Download File - London Central DECA Team

2008 DECA Ontario Provincials
Test 946
BSM
BUSINESS SERVICES MARKETING
1
1. If all of the individuals who own a law firm share unlimited liability for the law firm's losses, these individuals are part of
a(n)
A. close corporation.
C. "S" corporation.
B. general partnership.
D. public corporation.
2. The two forms of utility created by physical distribution are
A. time and place.
C. possession and time.
B. place and form.
D. form and possession.
3. Cindy's Childcare Center provides child-daycare services for working parents. The route that the childcare services are
taking from the producer to the final consumer is
A. indirect.
B. direct.
C. roundabout.
D.
intermediary.
4. In an attempt to eliminate unfair competition and to make it possible for channel members to operate independently,
most countries have established
A. laws regulating distribution activities.
C. tariff systems to increase revenues.
B. strict import and export requirements.
D. methods of monitoring shipments.
5. Landscaping companies usually coordinate the distribution of their services with the marketing activity of
A. promotion.
B. management.
C. directing.
D.
controlling.
6. Which of the following is a guideline that hospital employees should follow to be effective listeners:
A. Interrupt often
B. Ignore body language C. Ask questions
D.
Read directions
7. The law-firm employee didn't listen to the manager's explanation about how to perform a certain task because s/he had
done a similar job before. Which of the following factors caused the law-firm employee not to listen effectively:
A. Attention span
B. Past experiences
C. Age differences
D.
Language skills
8. A characteristic of simple memorandums written by business-services employees is that they usually are intended to
be read by a(n)
A. internal audience.
C. planning committee.
B. board of directors.
D. group of suppliers.
9. Rafael, a business-services employee, was assigned to greet a group of Latin American business travelers. Five
minutes after their arrival, he walked up to within two feet of them, smiled while making eye contact, and politely said
"Good afternoon. How can I be of service?" What did he do wrong?
A. He stood too close to the guests.
C. He did not greet the travelers in a prompt manner.
B. He did not indicate a willingness to help.
D. He gave the impression that he was being interrupted.
10. Employees who are unable to respond to questions about the law firm's legal services can affect the client's
A. sourcing strategy.
C. image of the business.
B. purchasing ability.
D. price fixing.
11. Why is distribution usually direct in services marketing?
A. The service cannot be separated from its producer.
B. Vertical channel integration is used.
C. Only wholesalers and retailers are involved.
D. Warehousing and storage are involved.
12. The number of hours that a law firm is able to bill each week is an example of the firm's
A. services.
B. capacity.
C. procedures.
D.
productivity.
Copyright © 2008 by Marketing Education Resource Center®, Columbus, Ohio
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
2
13. A pet-grooming business that decides to lease its current building instead of buying it is transferring risk through
A. business organization.
C. avoidance.
B. insurance.
D. contractual agreement.
14. A reason the gross domestic product of the United States continues to grow is because
A. profit margins continue to increase.
C. production costs have been reduced.
B. more people are joining the labor force.
D. the population has become more mobile.
15. Desires for clothes, lawn care, and CDs would be classified as
A. economic wants.
C. goods.
B. services.
D. noneconomic wants.
16. Darrin's Daycare needs a reliable method for ensuring that children are released to the proper person, not to a
stranger. To address this concern, the daycare needs to
A. make sure it is headed in the right direction. C. conduct research regarding profit opportunities.
B. eliminate process variation.
D. reduce unnecessary procedures.
17. What type of strike takes place when the members of one local union go on strike to support the members of another
local union who are already on strike?
A. Wildcat
B. Sit-down
C. Lockout
D.
Sympathetic
18. Seasonal unemployment results from changes in the weather or demand for certain products, while cyclical
unemployment is related to
A. swings in the business cycle.
C. industries dependent on calendar cycles.
B. the manufacture of more products.
D. environmental conditions worldwide.
19. Which of the following is a factor that might reduce consumers' demand for certain services:
A. Weather changes
C. Lowered prices
B. Increased availability
D. Extensive promotion
20. Doing things that make you feel good about yourself will __________ your self-esteem.
A. damage
B. hinder
C. lower
D.
raise
21. Fulfilling one's obligations in a dependable, reliable manner is known as __________ behavior.
A. misleading
C. deceptive
B. untrustworthy
D. responsible
22. What type of loan requires collateral?
A. Unsecured
B. Secured
C. Note
D. Signature
23. Feedback that you receive from self-evaluation is called __________ feedback.
A. internal
C. external
B. indirect
D. eternal
24. Carol is a new employee at Freemont Hospital. Carol is concerned about finishing a report on time. Which of the
following is a phrase that her coworker can use to express empathy:
A. "I'm afraid we're all too busy to help."
C. "You must feel very stressed right now."
B. "I know it's due by the first of the month."
D. "What do you think that you will do about it?"
25. Which of the following is a belief you should have about your own behavior if you want to be assertive:
A. You have the right to choose the way you respond to your circumstances.
B. Circumstances determine the way you should behave.
C. You have the right to be aggressive in some circumstances.
D. Passive behavior is a good response to aggression.
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
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26. Pat tells Tim, "You can always talk to me. I'm here to help." Which of the following coaching characteristics is Pat
exhibiting:
A. Dependability
C. Humility
B. Persistence
D. Approachability
27. Lisa charges another lawyer to use the extra office in the building she owns. Which of the following is Lisa's source of
income:
A. Rent
C. Dividends
B. Salary
D. Interest
28. The problem of being overeager is most common among __________ employees.
A. experienced
C. part-time
B. beginning
D. temporary
29. Service businesses use the information collected through the accounting process to prepare accurate
A. balance sheets.
C. inventory forms.
B. purchase orders.
D. promissory notes.
30. Carpet cleaners regularly evaluate and compare the figures in their original budgets to the actual figures in order to
A. establish quotas.
C. make adjustments.
B. change investments.
D. follow procedures.
31. Service businesses need to consider the costs associated with providing quality service, which usually include the cost
of maintaining a
A. fleet of trucks.
C. physical facility.
B. local warehouse.
D. distribution center.
32. In which of the following ways can a service provider take advantage of information about an expanding market:
A. By deleting current product lines
C. By reducing advertising
B. By increasing sales staff
D. By buying risk protection insurance
33. What do some service businesses use to collect marketing information from consumers who are often unaware that
they are providing this information?
A. Focus groups
C. Personal interviews
B. Web sites
D. Fax surveys
34. One benefit to a health spa of using computerized databases to sort and organize information about customers'
purchases and dollar amounts spent is that the spa can use this information to
A. prepare financial reports.
C. develop inventory control plans.
B. customize its marketing efforts.
D. maintain sales strategies.
35. Determine whether the following statement is true or false: Identifying the reason the service business needs to do
marketing research is the easiest step in the marketing-research process.
A. True, identifying the reason for the research is an easy and inexpensive step.
B. True, this step is easy because service businesses know what their research needs are.
C. False, identifying the real reason for the research can be a very difficult step.
D. False, outside experts must be hired to identify the reason for the research.
36. Which of the following is a technique that lawn-care businesses often use to evaluate service quality:
A. Qualifying
C. Benchmarking
B. Profiling
D. Interviewing
37. Which of the following is a unique feature of services marketing that allows a business to offer services that fit the
needs of individuals in its target market:
A. Standardization
C. Generalization
B. Commercialization
D. Customization
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
38. A service being in great demand is a factor that might encourage hair salons to
A. decrease operating hours.
C. contact competitors.
B. adjust prices.
D. gather information.
39. Service marketers perform actions that are
A. monopolies.
B. intangible.
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C. tangible.
D. inventoried.
40. Marketing strategies and tactics must always be planned and implemented with the architecture firm's __________ in
mind.
A. clients
C. owners
B. executives
D. stockholders
41. The marketing plan is a plan for a pet-grooming business to reach its marketing objectives through
A. long-term goals.
B. short-term goals.
C. management and operational tactics.
D. product, place, price, and promotion strategies.
42. What does a health care facility try to identify as a result of conducting a situational analysis?
A. Revenues and expenses
C. Goods and services
B. Threats and opportunities
D. Profits and losses
43. If you were trying to convince a service business to use quantitative sales forecasting, which of the following factors
would you stress:
A. Variety of opinions
C. Minimal cost
B. Factual basis
D. Ease with which findings are understood
44. Which of the following types of computer software programs usually contain a thesaurus:
A. Presentation
C. Word processing
B. Graphics and design
D. Communications
45. Which of the following is a standard function of most spreadsheet software programs:
A. Performing financial calculations
C. Managing database files
B. Preparing promotional brochures
D. Creating slide presentations
46. An important issue that service businesses often encounter is that
A. most of the inventory consists of highly perishable products.
B. the services are generally performed by unskilled labor.
C. their sales are limited by the amount they can produce at one time.
D. supply usually exceeds demand during peak seasons.
47. What can service businesses often obtain to prevent competitors from stealing their new ideas, processes, and
slogans?
A. Limited franchise
C. Lawful monopoly
B. Legal protection
D. License agreement
48. What should service businesses do to help employees follow instructions for the use of office equipment and
machinery?
