2008 DECA Ontario Provincials
Test 956 AUTOMOTIVE SERVICES MARKETING 1
1.What type of corporation may be owned by just a few people and does not offer its shares for sale to the general public?
A.Open B. GeneralC.Close D.Limited
2.Why is product liability an important legal issue that affects the vehicle and petroleum marketing industry?
A.The production process is expensive. C.Insurance is difficult to obtain.
B.Customer safety is involved. D.The court system is complex.
3.Which of the following is a transportation activity that is part of distribution:
A.Storing and handling automotive goods C.Counting the automotive goods on hand
B.Receiving shipments from the carrierD.Moving automotive goods from sellers to buyers
4.As an automotive product moves from producer to consumer, it takes a channel of distribution. This is the ______the product takes.
A.route B. timeC.waterwayD.mode of transportation
5.Preventing other distributors from obtaining and selling the same automotive accessory to customers is an example of a(n) ______that is illegal.
A.tying agreement C.strategic alliance
B.exclusive dealing arrangement D.marketing plan
6.To make sure products are available when customers want them, a tire and battery store should coordinate promotion with
A.segmentation. B. transportation.C.distribution. D.communication.
7.Which of the following often is able to avoid conflict within a channel of distribution:
A.Modern technology C.Customer service
B.Strong leadership D.Governmental control
8.Which of the following is not a barrier to effective verbal communication:
A.Thinking of what to say next C.Interrupting the speaker
B.Asking for clarificationD.Judging the speaker's appearance
9.A good example of a casually operated group is a
A.football team running laps around the field. C.few players tossing a football during practice.
B.few friends talking about football. D.football team selecting a strategy or play.
10.What is the main form of written communication between automotive services marketing companies?
A.Memorandums B. Business lettersC.MeetingsD.Telephone calls
11.Auto-parts stores try to establish effective policies for allowing customers to buy now and pay later because much of the stores' revenue is based on
A.discount coupons. C.delivery fees.
B.reduced prices. D.credit sales.
12.What type of customer expects immediate service regardless of the circumstances?
A.Slow/Methodical B. SuspiciousC.Dishonest D.Impatient
13.When the auto-parts store checker sorts each package in a shipment by style, size, and color, and makes a physical count of the contents to compare with the invoice, this is called a(n) ______check.
A.quantity B. qualityC.invoiceD.combination
14.Ground storage can be used for products that
A.require controlled humidity. C.will not be damaged by the weather.
B.should be arranged in bins.D.need to be kept clean.
15.A distribution center is an example of a(n) ______warehouse.
A.in-transit B. publicC.bondedD.private
16.Apogee Automotive Products would like to monitor its inventory on a rotating basis so that employees only count portions of the stock at a time rather than all of it at once. What type of unit inventory control system should Apogee use?
A.Visual control B. Physical countC.Circular countD.Tickler control
17.Small muffler shops using manual inventory control systems often maintain inventory information on
A.asset report forms. C.basic stock lists.
B.stock record cards. D.sales call reports.
18.More money payments are received for an economic good when its value is
A.high. B. low.C.limited.D.estimated.
19.Determine whether the following statement is true or false: Trade industries all have the same form of ownership.
A.False, they may be independent or belong to a chain.
B.True, they are all independently owned.
C.False, they may be corporations or partnerships.
D.True, they all belong to a chain.
20.Which of the following is a negative effect on businesses of government regulation:
A.Patents, trademarks, and copyright protection are provided.
B.Unfair trade practices are prohibited.
C.The use of resources is regulated.
D.Additional expense and inefficiency are experienced.
21.Which of the following is not a customer benefit of competition:
A.Limited selection C.Better quality products
B.Lower prices D.More and better customer services
22.A person who quits one job and spends a short amount of time out of work while looking for a new position is an example of ______unemployment.
A.seasonal B. structuralC.cyclicalD.frictional
23.Whenever the United States establishes trade relations with a developing nation, it means that the citizens of the developing country will be able to sell their goods and purchase more goods. For the developing country, this will promote
A.an economic decline. C.the underground economy.
