Food Marketing. Management Level

Transcription

1 Competency-Based Competitive Events *Written Exam* Test Number 908 Booklet Number Food Marketing Management Level INSTRUCTIONS: This is a timed, comprehensive exam for the occupational area identified above. Do not open this booklet until instructed to do so by the testing monitor. You will have minutes to complete all questions. This comprehensive exam was developed by the MarkED Resource Center. Items have been randomly selected from the MarkED Resource Center's Test-Item Bank and represent a variety of instructional areas. Competencies for this exam are at the prerequisite, career-sustaining, marketing specialist, marketing supervisor, and manager levels. A descriptive test key, including question sources and answer rationale, has been provided the state DECA advisor. All test items are copyrighted and are the exclusive property of the MarkED Resource Center. No item may be reproduced in any manner, with the following exception: State DECA advisors or their designees are authorized to duplicate tests, as needed, for one-time use in state-sponsored competitive events prior to May 1, Duplication after this date or for other purposes is expressly prohibited. Copyright 2007 by Marketing Education Resource Center, Columbus, Ohio

2 Test 908 FOOD MARKETING (MANAGEMENT LEVEL) 1 1. The health and sanitation laws affecting food marketing usually include provisions that allow governmental agencies to A. sample the products. C. redesign the stores. B. terminate the employees. D. inspect the facilities. 2. What federal law prohibits supermarket chains from asking potential employees about their medical history? A. Americans with Disabilities Act C. Fair Labor Standards Act B. Vocational Rehabilitation Act D. National Labor Relations Act 3. What type of information does a well-written proposal include? A. Specific benefits C. Previous trends B. Vague goals D. Contingency data 4. Which of the following is a type of information that grocery store supervisors often communicate to employees in writing: A. Workplace rumors C. Community news B. Personal opinions D. Company policies 5. The overall goal of food marketing supervisors in conducting a staff meeting should be to A. make important announcements. C. meet the quota for meetings. B. exchange information and ideas. D. learn communication skills. 6. A convenience good usually has distribution. A. relative C. exclusive B. selective D. intensive 7. Lark Food Industries uses an intermediary to sell its canned goods. The intermediary does not buy them nor take title to the canned goods. What type of intermediary is Lark Food Industries using? A. Retailer C. Agent B. Wholesaler D. Discounter 8. Supermarket chains regularly meet with channel members to discuss problems and improve performance in order to develop A. routine buying procedures. C. transportation systems. B. cost-effective inventories. D. long-term partnerships. 9. You are a receiving employee for Rehkopf's Grocery Store. Which of the following products would have a processing priority: A. Magazines C. Produce B. Paper products D. Canned goods 10. A grocery store weighs a delivery of ground beef and discovers that the shipment is five pounds less than the amount ordered. To resolve the problem, the store fills out a request-for-credit form and indicates the amount of shortage as well as the A. prearranged payment terms. C. unit price and total amount of credit. B. date that the order was placed. D. time involved in receiving and checking the order. 11. When do grocery stores that have a large receiving area often schedule deliveries? A. Throughout the day C. Between restricted hours B. Early in the evening D. After the morning rush 12. Which of the following does not need an inventory-control system to track goods available for sale: A. Office-supply company C. Shoe store B. Supermarket D. Insurance business Copyright 2007 by Marketing Education Resource Center, Columbus, Ohio

