2008 DECA Ontario Regionals
Test 977 BUSINESS SERVICES MARKETING 1
1.A characteristic of a sole proprietorship is that the owner
A.has access to unlimited funds. C.transfers all the risk.
B.receives all the profit.D.delegates all functions.
2.A hairstylist cutting a client's hair is an example of a ______distribution channel.
A.producer to retailer to consumerC.producer to consumer
B.producer to agent to consumerD.producer to wholesaler to consumer
3.The Clayton Act of 1914 was enacted to resolve legal issues related to
A.environmental behavior.C.product safety.
B.consumer protection. D.competitive behavior.
4.Why is it important for a chain of beauty salons to coordinate distribution with its promotional activities?
A.To guarantee a sufficient supply of advertised items
B.To establish a relationship with one intermediary
C.To charge higher prices for delivery service
D.To arrange the most economical method of transportation
5.Which of the following is a characteristic of an effective persuasive message:
A.Is aggressive C.Describes a process
B.Creates desire D.Summarizes an issue
6.An example of a type of simple written report used in business services marketing is the ______report.
A.progress C.long
B.research D.annual
7.The main reason why it is important for service businesses to be ethical in communicating information about their services is to avoid
A.disappointing customers.C.being regulated.
B.confusing employees. D.being sued.
8.An aspect of human relations that has become very important to many service businesses is
A.convenience of location.C.positive attitudes toward customers.
B.large varieties of products. D.attention to demographics.
9.In a service business, what staff are responsible for displaying a customer-service mindset?
A.ManagementC.All staff
B.Those with direct customer contact D.Those with indirect customer contact
10.What type of customer may be haughty or overbearing to an employee?
A.Domineering/SuperiorC.Dishonest
B.Slow/Methodical D.Suspicious
11.When helping disagreeable customers, it is best for a business-services employee to
A.try to talk louder than they. C.compliment and praise them.
B.serve them promptly.D.press them for a decision.
12.Josh and Ann operate a health care business and are considering expanding by selling franchises. Franchising their service would allow them to
A.provide various locations while maintaining a consistent image.
B.increase inventory or storage control.
C.secure their financial future by collecting royalties.
D.control prices of competitors.
13.If a desired good or service is scarce, consumers will usually be
A.able to get as much of it as they want.C.unwilling to buy it.
B.willing to pay more.D.uninterested in owning it.
14.Which of the following is a reason why form utility is so important:
A.Few materials are used in their raw state.
B.Consumers use the products they purchase.
C.Most products are marketed at a certain time.
D.Products must be available where they are needed.
15.What usually happens to the demand for a good or service when the price increases?
A.It comes to an end.C.It stays the same.
B.It increases. D.It decreases.
16.Government tries to protect competition by
A.restricting the production of certain products. C.controlling the prices of products.
B.regulating monopolies. D.preventing all monopolies.
17.Which of the following is a characteristic of taxes:
A.Applied only to tangibles C.Encouraged by consumers
B.Restricted to businesses D.Levied by governments
18.A country's economy grows when its population grows at a slower rate than its
A.capital goods.C.GDP per capita.
B.quality of work life. D.standard of living.
19.Workers in your landscape design company have decided to join a union. As a member of management, which form of union representation will you encourage?
A.Union shopC.Agency shop
B.Closed shop D.Open shop
20.When applying the law of diminishing returns, service businesses know that there is a point at which production
A.reaches its maximum level. C.equals the amount of revenue.
B.is too expensive to continue. D.passes that of the competition.
21.What is one way that price stability indicates the condition of the economy?
A.Increase in the money supply C.Absence of inflation or deflation
B.Reduction in taxes and spending D.Decrease in consumer buying power
22.One step that a government might take to reduce its trade deficit would be to
A.increase the amount of imports.C.eliminate tariffs.
B.adjust interest rates. D.decrease the amount of exports.