A. Require hand washing
C. Install sprinkler system
B. Display first aid posters
D. Provide training
49. Many service businesses require that any accidents that occur on the job should be
A. disregarded if they are minor.
C. written up on company stationery.
B. described on an accident report form.
D. handled by a physician.
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
5
50. Which of the following skills does a project manager need to be able to guide or direct the actions of others in a desired
manner:
A. Leadership
C. Communication
B. Decision making
D. Goal setting
51. What do hospitals often develop in order to properly maintain their equipment and physical facilities?
A. Regular housekeeping plan
C. Ongoing security measures
B. Routine landscaping service
D. Continual inspection program
52. Meaningful goals can give you a sense of __________ in your life.
A. direction
C. uncertainty
B. accomplishment
D. insecurity
53. Since he likes to help others accomplish their personal goals, Gabe should consider a career that involves working with
A. nature.
C. people.
B. data.
D. things.
54. One of the important benefits to the job applicant of sending a follow-up letter to the interviewer after being interviewed
for a job opening is that the letter
A. gives the applicant a chance to ask for more job information.
B. helps to keep the applicant's name in front of the interviewer.
C. gives the applicant a chance to demonstrate a range of skills.
D. establishes a permanent relationship with the business.
55. Delia focuses on the good side of things which helps her to positively interact with her customers. Which of the
following traits important to the success of employees in services marketing is she exhibiting:
A. Positive attitude
C. Appropriate behavior
B. Professional appearance
D. Polite tone of voice
56. Which of the following are service industries that offer a wide range of employment opportunities:
A. Finance, hospitality, real estate
C. Engineering, manufacturing, government
B. Wholesaling, telecommunications, science
D. Retailing, pharmaceuticals, trucking
57. Which of the following is not a benefit to service businesses of using trade publications:
A. Trade journals are useful in purchasing.
B. Trade journals contain product information.
C. Trade journals help to keep a business up-to-date.
D. Trade journals are usually provided free of charge.
58. Which of the following is not a time waster:
A. Procrastinating
B. Gossiping with coworkers
C. Building in planning time
D. Refusing to delegate
59. 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. Flexibility
D. Durability
60. When setting prices for services, socially responsible health-care providers tend to be
A. indifferent and flexible.
C. fair and immoral.
B. ethical and fair.
D. ethical and indifferent.
61. Which of the following pricing practices is illegal in some countries because it may drive a service provider's
competitors' out of business:
A. One-price policies
C. Price skimming
B. Below-cost pricing
D. Markup pricing
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
62. Which of the following is a factor that carpet cleaning businesses consider when pricing their services:
A. Labor force
C. Perceived value
B. Delivery strategy
D. Local culture
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63. Marketers frequently use perceptual maps when planning and introducing a new service so that they can
A. determine the best methods of distribution.
B. determine competitor attributes in customers' minds.
C. create the path, from idea to launch.
D. communicate with each other during the planning process.
64. In which stage of the product life cycle would a service business decide to discount its products to appeal to a different
market segment, if sales have been steadily decreasing?
A. Maturity
C. Withdrawal
B. Decline
D. Alteration
65. A trend affecting new-service development is that more individuals are communicating personal experiences with
services by participating in online discussion groups, and by developing and creating their own
A. blogs.
B. cookies.
C. brands.
D.
hyperlinks.
66. A group of employees meeting to review a lawn-care business's sales records for the purpose of identifying product
opportunities is an example of
A. brainstorming.
B. experimenting.
C. negotiating.
D.
questioning.
67. When the XYZ Company compares its services with the QRS Corporation's services, it is generating product ideas by
analyzing its
A. research policies.
C. direct competition.
B. customers' needs.
D. target market.
68. Which of the following is a way that grades and standards can be used:
A. To identify employee benefits
C. To develop product brands
B. To determine how products can be used
D. To indicate which media will be used for promotion
69. Most pet-grooming businesses develop service standards that are based on
A. customer expectations.
C. management patterns.
B. emotional elements.
D. innovative processes.
70. Is an oral promise given by the salesperson an express warranty?
A. No, an express warranty is a promise expressed in a specific written statement.
B. Yes, an express warranty is a limited oral promise given by a salesperson.
C. No, an express warranty must be expressed both verbally and in writing.
D. Yes, the marketer must fulfill all oral or written promises to the customer.
71. Why would a business use a broad product mix?
A. To relate the products to the target market
B. To assure that the product lines are related
C. To decrease legal liabilities
D. To promote one-stop shopping
72. One reason why some service businesses bundle products is to
A. price unpopular products below cost.
B. offer discounts on products that are selling well.
C. promote the sale of expensive supplementary products.
D. sell products that customers might not otherwise buy.
73. When positioning a service, a business should consider the target market's
A. wants.
C. policies.
B. strategies.
D. benefits.
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
74. A brand name is easier to use in advertising if the brand name is
A. descriptive.
C. imaginative.
B. more than one word.
D. fairly short.
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75. Which of the following situations is an example of a customer measuring an assurance quality dimension in a service
business:
A. Kurt calls his healthcare insurance company and is transferred several times before he can speak with
someone about a claim.
B. Tim is pleased when a salesperson is knowledgeable and answers his questions about a service confidently
and courteously.
C. Jana's dry cleaning is always ready for pick-up on Wednesdays at 10:00 a.m., which is the time she was told it
would always be ready.
D. Ann is comfortable getting her dental work done at Dr. Peabody's office because he has the most current
dental equipment.
76. Before the Evergreen Landscaping Company opened for business, it developed guidelines for handling customers'
complaints. Now, the business is in a better position to handle the complaints because it
A. planned for monetary losses.
C. acted upon its customers' suggestions.
B. followed government regulations.
D. anticipated potential problems.
77. What type of promotion would a service business use to promote the firm's prestige?
A. Product promotion
C. Public service
B. Public relations
D. Patronage
78. What form of promotion occurs when a service marketer gives current customers a coupon entitling them to a
discount?
A. Publicity
B. Personal selling
C. Sales promotion
D.
Advertising
79. The particular combination of techniques that a dry cleaner uses to communicate with its customers is known as its
A. sales promotion.
C. publicity efforts.
B. promotional mix.
D. public relations.
80. The growth of cable and digital television is providing consumers with more viewing options and is giving insurance
companies the ability to deliver promotional messages to __________ audiences.
A. young
B. mass
C. target
D.
educated
81. A government's promotional regulations often address issues about advertising placement, timing, and
A. budget.
B. graphics.
C. pricing.
D.
content.
82. Service businesses planning to use specialty advertising should consider its disadvantages, which include the fact that
A. it has short-term benefits.
C. few businesses use it.
B. consumers don't like it.
D. the message must be brief.
83. What part of a print ad may include a map to the location of the service business being advertised?
A. Identification
B. Illustration
C. Headline
D.
Copy
84. Which of the following is an example of a successful direct-response advertisement:
A. A person signs up to participate in a diet program by telephone after viewing an infomercial.
B. A movie theater shows several previews of new films and video releases.
C. A popular tourist attraction places a billboard in a remote location.
D. A local grocer distributes discount coupons to local businesses.
85. A service business's advertising and display efforts should be
A. competitive.
B. contradictory.
C. separate.
D.
coordinated.
86. What type of service business owner is most likely to benefit from word-of-mouth publicity?
A. Retailer
B. Manufacturer
C. Lawyer
D.
Farmer
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
87. To be effective in developing relationships with clients, the service that insurance agents provide must
A. meet clients' needs.
C. be the same for all clients.
B. increase the clients' status.
D. include clients' employees.
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88. Whenever Tom, an insurance agent, interacts with a client, he always sends the client a thank-you note. The purpose
of this technique is to
A. demonstrate knowledge about the products. C. give full attention to the client.
B. show a personal interest in the client.
D. build a clientele for the business.
89. Who is primarily responsible for implementing selling policies for service businesses?
A. Salespeople
B. Customers
C. Management
D.
Purchasing agents
90. Business-services salespeople write sales letters and sales proposals for their customers by using __________
computer software.
A. territory mapping
C. word processing
B. presentation
D. database
91. Which of the following is a type of technology that allows customers to purchase and receive services from businesses
without dealing with the business's employees:
A. Cyberspace
B. Smart cards
C. Intranets
D.
Satellite dishes
92. Many types of unfair and deceptive sales practices are regulated when they tend to
A. eliminate competition.
C. reduce incentives.
B. affect performance.
D. decrease profitability.
93. What is a primary reason why some customers think that purchasing a service is risky?
A. The government might impose legislation.
B. They think that the salespeople will try to follow-up with them.
C. Service competitors face too much competition.
D. They are afraid the service might not meet their expectations.
94. Which phase of the selling process is essential for all business-services salespeople?
A. Promoting on-site product demonstrations
C. Building prospective client lists
B. Establishing relationships with customers
D. Overcoming objections to expensive services
95. Which of the following is an open-ended question a salesperson might ask a customer:
A. "What kind of janitorial services does your business need?"
B. "You want delivery service for your dry cleaning?"
C. "Does your child need math tutoring?"
D. "Do you want to landscape your backyard?"
96. Which of the following is one of the first steps in the customer buying process for services:
A. Choose a provider
C. Gather information
B. Evaluate performance
D. Negotiate delivery
97. Which of the following methods of handling objections is most likely to offend the customer:
A. Yes, but . . . method
C. Inquiry method
B. Deny-it method
D. Show 'em method
98. Suggestion selling is important to business-services salespeople primarily because
A. it increases total sales and possibly commissions.
B. it prepares them to operate their own service business.
C. the more business-services salespeople sell, the more they enjoy the job.
D. of the opportunity to make important contacts with people.
99. One reason it is difficult for a business to maintain quality control for its services is because services are
A. time-consuming.
B. inadequate.
C. exceptional.
D.
unpredictable.