3 Test 908 FOOD MARKETING (MANAGEMENT LEVEL) Why should grocery stores coordinate distribution with pricing to successfully sell products to customers? A. Customers expect to receive significant discounts. B. Grocery stores must pay transportation charges. C. Most customers are only willing to pay a certain price. D. Many grocery stores need to obtain warehouse space. 14. Technological advancements have made it possible for some cereal manufacturers to communicate directly with customers, which reduces the need to use A. freight carriers. C. suppliers. B. warehouse personnel. D. intermediaries. 15. The primary benefit of the FIFO method of inventory valuation is A. an overstatement of profits. B. decreasing the company's tax liability. C. maintaining the freshness of inventory in stock. D. it requires a physical count of the merchandise. 16. What do many grocery stores do with excessive quantities of items that are not selling well? A. Return to vendor for credit C. Move to another location B. Warehouse until demand increases D. Lower prices for quick sale 17. Grocers must be able to trace produce items through the supply chain to determine the source of a food safety problem, which can be done efficiently by using a(n) system. A. measuring C. coding B. counting D. alternating 18. Which of the following are elements of a supermarket warehouse management system: A. Price marking, classifying, and hiring C. Receiving, return handling, and moving B. Slotting, invoicing, and accounting D. Merchandising, stocking, and negotiating 19. Sharon has recently received a promotion, and she is trading in her old car for the red convertible sports car of her dreams. What type of good is the red convertible sports car? A. Industrial C. Specialty B. Shopping D. Convenience 20. When a customer cannot purchase milk at the grocery because a shipment is late, marketing has failed to create utility. A. time and form C. form B. place and time D. place 21. Government bans or controls monopolies because monopolies A. do not always benefit consumers. C. do not pay taxes. B. are hard to manage. D. reduce the power of the government. 22. Many food marketing businesses encourage employees to contribute ideas to solve the businesses' problems and increase production by establishing A. training programs. C. recreation areas. B. quality circles. D. company newsletters. 23. To calculate total revenue, a cereal manufacturer multiplies the number of units sold by A. marginal costs. C. fixed costs. B. marginal revenue. D. average price per unit. 24. One reason some U.S. businesses move their facilities to other countries is to A. help underdeveloped nations. C. reduce their labor costs. B. establish trade centers. D. deal with unstable governments.

4 Test 908 FOOD MARKETING (MANAGEMENT LEVEL) Which of the following is an indication that convenience store employees might be experiencing a lot of stress: A. Being irritated when dealing with customers B. Drinking one or two cups of coffee a day C. Concentrating on doing the job correctly D. Having occasional conversations with coworkers 26. What trait is being demonstrated when grocery store employees treat customers with respect and without prejudice? A. Consideration C. Honesty B. Integrity D. Empathy 27. The primary benefit of work group interdependence among a supermarket's employees is to ensure the A. development of a common perspective. B. growth of self-reliance among workers. C. satisfaction of each individual worker. D. achievement of common goals and mutual benefits. 28. Brian wants to convince the other members of his work group that they should try his method of keeping records. Which of the following characteristics will be most helpful to Brian in this effort: A. Passiveness C. Credibility B. Initiative D. Aggressiveness 29. Which of the following is an appropriate attitude for the supermarket supply salesperson to have toward customers' complaints: A. Complaints can often be opportunities. B. Complaints should be handled by management. C. Complaints are the business's problem. D. Complaints can usually be prevented. 30. Hanson Supermarket wanted to establish a form of business credit with Smith Wholesale Company that would allow the owner to purchase meat, vegetables, bread, and milk products on a "90 days same as cash" basis. The owner also wanted a credit account that would require payments every 30 days so that s/he would not have to make large payments. The type of credit account that would best suit Hanson Supermarket is a(n) credit account. A. revolving C. regular B. budget D. installment 31. Grocery store managers use accounting information to help them to A. reduce insurance premiums. C. calculate excise taxes. B. allocate their funds. D. pay labor union dues. 32. Which of the following is one of the components of a food market's cash payments: A. Interest from loans C. Total credit sales B. Previous month's balance D. Cost of goods sold 33. Last year, a gourmet market had sales of $720,500 and expenses of $475,250. What should the market budget for income for the coming year if it anticipates a 6% increase in sales and a 5% increase in expenses? A. $264, C. $247, B. $250, D. $272, A profit-and-loss statement shows a supermarket that it has made a profit when the statement indicates that A. expenses are greater than income. C. net sales equal expenses. B. income and expenses are equal. D. income is greater than expenses.