23.Which of the following is an example of a service business that is most likely to experience demand fluctuations for some services due to unpredictable events:
A.Outpatient surgical clinic C.Computer distributor
B.Insurance agency D.Tax accounting firm
24.Which of the following is an example of a service-business employee developing cultural sensitivity:
A.Practicing oral presentation skillsC.Taking a course in ancient history
B.Learning differences in body languageD.Studying road maps of various countries
25.Which of the following is an example of a manager being unethical when communicating with an architecture firm's employees:
A.Explaining that some information is confidential
B.Deliberately providing insufficient information
C.Sending information in simple chart form
D.Deliberately limiting the distribution of classified information
26.Pedro, an employee with a local law firm, wants to negotiate with his supervisor to gain more responsibilities at work. Before approaching his supervisor, Pedro needs to determine the supervisor's position and
A.interests. C.standards.
B.skills. D.procedures.
27.On the whole, consensus building is about
A.coming to an agreement. C.putting aside your beliefs.
B.determining a place to meet. D.developing ground rules.
28.When an apparel store's customer is permitted to pay his/her credit account in full in 30 days, or make a minimum payment and be charged a finance charge on the balance, s/he has a(n) ______account.
A.installment C.regular
B.revolvingD.cycle billing
29.Which of the following enables many service businesses to obtain the funds needed to reach new markets:
A.AccountingC.Budgeting
B.Purchasing D.Financing
30.Carpet-cleaning businesses are able to deposit employees' salaries directly into their checking accounts through the use of
A.automated teller machines.C.money-market processing.
B.telegraphic money orders. D.electronic funds transfer.
31.Buying insurance is one way that engineering businesses manage
A.risk. B. coverage.C.injury. D. damage.
32.What is one of the main purposes of a pet-grooming business's sales budget?
A.To forecast trends C.To predict the economy
B.To estimate income D.To track the competition
33.Excise taxes that are collected by service businesses are paid by them to the ______government.
A.city B. stateC.countyD. federal
34.A service business had gross sales of $14,959 and tax-exempt sales of $1,628. What is the amount of sales on which the service business must report sales tax?
A.$14,959 C.$15,706
B.$13,331 D.$16,587
35.Which of the following is an example of a landscaping company transferring the charges on a member's account:
A.Recording the charges on a computer system
B.Moving the charges to a monthly bill
C.Forwarding the charges to accounts payable
D.Assigning the charges to a certain department
36.What does a home improvement business need in order to understand why a service that has been in demand for a long time is now losing popularity?
A.Secondary data C.Marketing information
B.Sales records D.Purchasing documents
37.Evaluating the information collected through market research is called
A.data analysis. C.primary data.
B.risk reduction. D.information flow.
38.Marketing research is used in problem solving and decision making in all areas of the marketing mix which includes
A.productivity. C.persuasion.
B.promotion. D.personal selling.
39.What is one way that many service businesses use the marketing information contained in sales reports?
A.To monitor expense accounts C.To improve the effectiveness of salespeople
B.To qualify potential new customers D.To develop negotiating techniques
40.One reason it is important to review paper-based questionnaires before processing the marketing information is because some of the questionnaires may be
A.completed anonymously. C.improperly filled out and unusable.
B.printed with answer codes. D.organized according to last name.
41.Databases assist consulting businesses in decision making because they
A.organize and store data in a logical order for fast and easy use.
B.create charts, graphs, unbound reports, and simplified memos.
C.increase operational budgets of technology related departments.
D.determine open-to-buy, ROI, and CPM accurately.
42.The first step that an architecture firm should take when collecting marketing information from its clients is to
A.determine the survey method.C.obtain secondary data.
B.define research objectives. D.develop a rating scale.
43.A dental office that focuses its marketing efforts on attracting children to its practice by promoting its kid-friendly staff is engaged in ______marketing.
A.riskyC.target
B.business-to-business D.unfocused
44.Which of the following terms refers to the activities involved in shipping, handling, and storing items on the way from the producer to the consumer:
A.WarehousingC.Economics
B.Marketing D.Distribution
45.Which of the following is least likely to necessitate a change in marketing strategies:
A.Increases in company profitsC.The actions of competitors
B.Increases in the cost of production D.Changes in consumer attitudes
46.When a customer has an unfulfilled desire and is financially able and willing to satisfy that desire, a ______exists.