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
9
100. An effective middle manager in an insurance company would do all of the following on a regular basis except
A. make excellent use of his/her time.
C. establish immediate and long-range goals.
B. work alongside subordinates.
D. use his/her abilities to the best advantage.
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
10
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
11
1. B
General partnership. With a general partnership, all partners are liable for the debts of the
business. If one partner refuses to pay her/his share of the debts, the other partners will be
responsible for paying them. Owners of close, public, and "S" corporations have limited liability.
SOURCE: BL:003
SOURCE: BA LAP 7—Own It Your Way
2. A
Time and place. Utility is the ability of a product to satisfy consumer wants and needs. Time utility is
defined as the value added to a product by making it available for purchase at the time it is needed
or wanted by consumers. Place utility adds value to products by making them available at locations
where they are needed or wanted by consumers. Form utility is changing the state of the product to
make it more useful to the consumer. Possession utility is created when ownership of a product is
transferred from the seller to the user.
SOURCE: CM:001
SOURCE: DS LAP 1—Distribution
3. B
Direct. Direct is a channel of distribution in which goods and services move directly from the
producer to the consumer. Indirect is a channel of distribution in which goods and services move
from the producer to the channel members and then to consumers or industrial users. Roundabout
is not a method of distribution. Intermediaries are channel members who perform the activities
needed in getting a good or service from those who produce it to those who consume it.
SOURCE: CM:003
SOURCE: MB LAP 3—Channels of Distribution
4. A
Laws regulating distribution activities. Most countries throughout the world have established laws
regulating distribution activities to eliminate unfair competition and to make it possible for channel
members to operate independently. These laws benefit each country's economy because they
prevent one business from having an unfair competitive advantage over another business.
Therefore, all businesses have an opportunity to succeed. Furthermore, the regulation of
distribution gives consumers more choices because they are not forced to buy from only one or two
suppliers. Import and export requirements, tariff systems, and methods of monitoring shipments do
not eliminate unfair competition or make it possible for channel members to operate independently.
SOURCE: CM:005
SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an
e-commerce world (7th ed.) [pp. 375-376]. Mason, OH: South-Western.
5. A
Promotion. Landscaping companies usually coordinate the distribution of their services with the
marketing activity of promotion in order to make sure that everything they need to provide the
services are available when they advertise. Landscaping companies do not want to advertise
special discounts or limited-time offers until everything they need to perform the services (e.g.,
workers, equipment, plants, mulch) are actually available. Advertising too early will upset customers
if they cannot immediately obtain the services. Management is not a marketing activity. Directing is
a management activity that involves providing guidance to workers and work projects. Controlling is
a management function that monitors the work effort.
SOURCE: CM:007
SOURCE: Kotler, P., & Keller, K. (2006). Marketing management (12th ed.) [pp. 18-20]. Upper
Saddle River, NJ: Prentice-Hall.
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
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6. C
Ask questions. Effective listeners concentrate on what is being said and ask questions when they
don't understand or want clarification. Managers often assume that employees know more than
they do and give incomplete or vague instructions. Hospital 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:017
SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp. 206208]. Mason, OH: South-Western.
7. B
Past experiences. People often think they know what someone is going to say before they say it
and as a result do not listen well. People's past experiences may influence how well they listen
because they think they already know the answer or understand the explanation. Effective listeners
try to block out past experiences and focus on what the speaker is saying. Age differences,
attention span, and language skills are other factors that may affect how well people listen.
SOURCE: CO:119
SOURCE: Miculka, J.H. (1999). Speaking for success (pp. 37-41). Cincinnati: South-Western
Educational.
8. A
Internal audience. Memorandums are a type of simple written report that business-services
employees often prepare to provide information to others within the business. Since memorandums
are usually intended to be read by an internal audience, they are less formal and shorter than
traditional business letters. They often provide information about the progress of current projects or
an explanation of upcoming events. Not all businesses have boards of directors or planning
committees. However, these are examples of internal audiences that may, or may not, receive
memorandums. A group of suppliers is an external audience.
SOURCE: CO:094
SOURCE: Lesikar, R.V., & Flatley, M.E. (2005). Basic business communication: Skills for
empowering the Internet generation (10th ed.) [pp. 97-99]. Boston: McGraw-Hill/Irwin.
9. C
He did not greet the travelers in a prompt manner. Greeting customers requires the demonstration
of a customer-service mindset. Therefore, Rafael should have acknowledged the presence of the
business travelers immediately upon their arrival, if only to indicate that he would be with them
shortly. Latin Americans typically feel comfortable holding conversations in which the participants
stand within two feet of each other, and so Rafael's closeness to the business travelers would have
been appropriate. Rafael indicated his willingness to help when he politely said, "How can I be of
service?" Rafael gave his undivided attention to the travelers upon greeting them by smiling and
making eye contact.
SOURCE: CO:075
SOURCE: Rokes, B. (2000). Customer service: Business 2000 (p. 53). Mason, OH: SouthWestern.
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
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10. C
Image of the business. Clients form an image of a law firm as they communicate with its
employees. When a law-firm's employees cannot answer questions, clients receive a negative
impression. The client's purchasing ability is determined by the amount of his/her disposable
income or budget. The client's sourcing strategies are generally determined independent of a
specific employee interaction. Price fixing is an illegal activity in which a business charges different
prices for similar amounts and types of goods and services.
SOURCE: CR:006
SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)
[pp. 24-26]. Upper Saddle River, NJ: Prentice Hall.
11. A
The service cannot be separated from its producer. In services marketing, distribution is direct
because of inseparability, which means that a service cannot be separated from its producer-seller.
The service business provides the service directly to the customer. For example, a health care
facility provides medical care directly to a patient. Services marketing does not involve
warehousing, storage, or wholesalers. Some service businesses are retailers. Vertical channel
integration is used in the marketing of goods.
SOURCE: DS:071
SOURCE: Etzel, M.J., Walker, B.J., & Stanton, W.J. (2007). Marketing (14th ed.) [pp. 301-304 ].
Boston: McGraw-Hill/Irwin.
12. D
Productivity. Productivity is the amount and value of goods and services produced (outputs) for set
amounts of resources used (inputs). Productivity is difficult to measure in service businesses
because tangible products are not produced and the service often varies for each customer.
However, service businesses try to measure their productivity by using a variety of methods. The
number of hours that a law firm bills each week is an example of productivity. The billable hours
indicate that staff members are working for clients and performing tasks that generate income. The
more hours that are billed, the more productive the law firm is. The billable hours are not services
but an indication of the amount of services provided. Billable hours do not indicate capacity
because the firm might be able to increase its capacity by hiring more employees or by working
longer hours. The billable hours are not procedures.
SOURCE: EC:052
SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management
(pp. 103-105). Upper Saddle River, NJ: Prentice Hall.
13. D
Contractual agreement. Contractual agreements are agreements between two or more people that
state that one party is to do something in return for something provided by another party. A petgrooming business pays rent for space, and the lessor agrees to maintain the space and make
needed repairs. This agreement transfers risk to the lessor. Insurance shifts certain specified risks
to someone else. Business organization refers to the type of structure of the ownership. Avoidance
is completely eluding a situation.
SOURCE: EC:011
SOURCE: EC LAP 3—Lose, Win, or Draw (Business Risk)
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
14
14. B
More people are joining the labor force. Gross domestic product is the final total value of all goods
and services produced within a country's geographic boundaries during a year's time. The
population of the United States has been growing steadily over the years. As our population has
grown, so has the size of our labor force. Our gross domestic product continues to grow as the size
of the labor force increases. Company profits, production costs, and population mobility have no
bearing on the calculation of GDP.
SOURCE: EC:017
SOURCE: EC LAP 1—Gross Domestic Product
15. A
Economic wants. Desires for clothes, lawn care, and CDs can only be satisfied by spending money.
Therefore, these desires are considered economic wants. Noneconomic wants can be satisfied
without spending money. A good is a tangible object that is useful, scarce, and transferable. A
service is a productive activity performed by someone else for a fee.
SOURCE: EC:002
SOURCE: EC LAP 10—Goods and Services
16. B
Eliminate process variation. Since Darrin's Daycare needs a reliable method for ensuring that
children are released to the proper person at the end of the day, the business needs to eliminate
process variation—a part of operations management. This means the daycare needs to make sure
that its end-of-the-day procedures do not vary/change, so no children are released to a stranger by
mistake. Making sure the business is headed in the right direction is part of strategic management,
not operations management. Conducting research regarding opportunities is part of marketing.
Reducing unnecessary procedures, while part of operations management, is not the solution to the
daycare's problem in this case.
SOURCE: EC:071
SOURCE: EC LAP 19—Strictly Business (Business Activities)
17. D
Sympathetic. A sympathetic strike is a union strategy in which employees of one local union walk
off the job to support another union that is on strike. A wildcat strike occurs when local union
employees refuse to work but do not have the consent of the national union. A sit-down strike
occurs when employees stay on the job but refuse to work. A lockout occurs when a company
closes the business temporarily, and the employees are not allowed to work.
