. To communicate policies D. To respect their privacy

24. One of the barriers to assertiveness for some people is that theyA. are able to confront others in difficult situations.B. believe their ideas are as important as anyone's.C. know how to refuse others when necessary.D. believe they have no control over their behavior.

25. Leaders who prefer to be in control and rely almost completely on their own judgment are practicing the __________ style of leadership.

A. authoritarian B. democratic C. laissez-faire D. participative

26. Apparel store policies that focus on meeting consumers' wants and needs while making a fair profit for the store are primarily intended to

A. satisfy customers. C. reduce misunderstandings. B. guide employees' actions. D. keep operations running smoothly.

27. A good way to calm an irate jewelry store customer who has just made an angry complaint is toA. thank the customer for identifying the problem. B. explain company policy related to the complaint.C. ask the customer why s/he thinks there is a problem.D. tell the customer his/her complaint is not justified.


28. What is an accessory shop's net worth if it has total assets of $4,250, total liabilities of $1,050, cash on hand of $350, and inventory worth $275?

A. $3,050 B. $3,200 C. $3,475 D. $3,550

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

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

30. Which component of the marketing plan summarizes the environmental conditions that can affect a menswear store's marketing activities:

A. Diagnostic summary C. Conditional assessment B. Situational analysis D. Environmental synopsis

31. Which of the following is a technique for gathering information about competitors that might be unethical if the clothing manufacturer exceeds accepted practices:

A. Corporate espionage C. Data miningB. Telephone surveys D. Behavior observation

32. An accessory manufacturer is looking for a way to collect information about customers' buying habits. An efficient method of obtaining this information would be to

A. send surveys to as many people as possible.B. encourage customers to complete product registrations and warranties online.C. contact retailers and ask them to collect the information.D. place pop-up ads on web-search engines.

33. A shoe store chain that wants to use marketing research in order to try out different solutions to a problem needs to use __________ research.

A. exploratory B. casual C. predictive D. descriptive

34. What product factor should a clothing store consider when selecting a good or service to offer its customers?A. Types of inventory control C. Availability of creditB. Channels of distribution D. Level of quality

35. A market is composed of potential customers who haveA. money to spend. C. college educations.B. homes in the area. D. incomes over $20,000.

36. What category of internal marketing information includes data such as order sizes, sales quotas, and forecasts?A. Personnel information C. Operating informationB. Inventory information D. Sales information

37. What does a discount apparel store try to identify as a result of conducting a situational analysis?A. Profits and losses C. Goods and servicesB. Revenues and expenses D. Threats and opportunities

38. What type of sales forecasting method is based on the results of gathering and analyzing all kinds of numerical market data?

A. Long-term forecasting C. Quantitative B. Qualitative D. Intermediate forecasting

39. Identify the term that best represents marketing's role in society.A. Pioneer B. Problem solver C. Producer D. Peacemaker

40. Sportswear stores often use promotional campaigns to create or improve theirA. image. B. credit. C. safety. D. displays.


41. What is a growing trend in retailing that rewards an apparel store's best customers?A. Electronic gift cards C. Frequent shopper programs B. Membership warehouse clubs D. Personal credit plans

42. The easiest and least expensive way to obtain fashion information is throughA. questionnaires. C. reporting services.B. trade publications. D. personal observation.

43. A clothing store wants to purchase computer software that would maintain and analyze customer information in order to better serve customer needs and increase sales. What type of software should the store buy?

A. Database C. Word processingB. Spreadsheet D. Computer-aided design

44. An accessory store that uses a weighted-rating method in selecting vendors has given price a criterion weight of 3; distribution and merchandise a weight of 2; and service a weight of 1. Determine which of the following vendors the store should use:

Price (3) Distribution and Merchandise (2) Service (1)Vendor A 1 2 1Vendor B 2 1 3Vendor C 2 1 1Vendor D 2 1 2

A. Vendor B B. Vendor A C. Vendor C D. Vendor D

45. Which of the following is not an example of a possible fire hazard for a T-shirt manufacturer:A. Greasy rags are left in a pile after machinery is cleaned.B. Cooking oil in a frying pan is overheated.C. Employees smoke only in authorized areas.D. Three pieces of equipment share the same electrical outlet.

46. One method a menswear store can use to prevent theft by employees and customers is toA. establish a floor limit. C. hire security guards. B. purchase liability insurance. D. take frequent inventories.

47. What kind of product utility is most likely to result from production activities?A. Place B. Form C. Time D. Possession

48. Which of the following aspects of personal appearance would likely have the least harmful effect in the workplace:

A. Excessively baggy clothes C. Visible tattoosB. Body piercings D. Tailored clothing

49. Which of the following is an example of a routine decision:A. Choosing a career to pursue C. Picking a new roommateB. Ordering pizza for dinner D. Selecting which wedding gown to buy

50. Young people often locate their first jobs in the community by responding to apparel shops that haveA. advertised in trade journals. C. posted help-wanted signs. B. hired employment agencies. D. conducted professional searches.

51. A courteous step for a job applicant to take shortly after a job interview is toA. call the interviewer to find out who got the job.B. check on other job openings in the area.C. send a follow-up letter to the interviewer.D. go over any mistakes you may have made in the interview.


52. People who have limited work experience often include what type of references on their resumes?A. Social C. Personal B. Family D. Private

53. Which of the following is a factor that shoe store chains often consider when determining which employees to promote:

A. Family status C. Personal lifeB. Ethnic background D. Leadership ability

54. Clothing store employees who are responsible for maintenance, security, and inventory management are part of the __________ area of retailing.

A. operations C. selling B. merchandising D. promotional

55. What would be the most appropriate pricing strategy for an accessory store in a small town where unemployment has skyrocketed and the economy is in a downturn?

A. Odd-cents pricing C. Flexible pricing B. High-level pricing D. Below-cost pricing

56. Which of the following is an example of a potential unethical pricing issue as it relates to social responsibility:A. A pharmaceutical company sells a common lifesaving drug at extremely high prices in specific

geographical regions. B. A manufacturing company increases prices on certain items to cover expenses to add new pollution

control devices. C. A clothing retailer deeply discounts goods in an effort to reduce excess inventory from the previous

selling season. D. An oil company substantially increases its gasoline prices when the workers at a large refinery go on

strike.

57. Why would the federal government invoke price controls, freeze prices at a certain level, and determine rates at which prices can be increased?

A. To encourage private enterprise C. To create monopoliesB. To fight big business D. To curb inflation

58. One of the disadvantages to the jewelry store of sales-oriented pricing is that the business mayA. have higher expenses. C. create a new image.B. be more competitive. D. increase its income.

59. The general public accepting and wearing clothing worn by cowboys, miners, or construction workers illustrates which fashion theory?

A. Trickle across C. Upward flow B. Downward flow D. Fashion follower

60. What type of line is created by adding trim, top-stitching, and buttons to clothing items?A. Structural C. VerticalB. Horizontal D. Decorative

61. A characteristic of the growth stage of an accessory product's life cycle isA. rising sales. C. increasing costs.B. declining distribution. D. beginning obsolescence.

62. One way that advances in technology are impacting the product/service management function is by making it possible for watch manufacturers to

A. simplify production systems. C. improve existing products. B. eliminate human errors. D. control customer preferences.


63. Six Thinking Hats is a creative-thinking technique that stimulates idea generation byA. playing the devil's advocate. C. providing positive feedback.B. categorizing information. D. assigning each group member a different job.