B.a higher standard of living.D.the wise use of resources.
24.The international aspect of petroleum marketing often has a negative effect on retailing because only a few countries have
A.consumers who are financially able to buy. C.control of most of the natural resources.
B.a need for petroleum products.D.the outlets required to market oil products.
25.In an employment evaluation, new oil-change shop employees have to identify their self-concept. What are some examples they could use for identifying self-concept?
A.Physical traits B. AffirmationsC.VisualizationsD.Abilities
26.Which of the following is an example of a situation that an ethical tire and battery store employee might report to management:
A.A coworker calling a friend during a lunch break
B.A coworker "borrowing" money from the petty cash fund
C.A coworker explaining company discounts to a customer
D.A coworker paying the business to ship a personal package
27.Although it should not stop you, behaving with enthusiasm often involves some degree of
A.embarrassment. B. luck.C.risk. D.physical danger.
28.The primary reason many people tend to resist change is because of
A.the adjustment required. C.fear or insecurity.
B.the risk involved. D.a lack of understanding.
29.Being able to put yourself in another person's place means that you have
A.perspective. B. respect.C.empathy. D.understanding.
30.The auto-parts store customer has been leaning forward, smiling, and nodding throughout the product demonstration. The idea that the customer is most likely trying to express with body language is that s/he
A.wants to be helpful to the salesperson. C.is hoping that the salesperson will stop.
B.is interested in the salesperson's product.D.has something that s/he wants to say.
31.In every work environment, employees need to rely on one another for various reasons. This means that these workers are
A.independent. B. interdependent.C.interrelated.D.dependable.
32.Franklin received his monthly statement from Friendship Automotive Store. Franklin realized that the company had made a mistake and charged him twice for a set of car speakers. He notified the company of this error and requested an investigation. A representative from Friendship informed Franklin the company would look into this matter and provide a written explanation or correct the error within 90 days. The federal credit legislation that Friendship is complying with is known as the
A.Fair Credit Reporting Act. C.Truth-In-Lending Act.
B.Fair Credit Billing Act.D.Equal Credit Opportunity Act.
33.Which of the following is the primary capability of most word-processing software programs:
A.To maintain customer lists C.To create text documents
B.To generate spreadsheets D.To catalog personnel records
34.Which of the following is a characteristic of a profit-and-loss statement:
A.Shows the owner's financial position C.Summarizes expenses and revenue from sales
B.Is the same as a balance sheetD.Lists assets and liabilities
35.What is one way that an automotive accessory manufacturer might use marketing information?
A.To identify new vendors C.To calculate statistics
B.To interpret findings D.To develop new products
36.Using marketing research to find out how many consumers are in an automotive business's market, where they live, and what kinds of products they buy would help the business to
A.keep the business up-to-date. C.describe the target market.
B.forecast economic trends. D.maintain the business's image.
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 B. AdvertisingC.InventoryD.Investment
38.Which of the following processes do automobile repair employees follow after collecting marketing research in order to make it useful:
A.Analyzing C.Storing
B.Sampling D.Reporting
39.Pricing is an important marketing function because the price of an automotive good or service also affects its
A.utility. C.source.
B.demand. D.trademark.
40.Which of the following is a consideration in the price element of marketing:
A.When will research be conducted? C.Will the business use publicity?
B.Where will the products be stored? D.Should the business offer discounts?
41.A target market can be described as the
A.direction the market is headed.
B.group of customers the automotive business seeks to attract.
C.way an automotive business draws its customers.
D.sample of the market.
42.Which of the following is an effective objective that an automotive accessory business might develop before proceeding with the marketing planning process to achieve the objective:
A.Develop advertising to appeal to a broad audience
B.Hire more salespeople
C.Increase sales this year by 10% over last year
D.Reduce prices on seasonal products
43.Which component of the marketing plan summarizes the environmental conditions that can affect an auto-parts store's marketing activities:
A.Conditional assessment C.Situational analysis
B.Diagnostic summary D.Environmental synopsis
44.Which of the following is a reason that not all auto-repair businesses forecast sales:
A.Forecasting methods are hard to understand.