SOURCE: EC:015
SOURCE: EC LAP 5—Organized Labor
18. A
Swings in the business cycle. During a recession, people may delay buying certain kinds of durable
goods, such as new homes, cars, or appliances. With slower sales, manufacturers often have to lay
off employees until the economy recovers. Even though this is a serious occurrence, employees
who have been laid off under these circumstances often get their jobs back when the economy
improves, so many try to "wait out" a recession. The manufacture of more products often increases
the employment rate. Cyclical unemployment is not related to calendar cycles or to environmental
conditions worldwide.
SOURCE: EC:082
SOURCE: Gottheil, F.M. (1999). Principles of economics (2nd ed.) [p. 511]. Cincinnati: SouthWestern College.
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
15
19. A
Weather changes. Changes in weather conditions often have an influence on customers' demand
for certain services. When the weather is cold and rainy, many people prefer to stay home rather
than use local bus service. In cold weather, people do not use pool services or lawn-mowing
services. On the other hand, people do not usually visit tanning salons on sunny, warm days or
need snow removal services during warm weather. Lowering prices, increasing availability, and
increasing promotion tend to increase consumer demand.
SOURCE: EC:046
SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management
(pp. 293-296). Upper Saddle River, NJ: Prentice Hall.
20. D
Raise. Any activity or achievement that makes you feel good about yourself will boost your selfesteem. Doing things you don't feel good about could hinder, lower, or damage your self-esteem.
SOURCE: EI:016
SOURCE: HR LAP 12—Self-Esteem
21. D
Responsible. Responsible behavior should consider the context of a given situation. Behavior that
is responsible in one setting may be inappropriate in another setting. Responsible behavior means
being straightforward and honest rather than misleading, deceptive, or untrustworthy.
SOURCE: EI:021
SOURCE: PD LAP 7—Make the Honor Role (Acting Responsibly)
22. B
Secured. A secured loan is a loan in which the borrower pledges to the lender some valuable
possession as security, or collateral, to guarantee that the loan will be repaid. Items often used as
collateral include real estate, stocks, bonds, machinery, and the cash value of life insurance. An
unsecured loan, also known as a signature loan, is an amount of money borrowed by an individual
or a business simply by signing a promissory note to repay the loan. No collateral is required for
this loan. Both secured and unsecured loans are considered notes.
SOURCE: FI:002
SOURCE: FI LAP 2—Credit and Its Importance
23. A
Internal. This is information you obtain by constantly monitoring your own actions. External
feedback comes from others, directly or indirectly. Eternal is a distractor.
SOURCE: EI:003
SOURCE: HR LAP 3—Handling Feedback
24. C
"You must feel very stressed right now." There are many phrases you can use to express empathy.
Acknowledging others' stress when you know they are under pressure is one way to let them know
that you understand how they feel. Confirming the due date for the report, asking the person what
s/he plans to do, or saying everyone is too busy to help do not express empathy and may indicate
indifference.
SOURCE: EI:030
SOURCE: HR LAP 17—Empathy
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
16
25. A
You have the right to choose the way you respond to your circumstances. Don't excuse yourself by
blaming your passive or aggressive behavior on your circumstances. No matter what your
circumstances, you have the right to choose the way in which you respond to those circumstances.
Take full responsibility for your behavior, and resolve to change it when it is inappropriate. Passive
behavior is never a good response to aggression as it usually encourages the aggressive person to
continue.
SOURCE: EI:008
SOURCE: HR LAP 16—Assertiveness
26. D
Approachability. A coach is a person who enables other people to reach their true potential by
helping them to overcome the barriers that are keeping them from doing something they want to
achieve. Approachability is the attitude or demeanor that lets another person know that you are
open and available to talk to him/her. Persistence is continuing to work at a task or idea until the
desired outcome is achieved. Humility is the lack of pride. Dependability is doing what you say you
will do.
SOURCE: EI:041
SOURCE: QS LAP 7—Bring Out the Best
27. A
Rent. Income is money resource owners receive for supplying goods and services. As a resource
owner, Lisa is supplying office space and receiving rent payments from the lawyer, so she is
receiving income. A salary is a form of income that is money payments for labor. A dividend is the
sum of money paid to an investor or stockholder as earnings on an investment. Interest is the
money payments for the use of borrowed money.
SOURCE: FI:061
SOURCE: Kapoor, J.R., Dlabay, L.R., & Hughes, R.J. (2005). Personal finance (pp. 66-67). New
York: Glencoe/McGraw-Hill.
28. B
Beginning. Beginning employees are most likely to be overeager because they want to do well in
their new jobs. By being overeager, they run the risk of creating errors, hard feelings, and other
needless complications. The problem is less common among experienced employees except for
those who have recently assumed new positions/responsibilities within the company. Part-time or
temporary employees are not likely to be overeager because they have limited hours in which to do
their work.
SOURCE: EI:024
SOURCE: EI LAP 2—Hustle! (Taking Initiative at Work)
29. A
Balance sheets. Service businesses use the information collected through the accounting process
to develop reports that indicate their financial condition. One kind of record is the balance sheet
which shows the assets, liabilities, and overall financial condition of a business. Service businesses
need accurate balance sheets in order to know whether or not they are making a profit. Purchase
orders are forms identifying the prices, discounts, dating, and transportation charges applicable to
an order issued by a buyer to a seller. Inventory forms are the records used in counting the number
and type of items available in inventory. Promissory notes are legal forms signed by a borrower
promising to repay a loan.
SOURCE: FI:085
SOURCE: FI LAP 5—Show Me the Money
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
17
30. C
Make adjustments. A budget is only as successful as the business that evaluates it on a regular
basis. When carpet cleaners want to know if they are accomplishing their business goals, budgets
show where they are on target and where they are not. By comparing original budget figures to
actual figures, managers of carpet-cleaning businesses can find out if they are spending more than
allocated on certain activities and then make adjustments. For example, if a carpet cleaner spends
most of its advertising budget during the first six months, it knows that it will need to cut back in that
area or take money from other activities. Carpet cleaners do not evaluate their original budgets in
order to change investments, establish quotas, or follow procedures.
SOURCE: FI:106
SOURCE: FI LAP 3—Money Tracks (Nature of Budgets)
31. C
Physical facility. Although service businesses provide intangibles, they usually operate out of a
physical facility such as an office. The cost of maintaining the physical facility must be factored into
the cost of providing quality service. Even a small business that provides service in customers'
homes needs some sort of physical facility in which to set up telephone and fax lines, house a
computer or copier, and store records. Many service businesses do not maintain warehouses,
fleets of trucks, or distribution centers. These facilities are usually associated with the sales of
tangible items.
SOURCE: FI:262
SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management
(pp. 221-223). Upper Saddle River, NJ: Prentice Hall.
32. B
By increasing sales staff. An expanding market may include an increase in product lines, quality,
and sales. Increasing the sales staff allows the service business to provide additional service for
the expanding market, which generates sales. An expanding market also implies a positive outlook
and potential. Reducing advertising and deleting current product lines usually accompany a
negative outlook. Buying risk insurance is good business practice but does not indicate an
expanding or a contracting market.
SOURCE: IM:001
SOURCE: IM LAP 2—Marketing-Information Management
33. B
Web sites. When consumers access a service business's web site, they often provide a lot of
personal information such as name, address, and even credit card numbers. Businesses often do
not inform consumers that they are collecting this information, using it for marketing purposes, or
providing it to other businesses. This practice is usually considered unethical because consumers
are unaware that the information is being retained for future use. To be ethical, businesses should
disclose that they collect this information and how they intend to use it. Then, consumers have an
opportunity to decide if they want to reveal personal information. When consumers participate in
focus groups, give personal interviews, or answer fax surveys, they are aware that they are
providing information.
SOURCE: IM:025
SOURCE: Boone, L.E., & Kurtz, D.L. (2002). Contemporary marketing (p. 133). Mason, OH:
South-Western.
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
18
34. B
Customize its marketing efforts. Many health spas use computerized databases to sort and
organize information about customers' purchases, dollar amounts spent, etc. The benefit to the
health spa is that it can use this information to customize its marketing efforts and appeal to specific
customers. For example, a spa might use a database to organize customers according to
geographic location and send different promotional pieces to each area. The database allows a spa
to target specific customers based on certain criteria. Spas do not use this type of customer
information to prepare financial reports, develop inventory control plans, or maintain sales
strategies.
SOURCE: IM:183
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 594595).
New York: Glencoe/McGraw-Hill.
35. C
False, identifying the real reason for the research can be a very difficult step. The reason that this is
true is that the service business cannot always identify a concern, situation, or problem accurately
in order to determine what information it needs. While outside experts may be helpful in some
cases, it is not always necessary to hire them. Usually, personnel within the service business are in
the best position to identify the reason why the service business needs to use marketing research
because of their familiarity with the service business.