64. A full warranty promises a customer that a waterproof watch that cannot be repaired in a reasonable amount of time will be

A. replaced. B. destroyed. C. rebuilt. D. improved.

65. Which of the following safeguards consumers by preventing discount clothing stores from using false and deceptive advertisements:

A. Federal Trade Commission Act C. Robinson-Patman ActB. Sherman Antitrust Act D. Clayton Act

66. The B&W Corporation recently added a lower quality, less expensive line of purses to its product mix in order to attract a new group of customers who appreciated the more expensive purses but could not afford them. What might be a disadvantage of doing this?

A. A new target market may be developed C. Possible decrease in overall profitsB. Company sales objectives may be met D. New product line is competitively priced

67. How do fashion buyers benefit from having customers rely on their selection of designer garments?A. The buyers become familiar with each designer's style.B. The buyers learn to recognize different designers' names.C. The buyers have customers shop at their stores more often.D. The buyers know something about different design companies.

68. Jeans sold under the clothing manufacturing company's own brand name are referred to as ___________ brands.

A. private B. national C. store D. individual

69. Apparel retailers usually plan merchandise reductions when theA. supplier's inventory increases. C. supplier's inventory decreases.B. customer demand increases. D. customer demand decreases.

70. The amount of money on hand that can be used to buy additional stock is known asA. current ratio. C. planned markup.B. open-to-buy. D. merchandise budget.

71. Many of the town's residents have heard that this coming summer is predicted to be the hottest summer ever. As a result of hearing this, Tim, the owner of a sportswear store, decided to do more advertising for swimsuits. Which of the following external factors has affected Tim and his business:

A. Technology C. DemandB. Legal and political factors D. Cultural and social trends

72. A shoe company's ad features the care it takes not to damage the environment with its manufacturing methods. This is an example of what type of promotion?

A. Institutional B. Primary C. Product D. Patronage

73. The form of promotion that involves the use of salespeople in persuading customers to purchase apparel and accessory goods and services is called

A. personal selling. B. public relations. C. display. D. advertising.

74. An advertisement that portrays teenaged boys wearing jeans as lazy and middle-aged men wearing suits as hardworking is an example of

A. stereotyping. B. discriminating C. sexism. D. harassment

75. Repeated exposure to the largest, most diverse population of people is a benefit of ___________ advertising.A. radio B. newspaper C. directory D. out-of-home


76. Sportswear Superstore developed a full-page print advertisement that contained a short headline, brief text, and a small illustration surrounded by a large amount of

A. bold type. B. white space. C. original art. D. colourful copy.

77. A menswear store planning a direct advertising campaign that targets businessmen in a particular industry might consider purchasing a mailing list from a

A. resource investment agency. C. trade industry. B. principal data source. D. professional association.

78. The employee who disassembles a mannequin should protect the mannequin's wig byA. covering the wig on the mannequin's head. C. attaching the wig to the head with pins.B. storing the wig in a separate location. D. placing the wig in a plastic bag.

79. In which of the following locations would you most likely find impulse goods in an accessory store:A. Seasonal displays on shelves C. POP displays near the cash register B. Displays hanging from the ceiling D. Closed displays on the selling floor

80. When you use shades and tints of one color, you are using a __________ color scheme.A. triadic B. complementary C. contrasting D. monochromatic

81. Which of the following promotional activities supports the selling function by providing clothing store customers with information:

A. Coupons B. Displays C. Premiums D. Refunds

82. Which of the following is not a place where selling occurs:A. A business office C. A private home B. A radio spot D. A bridal salon

83. What is an effective follow-up activity that salespeople who sell clothing display fixtures can use to provide good service and develop strong relationships with customers?

A. Asking for referrals B. Calling to make sure the products are satisfactory C. Explaining the company's business plan D. Sending articles about local competitors

84. George went to the shoe store to buy Steve Madden boots which the cashier told him were on sale. George went to Brent's house and told him about the sale. As a result, Brent bought the same boots from the shoe store. Which of the following benefits of building a clientele has occurred:

A. Repeat sales C. ReferralsB. Personal satisfaction D. Word-of-mouth advertising

85. The management team at D&S Mannequin Company is trying to find a way to regulate the guarantees offered by the company and the actions of its salespeople. What type of program should the team initiate?

A. Service policies combined with selling-activity policiesB. Terms-of-sale policies combined with service policiesC. Selling-activity policies combined with terms-of-sale policiesD. Service policies combined with corporate policies

86. Technological advancements have made it possible for salespeople for apparel manufacturers to learn and practice selling techniques at their own pace by using

A. videoconferencing applications. C. database software programs.B. interactive training software. D. customized training specialists.

87. Which of the following is an example of price discrimination:A. Offering substantial discounts to buyers of large quantities of a certain apparel item B. Selling the same quantity of the same apparel item to different customers for different prices C. Asking a company for a price break on apparel items at the end of the regular season D. Buying apparel items from one company that are available for a lower price from another company


88. Multiplying the quantity of an accessory item being purchased by its unit price calculates theA. description. B. extension. C. total. D. subtotal.

89. One way that salespeople can obtain information about the hiking boots they sell is by readingA. news magazines. C. company catalogs.B. professional journals. D. industry statistics.

90. Which of the following is a type of intimate apparel:A. Cover-ups B. Separates C. Sweatshirts D. Foundations

91. A customer's preference for a clothing store that is expressed in regular purchases from the store is known asA. target markets. C. cooperative advertising. B. exclusive distribution. D. customer loyalty.

92. Something required or essential which is lacking is called aA. want. B. buying motive. C. need. D. benefit.

93. In order to determine the appropriate size clothing for a child, the child should be measured around the lower chest just below the shoulder blades, around the upper chest under the arms, around the fullest part of the hips, and

A. around the calves. C. around the neck. B. at the natural waistline. D. from the neck to the waist.

94. What style of slacks should a salesperson show a customer who is looking for pants with fitted legs?A. Flared B. Classic C. Tapered D. Western

95. If a cash sale has a subtotal of $61.58 and an after-tax total of $63.74, the amount of sales tax isA. $2.17. B. $2.15. C. $2.16. D. $2.18.

96. Currency should be placed in cash drawers in order of increasing monetary value fromA. top to bottom. B. left to right. C. right to left. D. bottom to top.

97. When selling gift certificates to customers, one reason why it is important for a specialty boutique to spell out the exact dollar value on the certificate is because the certificate is

A. sold at a discount. C. the same as cash.B. an accounting entry. D. recorded as a debt.

98. On December 28, Greg returns a Christmas gift with a receipt that shows it was a cash purchase made on December 17. Store policy requires returns within 10 days of purchase and a sales receipt. Should the salesperson accept the return?

A. Yes, a business's return policy should be flexible.B. No, the 10-day return limit must be enforced.C. No, the gift was purchased at a closeout sale.D. Yes, the gift had not been used.

99. What is a technique that a new jewelry store salesperson can use to obtain product information from an experienced salesperson?

A. Visit competitors B. Read magazines C. Watch videos D. Ask questions

100. Determine which of the following is a true statement about discount clothing store managers:A. Managers have a narrow scope of responsibilities.B. Managers take an inactive role in the business.C. Managers should do employees' work for them.D. Managers should focus their efforts on managing.

Test 900 APPAREL AND ACCESSORIES MARKETING (ASSOCIATE LEVEL) — KEY 10

1. AIntellectual. Many clothing manufacturers own both tangible and intangible property. Intellectual is a type of intangible property because it is not capable of being detected through the senses. Examples of intellectual property include trademarks and trade names such as Nike and M&M's. Manufacturers usually register their trademarks in order to legally protect them from being used or copied by other businesses. Tangible property is capable of being touched, smelled, tasted, seen, or heard such as office equipment. Statutory and administrative are not types of property.SOURCE: BL:001SOURCE: Jennings, M.M. (2000). Business: Its legal, ethical and global environment (5th ed.) [pp. 488-

496]. Cincinnati: West Legal Studies in Business, South-Western College Publishing.