B.Sales forecasts cost too much money.
C.Too much information is available.
D.Small businesses can't use sales forecasts.
45.One reason an existing auto-parts business might develop a company web site is to
A.increase its product mix. C.lower tax rates.
B.reduce marketing expenses. D.create a new revenue source.
46.Who is legally responsible for repaying a bank loan if the loan borrower fails to make payments as indicated in the loan contract?
A.Credit union C.Treasury Department
B.Co-signer D.Debt collectors
47.Which of the following types of computer software programs do automotive services businesses use to store valuable information about customers:
A.Database C.Spreadsheet
B.Interactive D.Publishing
48.One of the benefits to auto-parts stores of regularly evaluating the performance of vendors is the opportunity to
A.identify and correct problems. C.obtain a lot of information.
B.purchase discounted goods. D.analyze the volume of work.
49.One reason it is important for many vehicle and petroleum products to be disposed of properly after being used is because they are
A.large equipment. C.expensive items.
B.liquid materials. D.hazardous waste.
50.Keeping aisles clear and file cabinets closed would be part of which of the following accident-prevention techniques:
A.Practicing vehicle safety C.Lifting objects properly
B.Following proper health standards D.Maintaining a clean work area
51.Commissions paid to automobile salespeople increase as the amount of their sales increase. This is an example of ______costs.
A.fixed C.operating
B.variable D.semivariable
52.What should project managers do before asking for contributions?
A.Hold a fund-raiser. C.Arrange for credit.
B.Open an account. D.Prepare a budget.
53.On the job, orderly and systematic behavior results in increased
A.efficiency. C.clutter.
B.mistakes. D.stress.
54.To obtain a job promotion is an example of a ______goal.
A.career C.physical
B.social D.personal
55.An effective technique in conducting a job search is writing to personnel directors and
A.addressing them by name. C.requesting salary information.
B.inviting them to lunch. D.asking them to respond immediately.
56.After a job interview, you realize that you forgot to mention something important during the interview. What action should you take?
A.Fax an urgent message to the interviewer.
B.Phone the interviewer to explain it.
C.Mention it in a follow-up letter.
D.Go back to the business to tell the interviewer.
57.Which of the following is an example of an automotive services employee making good use of free time during the business day, while on a flight to a sales meeting:
A.Reading business reports C.Watching an in-flight movie
B.Taking a short nap D.Listening to recorded music
58.Which of the following is one of the main responsibilities of the shop supervisor at an automobile dealership:
A.Reporting to sales managers C.Overseeing the work of the technicians
B.Providing service to customersD.Working with factory representatives
59.Automotive accessory salespeople can update their information about new products, styles, and merchandising trends by
A.reading trade journals. C.observing customers.
B.visiting other cities. D.consulting the competition.
60.The marketing function that determines how much an auto-parts business will charge for its products is
A.production. C.profit.
B.pricing.D.persuasion.
61.Price fixing is often considered an ethical issue because it
A.leads to unusual fluctuations in consumer demand.
B.eliminates competition in a free enterprise system.
C.forces consumers to purchase nondurable goods in bulk.
D.encourages the practice of price skimming in the marketplace.
62.Which of the following is a type of regulation that discourages predatory pricing practices and encourages fair trade:
A.Anti-skimming C.Anti-captive
B.Anti-puffery D.Anti-dumping
63.An automobile manufacturer has set a high price on its new sports car in order to recover its development expenses. What stage of the product life cycle has affected the car's price?
A.Maturity C.Introduction
B.Growth D.Decline
64.What product/service planning function often is expensive, but also can significantly increase sales?
A.Grading C.Packaging
B.Handling D.Labeling
65.Which of the following is a technologically advanced method that allows businesses to produce automotive products that are specialized for a very few customers:
A.Mass customization C.Computerized robotics
B.Automatic production D.Intermittent conversion
66.A warranty that covers only specific automobile parts or certain repairs is a(n) ______warranty.