SOURCE: IM:010
SOURCE: IM LAP 5—Nature of Marketing Research
36. C
Benchmarking. Benchmarking involves establishing certain ratings, or standards, and then
comparing future research results to the original. For example, a new lawn-care business might
survey its customers to find out how they feel about such service issues as service promptness,
lawn appearance after service, attitude of the employees, etc. Once it determines the original
rating, or benchmark, for each function, the lawn-care business can conduct future surveys to find
out if customers think service is improving. Profiling involves identifying the main characteristics of
a group that creates a picture of the group. Qualifying is determining if potential customers have the
authority to purchase and the ability to pay. Interviewing is a research technique that might be used
to obtain information to compare to the original benchmarks.
SOURCE: IM:204
SOURCE: Mullin, B.J., Hardy, S., & Sutton, W.A. (2000). Sport marketing (2nd ed.) [pp. 88-89].
Champaign, IL: Human Kinetics.
37. D
Customization. A unique feature of services marketing is that is allows businesses to customize
their services to fit the needs of individuals in the target market. Businesses that sell services have
the opportunity to more easily customize their products to meet individual needs than businesses
that sell tangible goods. For example, a suburban dry cleaner identifies its target market as families
living in the local community. Then, it develops specific services to meet their unique needs, such
as free delivery, repair and alterations, one-hour pressing, etc. The business is able to provide
customized service and treat its target market as individuals. Generalization and standardization
involve developing and marketing services that fit the needs of a mass audience rather than
individuals. Commercialization is the point at which a product goes into full-scale production, the
marketing plan is put into place, service and sales training are done, and the product's life cycle
begins.
SOURCE: IM:214
SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management
(pp. 147-151). Upper Saddle River, NJ: Prentice Hall.
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
19
38. B
Adjust prices. Deciding on a service's price is not always easy. Hair salons must consider many
factors, some of which encourage hair salons to adjust prices. For example, if a product is in great
demand, hair salons might increase the price because clients are willing to pay the price to obtain
the service. If a service is in great demand, a business would extend its operating hours in order to
increase sales. Hair salons do not contact competitors about prices. By gathering information, a
hair salon might learn that a product is in great demand.
SOURCE: MK:002
SOURCE: MK LAP 1—Work the Big Six (Marketing Functions)
39. B
Intangible. The performance of a service is intangible because it cannot be detected through the
senses (e.g., touched or smelled). Services include tangible components, such as getting an
eyebrow wax at a hair salon or eating an ice-cream cone, but the actual act of providing the service
is intangible. Monopolies are economic conditions in which a market is controlled by one supplier.
This is not the case with services because there are always substitute services readily available.
Physical goods such as raw materials or parts are inventoried, or counted, so that a business
knows how much stock it has on hand. This is not possible with services because it is impossible to
keep an inventory of the number of actions that will be performed.
SOURCE: MK:011
SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (p.
15). Upper Saddle River, NJ: Prentice Hall.
40. A
Clients. To be successful, strategies and tactics must always be aimed at satisfying the purchasers
of the firm's products. When an architecture firm's clients are satisfied, they tend to buy more. This,
in turn, will satisfy the architecture firm's executives, owners, and stockholders.
SOURCE: MP:001
SOURCE: IM LAP 7—Pick the Mix
41. D
Product, place, price, and promotion strategies. The marketing plan consists of four strategies—
product, place, price, and promotion. The marketing plan does not involve management and
operational tactics. Long- and short-term goals are specific marketing objectives that may take a
year or three-to-five years to accomplish.
SOURCE: MP:007
SOURCE: Meyer, E.C., & Allen, K.R. (2000). Entrepreneurship and small business management:
Teacher's manual (2nd ed.) [p. 163]. New York: Glencoe/McGraw-Hill.
42. B
Threats 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 health-care facilities as well as potential threats.
For example, a change in customers' physical condition might present an opportunity for some
health-care facilities but be a threat to other facilities. In order to be prepared to take advantage of
the opportunities or deal with the threats, a health-care facility must first analyze the environment to
find out exactly what those opportunities or threats are. A health-care facility does not conduct a
situational analysis to identify profits and losses, revenues and expenses, or goods and services.
SOURCE: MP:008
SOURCE: 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.
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
20
43. B
Factual basis. The primary advantage of quantitative, sales-forecasting methods as compared with
qualitative forecasting methods is that they provide more exact data, because quantitative
forecasting is based on facts rather than on opinion. The costs, however, are usually higher
because the service business will need to pay people to conduct surveys, to purchase the results of
outside surveys, to subscribe to various publications, or to buy computer systems to assemble and
analyze the data. Although a variety of resources can be used as sources of information, the data
are based on facts rather than opinions. Individuals often experience more difficulty understanding
numerical data than understanding others' opinions.
SOURCE: MP:013
SOURCE: IM LAP 3—Nature of Sales Forecasts
44. C
Word processing. Most word-processing software programs contain a thesaurus, which is a listing
of words and their synonyms. This feature enables users to look up alternative words that have the
same meaning. The thesaurus helps business employees to prepare accurate written documents
and use words that exactly describe or explain the message. Communications programs allow
computers to communicate with other computers. Graphics and design software is used to create
artwork and drawings rather than text. Presentation software is used to create multimedia
presentations.
SOURCE: NF:007
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)
[pp. 162-167]. Woodland Hills, CA: Glencoe/McGraw-Hill.
45. A
Performing financial calculations. Spreadsheet software enables businesses to perform accounting,
financial, and other mathematical functions. A user can enter numerical information in rows and
columns, and the software will perform various calculations or analyses. For example, spreadsheet
programs can calculate sales forecasts and develop budget projections. Presentation software is
used to create slide presentations. Desktop publishing software is used to prepare promotional
brochures. Database software is used to manage database files.
SOURCE: NF:010
SOURCE: Longenecker, J.G., Moore, C.W., & Petty, J.W. (2000). Small business management:
An entrepreneurial emphasis (11th ed.) [pp. 461-463]. Cincinnati: South-Western
College.
46. C
Their sales are limited by the amount they can produce at one time. Since services are intangible
activities that are performed by people for money, supply is limited to the amount of work that each
person produces. Therefore, sales are limited. Most service businesses do not inventory products.
Because there are many types of service businesses, it cannot be assumed that supply usually
exceeds demand during peak seasons. In addition, many services are performed by highly skilled
people (e.g., physicians, accountants).
SOURCE: NF:044
SOURCE: Hoffman, K., & Bateson, J. (2002). Essentials of services marketing: Concepts,
strategies,
& cases (2nd ed.) [pp. 28-29]. Orlando, FL: Harcourt.
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
21
47. B
Legal protection. Businesses are often able to obtain legal protection for their innovative ideas,
processes, and slogans, which prevents competitors from stealing them. These ideas, processes,
and slogans are the business's intellectual property. As such, they are owned by the business. In
many cases, businesses can obtain legal protection in the form of patents or copyrights that stop a
competitor from using the property without permission. A licensing agreement and a franchise are
legal ways for one business to sell or use another business's goods and services. Monopolies are
usually illegal and occur when a market is controlled by one supplier, and there are no substitute
goods or services readily available.
SOURCE: OP:124
SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)
[pp. 170-177]. Cincinnati: South-Western.
48. D
Provide training. Depending on the type of service business, employees may be required to use
equipment and machinery that may be complicated to operate. To help employees follow
instructions and use the equipment and machinery in a safe manner, it is often necessary to
provide training. During training, employees learn correct operating procedures which will minimize
the possibility of accidents or injuries. Displaying first aid posters or installing a sprinkler system will
not help employees follow instructions for the use of equipment and machinery. Depending on the
equipment or machinery, employees may be required to wash their hands before or after use.
SOURCE: OP:006
SOURCE: Ninemeier, J.D. (2000). Management of food and beverage operations (3rd ed.)
[pp. 274-275]. Weimar, TX: Culinary and Hospitality Industry Publications Services.
49. B
Described on an accident report form. The service business should keep a written record of
accidents, injuries, and illnesses for its own use. Most service businesses are also required to
record such information on forms provided by the Occupational Safety and Health Administration.
Even minor cuts or injuries should be treated because of the danger of infection. Accident report
forms, rather than company stationery, should be used to ensure all relevant information is
collected and recorded. Not all accidents require a doctor's attention.
SOURCE: OP:009
SOURCE: RM LAP 3—Handling Accidents
50. A
Leadership. For a project manager, one of the most important skills is the ability to guide or direct
the actions of others in a desired manner. One of the project manager's main roles is to lead the
group to achieve the project's goal. Managers who have good leadership skills are able to motivate
group members and persuade members to follow their directions. Project managers also need to
have decision-making skills and communication skills. However, leadership skills enable managers
to guide or direct the actions of others. The group usually sets the goals of the project, although the
manager guides the discussion.
SOURCE: OP:002
SOURCE: QS LAP 18—Make It Happen
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
22
51. D
Continual inspection program. Many hospitals develop continual inspection programs in order to
identify and correct any problems. Hospitals often have programs that call for the inspection of each
area on a regular basis. For example, the lights may be checked weekly while the heating and
cooling system is inspected twice a year. By continually inspecting equipment and facilities, a
hospital is able to prevent many breakdowns from occurring. Continual inspection may identify
problems with housekeeping, landscaping, and security that the hospital would then be able to
correct.
SOURCE: OP:032
SOURCE: Stutts, A.T., & Wortman, J.F. (2006). Hotel and lodging management: An introduction
(2nd ed) [pp. 98-99,195]. Hoboken, NJ: John Wiley & Sons, Inc.