A.market C.society
B.monopoly D.business
47.Why is it important for home security businesses to regularly analyze the external environment in which they operate?
A.To understand change C.To behave ethically
B.To be socially responsible D.To calculate profit
48.Which of the following factors affects how far ahead a service business needs to predict its sales:
A.The typical information that is available C.The similarity of competitors
B.The service business’s resourcesD.The productivity of the service business
49.A good customer database makes it possible for a service business to
A.offer better discounts. C.find new customers.
B.predict trends. D.calculate profits.
50.What is one reason that a landscaping business might make its financial records available to a bank?
A.To deposit funds C.To obtain credit
B.To pay a mortgage D.To open an account
51.Most lawn-care businesses maintain records about what services customers are buying and how much they are spending in order to
A.plan an inventory count. C.assess their fixed assets.
B.analyze the information. D.develop a quality work environment.
52.Which of the following is a benefit to consumers of the trend towards franchising in the business-service industry:
A.Business is profitable. C.Industry is diversified.
B.Service is consistent. D.Promotion is global.
53.For safety's sake, pet groomers learning new skills should take the time to practice the skills and avoid taking
A.rest breaks.C.shortcuts.
B.vacations. D.personal leave.
54.A dry cleaner's employees should follow set policies for accepting personal checks and credit cards in order to prevent
A.internal theft. C.point-of-sale fraud.
B.ticket switching. D.recordkeeping fraud.
55.Which of the following should an architecture firm consider when developing a project plan to help control costs:
A.Advertising expenseC.Possible objectives
B.Available publicity D.Potential problems
56.Three-way light bulbs are all made with the same size base. This is an example of a production process that uses ______parts.
A.brandedC.standardized
B.segmented D.graded
57.What are dry cleaners often faced with if their employees improperly handle company equipment?
A.Additional expensesC.Fewer regulations
B.Increased vandalism D.Less maintenance
58.Which of the following is an area in a medical office that must be maintained on a regular basis:
A.Wall mirrorsC.Table lamps
B.Ceiling fans D.Floor surfaces
59.Which of the following procedures would be the best for a car rental agency to implement in order to reduce check losses:
A.Develop a profile of a bad-check writer C.Use a check verification service
B.Accept only local checks D.Write the customer's description on the check
60.Which of the following tasks is a cashier's responsibility just prior to the opening of the service-business facility:
A.Answering customer's questions C.Handling customer's complaints
B.Preparing the checkout area D.Completing the sales tally sheet
61.It is important to develop a personal plan of action for goals because
A.a plan guarantees success.C.a plan helps you to achieve your goals.
B.goals cannot be achieved without a plan.D.you can share the plan with others.
62.Tia has many interests and doesn't know which career path is best for her. One method Tia can use to determine the best occupational options for her is to
A.surf the Internet for job descriptions.
B.have friends and family critique her personality type.
C.develop a general interest questionnaire.
D.complete an aptitude assessment survey.
63.Chris was interested in a job that was being advertised, but the ad did not provide instructions on whom to contact at the business. What should Chris do in order to send a letter of application?
A.Call to find out who will make the hiring decision
B.Address the letter "To whom it may concern"
C.Ask the newspaper who submitted the job ad
D.Send the letter to the human resources department
64.Which of the following techniques do businesses often use during trade shows to obtain customers' names:
A.Coupons C.Rebates
B.Samples D.Contests
65.Which of the following traits are most important for health care employees to have in the workplace:
A.Wit and friendlinessC.Empathy and responsiveness
B.Flexibility and aggressivenessD.Reliability and passiveness
66.The owners of a dry-cleaning business decided to ignore the low prices offered by a new competitor and keep their prices at a higher level. What characteristic of effective pricing were the owners forgetting?
A.Profitability C.Stability
B.FlexibilityD.Durability
67.Most businesses feel that it is a good strategy to price their service products according to the
A.sale of loss leaders. C.competitors' suggested prices.