2. BIs easy to start and to control. A business that is owned and managed by one person is called a sole, or individual, proprietorship. The amount of capital is limited to the amount of money that the sole owner has or can borrow. The owner pays all taxes and bears all the losses if the business does not succeed. This means that the owner may lose not only the money put into the business but also any personal property s/he may own.SOURCE: BL:003SOURCE: BA LAP 7—Own It Your Way

3. CAsk questions. Effective listeners concentrate on what is being said and ask questions when they don't understand, or want clarification. Apparel store managers often assume that employees know more than they do and give incomplete or vague instructions. Employees should pay close attention to what is being said and ask questions to make sure they understand. Employees should not interrupt often, only when it is necessary to clarify a point they don't understand. Employees should observe a speaker's body language because nonverbal clues also send a message. Reading directions will not help employees be effective listeners.SOURCE: CO:017SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp. 206-208].

Mason, OH: South-Western.

4. CRestating directions in your own words helps clarify them. When you restate the directions, the person giving the directions can correct any misunderstanding you may have had about what you are to do. Listening is more than hearing. Listening is an active behavior that involves understanding, evaluating, and responding to what is being said. Asking questions and taking notes will also help you to understand and to follow directions accurately.SOURCE: CO:119SOURCE: Hyden, J.S., Jordan, A.K., Steinauer, M.H., & Jones, M.J. (1999). Communicating for

success (2nd ed.) [pp. 79-82]. Cincinnati: South-Western Educational.

5. BLooking at the person's companion. Customers with disabilities should be acknowledged rather than ignored. That involves looking at the person when giving directions. Other ways of acknowledging the person involve keeping eye contact, speaking at a normal volume, and speaking clearly.SOURCE: CO:073SOURCE: German-Grapes, J. (1997). The teller's handbook: Everything a teller needs to know to

succeed (pp. 321-324). McGraw-Hill.


6. DDistribution. This involves shipping, handling, and storing items on the way from the producer to the consumer. The marketing concept is a philosophy of conducting business that is based on the belief that all business activities should be aimed toward satisfying customer wants and needs while achieving company goals. In the context of the marketing mix, planning is the decision-making process of determining what goods or services will be produced and sold. Exchange is a transfer—marketing promotes the exchange of payment for goods/services to satisfy individual and organizational needs.SOURCE: DS:001SOURCE: DS LAP 1—Distribution

7. DWholesalers. Wholesalers buy goods from producers in large quantities. They are able to sell to several accessory stores on a timely basis, offering smaller quantities than the producer would be willing to sell. Producers actually produce and/or package the original product, which is then made available to wholesalers. Appraisers estimate the value of property for buying, selling, or lending purposes. Order selectors work for wholesalers, assembling smaller quantities of goods to be sent to area businesses.SOURCE: DS:055SOURCE: MB LAP 3—Channels of Distribution

8. BBar codes and EDI. Bar codes are a way of marking products that allows for electronic data interchange (EDI). This is an example of integrated information sharing that has advanced most areas of physical distribution. Merchandise information stored on the magnetic bar code is used for pricing, inventory control, reordering, market research, etc. PLUs or price look-ups are codes assigned to merchandise that typically changes price frequently. The number is entered into the checkout system and the assigned price is rung. Outsourcing requires an outside business to complete a specified task.SOURCE: DS:054SOURCE: Pride, W.M. & Ferrell, O.C. (2000). Marketing: Concepts and strategies (2000e)

[pp. 355-356]. Boston: Houghton Mifflin.

9. DRestrict 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:058SOURCE: Zikmund, W.G., & d'Amico, M. (1999). Marketing (6th ed.) [pp. 390-391]. Cincinnati:

South-Western College.

10. AAdjacent stockrooms. Many T-shirt shops need to replenish the shelves throughout the day as customers buy the items. To simplify this process, shops often keep the extra items in adjacent stockrooms. In most cases, the rear of the shop is the receiving area, and the area where items are stored until they are needed on the sales floor. Then, employees move the items from the stockroom when the supply on the shelves starts to dwindle. Items are often stored in nearby warehouses or distribution centers and delivered to shops on a regular basis, such as three times a week. However, the items the shop needs throughout the day are stored in the stockroom. Sales floor displays hold only a certain amount of items and must be restocked throughout the day. The extra items for these displays are stored in the stockroom.SOURCE: DS:087SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)

[pp. 380-381]. Upper Saddle River, NJ: Prentice Hall.


11. DTo meet consumers' needs. Unit inventory control shows how much stock is on hand and on order at all times. No shoe store can meet consumers' needs unless it knows what products it has available. Stores need to know whether items are available on the shelf, are in the warehouse, or have been ordered and will be in next week. Some stores assign numbers to items in stock in order to keep track of them. Stores do not maintain unit control records in order to monitor receiving areas or prevent shoplifting, although the records might indicate if there are shortages.SOURCE: DS:022SOURCE: DS LAP 3—Unit Inventory Control Systems

12. D$285. To calculate inventory shrinkage, begin with the stock value from the previous physical count and add the amount of purchases made since then ($28,750 + $3,600 = $32,350). From that figure, subtract the total sales transactions to determine the value of perpetual inventory ($32,350 - $26,140 = $6,210). This figure is then compared with the periodic stock count, and if the current stock value is lower than the figure from inventory records, inventory shrinkage has occurred ($6,210 - $5,925 = $285).SOURCE: DS:026SOURCE: DS LAP 4—Inventory Shrinkage

13. DTo make sure that products are available on time. Most clothing stores plan promotional activities in advance. They develop advertising, print coupons, schedule special sales, and organize events to promote products. If these products are not available during the promotion, customers will be unable to purchase them, and the promotion will be ineffective. Therefore, it is important for stores to coordinate distribution with their promotional activities to make sure that the products are available when advertised. Stores do not coordinate distribution with promotional activities in order to offer products at extremely low prices, spend money on warehousing, or select the most efficient transportation form.SOURCE: DS:048SOURCE: Evans, J.R., & Berman, B. (1997). Marketing (7th ed.) [pp. 431-432]. Upper Saddle River,

NJ: Prentice Hall.

14. AVertical. Vertical conflict involves disagreements among businesses on different levels of the same channel of distribution. Apparel manufacturers and their authorized dealers are in the same channel of distribution, but they are on different levels. Conflict might occur if the manufacturers develop policies or restrictions that anger the dealers and which the dealers refuse to accept. Horizontal conflict occurs among business at the same level in a channel of distribution. Indirect and corporate are not types of channel conflict.SOURCE: DS:049SOURCE: Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [pp. 357-358].

Upper Saddle River, NJ: Prentice Hall.

