2009 DECA Ontario Provincials CompetitionASM
Test 996 AUTOMOTIVE SERVICES MARKETING 1
1.Jim has been manager for Tom's Oil Change Shop for five years, but he wants to be his own boss. Jim has experience, cash, and a strong desire for independence. Which type of business ownership is most appropriate for Jim?
A.Corporation C.Partnership
B.Sole proprietorshipD.Franchise
2.What is the legal issue involved if an automobile manufacturer recalls a vehicle for repair, a customer has every opportunity to have the repair work done but does not, and the customer is injured while operating the vehicle?
A.Product negligence C.Manufacturing risk
B.Misuse of a product D.Assumption of risk
3.In the automotive industry, moving or transferring the ownership of goods or services are ______activities.
A.selling C.shipping
B.distribution D.transportation
4.An advantage of using satellite tracking technology in distribution is that it enables auto-parts businesses to
A.obtain information about competitors.
B.analyze the contents of packages.
C.reroute deliveries based on weather conditions.
D.know where shipments are at all times.
5.Although implementing slotting fees can help an automotive accessory store offset risks and cover stocking costs, it can become an ethical issue if it
A.supports competing agreements. C.eliminates tax incentives.
B.encourages economic growth. D.reduces competition.
6.One branch of a large automotive business complaining about the aggressive pricing tactics used by another of the automotive business's branches in the same community is an example of ______channel conflict.
A.horizontal C.external
B.vertical D.functional
7.What is an effective technique for tire and battery store employees to use to extract relevant information from written materials?
A.Ask frequent questions C.Develop a rough outline
B.Take notes while reading D.Skim through chapter titles
8.Which of the following is a guideline for effective verbal communication:
A.Try to avoid eye contactC.Use gestures for emphasis
B.Use speech mannerisms D.Keep the voice at the same pitch
9.Before writing informational messages, it is important for automotive services employees to
A.wait for feedback. C.identify the audience.
B.plan a response. D.select the medium.
10.What do muffler shop employees often use to communicate their interest in providing good service to customers?
A.Social statusC.Body language
B.Standardized greetings D.Closing statements
11.An auto-parts store's employees can generally identify difficult customers
A.by observing customers' dress. C.by listening to customer's accents.
B.during their initial contact. D.after asking personal questions.
12.Simpson Auto Store received damaged automotive items that were shipped from ATC Manufacturing Company. What type of form should Simpson Auto use to file a complaint for the damaged goods and return the unacceptable items to ATC Manufacturing?
A.Claim formC.Sales form
B.Bill of lading D.Delivery receipt
13.An auto-parts store receiving clerk may determine whether the contents of a shipment require priority processing by reading the
A.price tags. C.claim form.
B.mailing label. D.packing slip.
14.In which of the following situations will an auto-parts store identify an overage as a result of counting inventory:
A.Physical inventory is higher than perpetual inventory.
B.Perpetual inventory indicates items have been stolen.
C.Perpetual inventory is higher than physical inventory.
D.Physical inventory indicates errors in record keeping.
15.An auto-parts store that wanted its inventory records to be updated automatically at the time of the customer's purchase could use a ______system.
A.price-ticket stub C.point-of-sale tally
B.point-of-sale D.cash-register stub
16.In which of the following situations would an auto-parts store employee need to know the identification number of a part:
A.To assemble a component C.To complete a repair job
B.To locate a replacement in inventoryD.To identify the correct installation tool
17.The tools used by a mechanic to tune a car are
A.capital goods. C.human resources.
B.consumer goods. D.natural resources.
18.A local dealership purchased 100 blue pickup trucks but has only been able to sell three in the past five months. Because of the low demand for these trucks, the dealer has been forced to lower the sticker prices, creating a(n) ______market for blue pickup trucks.
A.discount C.seller's
B.buyer's D.automotive
19.Businesses that want to be socially responsible to consumers engage in research activities in order to
A.improve their procedures.C.avoid breaking the law.
B.keep up with competitors. D.ensure that their products are safe.