B.agreements set with other channel members.D.way their customers view the products.
68.Which of the following is a characteristic of pure services:
A.Uses plain, inexpensive packaging C.Does not include a tangible product
B.Most often uses product-bundling strategies D.Does not include product guarantees
69. Ethical repair shops establish procedures to handle consumer complaints and returns.
A.True, establishing procedures is a way of explaining problems with products because of improper use by customers.
B.False, establishing procedures is not important unless required by law.
C.False, establishing procedures is a waste of time if products have been tested for safe use.
D.True, establishing procedures reduces harmful effects to the shop and its image.
70.Consulting firms often identify product opportunities by conducting
A.production tests. C.trial runs.
B.idea analysis. D.trend research.
71.What is one of the first steps that businesses take when planning what type of new service to offer?
A.Identifying growth opportunitiesC.Monitoring planned changes
B.Promoting the idea to customersD.Testing in specific areas
72.Any business that transports goods across state lines must comply with standards set by
A.professional organizations.C.trade associations.
B.individual businesses. D.government agencies.
73.Which of the following prohibits service businesses from harassing their slow-pay credit customers:
A.Fair Debt Collection Act C.Federal Trade Commission Act
B.Equal Credit Opportunity Act D.Consumer Credit Protection Act
74.Which of the following is a possible advantage to service businesses that bundle their products:
A.More consumer choices C.Long-term customer use
B.Low customer prices D.Short-term cost increases
75.Why are customer-defined service standards increasingly important to service providers?
A.Providers can hire fewer staff when customers define standards.
B.Customers call frequently to discuss standards.
C.They link customer expectations and company actions.
D.Providers want customers to define standards when they can't think of any.
76.Carol would rather have Dr. Jones examine her teeth, but will allow Dr. Smith to examine them if Dr. Jones is not available. In the services industry, this is an example of brand
A.insistence. C.preference.
B.responsiveness. D.recognition.
77.Customers who base their perceptions of service quality on a service business's brochures and its employees' appearance are assessing the business by focusing on the ______dimension.
A.responsiveness C.tangible
B.reliabilityD.assurance
78.Why is it important for businesses to establish and implement effective service recovery procedures?
A.To keep existing customers C.To eliminate complaints
B.To reduce operating expenses D.To maintain inventory levels
79.When a hospital uses promotion to announce that a new health-care service will soon be available to consumers, they achieve the promotional objective of
A.reminding.C.selling.
B.persuading. D.informing.
80.The primary goal of institutional advertising is to
A.create a certain image of the company.C.create interest in a new product.
B.build a reputation for a product.D.inform consumers about product features.
81.One of the advantages to service businesses of using a communication medium made possible by advanced technology to promote products is that the medium is
A.inexpensive.C.regulated.
B.standardized. D.interactive.
82.The broadcast medium that is most affordable and can reach an entire metropolitan area is
A.newspapers. C.magazines.
B.radio. D.television.
83.The advantage to pet-grooming businesses of using direct marketing is that it is considered an effective
A.transaction method. C.promotional tool.
B.sales presentation. D.time saver.
84.The dry cleaner's advertisement included statements from customers praising the company's service and reasonable prices. What type of advertising approach was the dry cleaner using?
A.Hard-sell C.Feature
B.TestimonialD.Comparison
85.Which of the following is one of the reasons why child-care facilities coordinate promotional activities:
A.To plan inventory control programs C.To develop long-term forecasts
B.To collect demographic information D.To create interest among customers
86.When a professional-services firm considers how it will promote its products, it is determining how to
A.maximize the number of visitors to its web site. C.increase foot traffic at various trade shows.
B.communicate information about its services. D.draw attention to its pricing strategies.
87.Customers are more likely to trust service businesses and their products when the salespeople are
A.insistent.B. talkative.C.self-confident. D. aggressive.
88.Which of the following is an example of a 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
89.Salespeople can show that they are giving customers their full attention by
A.avoiding controversial topics.C.offering to do favors.