15. CScarcity. Scarcity exists in all societies; no country has been able to produce all of the goods and services desired. Production is the process of creating goods and services. Consumption involves using the goods or services. Exchange is the process of trading one good or service for another.SOURCE: EC:001SOURCE: EC LAP 6—Economics

16. BTrade industries. Trade industries are businesses that buy and sell goods to others. Basically, everything that consumers and businesses own has been sold by trade businesses. Trade industries include retailers that sell to ultimate consumers and wholesalers that sell to other businesses. Chain stores, independent merchants, and specialty shops are examples of the types of businesses included in the category of trade industries.SOURCE: EC:070SOURCE: MB LAP 6—Business and Society


17. CCommunist command. Communism is a command economic system in which the government is in control of the economic system, and there is no private ownership of the means of production and distribution. In a communistic system, the government decides how, when, and by whom resources will be used. In a capitalistic, market, or mixed economic system, individuals and businesses own and control the means of production and distribution.SOURCE: EC:007SOURCE: EC LAP 17—Economic Systems

18. DMaster. A master is a skilled craftsman or tradesman who has worked as a journeyman and team leader for other employees in the same occupation. Ben is an apprentice—a worker who is just beginning in an occupation. A journeyman is a skilled craftsman who has taken courses in an occupational area, has passed an exam, and has been licensed by the state. A steward is a union member elected by his/her peers to handle any grievances or problems members might have with management.SOURCE: EC:015SOURCE: EC LAP 5—Organized Labor

19. ATrough. This is considered the lowest point of economic activity, characterized by high rates of unemployment and business failures. Expansion, which may indicate a recovery period, is characterized by increased economic growth. The peak phase is considered the highest point of economic activity.SOURCE: EC:018SOURCE: EC LAP 9—Business Cycles

20. CStealing from the store. Don and his coworkers are stealing time from the clothing store because they are not working during all of the hours for which they are being paid. Allocating a certain amount of time for a lunch break is routine business procedure, not a fringe benefit. These employees are demonstrating that they do not follow ethical principles or act in a trustworthy manner.SOURCE: EI:022SOURCE: HR LAP 19—Honesty and Integrity

21. AAnalyze the situation before acting. Look the situation over carefully before taking initiative, and use good judgment in making your decision. It is not necessary to ask coworkers' advice. However, some factors to examine include any company policies that might apply and what happens if you don't follow those policies. Waiting to see what happens to others who demonstrate initiative may make it too late for you to take action. Offering help only to supervisors would seem more like trying to impress the boss than demonstrating initiative.SOURCE: EI:024SOURCE: HR LAP 14—Initiative

22. CPositive. Positive feedback helps us to know what behavior is acceptable or pleasing to others. Praise and compliments usually encourage us to continue the action which received the praise. Negative or critical feedback lets us know what behavior is unacceptable or needs improvement. Internal feedback comes from within yourself.SOURCE: EI:003SOURCE: HR LAP 3—Handling Feedback


23. DTo respect their privacy. Some menswear store chains consider e-mail to be corporate property and routinely monitor the messages that employees send and receive. If a chain monitors e-mail, it should inform its employees in order to respect their privacy. Employees have the right to know if someone in the chain will read their e-mail so that they can decide the type of information they will include. They might not want to send or receive personal messages if they know a manager might read their mail. A chain that informs employees that their e-mail will be monitored is communicating a policy. Chains do not inform employees that their e-mail will be monitored in order to reduce their liability or to control operating costs.SOURCE: EI:029SOURCE: Lehman, C.M., & DuFrene, D.D. (1999). Business communication (12th ed.) [pp. 244-245].

Cincinnati: South-Western College Publishing.

24. DBelieve they have no control over their behavior. Some people have the mistaken idea that their behavior is controlled by their circumstances. They behave in a certain way in response to their situation. Being able to confront others, to refuse others, and to believe your ideas are as important as others' ideas are characteristics of assertiveness.SOURCE: EI:008SOURCE: HR LAP 16—Assertiveness

25. AAuthoritarian. These leaders are very specific when giving instructions and leave little to the initiative of the workers. Democratic leaders seek input from employees and exert only moderate control. Very little or no control is exercised in laissez-faire leadership style. The remaining alternative is a distractor.SOURCE: EI:037SOURCE: HR LAP 9—Positive Working Relationships

26. ASatisfy customers. Effective clothing store policies are designed to satisfy customers by meeting their wants and needs. At the same time, the policies are meant to make a fair profit for the store. Store policies also are developed to keep operations running smoothly, to reduce misunderstandings, and to guide employees' actions.SOURCE: EI:042SOURCE: HR LAP 25—Interpreting Business Policies

27. AThank the customer for identifying the problem. Letting the jewelry store customer know that you appreciate hearing about the problem helps to calm irate customers. It's difficult for those customers to remain angry when you're letting them know how much you appreciate their information. Asking the irate customer why s/he thinks there is a problem or telling the customer his/her complaint is not justified would be likely to increase the customer's anger. Explaining company policy may help the situation but would be a later step in handling the complaint.SOURCE: EI:043SOURCE: HR LAP 23—Handling Customer Complaints

28. B$3,200. Net worth is the total value of the accessory shop. Net worth is calculated by subtracting total liabilities from total assets ($4,250 - $1,050 = $3,200). Cash on hand and value of inventory is included in total assets.SOURCE: FI:085SOURCE: FI LAP 5—Show Me the Money (Nature of Accounting)


29. B$82,565. A balance sheet is a financial statement that captures the financial condition of the jewelry store at a particular moment. One of the three main components of a balance sheet is the store's liabilities, which are the debts that the store owes. Liabilities include items such as accounts payable, accrued wages and salaries, income tax payable, long-term notes, and mortgages. To determine the store's liabilities, add the amount owed in commissions, the amount payable in income tax, and the accounts payable ($46,500 + $23,225 + $12,840 = $82,565). Depreciation is a reduction in the value of goods occurring over a period of time. Depreciation is not a liability but a factor in determining the current value of fixed assets such as equipment.SOURCE: FI:093SOURCE: Longenecker, J.G., Moore, C.W., & Petty, J.W. (2003). Small business management: An

entrepreneurial emphasis (12th ed.) [pp. 294-297]. Cincinnati: Thomson/South-Western.

30. BSituational analysis. A situational analysis is a determination of a menswear store's current business situation and the direction in which the business is headed. Both internal (e.g., personnel) and external (e.g., competition) environmental conditions are evaluated to determine the store's current strengths, weaknesses, opportunities, and threats. Diagnostic summary, conditional assessment, and environmental synopsis are not terms commonly used to describe marketing plan components. SOURCE: IM:197SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an

e-commerce world (7th ed.) [p. 632]. Mason, OH: South-Western.

31. ACorporate espionage. The practice of collecting information about competitors is known as corporate espionage. The majority of clothing manufacturers participate in corporate espionage to some extent. In most cases, it involves analyzing readily available information to try to determine a competitor's marketing strategies or plans for a new product. However, in some situations the practice can be unethical if manufacturers go beyond accepted practices to obtain information that is private. For example, sifting through a competitor's trash to find secret documents is a form of corporate espionage that is usually considered unethical. Telephone surveys and behavior observation are accepted methods of obtaining information about customers. Data mining involves searching customer databases to identify trends.SOURCE: IM:025SOURCE: Boone, L.E., & Kurtz, D.L. (2002). Contemporary marketing (p. 197). Mason, OH:

South-Western.

32. BEncourage customers to complete product registrations and warranties online. Encouraging customers to complete product registrations and warranties online would allow the accessory company to efficiently gather the desired information and also would give consumers an easy way to register products. The online form could contain questions that would collect the necessary information. Pop-up ads on web-search engines would not gather the needed information. Asking retailers to collect the information or sending surveys to as many people as possible would be costly and time consuming.SOURCE: IM:184SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)

[pp. 222-223]. Cincinnati: South-Western.

33. BCausal. Causal research is marketing research that focuses on cause and effect and tests "what if" theories. Many of today's shoe store chains use computers to carry out their causal research because the computer can analyze large quantities of data quickly and reach a conclusion. Exploratory research collects information to help the chain define its situation, problem, or concern and decide which direction to go in order to address it. Predictive research is used to help the chain forecast future business developments. Descriptive research gathers specific information related to the identified situation, problem, or concern.SOURCE: IM:010SOURCE: IM LAP 5—Nature of Marketing Research


34. DLevel of quality. Clothing stores should consider the level of quality of the product being offered because this will affect price, promotion, and place. Channels of distribution and inventory are elements of distribution. Availability of credit is an element of financing.SOURCE: IM:194SOURCE: IM LAP 7—Pick the Mix (Marketing Strategies)

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

36. DSales information. Sales data include sales records, sales call reports, past sales trends, sales forecasts, order sizes, quotas, and other sales records. Operating information includes such data as production reports, budgets, profit-and-loss statements, and cost figures. Inventory information shows the stock on hand, stock on order, how long stock has been held, and the value of the stock. Personnel information is data about employees.SOURCE: IM:001SOURCE: IM LAP 2—Marketing-Information Management

37. DThreats 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 discount apparel stores, as well as potential threats. For example, a change in customers' habits might present an opportunity for some businesses but be a threat to other businesses. In order to be prepared to take advantage of the opportunities or deal with the threats, a clothing store must first analyze the environment to find out exactly what those opportunities or threats are. A store does not conduct a situational analysis to identify profits and losses, revenues and expenses, or goods and services.SOURCE: IM:140SOURCE: 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.