5 Test 908 FOOD MARKETING (MANAGEMENT LEVEL) Nongrocery items are considered to have a A. short shelf life. C. high profit margin. B. very large demand. D. quick turnover. 36. What do grocery store chains often consider when identifying future hiring needs? A. Selection technique C. Interview length B. Estimated turnover D. Recruitment process 37. Which of the following employee-selection techniques includes a face-to-face dialogue between the employer and the prospective employee: A. Personal interview C. Letter of inquiry B. Job analysis D. Letter of application 38. Why should an implementation checklist be used for a training and development program? A. To determine appropriate objectives to implement B. To examine costs associated with the program C. To provide management with measurable data D. To ensure that the program will run smoothly 39. Which of the following is a beginning step to take in handling an employee complaint: A. Consider all possible solutions B. Document the resolution to the complaint C. Identify the problem behind the complaint D. Use personal judgment in analyzing the situation 40. A long-time supermarket employee has recently experienced the death of a spouse. The employee's productivity has declined to the point that it is affecting others' work. What form of remedial action would be most appropriate to help the employee deal with the loss? A. Corrective counseling C. Preventive discipline B. Progressive discipline D. Constructive criticism 41. One of the advantages of obtaining and using marketing information is that it helps grocery store managers to A. predict and control risks. C. train and direct employees. B. prepare documents and reports. D. review and understand regulations. 42. To clearly understand the problem before obtaining mark eting information to help solve the problem, convenience store chains often first need to A. conduct exploratory research. C. develop a valid questionnaire. B. obtain confidential data. D. prepare an experiment. 43. When identifying a target market, grocery store chains often create a record of information such as age, income level, ethnic background, occupation, and attitudes, which is known as a A. preference list. C. customer profile. B. demographic breakdown. D. consumer composite. 44. A neighborhood grocery store has added a bakery. What element of marketing should the store use to attract customers from surrounding areas? A. Promotion C. Place B. Price D. Product 45. A market is composed of potential customers who have A. homes in the area. C. college educations. B. money to spend. D. incomes over $20,000.

6 Test 908 FOOD MARKETING (MANAGEMENT LEVEL) In which general category of internal marketing information would day-to-day business expenses such as utilities expense be found? A. Operating C. Sales B. Marketing personnel D. Inventory 47. Why should a supermarket evaluate its internal environment when changes are occurring in its external environment? A. To remain competitive C. To revise pricing B. To update advertising D. To improve distribution 48. The primary reason for a food marketing business to forecast sales is to obtain information to use in A. business planning. C. staff training. B. advertising copy. D. evaluating salespersons. 49. An important step in the process of developing a marketing plan involves identifying the A. accounting methods. C. sales personnel. B. financial benefits. D. research strategy. 50. Which of the following is a way a convenience store might change its place strategy: A. Reacting to market prices C. Increasing availability B. Revising service policies D. Placing new advertisements 51. Which of the following factors do grocery stores usually evaluate and analyze when conducting a marketing audit: A. Staffing C. Advertising B. Purchasing D. Invoicing 52. Which of the following is a merchandising activity: A. Paying vendors C. Sending bills B. Hiring staff D. Buying goods 53. The development of goods and services that best satisfy consumer needs and wants is a major goal of A. marketing-information management. C. financing. B. purchasing. D. product/service management. 54. Which of the following is a technological advancement that often increases the efficiency of the checkout process and reduces the need for personal interaction with supermarket personnel: A. Electronic shelf labels C. Personal shoppers B. Automated bagging systems D. Self-scan registers 55. When Lin sends a business report to a customer by , the document is sent as a(n) A. postscript. C. memo. B. attachment. D. fax. 56. Which of the following is an example of a supermarket deli department employee using good personal hygiene techniques to maintain food product safety: A. Using apron as a towel C. Tasting food with fingers B. Washing hands in designated sink D. Wearing the same apron all week 57. The employee who arrives first to open a small local bakery for the day should A. lock the door after entering. C. follow the alarm procedures. B. wait for coworkers to arrive. D. turn off the exterior lights.