20.Shell Oil and BP Oil are two large gasoline companies attempting to attract the same market. These businesses are engaged in
A.price discrimination. C.mediation.
B.direct competition.D.monopoly.
21.Jessica works on an automobile assembly line attaching doors onto the cars. She performs this task many times each day. Jessica has the ability to make decisions concerning the doors and is able to set her own work pace. Her job would be considered
A.low scope, low depth. C.low scope, high depth.
B.high scope, high depth. D.high scope, low depth.
22.What do auto-parts businesses usually expect will increase when the economy experiences a continued rise in the level of inflation?
A.Industry growthC.Interest rates
B.Employment levels D.Consumer spending
23.Tire-store employees who always offer to help customers and who try to solve problems immediately are being
A.aggressive. C.creative.
B.proactive. D.sensitive.
24.One way all automobile-dealership employees can demonstrate initiative is to
A.take part in community activities.C.learn all they can about the company.
B.find out the company's future plans. D.make sure they receive appropriate benefits.
25.A muffler shop employee who offers assistance to others after completing his/her job ahead of schedule is demonstrating
A.assertiveness. C.honesty.
B.responsibility. D.integrity.
26.A car dealership's executive-staff members are accused of offering bribes to local officials. This type of unethical behavior might create a(n) ______for the car dealership.
A.new target marketC.poor public image
B.advertising opportunity D.negative cash flow
27.In order to show empathy, you need to treat other people's feelings with
A.formality.C.wariness.
B.indifference. D.sensitivity.
28.It is important to your assertiveness for you to consider yourself to be a(n) ______person.
A.worthwhileC.superior
B.inferior D.enviable
29.The major reason why most employees lose their jobs is that they simply lack
A.basic math and verbal skills. C.the ability to carry out job tasks.
B.the ability to get along well with others.D.technical knowledge.
30.Wilson Automotive Dealers sells new and used cars. Each car purchaser must complete an application that requires the customer to pay a finance charge and interest. Wilson's dealership holds a lien, or claim, on the title of the vehicle until all payments have been made by the customer. This type of credit is known as a(n) ______credit account.
A.installment C.budget
B.regular D.revolving
31.What type of accounting method is being used by an auto-repair shop that uses a computerized check-writing program that automatically posts each check into an expense category or ledger?
A.Accrual method C.COD method
B.Cash method D.Check method
32.What is a tire and battery store's profit or loss if its income statement lists sales revenue of $540,000, cost of goods sold of $240,000, operating expenses of $290,000, and taxes of $15,000?
A.$7,000 lossC.$5,000 loss
B.$2,000 profit D.$10,000 profit
33.A commercial bank's deposit ticket has space on the reverse side for the auto-repair business to provide what information?
A.Itemized list of customers' purchasesC.Itemized list of customers' checks
B.Names of individual customers D.Addresses of individual customers
34.To maintain accurate records of every financial transaction, automotive businesses keep copies of
A.receipts. C.certificates.
B.reports. D.contracts.
35.One of the main reasons why tire and battery store chains need marketing information is to use it in
A.selling situations. C.making decisions.
B.scheduling advertising. D.monitoring distribution.
36.Do muffler-shop chains ever have more than one objective for their marketing-research projects?
A.Yes, muffler-shop chains generally combine several marketing-research objectives.
B.Yes, muffler-shop chains sometimes have more than one marketing-research objective.
C.No, muffler-shop chains set one objective for each marketing-research project.
D.No, muffler-shop chains do not have specific marketing-research objectives.
37.Which of the following is information contained in sales records that an auto-parts store usually monitors in order to make marketing decisions:
A.Personnel C.Inventory
B.Advertising D.Investment
38.Which of the following data-processing methods is done quickly and does not require auto-parts stores to manually handle raw data:
A.Voice networkingC.Cyber-opting
B.Computer keyboarding D.Optical scanning
39.Which of the following statements is an example of a measure of central tendency:
A.MorrowCounty gasoline taxes have increased 15 percent in six months.
B.Twelve members of the community swim team are fifteen years old.
C.The average U.S. male buys gasoline four times every thirty days.
D.The distance between point A and point B is 55 kilometers.