38. CQuantitative. Quantitative forecasting methods compile statistical data. These data can be internal and external information that is obtained from a variety of sources. When qualitative forecasting methods are used, a business prepares its sales forecasts by asking knowledgeable people to state their opinions or predictions about sales. Intermediate and long-term forecasts are sales forecasting time frames that exceed one year.SOURCE: IM:003SOURCE: IM LAP 3—Nature of Sales Forecasts

39. BProblem solver. Of the options given, "problem solver" is the term that best represents marketing's role in society. Marketing connects producers to customers by solving customers' problems. Pioneers lead and peacemakers make peace — with or without being involved in marketing or its role in society.SOURCE: MK:001SOURCE: BA LAP 11—Have It Your Way (Marketing)


40. AImage. Promotion is a marketing function that communicates information about goods, services, images, and/or ideas to achieve a desired outcome. Sportswear stores often develop promotional campaigns to create a certain image or to improve an existing image. The purpose of creating a favorable image is to increase sales. Stores do not use promotional campaigns to create or improve credit or safety, which are business activities. Displays may be part of a promotional campaign.SOURCE: MK:002SOURCE: MK LAP 1—Work the Big Six (Marketing Functions)

41. CFrequent shopper programs. More and more retailers are offering their customers some type of reward for their loyalty to the store. The rewards are often in the form of frequent shopper programs that offer special discounts or give free merchandise after a customer spends a certain amount. For example, some apparel stores give customers membership cards that make it possible for customers to save money on certain items or accumulate points that can be redeemed for merchandise. As the retailing world becomes more and more competitive, stores are looking for ways to set themselves apart, and rewarding frequent shoppers is becoming a popular way to do that. Membership warehouse clubs are a type of retailer. Customers purchase electronic gift cards and pay the amount of the card's value. Personal credit plans are not a method of rewarding customers.SOURCE: NF:064SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


42. DPersonal observation. Watching people and observing how their clothes follow or interpret current trends can provide insight into consumer reactions to trends. Each of the other alternatives involves some amount of expense and effort. Businesses can subscribe to trade publications that report fashion trends as well as retailing and promotion information. Reporting services, or fashion forecasting services, are marketing companies that sell fashion information including fashion trend and color trend predictions. Questionnaires are surveys which are designed to gather information about a specific topic, and the business must pay someone to conduct the surveys.SOURCE: NF:063SOURCE: IM LAP 1—Fashion Trends

43. ADatabase. A database program allows the organized collection of information with pieces of information related to one another. This information can be used to maintain, analyze, and combine customer information. Spreadsheets, word-processing software, and computer-aided design do not perform the functions required by the clothing store.SOURCE: NF:009SOURCE: Eggland, S.A., Dlabay, L.R., Burrow, J.L., & Ristau, R.A. (2000). Intro to business (4th ed.)

[pp. 214-215]. Cincinnati: South-Western Educational.

44. AVendor B. Weighted rating is an objective method of vendor selection. Each point is multiplied by the value assigned according to the vendor's ability to satisfy the buyer. Vendor B had the highest total points (11).

(3) (2) (1)Vendor A 3 x 1 = 3 2 x 2 = 4 1 x 1 = 1 Total 8Vendor B 2 x 3 = 6 1 x 2 = 2 3 x 1 = 3 Total 11Vendor C 2 x 3 = 6 1 x 2 = 2 1 x 1 = 1 Total 9Vendor D 2 x 3 = 6 1 x 2 = 2 2 x 1 = 2 Total 10

SOURCE: OP:080SOURCE: Lewison, D.M. (1997). Retailing (6th ed.) [pp. 427-428]. Upper Saddle River, NJ:

Prentice Hall.


45. CEmployees smoke only in authorized areas. Most T-shirt manufacturers that permit smoking on the premises designate a smoking area that would be the least hazardous to the business. Unless employees are careless in disposing of their cigarette butts and ashes, smoking in these areas is not a fire hazard. A pile of greasy rags and overheated cooking oil are highly flammable. Most electrical outlets can handle two pieces of electrical equipment, but three might overload the outlet, causing heat buildup and possibly fire.SOURCE: OP:007SOURCE: RM LAP 2—Following Safety Precautions

46. CHire security guards. Guards can deter theft by walking through the menswear store or by being positioned at exits. Guards also might help handle shoplifting situations. A floor limit is the maximum amount customers are permitted to charge on their credit cards without receiving authorization from the store. Liability insurance protects the store when accidents occur. Taking frequent inventories would identify inventory shrinkage.SOURCE: OP:013SOURCE: RM LAP 4—Security Precautions

47. BForm. Form utility is usefulness created by altering or changing the form or shape of a good to make it more useful to the consumer. This change takes place during the production process, e.g., production turns flour and other ingredients into bread. Place utility is usefulness created when goods or services are made available at the place where they are needed or wanted by consumers. Time utility is usefulness created when products are made available at the time they are needed or wanted by consumers. Possession utility is usefulness created when ownership of a product is transferred from the seller to the user.SOURCE: OP:017SOURCE: BA LAP 1—Nature of Production

48. DTailored clothing. Extremes in clothing and in appearance have grown in recent years—everything from wild and clashing colors, loose and baggy clothing, to multiple body piercings and visible tattoos. Such extremes generally send negative messages that are harmful to your personal appearance and success in the workplace. Tailored clothing is not likely to be harmful to you or your image in the workplace, although less expensive, nontailored clothing is also appropriate.SOURCE: PD:002SOURCE: PD LAP 5—Brand ME! (Personal Appearance)

49. BOrdering pizza for dinner. Routine decisions are decisions that people make often. They are so minor or simple that people don't think about them much and make them almost unconsciously. Deciding to order pizza for dinner is a routine decision. Selecting which wedding gown to buy, choosing a career to pursue, and picking a new roommate are not routine decisions.SOURCE: PD:017SOURCE: PD LAP 10—Weigh Your Options (Decision Making)

50. CPosted help-wanted signs. Many local apparel shops post help-wanted signs in their windows to attract the attention of prospective employees. Young people searching for their first jobs often respond to the help-wanted signs. The young people usually are familiar with these shops because they are part of the community. Shops that hire employment agencies, conduct professional searches, and advertise in trade journals usually are looking for employees who have experience or specialized training rather than young people searching for their first jobs.SOURCE: PD:026SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [p. 35]. Mason,

OH: South-Western.


51. CSend a follow-up letter to the interviewer. This letter should go out within a day or two of the interview, and it should thank the interviewer for taking the time to talk with the applicant. Unless the applicant has been told to call back, it would be rude to call to ask who got the job. Generally, the business calls the applicant to make a job offer. Going over any mistakes that may have occurred or checking on other job openings are acceptable activities, but they would not be described as courteous.SOURCE: PD:028SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp. 71-72].

Mason, OH: South-Western.