7 Test 908 FOOD MARKETING (MANAGEMENT LEVEL) A procedure that many supermarkets establish to protect the large amounts of cash they take in every day is to A. regularly remove the excess from registers. B. place small safes at each checkout stand. C. install exterior surveillance cameras. D. ask customers to pay with exact change only. 59. Which of the following is a true statement about safety hazards in the workplace: A. Employees decide which protective clothing they should wear. B. Good housekeeping increases safety hazards. C. Personal habits can create safety hazards. D. Trial and error is a good way to learn use of tools and equipment. 60. The purpose of convenience stores depositing large bills in drop boxes upon receipt is to prevent A. robbery. C. burglary. B. fraud. D. pilferage. 61. Which of the following is a follow-up activity in production: A. Projecting sales for the cereal manufacturer's products B. Making sure that production deadlines were met C. Estimating the number of steps in the production process D. Making sure that production steps follow proper sequence 62. Based on the following schedule, which food marketing business employee is working flextime if all employees work 40 hours a week and have a one-hour break? Employee Mon Tues Wed Thurs Fri Adams Off Mason James Smith Off A. James C. Smith B. Adams D. Mason 63. Which of the following should a grocery store consider when negotiating a service or maintenance contract on a piece of equipment: A. Does the cost of the contract exceed the cost of possible repairs? B. Is training and technical assistance available? C. How much profit does the seller make on the contract? D. Does the equipment require installation? 64. In order to be effective, goals should be stated in a manner that is as as possible. A. general C. specific B. vague D. ambiguous 65. Are trust and cooperation important to the success of creativity? A. Yes, creative people blossom in an atmosphere of safety and cooperation. B. No, creative people should protect their ideas from others. C. No, creative people require independence. D. Yes, creative people rely on working with others who have an "expert" mindset. 66. Paul prepared a job resume that addressed how his background and qualifications would meet the specific requirements of the food marketing job he wanted. Paul's resume is an example of a resume. A. personalized C. generalized B. chronological D. functional

8 Test 908 FOOD MARKETING (MANAGEMENT LEVEL) Which of the following is a cost that a food producer builds into the price of its goods: A. Orientation C. Distribution B. Consignment D. Receivables 68. Which of the following is an example of all of the local supermarket supply companies being involved in the illegal activity of price fixing: A. Putting pressure on supermarkets to buy an expensive product B. Charging different supermarkets different prices for the same product C. Selling one product below cost D. Agreeing on the price of a certain product 69. Why is it necessary for a convenience store to price its products very carefully? A. To get a fair share of the market C. To track competitors' activities B. To create goodwill in the community D. To attract employees to the store 70. Which of the following discounts is based on a supermarket buyer's total purchases during a specified period of time: A. Promotional discount C. Trade discount B. Cumulative quantity discount D. Cash discount 71. What do food marketing businesses often do during the maturity stage of a product in order to maintain sales? A. Increase inventory C. Raise salaries B. Reduce prices D. Lower overhead 72. Which of the following is a characteristic of the growth stage of a food product's life cycle: A. Promotional budgets are low. C. Fads are adopted. B. Prices are raised. D. Competitors enter the market. 73. Which federal agency has the responsibility for inspecting meat that is shipped across state lines? A. Interstate Commerce Commission C. Federal Trade Commission B. U.S. Department of Commerce D. U.S. Department of Agriculture 74. Produce departments maintain the high humidity levels needed to preserve the quality of green, leafy vegetables by A. removing dried-out leaves. B. keeping the vegetables on ice. C. spraying or misting the vegetables regularly. D. separating the vegetables so that they can "breathe." 75. Feedback from grocery stores about problems with display products provides producers with the information needed to A. make improvements. C. increase prices. B. hire employees. D. organize meetings. 76. David tried Bash laundry soap and began to purchase it regularly. This is an example of brand A. recognition. C. name. B. loyalty. D. preference. 77. One reason that food marketing businesses offer superior service is to the competition. A. draw customers away from C. study the traits of B. attract customers to D. hurt the reputation of