52. A
Direction. Goals are objectives that people want to fulfill. Having meaningful goals can point you in
a specific direction and also help to keep you on target. Generally, having goals tends to reduce
feelings of insecurity and uncertainty. Goals must be achieved in order to give you a sense of
accomplishment.
SOURCE: PD:018
SOURCE: HR LAP 6—Goal Setting
53. C
People. When considering a career path, Gabe needs to consider his skills, interests, and values.
Since Gabe gains satisfaction from being with and helping others, he might consider a career that
requires a lot of interaction with people. Careers that focus on the gathering or manipulation of
words and numbers are related to data or information. Environmental occupations often involve
working with nature. Careers that relate to things involve working with tangible items (e.g.,
carpenter).
SOURCE: PD:023
SOURCE: Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (pp. 32-34).
Woodland Hills, CA: Glencoe/McGraw-Hill.
54. B
Helps to keep the applicant's name in front of the interviewer. There are several benefits to the job
applicant of sending a follow-up letter after a job interview. One of the most important ones is that
the letter reminds the interviewer of the job applicant. Other benefits include demonstrating the
applicant's courtesy and continued interest in the job, as well as providing an opportunity to add
important information about the applicant's skills. A follow-up letter helps to build a relationship with
the business but does not automatically establish a permanent relationship. A follow-up letter gives
the applicant a chance to provide information, but it should not be used to ask questions. The only
skills that are being demonstrated are in letter writing.
SOURCE: PD:029
SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp. 71-72].
Mason, OH: South-Western.
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
23
55. A
Positive attitude. Attitude refers to the way a person looks at life. Employees with positive attitudes
feel good about themselves, their jobs, and other people—which results in positive interactions with
customers. In turn, this leads to career success. Behavior refers to the manner in which individuals
act, and appropriate behavior usually means exhibiting good conduct. Appearance is the physical
image that a person presents to others, and professional appearance includes such things as
cleanliness, hairstyle, and clothing. Employees who use a polite tone of voice speak to others in a
manner that is friendly and cheerful.
SOURCE: PD:049
SOURCE: Kimbrell, G., & Vineyard, B.S. (1998). Succeeding in the world of work: Teacher's
wraparound edition (6th ed.) [pp. 195-197]. New York: Glencoe/McGraw-Hill.
56. A
Finance, hospitality, real estate. These service industries provide a wide range of employment
opportunities to individuals who are interested in working with people and providing services to
customers. Employees in these industries often have the most contact with customers and provide
services directly. Engineering, manufacturing, wholesaling, retailing, and pharmaceuticals are not
considered to be primarily service industries. Trucking is primarily a service industry; and certain
aspects of government, telecommunications, and science are considered to be service-oriented.
SOURCE: PD:056
SOURCE: Zeithaml, V.A., & Bitner, M.J. (2000). Services marketing: Integrating customer focus
across the firm (2nd ed.) [p. 3]. Boston: Irwin/McGraw-Hill.
57. D
Trade journals are usually provided free of charge. Usually, there are costs associated with using
trade publications. A subscription to the publication may be included in the membership fee, or
there may be a separate subscription fee. However, the value of the publication often far exceeds
the cost. Service businesses subscribe to them because they contain the most recent information
about products, processes, and trends.
SOURCE: PD:036
SOURCE: CD LAP 1—Trade Associations/Professional Organizations
58. C
Building in planning time. Time management won't happen by itself. You must allocate time in your
schedule for planning. Many of the things that we do during the day waste time. They might include
gossiping with coworkers, starting and stopping work in order to take phone calls, talking with dropin visitors, procrastinating, and refusing to delegate.
SOURCE: PD:019
SOURCE: OP LAP 1—About Time (Time Management in Business)
59. B
Flexibility. The owners of the dry-cleaning business were forgetting that prices must be flexible, that
they are not written in stone. Dry-cleaning businesses need to be willing to adjust their prices
depending on the circumstances faced by the business. If a competitor is offering lower prices on
similar products, a dry-cleaning business should be flexible with its pricing in order to keep its
customers. Durability is how long a product will last. Profitability is the degree or level of profit of a
business or a product. Stability is resistance to change.
SOURCE: PI:001
SOURCE: PI LAP 2—Pricing
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
24
60. B
Ethical and fair. Social responsibility is the duty of a business to contribute to the well-being of
society. By being ethical and fair when setting its prices, a health-care provider is being socially
responsible—this may include being flexible in some situations. Health-care providers that act
indifferently or immorally are not being socially responsible.
SOURCE: PI:015
SOURCE: Lamb, C.W., Hair, J.F., & McDaniel, C. (2003). Essentials of marketing (3rd ed.)
[pp. 520-521]. Mason, OH: South-Western.
61. B
Below-cost pricing. When a service provider decides to price its products below cost, it makes it
difficult for other service companies to compete with the low prices, which they cannot afford to
charge and might eventually force them out of business. To prevent this situation from happening,
many governments have laws that make it illegal for service businesses to use below-cost pricing.
When a service business charges one price for all items it sells, it is using a one-price policy. Price
skimming is a pricing strategy that involves setting prices higher than those of the competition.
Markup is the difference between the cost of a product and its selling price.
SOURCE: PI:017
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials
(pp. 535-537, 544, 549-550). New York: Glencoe/McGraw-Hill.
62. C
Perceived value. Some services have more value or worth to customers than others; therefore,
businesses consider customers' perceived value when pricing services. Businesses must answer
questions about the value of their services such as what benefits do they provide and how
important are they to customers. If customers believe services are valuable, they will be willing to
pay more for them than services they think are not significant. For example, some customers are
willing to buy carpet cleaning services only if they are on sale, whereas others feel the service is
necessary and will pay full price. Businesses usually do not consider local culture, delivery strategy,
or the labor force when pricing their services.
SOURCE: PI:032
SOURCE: Zeithaml, V.A., & Bitner, M.J. (2000). Services marketing: Integrating customer focus
across the firm (2nd ed.) [pp. 441-443]. Boston: Irwin/McGraw-Hill.
63. B
Determine competitor attributes in customers' minds. When planning a new service, marketers use
perceptual maps to create a visual picture of the service's unique characteristics, as well as those
of its competitors' services. This helps to identify threats and opportunities, and to define the gap
between what management believes that competitors offer versus how consumers see these same
services. Perceptual maps are not used to address distribution in and of themselves, even though a
unique form of distribution could find its way onto a perceptual map if it is a distinguishing
characteristic of the service. Perceptual maps do not create the path from idea to launch of the
service, but they create a visual scenario that illustrates the relative niches in consumers' minds
occupied by service characteristics. The use of a perceptual map can often enhance
communication among marketers during the planning process because of its ability to clarify;
however, it is thought of as a planning tool rather than a communication tool.
SOURCE: PM:071
SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management
(pp. 159-162). Upper Saddle River, NJ: Prentice Hall.
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
25
64. B
Decline. The decline stage is the stage of the product life cycle in which sales and profits fall
rapidly. When a product is in the decline stage, a business might discount the products, which often
appeals to a different, more price-conscious market segment. The maturity stage is the product life
cycle stage in which sales peak and then increase at a slower rate or start to decline. Withdrawal
and alteration are not stages of the product life cycle.
SOURCE: PM:024
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 644645).
New York: Glencoe/McGraw-Hill.
65. A
Blogs. A blog is a personal web site that contains journal entries and thoughts that is created and
maintained by the creator. Some blogs contain links to other web sites and discussion forums.
Because blogs contain many types of information, service businesses are beginning to pay
attention to the information that is appearing on these types of web sites. For example, a blogger
(blog creator) might post information about service needs and experiences with a certain company
or service. Others who visit the site might consider the comments when making their own decision
about service purchases. Service businesses are starting to realize that the information posted on
blogs can be important for them when they develop or modify their service offerings to meet their
customers' needs and wants. Cookies are text files that are put on a web-site visitor's hard drive
and then later retrieved during subsequent visits to the site in order to track Internet behavior.
Brand is the combined impressions and experiences associated with a particular company or
product. A hyperlink is a component of an electronic document that can be clicked on in order to
jump to another place within the document or into a different document.
SOURCE: PM:072
SOURCE: BusinessWeek Online (2005, September 26). It's a whole new web. Retrieved October
30, 2007, from http://www.businessweek.com/magazine/content/05_39/b3952401.htm
66. A
Brainstorming. Brainstorming is a creative-thinking technique involving the identification of as many
different ideas as possible during a certain time frame. Lawn-care businesses often have groups of
employees meet to review information in an attempt to identify product opportunities. Sales records
are a valuable source of information to review because they contain information about the types of
services that customers purchase on a regular basis. Employees can analyze this information and
brainstorm product opportunities that might meet customers' future needs. Reviewing a business's
sales records for the purpose of identifying product opportunities is not an example of
experimenting, negotiating, or questioning.
SOURCE: PM:134
SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 279-280). Tinley
Park, IL: Goodheart-Willcox.
67. C
Direct competition. A business uses many resources to generate ideas for services. When a
business evaluates another business's services, it is most often analyzing what its competitor is
offering a market segment. The analysis helps the business come up with different or better ideas
than its competitor so it can develop services that stand out from the competition. In this situation,
the XYZ Company is not generating product ideas by focusing on customers' needs, research
policies, or target markets.