52. CPersonal. Personal references are those people who know you well but are not former employers. People who have limited work experience often include personal references on their resumes because they do not have many work references. Personal references may include people such as teachers, coaches, neighbors, or others with whom you have regular contact. They are in a position to comment on your strong points that would be applicable in a work setting. Family members should not be listed as references. Social and private are not types of references.SOURCE: PD:031SOURCE: Daggett, W.R., & Miles, J.E. (1998). The dynamics of work: Introduction to occupations

(2nd ed.) [pp. 56-57]. Cincinnati: South-Western Educational.

53. DLeadership ability. Leadership is the ability to guide or direct the actions of others in a desired manner. Employees who exhibit leadership ability are often considered for promotion when shoe store chains have openings in supervisory positions. Many chains prefer to promote from within the organization and often consider those employees who have leadership ability. Chains are prohibited by law from considering employees' family status, ethnic background, or personal life when determining whom to promote.SOURCE: PD:035SOURCE: Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (pp. 486-488).

New York: Glencoe/McGraw-Hill.

54. AOperations. There are many career opportunities available in retailing. One important area is operations, which involves a variety of positions that are responsible for the overall operation of a store. These positions include jobs in store maintenance, security, and inventory management. Operations employees are the backbone of retailing and make it possible for a clothing store to function effectively and efficiently. Employees who are responsible for maintenance, security, and inventory management do not sell. Merchandising careers involve the planning and purchasing of merchandise to meet customer needs and to earn a profit for the retailer. Promotional careers include jobs in the advertising and marketing department.SOURCE: PD:038SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


55. CFlexible pricing. Flexible pricing means that a business adjusts prices up or down according to changes in economic or other factors that affect consumer spending. High-level pricing in economic hard times would reduce sales. Odd-cents pricing is used to give the illusion that a price is slightly lower than it is. For example, many consumers perceive $4.99 as closer to $4.00 than to $5.00. Below-cost pricing would mean selling products for less than what the business paid for them, which would lose money for the business.SOURCE: PI:001SOURCE: PI LAP 2—Pricing


56. AA pharmaceutical company sells a common lifesaving drug at extremely high prices in specific geographical regions. Social responsibility is defined as the duty of business to contribute to the well-being of society. Because the drug is common and has the capacity to save lives, an unethical issue is possible if the drug is sold at prices so high that some people can afford the drug while others cannot, which might be considered price discrimination. An oil company that substantially increases its gasoline prices when the workers at a large refinery go on strike does not necessarily present an unethical issue since the refinery lacks human resources to supply enough of the product to meet demand. A manufacturing company that increases prices on certain items to cover expenses to add new pollution control devices is acting in an ethical manner and employing social responsibility to the natural environment. A clothing retailer that deeply discounts goods in an effort to reduce excess inventory from the previous selling season is not conducting socially irresponsible activities.SOURCE: PI:015SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [p. 87]. Mason, OH:

Thomson/South-Western.

57. DTo curb inflation. The government is allowed, by law, to take actions necessary to control inflation. Typical tactics the government uses to curb to inflation include regulating prices. These tactics are designed to control inflation and not inhibit business or create monopolies. These tactics do not encourage private enterprise but serve as a way of helping private enterprise to survive during difficult economic situations.SOURCE: PI:017SOURCE: Pride, W.M., & Ferrell, O.C. (2000). Marketing: Concepts and strategies (pp. 526-527).

Boston: Houghton Mifflin.

58. AHave higher expenses. Sales-oriented pricing objectives focus on increasing the total amount of income from sales. The jewelry store may need to spend more on its marketing efforts in order to achieve these objectives. Having more income from sales, creating a new image, or being more competitive are outcomes that are advantages to the store.SOURCE: PI:002SOURCE: PI LAP 3—Factors Affecting Selling Price

59. CUpward flow. This theory states that people from the masses, or lower income groups, are the trendsetters. The downward flow theory is based on new trends being first accepted by people from the entertainment world, sports scene, and important families. The trickle across theory involves new fashions being accepted by other similar people. A fashion follower is not a fashion theory.SOURCE: PM:044SOURCE: Wolfe, M.G. (1998). The world of fashion merchandising (pp. 35-36). Chicago:

Goodheart-Willcox.

60. DDecorative. The primary purpose of creating decorative lines in clothing is to add detail and interest to the items. Decorative lines can be created by adding such items as trim, top-stitching, and buttons to various types of clothing. The items that create decorative lines do not affect the structure of clothing. Structural lines are intended to hold a garment together and are created when garments are made. Horizontal lines go from side to side. Vertical lines go up and down.SOURCE: PM:048SOURCE: Wolfe, M.G. (1998). The world of fashion merchandising (pp. 145-146). Chicago:

Goodheart-Willcox.


61. ARising sales. An accessory product in the growth stage of the product life cycle has been accepted by consumers, and sales are increasing. Product production is more efficient at this stage, resulting in lower costs of production. Distribution expands as the market expands. Obsolescence does not begin until the product is in late maturity or decline.SOURCE: PM:024SOURCE: Boone, L.E., & Kurtz, D.L. (2002). Contemporary marketing (pp. 345-347). Mason, OH:

South-Western.

62. CImprove existing products. As a result of advances in technology, new materials and operating techniques have been developed. These materials and techniques have made it possible for watch manufacturers to improve existing products. This impacts the product/service management function because it enables manufacturers to extend the life of existing products and keep them on the market. Manufacturers have found that it is usually less expensive to update existing products than to develop entirely new products. Advances in technology are allowing manufacturers to do this. Advances in technology often help to reduce human errors but cannot completely eliminate them. Advances in technology often make production systems more complex because they rely on complicated computer systems. Manufacturers are not able to control customer preferences. SOURCE: PM:039SOURCE: Zikmund, W.G., & d'Amico, M. (1999). Marketing (6th ed.) [p. 317]. Cincinnati:

South-Western College.

63. BCategorizing information. The Six Thinking Hats technique is a creative-thinking technique that utilizes different ways of approaching a problem. Each of the six hats represents one aspect of the situation. For example, the white hat looks at all the facts and data available. The blue hat summarizes and organizes thoughts and information. By placing each aspect into different categories, the situation can be evaluated by using various viewpoints. Playing the devil's advocate or looking at the negatives of the situation is one part of the overall technique. The Six Thinking Hats technique can be used in a group or alone. Therefore, it cannot be assumed that this method of creative thinking is always conducted in a group situation where each group member is assigned a different job. Positive feedback is a general term and is not necessarily a step in the Six Thinking Hats creative-thinking technique.SOURCE: PM:127SOURCE: PM LAP 11—Unleash Your Oh! Zone

64. AReplaced. A full warranty provides that if a problem with a product, such as a waterproof watch, cannot be corrected in a reasonable amount of time, the customer does not have to wait longer but may choose a refund or a replacement. A full warranty does not promise to destroy, rebuild, or improve a product.SOURCE: PM:020SOURCE: PP LAP 4—Warranties and Guarantees

65. AFederal Trade Commission Act. This act was passed in 1914 and established the Federal Trade Commission, which administers laws that forbid false, misleading, or deceptive advertising of consumer products. The Sherman Antitrust Act is intended to prevent monopolies and price fixing. The Robinson-Patman Act forbids businesses from discriminating in the prices or services offered to competing customers. The Clayton Act is intended to prevent specific business actions that might prohibit competition.SOURCE: PM:017SOURCE: PP LAP 7—Consumer Protection in Product Planning


66. CPossible decrease in overall profits. Sales of the new line of purses may replace sales of the older purse line enough to decrease overall profits. Customers may find that the less expensive line of purses satisfies their needs as well as the more expensive line and buy only the less expensive, lower profit line. It would be an advantage if the new line of purses is competitively priced. Developing a new target market is the purpose of creating the new product line. It would be an advantage if the new product line helps meet company sales objectives.SOURCE: PM:003SOURCE: PP LAP 3—Product Mix

67. CThe buyers have customers shop at their stores more often. This, in turn, helps to increase sales and creates a successful image for the buyer and the store. The other alternatives are factors that help buyers to become successful.SOURCE: PM:060SOURCE: PU LAP 2—Fashion Designers

68. BNational. A national brand is a manufacturer's brand. Clothing manufacturers assume all the responsibility for their own brands. Some companies permit their products to be sold under a wholesaler's or retailer's brand name, which is referred to as a store or private brand. Individual brands apply only to one product.SOURCE: PM:021SOURCE: PM LAP 6—It's a Brand, Brand, Brand World!