40.Why do auto-parts businesses use databases to combine the basic characteristics of customers into a format that is easy to read and understand?
A.To develop surveying techniquesC.To create statistics about populations
B.To gather individual buying data D.To produce useful marketing information
41.It is Steve's responsibility at his company to make decisions as to what the automotive business will produce and sell. What kind of marketing work does Steve do?
A.Promotion C.Planning
B.Pricing D.Distribution
42.The growth of large petroleum corporations that operate service stations throughout the world is causing a significant decline in the number of
A.small independents. C.joint ventures.
B.refinery operations. D.offshore platforms.
43.A combination of the four elements of marketing yields the
A.marketing concept.C.price.
B.product. D.marketing mix.
44.Subdividing the total market for products into smaller groups who have similar needs, wants, and characteristics is referred to as
A.competition.C.market segmentation.
B.selective distribution. D.mass marketing.
45.Why is it important for an automotive accessory store to continually perform the marketing planning process and revise and update its marketing objectives and strategies?
A.To gather information from outside sources C.To maintain adequate inventory levels
B.To reflect current wants and needs D.To identify rising costs and expenses
46.Which element of the marketing plan reveals the possible problems an automotive product might encounter in the marketplace:
A.Threats and opportunities analysis C.Budget allocation
B.Objectives and issues summary D.Action program
47.Determine a tire and battery store's sales forecast for next year based on the following information: This year's sales are expected to be $425,000, which is 6% higher than the previous year, and the same amount of growth is projected for next year.
A.$450,500C.$446,250
B.$448,375 D.$452,625
48.At the Jones Automobile Dealership, an employee needs to send an e-mail message to a coworker that he received from his supervisor. The most efficient way for the employee to communicate the information to his coworker is by
A.forwarding the message to the coworker's e-mail address.
B.sending the message by clicking on the reply box.
C.posting the message in a secured e-mail folder.
D.printing the message and handing the copy to the coworker.
49.Many presentation software programs allow users to
A.include voice narration. C.publish web pages.
B.copyright their graphics. D.design organizational charts.
50.Which of the following is an example of a current trend in the automotive services business:
A.Protecting consumer privacy C.Developing market research
B.Expanding economic growth D.Promoting private enterprise
51.Which of the following is an advantage of computer technology in vehicles:
A.Automotive systems are able to work independently of each other.
B.Computers increase vehicle weight making the car safer.
C.Artificial intelligence takes the place of the five senses.
D.Onboard diagnostics can detect and record system problems.
52.Chip is a full-time student who works 30 hours a week making deliveries for an auto-parts store. He also plays drums in a rock band and practices or plays with the band several nights a week. One day, Chip ran a stop sign in the delivery van, causing a serious accident. His unsafe act was probably due to
A.taking drugs. C.fatigue.
B.drinking alcoholic beverages. D.poor vision.
53.Automotive services businesses that are common targets for robbery are those that
A.keep little cash on hand.C.are brightly lit at night.
B.are located in isolated areas. D.have many employees.
54.Ford Motor Company purchased tires from one tire company to be put on all automobiles in its manufacturing plants. This is an example of ______purchasing.
A.resaleC.industrial
B.dispersed D.retail
55.One of the benefits to a customer of doing business with an automobile dealership that properly maintains its facilities is the reduced possibility of
A.liability.C.robbery.
B.fraud. D.injury.
56.During the process of closing a cash register, an auto-parts store employee identified a shortage. Which of the following statements is not true about cash register shortages:
A.A shortage is often the result of carelessness in making change.
B.A shortage represents a financial loss to the business.
C.A shortage means there is not enough money in the register.
D.A shortage means there is too much money in the register.
57.One way that many oil-change shops handle the used oil that is drained from customers' cars is to ______it.
A.recycle C.clean
B.filter D.discard
58.People who are naturally creative often are
A.highly educated.C.mentally flexible.
B.physically active. D.emotionally controlled.