A.implied C.full
B.limited D.product
67.Which of the following is not required by the Federal Trade Commission in a written warranty:
A.How long the warranty is in effect
B.How to contact government agencies
C.What kinds of service or repairs are included
D.Where to take or send the merchandise for service
68.An automotive accessory store might use product bundling strategies when it wants to
A.substitute brand products with generic items.
B.lower its advertising expenses and publicity efforts.
C.build ongoing relationships with its customers.
D.deplete slow-moving items from its inventory.
69.What group is the largest buyer of aftermarket auto-parts and accessories?
A.Small auto-repair shops C.Used-parts stores
B.Auto-parts and accessory distributorsD.New car dealers with repair shops
70.A midpriced automobile company provides customers with free transportation while their cars are being repaired. What attribute is the company using to gain the competitive advantage?
A.Safety C.Loyalty
B.Service D.Performance
71.Brands appeal to consumers on both ______levels.
A.good and evil C.rational and emotional
B.physical and spiritual D.black-and-white
72.If sales were $276,000 last year, and a 12% increase is expected for this year, what are planned sales for this year's merchandising plan?
A.$309,120 C.$30,912
B.$33,120 D.$331,200
73.Which of the following would not be used in calculating stock turnover rate:
A.Average stock C.Total stock
B.Gross profitD.Net sales
74.One of the purposes of calculating open-to-buy several times during the month is to avoid
A.budgeting. C.overbuying.
B.forecasting. D.purchasing.
75.Which of the following is a good reason for an auto-parts store to choose a certain vendor:
A.To follow tradition C.To get the best price
B.To avoid competition D.To please customers
76.The tool that automotive services businesses use to communicate with customers in order to achieve a desired outcome is
A.persuasion. B. promotion.C.marketing.D.relevance.
77.The basic objective of product promotion is to
A.enhance company morale and recruit employees.
B.inform the public about the company's future.
C.persuade consumers to buy a good or service.
D.demonstrate the firm's social responsibility.
78.The promotional mix focuses on informing customers about the existence of an automotive product when the product is in the ______stage of the product life cycle.
A.introduction B. maturityC.decliningD.growth
79.When the manager of a large tire and battery company takes potential customers out for lavish dinners and buys them expensive gifts, it might appear as if the manager is engaging in the unethical practice of
A.fraud. B. puffery.C.slander. D.bribery.
80.The EFG Muffler Company verifies that its customers would like to receive promotional information through their computers. This is an example of
A.online cookies. B. unsolicited junkmail.C.opt-in e-mail. D.instant messaging.
81.Which of the following is a good reason for an oil-change shop to use out-of-home advertising:
A.Reading the message takes about 15 seconds.C.Most consumers admire billboards.
B.Many more firms are using it. D.It has a high repeat exposure rate.
82.When workers dismantle a display, the props should be
A.put in different departments. C.left in the display.
B.taken to a storage area. D.thrown away because they are not reused.
83.The most important consideration in installing display lighting is to make sure that the lighting will
A.be seen by customers. C.emphasize the signs.
B.illuminate the merchandise.D.be easy to remove.
84.Which of the following is a true statement about an automotive services business's promotional plan:
A.Most promotional plans include more than one type of promotion.
B.The promotional budget is not part of the promotional plan.
C.The plan's promotional objectives are based on external factors.
D.The product's life-cycle stage does not affect the promotional plan.
85.Which of the following is one of the reasons why auto-parts stores coordinate promotional activities:
A.To collect demographic information C.To develop long-term forecasts
B.To create interest among customers D.To plan inventory control programs
86.Selling is often referred to as personal selling because it
A.can take place in the customer's home. C.involves interaction with customers.
B.follows a standardized format.D.provides specific product information.
87.Which of the following is an example of a tire and battery store salesperson providing poor customer service:
A.Ignoring a customer's request for information
B.Returning a customer's call in a timely manner
C.Answering a customer's questions honestly
D.Following up with a customer after the purchase