69. DCustomer demand decreases. For example, when customer demand for winter sweaters decreases in the spring, apparel retailers discount existing stock or order fewer sweaters. Retailers generally do not plan merchandise reductions when customer demand is on the rise. In this case, retailers will generally order more merchandise and not discount pricing. Merchandise reductions are generally not planned around the supplier's inventory levels.SOURCE: PM:063SOURCE: Wolfe, M.G. (1998). The world of fashion merchandising (p. 359). Chicago:

Goodheart-Willcox.

70. BOpen-to-buy. Open-to-buy is calculated by subtracting the value of goods on hand and on order from planned purchases for the period. Planned purchases are included in the merchandise budget, which estimates sales, purchases, expenses, etc. Current ratio compares the total assets of a business with the total liabilities. Planned markup is the percent of markup the business includes in its prices in order to recover costs and to make a profit.SOURCE: PM:064SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


71. CDemand. Demand for certain products tends to change with the seasons, such as swimsuits for summer. This means that Tim needs to adjust his promotion to meet this change. Technology deals with technological developments, not demand for a product. Legal and political factors deal with government regulations and restrictions, not demand for a product. Cultural and social trends deal with changes in attitudes, lifestyles, and tastes of the consumers, not demand for a product.SOURCE: PR:001SOURCE: PR LAP 2—Promotion


72. AInstitutional. Institutional promotion aims to create a certain image in the eyes of consumers. This ad is intended to build goodwill with the public by portraying the shoe company as having concern for the environment. Product promotion aims to persuade consumers to buy a good or service. Primary promotion is intended to stimulate demand for an entire class of goods or services. Patronage promotion is designed to promote a firm's features or prestige.SOURCE: PR:002SOURCE: PR LAP 4—Types of Promotion

73. APersonal selling. Personal selling is the form of promotion that uses planned, personalized communication in order to influence purchase decisions and to ensure satisfaction. Advertising is any paid form of nonpersonal presentation of ideas, goods, or services. Public relations includes the promotional activities in which businesses engage in order to influence the public's attitude toward them. Display is the visual, nonpersonal presentation of goods and services to prospective buyers.SOURCE: PR:003SOURCE: PR LAP 1—Promotional Mix

74. AStereotyping. A stereotype is a set image or an assumption about a person or thing. An ad that portrays teenaged boys wearing jeans as lazy and middle-aged men wearing suits as hardworking 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:099SOURCE: Arens, W.F. (1999). Contemporary advertising (7th ed.) [pp. 53-55]. Boston:

Irwin/McGraw-Hill.

75. DOut-of-home. Certain spots (e.g., bus stations) outside of the home attract a large percentage of people from different backgrounds, thereby providing the perfect opportunity to expose them to a message over and over again. Radio advertisements last for only as long as they are on the air, and they are targeted at a very specific group of listeners. Once people are finished reading newspapers, they typically throw them away. In addition, not as many people read newspapers as drive by public places over and over again. Directory advertising is a great opportunity to appeal to people who are looking for the business's contact information, but rarely is there repeated exposure to an ad.SOURCE: PR:007SOURCE: PR LAP 3—Ad-quipping Your Business

76. BWhite space. White space is blank space in a print advertisement that is unoccupied by text or illustrations. White space is often used to emphasize the other elements of the advertisement. Type is the style and size of the letters. Copy is text and original art is a type of illustration.SOURCE: PR:014SOURCE: PR LAP 7—Parts of Print Ads

77. DProfessional association. A professional association can be defined as a group of persons in the same industry who form a society with common interests and goals. Some trade associations sell their mailing lists to other businesses, such as menswear stores. Trade industry is a general term used to describe businesses that buy and sell goods to others (e.g., retailers and wholesalers). Principal data source and resource investment agency are not terms commonly used to describe mailing list or database sources.SOURCE: PR:091SOURCE: 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.


78. DPlacing the wig in a plastic bag. The wig should be removed from the mannequin and placed in a plastic bag to keep it clean and to preserve the hairstyle. The wig should then be stored with the mannequin, not in a separate location. Pins should not be used as they would damage the mannequin's head.SOURCE: PR:054SOURCE: Bell, J., & Ternus, K. (2002). Silent selling: Best practices and effective strategies in visual

merchandising (2nd ed.) [pp. 307-310]. New York: Fairchild.

79. CPOP displays near the cash register. Impulse merchandise is often found in a point-of-purchase display that provides customers with easy access. A closed display and a hanging display would not allow customers to handle the merchandise or to serve themselves. Seasonal displays on shelves usually do not feature impulse goods.SOURCE: PR:114SOURCE: Diamond, J., & Diamond, E. (1999). Contemporary visual merchandising (pp. 205-207).


80. DMonochromatic. An example of a monochromatic color scheme would be a display of items in different shades of red. A complementary or contrasting color scheme uses colors which are directly opposite each other on the color wheel. A triadic color scheme is composed of colors forming an equilateral triangle on the color wheel.SOURCE: PR:029SOURCE: Diamond, J., & Diamond, E. (1999). Contemporary visual merchandising (pp. 129-131).


81. BDisplays. Displays can call customers' attention to current specials and provide them with information about clothing items and accessories. Refunds are cash amounts returned to customers who qualify for them. Coupons reduce the price of products in order to encourage customers to try them. Premiums are items stores offer free of charge to purchasers of a particular product.SOURCE: PR:076SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)

[pp. 482, 486-487]. Upper Saddle River, NJ: Prentice Hall.

82. BA radio spot. A radio spot is a short radio advertisement that is intended to sell a product, but it is not a place where selling actually occurs. Selling can occur wherever person-to-person contact is made. The other alternatives are all specific places where products can be sold.SOURCE: SE:017SOURCE: SE LAP 117—Selling

83. BCalling to make sure the products are satisfactory. Following up with customers is one way to provide good service and develop strong relationships. There are several effective follow-up activities and one is to call customers to make sure the clothing display fixtures are satisfactory. Customers appreciate knowing that their business is important and that salespeople care enough to call to check on the products they sell. Salespeople who follow up usually create goodwill, and develop strong relationships with customers who often continue to buy from the salespeople. Asking for referrals is a way of identifying potential new customers. Salespeople usually do not explain the company's business plan. Salespeople might follow up by sending information about the company and new products, but they would not send articles about local competitors.SOURCE: SE:076SOURCE: Futrell, C.M. (1999). Fundamentals of selling: Customers for life (6th ed.) [pp. 405-408].

Boston: Irwin/McGraw-Hill.