9 Test 908 FOOD MARKETING (MANAGEMENT LEVEL) Why is it necessary to understand customers when branding? A. It helps employees buy into brand values. B. It helps the supermarket to make lasting emotional and rational connections with customers. C. It enables a supermarket to develop a name that accurately reflects the brand. D. It makes brand decisions profitable. 79. Grocery stores typically make the highest gross margin on brands with a label. A. national C. generic B. private D. corporate 80. Which of the following components of a grocer's merchandise plan identifies all of the stock that a grocer has on hand that can be sold to customers: A. Sales C. Inventory B. Purchases D. Profits 81. Jennie has decided to go door-to-door to inform people about the grand opening of her new candy store. What type of promotion is Jennie demonstrating? A. Nonpersonal C. Publicity B. Personal D. Sales promotion 82. Disadvantages of promotional activities are mainly caused by misuse and A. increased sales. C. an enhanced company image. B. inability to achieve certain goals. D. lack of contribution to society. 83. Regulations that affect comparative advertising usually require that these types of ads be A. efficient. C. positive. B. realistic. D. truthful. 84. What type of promotional media might a statewide chain of supermarkets use in order to reach a large number of potential customers in its geographic area? A. National television C. Suburban newspapers B. Regional magazines D. Transit advertising 85. What is an advantage for food marketing businesses that use database strategies to advertise products? A. There is an opportunity for the business to build an ongoing relationship with customers. B. It usually enhances the business's image and builds brand loyalty. C. Database advertising costs less in time and money than other advertising media. D. The expense for customer follow-up is usually reduced. 86. What should be one of your responsibilities as assistant manager of a large supermarket when inspecting and approving displays assembled by vendors? A. Ensuring maintenance of the display unit B. Ensuring the safety of customers and employees C. Processing payment for the work completed D. Providing electrical outlets 87. What is a guideline that many supermarkets follow when building food marketing displays? A. Use many props C. Limit amount of color B. Develop a main theme D. Include competing elements 88. An internal factor that would affect a grocery store's promotional plan would be the A. store's marketing objectives. C. location of the target market. B. state of the economy. D. promotional actions of competitors.

10 Test 908 FOOD MARKETING (MANAGEMENT LEVEL) Food marketing businesses that do not have adequate in-house staff to coordinate large promotional events often must pay for the services of A. volunteers. C. executives. B. outside agencies. D. part-time employees. 90. Which of the following situations is most likely to result in long-term, increased sales for a supermarket supply business: A. Raising the price of its current products B. Constantly providing new choices for consumers C. Lowering the price of its current products D. Eliminating a slow-selling product line 91. Adam's Fruit Market and Johnny's Apples and Seeds are produce suppliers in the same community. Johnny's recently started offering planting classes, and sales have increased by 30%. What external factor should Adam's consider when developing its new selling policies? A. Actions of competitors C. Financial resources B. Corporate objectives D. Production capacity 92. What is one advantage to food marketing businesses of using computer technology to develop web pages for their companies? A. Eliminates the need to have a sales force B. Allows businesses to charge higher prices C. Provides customers with product information D. Requires all employees to access the Internet 93. Which of the following often is a good source of product information to use in selling display cases to grocery stores: A. Company accountants C. Personnel officers B. Warehouse employees D. Experienced salespeople 94. Before suggesting substitute products to customers, supermarket supply salespeople should A. reinforce the customer's decision. C. check availability of the requested item. B. point out features and benefits. D. clarify the customer's needs. 95. Which of the following is the best time to use suggestion selling as a sales technique: A. After the candy store customer has made a buying decision and after the purchase is paid for B. After establishing a positive customer relationship and before the customer has made a buying decision C. After the candy store customer has made a buying decision and before the purchase is paid for D. Before discovering client needs and before the candy store customer has made a buying decision 96. What is the purpose of department keys on a cash register? A. To record total sales C. To record who made the sale B. To record departmental sales D. To determine taxable sales 97. Coins should be placed in cash drawers in order of increasing monetary value from A. top to bottom. C. right to left. B. left to right. D. bottom to top. 98. In a supermarket supply business, an important part of the sales manager's job often includes responsibility for A. routine selling. C. training salespeople. B. developing compensation. D. recruiting customers.

11 Test 908 FOOD MARKETING (MANAGEMENT LEVEL) Which of the following are the principal functions of management: A. Interviewing, hiring, planning, and testing B. Evaluating, organizing, hiring, and supervising C. Leading, testing, monitoring, controlling, and organizing D. Planning, organizing, staffing, directing, and controlling 100. In which of the following situations will a business plan that includes quarterly sales quotas for each of the five salespeople help a produce supply company to track its progress and make adjustments: A. Actual sales decrease 5% every summer. B. Quarterly sales quotas remain the same. C. Each salesperson sells 85% of quota. D. Each salesperson has a specific territory.