SOURCE: PM:128
SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (p. 279). Tinley Park,
IL: Goodheart-Willcox.
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
26
68. B
To determine how products can be used. Grades and standards can determine how products can
be used. Grades can be used to indicate whether products can be used in warm or cold climates,
whether the product can be consumed or requires additional processing, etc. They are not used to
select media, to identify employee benefits, or to develop product brands.
SOURCE: PM:019
SOURCE: PM LAP 8—Grades and Standards
69. A
Customer expectations. Most pet-grooming businesses develop standards for providing services to
customers. The most effective standards are based on what customers expect to receive from the
services. For example, a pet groomer might set standards of grooming a cat in 30 minutes and
grooming a dog in 45 minutes. Pet groomers try to determine what their customers expect and then
set appropriate standards to make sure those services are delivered. Pet groomers do not develop
service standards that are based on emotional elements, management patterns, or innovative
processes.
SOURCE: PM:073
SOURCE: Zeithaml, V.A., & Bitner, M.J. (2000). Services marketing: Integrating customer focus
across the firm (2nd ed.) [pp. 241-249]. Boston: Irwin/McGraw-Hill.
70. D
Yes, the marketer must fulfill all oral or written promises to the customer. An express warranty is a
promise expressed in a specific statement concerning the quality of the product. It can be in either
written or oral form, and its extent can be limited or full. In either case, it must be honored by the
marketer.
SOURCE: PM:020
SOURCE: PP LAP 4—Warranties and Guarantees
71. D
To promote one-stop shopping. A business with a broad product mix offers many product lines.
This provides many opportunities to make sales, allows the business to appeal to consumers with a
variety of needs, promotes one-stop shopping, and often reduces the costs. Assuring that product
lines are related refers to consistency. The use of a narrow product mix helps a business relate its
products to the target market. The use of a broad product mix does not decrease legal liabilities. In
fact, its use may increase legal liabilities since the business is responsible for a larger variety of
product lines.
SOURCE: PM:003
SOURCE: PP LAP 3—Product Mix
72. D
Sell products that customers might not otherwise buy. Businesses often bundle products to
encourage customers to buy services that they might not otherwise want to buy. The price of the
bundled products is usually lower than the combined price of the services sold separately. The
lower price is an incentive to buy. Service businesses do not bundle products to offer discounts on
services that are selling well or to price unpopular services below cost. Service businesses might
use optional-product pricing to promote the sale of expensive, supplementary products.
SOURCE: PM:041
SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management (p.
237). Upper Saddle River, NJ: Prentice Hall.
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
27
73. A
Wants. Positioning is a product-mix strategy in which a business creates a certain image or
impression of a service in the minds of consumers. The business wants a target market to have a
positive impression of the service in order to stimulate sales. The desired impression depends on
what the target market wants or expects. If the target market wants high-quality service and it is
willing to pay a high price for quality, then the business should use a product-mix strategy that
positions the service on the basis of superior quality at a high price. Rather than target markets,
businesses have strategies and policies, while products have benefits.
SOURCE: PM:042
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 645).
New York: Glencoe/McGraw-Hill.
74. D
Fairly short. Since space in the media limited, the brand name should not be too long. A fairly short
name is more graphically pleasing and more noticeable because it doesn't take up too much space
in advertising. Whether the brand name contains more than one word or is an imaginative or
descriptive name, these factors would not affect promotion as much as the total length of the brand.
SOURCE: PM:021
SOURCE: PM LAP 6—It's a Brand, Brand, Brand World! (The Nature of Branding)
75. B
Tim is pleased when a salesperson is knowledgeable and answers his questions about a service
confidently and courteously. Service customers base their perceptions about a business's service
quality by considering a combination of factors or quality dimensions. The assurance quality
dimension addresses a customer's issues regarding the business's competence and security.
When the salesperson courteously and confidently answers Tim's questions, the salesperson is
communicating his/her knowledge about the business's product, which reassures Tim of the
business's capabilities and service quality. A healthcare insurance company that transfers a
telephone customer several times is an example of the responsiveness quality dimension. When
Ann sees up-to-date equipment in her dentist's office, she is considering the tangible quality
dimension of a service business. Reliability quality dimensions relate to consistency. Since Jana's
dry cleaning is always ready on the same day at the same time, the business is providing
consistent, dependable service.
SOURCE: PM:167
SOURCE: Hoffman, K., & Bateson, J. (2002). Essentials of services marketing: Concepts,
strategies,
& cases (2nd ed.) [pp. 334-338]. Orlando, FL: Harcourt.
76. D
Anticipated potential problems. A service business wants its customers to be satisfied with its
product. Unfortunately, problems occur, customers complain, and it is important for a service
business to quickly resolve problems and renew the customers' positive feelings about the
business. To best serve its customers, Evergreen Landscaping Company identified possible
problems before they happened, so that it could determine the best way to resolve the problems, if
they actually occur. By developing company policies, the Evergreen Landscaping Company
provides its employees with consistent guidelines to handle possible problems. Although it is
important for Evergreen to follow government regulations, the government does not usually dictate
how private businesses should handle routine customer complaints. Since Evergreen developed its
recovery guidelines before it opened for business, it did not act upon its customers' suggestions.
Monetary losses are financial issues.
SOURCE: PM:169
SOURCE: Rokes, B. (2000). Customer service: Business 2000 (p. 6). Mason, OH: SouthWestern.
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
28
77. D
Patronage. Patronage promotion is designed to promote the prestige or features of a firm. Public
relations is created to deal with controversial issues that are in the public's interest. Public service
informs customers about noncontroversial issues. Product promotion informs the customer about a
product, not a company.
SOURCE: PR:002
SOURCE: PR LAP 4—Know Your Options (Types of Promotion)
78. C
Sales promotion. Sales promotion refers to promotional activities other than advertising, personal
selling, and publicity that stimulate customer purchases. Coupons are a popular form of sales
promotion because they offer discounts as a way to encourage repeat business. Advertising is the
nonpersonal presentation of ideas, images, goods, or services (e.g. television commercial) that the
company pays for. Personal selling is a form of promotion that determines client needs and wants
and responds through planned, personalized communication. Publicity is any nonpersonal
presentation of ideas, goods, or services that is not paid for by the company or individual that
benefits from or is harmed by it.
SOURCE: PR:120
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)
[pp. 241-249]. Woodland Hills, CA: Glencoe/McGraw-Hill.
79. B
Promotional mix. The promotional mix is a combination, or blend, of marketing communication
channels that a dry cleaner uses to send its messages to its customers. These channels include
personal selling, sales promotion, publicity, and advertising. Sales promotion consists of those
promotional activities other than advertising, personal selling, and publicity which stimulate
customer purchases. Examples include visual merchandising, coupons, and premiums. Public
relations activities are designed to create a positive public opinion about the firm. Publicity is any
nonpersonal presentation of ideas, goods, or services that is not paid for by the company or
individual which receives it.
SOURCE: PR:003
SOURCE: PR LAP 1—Promotional Mix
80. C
Target. A target market is the particular group of customers a business seeks to attract. Since the
evolution of cable and digital television, television viewers have more options, which include
television channels with specific themes, such as the History Channel or the Home Shopping
Network. Marketers (e.g., insurance companies) now have a better opportunity to target their
television promotional messages to appropriate or targeted markets. Mass audience refers to all of
the viewers reached by a media channel, which may include viewers who are not part of the target
audience. The level of education and the average age of an audience are factors that marketers
consider when selecting or evaluating a target market.
SOURCE: PR:100
SOURCE: O'Guinn, T.C., Allen, C.T., & Semenik, R.J. (2003). Advertising and integrated brand
promotion (3rd ed.) [pp. 542-546]. Mason, OH: South-Western.
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
29
81. D
Content. In order to protect consumers, governments regulate advertising. For example, many
nations regulate advertising directed to children because they are inexperienced consumers and do
not always make informed decisions. Regulation might include the types of advertisements that are
placed, the time when the advertisements run, and the information (content) the advertisements
contain. The price that a business pays or the amount it budgets for an advertisement is not often a
government concern. Graphics are one element of an advertisement's content.
SOURCE: PR:101
SOURCE: Wikipedia. (2006, September 2). Advertising regulation. Retrieved October 30, 2007,
from http://en.wikipedia.org/wiki/Advertising_regulation
82. D
The message must be brief. Specialty advertising is categorized as "other media," and it includes
such items as pens, matchbooks, calendars, or key rings embossed with a company's name, logo,
or promotional message. Even though specialty items carry only a brief message, it is a
promotional method that is popular with service businesses and consumers. The benefits of
specialty advertising include the fact that it keeps the name of the service business in front of the
public for an extended period of time.
SOURCE: PR:007
SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 506-507). Tinley
Park, IL: Goodheart-Willcox.
83. A
Identification. Identification is the element of an advertisement that identifies the product or the
advertiser and may include additional information about the service business. A map of the service
business's location would sometimes be included in this part of the ad. The headline of the ad is the
text that is set in large type and usually positioned at the top of the ad. The illustration is a
photograph, drawing, painting, or graphic. The copy of the ad is the text of the ad that actually
delivers the sales message.