84. DWord-of-mouth advertising. George was satisfied with his experience at the shoe store. As a result, he told Brent about the sale, which encouraged Brent to also buy a pair of boots. Satisfied customers often provide the best promotion and publicity for a business by spreading the word about the company. Repeat sales refers to a customer purchasing from a store again and again. Personal satisfaction refers to the feeling that a salesperson may experience from providing service to a customer. Referrals refers to the act of loyal customers providing a salesperson with leads for locating and accessing new clients.SOURCE: SE:828SOURCE: SE LAP 115—Building Clientele

85. CSelling-activity policies combined with terms-of-sale policies. Selling-activity policies focus on providing guidelines for the salesperson's activities and their interactions with customers, while terms-of-sale policies focus on the aspects of a sale with which customers are most concerned, such as guarantees. Service policies are designed to govern the support a company provides to customers after the sale. Corporate policies are any policies the company initiates.SOURCE: SE:932SOURCE: SE LAP 121—Selling Policies

86. BInteractive training software. Interactive software allows computer users to learn information and practice a skill or activity. Since the user is in control of the function, the software can be used on an individual basis at anytime. Videoconferencing refers to the ability to exchange information via satellite from various locations. Although videoconferencing is interactive, it is generally a scheduled event; therefore, a computer user cannot proceed at her/his own pace. Database software programs are computer-based programs that store various information and data. They are not necessarily interactive. Customized training specialists are individuals or companies that develop and provide training materials for others. Training specialists are not necessarily computer-based or interactive in nature.SOURCE: SE:107SOURCE: Stanton, W.J., & Spiro, R. (1999). Management of a sales force (10th ed.) [p. 239]. Boston:

Irwin/McGraw-Hill.

87. BSelling the same quantity of the same apparel item to different customers for different prices. This is an example of price discrimination and is often considered an illegal selling activity. If a business charges different customers different prices for similar amounts and types of apparel items, it is involved in price discrimination, which is a violation of certain selling regulations. Customers often ask companies for price breaks on apparel items at the end of the regular season. It is legal to offer substantial discounts to buyers of large quantities of certain apparel items and to buy items from one company that are available for a lower price from another company.SOURCE: SE:108SOURCE: Futrell, C.M. (2001). Sales management: Teamwork, leadership, and technology (6th ed.)

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

88. BExtension. The extension is the total cost of each quantity of merchandise purchased. Subtotal is the total selling price of all merchandise purchased before tax is added. Total refers to the amount the customer must pay and may include tax and/or other charges. Description refers to the physical and/or coded identification of items being sold.SOURCE: SE:117SOURCE: MA LAP 48—Completing Sales Checks


89. CCompany catalogs. A great deal of product information is given in product catalogs, bulletins, manuals, and other promotional materials. For example, a company catalog might describe the construction and durability of a pair of hiking boots and explain that these features provide comfort and support. Salespeople can use this information to sell the benefits of the boots to customers. News magazines contain information of general interest to the public. Professional journals contain information about topics of interest to people in a certain profession rather than information about specific products. Industry statistics do not provide product information.SOURCE: SE:109SOURCE: SE LAP 113—Feature-Benefit Selling

90. DFoundations. Foundations are a type of intimate apparel and include items such as brassieres and sport bras. Separates are not a type of intimate apparel. Sweatshirts are a type of sportswear. Cover-ups are a type of swimwear accessory.SOURCE: SE:126SOURCE: Diamond, J., & Diamond, E. (1997). The world of fashion (2nd ed.) [pp. 234-235]. New York:

Fairchild.

91. DCustomer loyalty. Every clothing store needs to have a group of customers who are loyal to the store. These are customers who buy from the store on a regular basis. When a store establishes a successful fashion-brand image, this helps it to acquire and to keep loyal customers. In other words, when customers are loyal to certain brands, their loyalty to those brands often becomes loyalty to the store that sells the brands. Exclusive distribution is the act of making goods available only in certain locations. Cooperative advertising is promotional funds provided to retailers by the producers of goods to help pay for the retailer's advertising expenses. Target markets are the particular group of customers a store seeks to attract.SOURCE: SE:051SOURCE: SE LAP 122—Fashion-Brand Images

92. CNeed. For example, you may need food, clothing, shelter, or safety. A want is defined as something that's desired but not always essential. A buying motive is a reason or benefit that causes people to purchase goods or services to satisfy their wants and needs. A benefit is an advantage which a good or service offers.SOURCE: SE:883SOURCE: SE LAP 102—Using Buying Motives (Part I)

93. BAt the natural waistline. Since children's size categories are based on body measurements as well as on height and weight, measuring the child helps to determine the correct size clothing for the child. None of the other alternatives are measurements used in fitting children's clothing. Neck measurement is used in fitting men's shirts. Back waist length helps to determine women's dress size category.SOURCE: SE:135SOURCE: Wolfe, M.G. (1998). Fashion! (3rd ed.) [pp. 295-296]. Chicago: Goodheart-Willcox.

94. CTapered. Women's pants, or slacks, styles vary according to the length and the shape of the pants' legs. Tapered pants have fitted legs that narrow toward the ankle. Classic pants are tailored with straight legs. Flared pants have legs that are wide at the bottom. Western style pants often are jeans.SOURCE: SE:140SOURCE: Wolfe, M.G. (1998). Fashion! (3rd ed.) [pp. 41-42]. Chicago: Goodheart-Willcox.


95. C$2.16. The amount of sales tax is found by subtracting the subtotal from the sales total ($63.74 - $61.58 = $2.16).SOURCE: SE:116SOURCE: MA LAP 52—Calculating Miscellaneous Charges

96. CRight to left. Coins and currency should be placed in the cash drawer in order of increasing monetary value as you move across the cash drawer from right to left. Therefore, you should arrange $1 bills in the far right-hand rear compartment, then $5 bills, then $10 bills, and then $20 bills.SOURCE: SE:156SOURCE: MA LAP 47—Preparing Cash Drawers

97. CThe same as cash. A gift certificate is the same as cash because the buyer has paid the specialty boutique a certain amount of money in exchange for the certificate. Consequently, boutiques make sure that the exact dollar value of the certificate is spelled out rather than written in numbers. In some cases, the amount may be spelled out and written in numbers to make sure there is no mistake. Gift certificates usually are sold for a specific amount of money although some boutiques may occasionally offer a discount if a customer buys a large number of certificates. The money received from the sale of gift certificates is accounted for in the boutique's books, but that is not the reason for spelling out the exact dollar value on the certificate. A debt is money the boutique owes to others.SOURCE: SE:016SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


98. AYes, a business's return policy should be flexible. Even though the return exceeded the 10-day limit, it is typical for businesses to extend return time during holiday periods when it is impossible to know whether items would be acceptable within the normal time limit. No information was provided about whether the gift had been used or had been purchased at a sale.SOURCE: SE:162SOURCE: MA LAP 45—Handling Returns

99. DAsk questions. Experienced jewelry store salespeople usually are an excellent source of product information for new salespeople. New salespeople should routinely ask questions of experienced salespeople in order to better understand the product and how it functions. Experienced salespeople can pass on to new salespeople the valuable selling tips that they have learned over the years. Reading magazines, watching videos, and visiting competitors are ways of obtaining product information that do not involve interaction with experienced salespeople.SOURCE: SE:062SOURCE: Manning, G.L., & Reece, B.L. (1998). Selling today: Building quality partnerships

(pp. 105-108). Upper Saddle River, NJ: Prentice Hall.

100. DManagers should focus their efforts on managing. Discount clothing store managers do a better job if they focus on managing rather than helping with the work. It is their job to plan the work of others, not to carry it out. They should not do the employees' work. However, there may be times when it becomes necessary for managers to work alongside employees in an emergency situation or to meet a particular deadline. However, this should not be standard practice or the focus of their efforts. Managers have a wide range of responsibilities and take an active role in the business.SOURCE: SM:001SOURCE: BA LAP 6—Manage This!

Exams/… · Web view20. Don likes to have lunch with coworkers every day, and they usually take...

Documents

Transcript of Exams/… · Web view20. Don likes to have lunch with coworkers every day, and they usually take...