59.Which of the following does not charge a fee for information about job openings:
A.Public employment agency C.Private employment agency
B.Job counseling service D.Career counseling service
60.Which of the following is an appropriate response to the question on an employment application that asks the reason for leaving a previous job:
A.Never received a promotion C.Demanding employer
B.Accepted another position D.Problems with management
61.An important management position in the repair department of most automobile dealerships is the
A.shop supervisor. C.sales manager.
B.service technician. D.specialized expert.
62.An automotive services business that takes advantage of an emergency situation by unnecessarily raising its prices is behaving unethically because it is failing to exhibit its duty of social
A.responsibility. C.gratuity.
B.confidentiality. D.necessity.
63.Business competitors who discuss their costs and the amount of markup on their automotive products may be involved in
A.variable pricing. C.price lining.
B.price fixing. D.flexible pricing.
64.An auto-parts business that offers some of its products at a price below market price is attempting to
A.satisfy consumer demand.C.earn a specific profit.
B.meet the competition. D.provide customer services.
65.In which phase of the product life cycle is an auto-parts business most likely to experience a negative profit:
A.Maturity C.Growth
B.Decline D.Introduction
66.Which of the following is an example of a potential ethical issue in product packaging:
A.A hair spray manufacturer packages its products in pump dispensers instead of aerosol cans.
B.A pharmaceutical company adds a protective seal to its over-the-counter product line.
C.A sports beverage manufacturer includes product discounts on the cap of the drink's bottle.
D.A headlight manufacturer changes its packaging from cardboard boxes to Styrofoam containers.
67.Which of the following is an example of internal resources that automotive services businesses often use to generate product ideas:
A.Agencies C.Customers
B.Competitors D.Employees
68.The grading system for motor oil assigns numbers to oils in relation to the oil's
A.thickness. C.texture.
B.weight. D.coloring.
69.The Consumer Product Safety Commission has the authority to regulate
A.hazardous products. C.guarantees and warranties.
B.credit practices. D.labels of drugs, food, and cosmetics.
70.When a vehicles and petroleum marketing business presents an item to the marketplace by emphasizing its economic value, the business is positioning the product on the basis of its
A.features. C.price.
B.benefits. D.competitors.
71.Brand or trade names are used primarily to identify a
A.product. C.market.
B.standard. D.trend.
72.What do auto-parts stores usually calculate first when developing a merchandise budget?
A.Planned purchases C.Open-to-buy
B.Planned sales D.Beginning-of-month stock
73.An auto-parts store has planned purchases for the month of $62,500. If the store has already committed $27,250 of that amount and expects sales to increase by 5%, what is open-to-buy for the month?
A.$37,125C.$26,500
B.$28,612 D.$35,250
74.Calculate the planned purchases for We've Got It Auto Parts based on the following figures: planned sales of $5,000, EOM stock of $20,000, planned reductions of $500, and BOM stock of $15,000.
A.$10,000C.$10,500
B.$5,500 D.$5,000
75.Which of the following is a main factor that auto-parts stores consider when choosing vendors:
A.Operating methods C.Credit terms
B.Available displays D.Shipping containers
76.Which of the following are internal factors that affect the way an oil-change shop uses promotional tools:
A.Price and competition C.Demand and product
B.Product and price D.Place and demand
77.How does promotion benefit the consumers of automotive products?
A.It educates them. C.It creates jobs.
B.It supports the mass media. D.It enhances a company's image.
78.What do many automotive services businesses use to send electronic advertising messages to thousands of customers at the same time?
A.Pop-up ads C.Search engines
B.E-mail D.Chat room
79.A broadcast medium that uses both sight and sound to deliver short, persuasive, promotional messages is
A.magazines. C.newspapers.
B.television.D.radio.
80.An auto-repair shop purchases an auto-parts distributor's directory for direct advertising purposes. The purchased information is often called a(n) ______list.
A.compiled C.house
B.mail-response D.internal-brokerage
81.The owner of Popular Auto Store developed copy for a print advertisement based on customers' statements describing their satisfaction with the store's services. What type of copy technique did the owner use?
A.TestimonialC.Comparison
B.Endorsement D.Feature
82.One way that auto-parts stores maintain their displays is by making sure that the displays contain