SOURCE: PR:014
SOURCE: PR LAP 7—Parts of Print Ads
84. A
A person signs up to participate in a diet program by telephone after viewing an infomercial. Directresponse advertising is a promotional method in which marketers provide the means for people to
take action and immediately respond to a message. An infomercial is defined as a lengthy
commercial that looks like a television program. A television channel airing an infomercial that
includes a telephone number so viewers are able to purchase a service is an example of directresponse advertising. When a person purchases a service advertised via the infomercial, the
advertisement is successful because a sale has been made. Billboards and movie theater previews
are examples of out-of-home advertising. Coupon distribution is an example of a sales promotion
activity.
SOURCE: PR:089
SOURCE: Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [pp. 515-516].
Upper Saddle River, NJ: Prentice Hall.
85. D
Coordinated. Advertising and display should work together and have a common theme in order to
do an effective job of selling the service business's products. Such coordination results in a
comprehensive promotional approach, rather than a disjointed one that would result from
independent, contradictory, or competitive efforts.
SOURCE: PR:076
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 367).
New York: Glencoe/McGraw-Hill.
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
30
86. C
Lawyer. A service business performs specialized, intangible activities that satisfy the needs and
wants of consumers or industrial users. Lawyers provide legal advice, which is an intangible
activity. Manufacturers, retailers, and farmers are business owners who may offer a variety of
services; however, their primary products are goods.
SOURCE: PR:217
SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (p. 210). Tinley Park,
IL: Goodheart-Willcox.
87. A
Meet clients' needs. One way to develop long-term relationships with clients is to provide quality
service that meets clients' needs and makes them feel important. In many cases, the type of
service provided must be tailored to fit the needs of the client. For example, one client might need
life insurance while another client might need car insurance. Services need to be tailored to the
clients rather than the same for all clients. Services do not always include clients' employees unless
the client is a business. Clients do not purchase insurance to increase their status.
SOURCE: SE:076
SOURCE: Futrell, C.M. (1999). Fundamentals of selling: Customers for life (6th ed.) [p. 402].
Boston: Irwin/McGraw-Hill.
88. D
Build a clientele for the business. Expressing appreciation to the client through a phone call or a
simple note of appreciation demonstrates a genuine interest in the client's satisfaction. Showing a
personal interest in the client is generally inappropriate. Giving full attention to the client is done at
the time of a meeting or sale. Having knowledge about the insurance company's products is
knowing all about what you are selling and how your products can help the client.
SOURCE: SE:828
SOURCE: SE LAP 115—Keep Them Loyal (Building Clientele)
89. A
Salespeople. Salespeople have the primary responsibility for implementing selling policies for
service businesses. Company management would have an overall responsibility to see that all
department heads do their work. Purchasing agents are responsible for obtaining goods and
services rather than for selling them. Customers are affected by selling policies rather than being
responsible for setting or implementing them.
SOURCE: SE:932
SOURCE: SE LAP 121—Selling Policies
90. C
Word processing. Word-processing software allows computer users to write documents on their
computers. Business-services salespeople use word-processing software to write many types of
sales documents, including sales letters and sales proposals. Presentation software allows
business-services salespeople to develop visual support for their sales presentations. Territorymapping software helps sales managers create territories or selling areas for business-services
salespeople. Database software helps service businesses organize different types of information in
a meaningful manner in a central location.
SOURCE: SE:107
SOURCE: Futrell, C.M. (2001). Sales management: Teamwork, leadership, and technology (6th
ed.)
[p. 249]. Mason, OH: South-Western.
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
31
91. B
Smart cards. Smart cards contain microchips that store information such as digital money that can
be used to make purchases from electronic kiosks. Customers can access special terminals to add
money to their smartcards and then use the cards to buy goods and services from pay telephones,
subways, vending machines, etc. The cards automatically transfer the dollar amount of the
purchase from the customer's card to the business. Most smart cards are reusable, and customers
can continue to add money to them. They allow businesses to deliver services to customers quickly
and without the help of the business's employees. Cyberspace is the term used to describe the
area where electronic communications occur. Intranets are computer connections within a
business. Satellite dishes pick up signals from orbiting communications satellites.
SOURCE: SE:164
SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management
(pp. 213-216). Upper Saddle River, NJ: Prentice Hall.
92. A
Eliminate competition. Unfair and deceptive sales practices, such as price discrimination and
exclusive dealership, are illegal if they tend to eliminate competition. The United States and other
countries regulate sales practices that are specifically intended to drive out competitors or make it
difficult for competitors to operate. Sales practices that tend to reduce incentives, affect
performance, or decrease profitability are not regulated.
SOURCE: SE:108
SOURCE: Futrell, C.M. (2001). Sales management: Teamwork, leadership, and technology (6th
ed.) [pp. 38-39]. Mason, OH: South-Western.
93. D
They are afraid the service might not meet their expectations. Unlike with tangible goods that can
be seen, touched, or smelled before the purchase, customers never know for certain whether they
are going to receive a quality service. In other words, they take a risk that the service will be
everything they expect it to be. Customers don't face a risk when a salesperson follows up with
them about a transaction because they can request that the salesperson not call. The involvement
of government in regulating service businesses is beneficial to customers because they receive
protections against unfair business practices. It is the service providers who actually face potential
risks, such as paying for the costs of complying with the legislation. Service providers with a high
degree of competition usually provide a higher quality of service in order to attract customers away
from other businesses.
SOURCE: SE:187
SOURCE: Vallen, G.K., & Vallen, J.J. (2000). Check-in: Check-out (6th ed.) [pp. 207-208]. Upper
Saddle River, NJ: Prentice Hall.
94. B
Establishing relationships with customers. The first phase of the selling process, establishing
relationships with customers, is essential for all business-services salespeople. All businessservices salespeople must make initial contact with customers, make them feel at ease, and set a
positive tone for the selling relationship. Overcoming objections to expensive services, promoting
on-site product demonstrations, and building prospective client lists are not phases of the selling
process.
SOURCE: SE:048
SOURCE: SE LAP 126—The Selling Process
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
32
95. A
"What kind of janitorial services does your business need?" An open-ended question requires more
than a "yes" or "no" answer and encourages customers/clients to discuss their needs and wants.
This question requires the customer to describe the business's janitorial needs. All of the other
questions are closed-end questions that can be answered by "yes" or "no."
SOURCE: SE:111
SOURCE: SE LAP 114—Questioning
96. C
Gather information. Most customers gather information about services before purchasing because
services often differ from one provider to another. Customers usually read about the service, ask
the opinions of friends, or visit the provider. For example, a family seeking day care for children
might obtain information from a state licensing agency, talk to other parents, and visit the day-care
facility on various occasions to observe procedures. Once they are satisfied with the level of
service, customers choose a provider and negotiate delivery, which might involve the number of
days or hours that children will attend the day care. Customers evaluate the performance of the
service provider after making a purchase.
SOURCE: SE:210
SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management
(pp. 71-75). Upper Saddle River, NJ: Prentice Hall.
97. B
Deny-it method. In the deny-it method, the salesperson directly denies the customer's objection.
The deny-it method may be the poorest way to answer objections because it is hard to tell
customers they are wrong without offending them. This method must be used with great care. The
show 'em method answers the objection by showing the product in use. The yes, but . . . method
tactfully acknowledges the objection and then courteously answers it without directly contradicting
the customer. In the inquiry method, the salesperson asks questions of customers to enable
customers to answer their own objections.
SOURCE: SE:874
SOURCE: SE LAP 100—Converting Objections
98. A
It increases total sales and possibly commissions. Suggestion selling increases total sales and
profits for the service business. which may mean higher wages or commissions for the
salesperson. Increasing sales may or may not increase the business-services salesperson's
enjoyment of the job. Contacts with people can come whether or not you sell them something.
Qualifications for running one's own service business involve much more than the ability to sell
successfully. Such things as the ability to raise capital and proper understanding of other phases of
business are also needed.
SOURCE: SE:875
SOURCE: SE LAP 110—Using Suggestion Selling
2008 DECA Ontario Provincials
Test 946
BUSINESS SERVICES MARKETING
33
99. D
Unpredictable. Quality is the degree of excellence of a product. Service businesses use standards
to try to maintain and control service quality so service performance and delivery is consistent.
Because employees are different, their performance levels often vary, which makes it more difficult
for service businesses to maintain consistent quality control for their product delivery and
performance. Customers also vary in terms of their expectations and needs. The combination of an
employee's inconsistent behavior and a customer's inconsistent behavior makes the outcome
unpredictable. Services are not always considered inadequate, exceptional, or time-consuming.
SOURCE: SE:330
SOURCE: Hoffman, K., & Bateson, J. (2002). Essentials of services marketing: Concepts,
strategies,
& cases (2nd ed.) [pp. 41-42]. Orlando, FL: Harcourt.
100. B
Work alongside subordinates. The role of the middle manager in an insurance company is to plan
and organize the work of others, not to do the same work that they do. It may, on occasion, be
necessary for a manager to lend a hand, but this should not be regular practice. An effective
manager should plan his/her time in order to use his/her abilities to the best advantage and
establish and carry out immediate goals. First-line managers or supervisors often work alongside
subordinates.
SOURCE: SM:001
SOURCE: BA LAP 6—Manage This!