HCM 212 Final Practice Test

Which is an example of publicity? A. A restaurant review by a food critic B. An advertisement performed by a wellknown actor C. Coupons offered by an operation in a local newspaper D. Suggestive selling by a server in a restaurant

A. A restaurant review by a food critic

Which term best describes the formal statement of business goals and the detailed steps for reaching them? A. Business plan B. Financial plan C. Feasibility study D. Marketing study

A. Business plan

Which business structure is recognized as a legal entity with liabilities and privileges separate from ownership? A. Corporation B. Partnership C. Sole proprietorship D. Shareholder agreement

A. Corporation

A nursing home is most likely to have which type of menu? A. Cyclical B. À la carte C. Du jour D. Carte blanche

A. Cyclical

Survey questions about age, income, and geography seek to understand which type of information? A. Demographic B. Psychographic C. Product D. Socioeconomic

A. Demographic

Which is a place decision? A. Drive-through service B. Advertisement C. Service levels D. Menu items

A. Drive-through service

Which category of the "Four P's of Marketing" does plate presentation cover? A. Product B. Price C. Place D. Promotion

A. Product

When managers set their prices similar to those of the competition, this is known as which type of pricing? A. Status quo B. Bottom line C. Profit-oriented D. Sales-oriented

A. Status quo

The Federal Trade Commission oversees A. broadcast media. B. print media. C. magazines. D. direct mail.

A. broadcast media.

The three public relations objectives are to enhance trustworthiness, A. build name recognition, and lower advertising costs. B. lower advertising costs, and locate and integrate additional customers. C. provide honest information, and build name recognition. D. locate and integrate additional customers, and increase staff.

A. build name recognition, and lower advertising costs.

The money left after a person has met all his or her expenses or debts is known as A. discretionary income. B. target profit. C. return on investment. D. value perception.

A. discretionary income.

In the subject line of an email used for marketing, a manager should include A. information stating the main purpose of the email. B. a call to action such as, "Make a reservation now." C. a greeting to the recipient using their first name. D. the sender's name and contact information.

A. information stating the main purpose of the email.

The number or value of units sold by a business in a given period and expressed as a percentage of the total market size is known as a A. market share. B. market value. C. target market. D. target percentage.

A. market share.

Providing publicity material to the media and working with media representatives is known as A. media relations. B. media marketing. C. media affairs. D. public relations.

A. media relations.

An operation usually assesses its primary or direct competitors through A. observation. B. comment cards. C. surveys. D. financial records.

A. observation.

Management assessment techniques used for product quality control should include A. random taste-testing and secret shoppers. B. observing preparation and preparation testing. C. scheduling adjustments and replacing staff. D. comment cards and service surveys.

A. random taste-testing and secret shoppers.

An example of an interactive communication channel is a A. website. B. newspaper. C. broadcast. D. magazine.

A. website.

Which term describes the grouping of several products together for one lower price? A. Discounting B. Bundling C. Bargaining D. Placing

B. Bundling

Restaurants at shopping malls can be classified as which type of operation? A. Destination B. Convenience C. Target D. Competitive

B. Convenience

Which is an internal factor that affects pricing? A. Food trends B. Costs C. Community D. Weather

B. Costs

What does direct labor include? A. Insurance and sick leave pay B. Hours worked at a specific wage only C. Hours worked at a specific wage plus contributions to payroll tax D. Payroll tax, fringe benefits, and employee health care

B. Hours worked at a specific wage only

Factual records collected about actual sales, product usage, customers served, and other operating information are examples of which type of information? A. Public B. Internal C. Secondary D. External

B. Internal

Which communication channel or media type generally has the lowest costs for advertising? A. Radio B. Newspaper C. Magazine D. Television

B. Newspaper

The profit formula is best expressed as A. Expense x Revenue. B. Revenue - Expense. C. Revenue + Expense. D. Expense ÷ Revenue.

B. Revenue - Expense.

Useful market-related data that have been generated by sources outside the operation are known as which type of information? A. Primary B. Secondary C. Supplemental D. Association research

B. Secondary

One main principle of pricing psychology states that customers perceive A. prices ending in .95 or .99 as just a coincidence. B. a price of $6.00 and $6.99 as being about the same. C. a difference between prices of $5.19 and $5.99 as being significant. D. that all restaurants price items the same way.

B. a price of $6.00 and $6.99 as being about the same.

Examples of internal marketing include a(n) A. sponsorship on a banner inside a sports stadium. B. advertisement printed especially for placement on tables in the operation's dining room. C. memo distributed to all employees of an organization. D. departmental meeting for the sales team where a new product to be promoted is introduced.

B. advertisement printed especially for placement on tables in the operation's dining room.

Successfully attracting customers from a target market is the result of A. products and services. B. an effective marketing plan. C. internal and external factors. D. planning and operations.

B. an effective marketing plan.

In order to implement a sales promotion, the manager must first A. seek legal advice. B. create a checklist. C. develop a menu. D. contact a clearinghouse.

B. create a checklist.

An external influence on buying behavior is A. age. B. income. C. gender. D. lifestyle.

B. income.

An internal factor that influences individual buying behavior is A. communication. B. lifestyle. C. environment. D. transportation.

B. lifestyle.

The first step to ensure good publicity is to build positive relationships with the A. staff. B. local community. C. health department. D. other local businesses

B. local community.

Standardized recipes are used to A. highlight the cook's creativity. B. minimize preparation errors. C. reduce spoilage. D. rotate inventory.

B. minimize preparation errors.

How an operation convinces its target market to notice its products and services and consider them for future purchase refers to market A. segmentation. B. positioning. C. research. D. penetration.

B. positioning.

Understanding consumer rationality can better help a restaurateur with A. choosing waitstaff uniforms. B. pricing menu items. C. choosing a location. D. determining quality of menu items.

B. pricing menu items.

Suggestive selling in a restaurant setting should be performed by a trained A. manager. B. server. C. greeter. D. expediter.

B. server.

An operation's concept is defined by its menu, prices, and A. structure. B. unique features. C. marketing budget. D. location.

B. unique features.

By which method could an operation make coupons available to a target market? A. Signage B. Menu boards C. Direct-mail advertisements D. Television advertisements

C. Direct-mail advertisements

The most elegant and expensive style of table service is A. English. B. American. C. French. D. Russian.

C. French.

Which is a characteristic of a fine-dining restaurant? A. Customer-provided services B. Drive-through services C. High service levels D. Wall menus

C. High service levels

Which type of marketing treats everyone as having the same needs and wants? A. Demographic B. Target C. Mass D. Competitive

C. Mass

Which advantage of an operation using cell phone applications is both convenient and environmentally advantageous? A. No fossil fuel is required for cell phone use; therefore, dependence on domestic and foreign oil sources is reduced. B. Less labor is required and less energy is expended, saving fuel and preserving air quality. C. Paperless techniques do not require the use of coupons to be printed, mailed, or carried. D. Cell phones are rapidly taking the place of landlines, which use unsightly and ecologically unsound wires.

C. Paperless techniques do not require the use of coupons to be printed, mailed, or carried.

Which statement best reflects a reasonable and measurable sales promotion objective? A. The restaurant will serve three limitedmenu meals to a consumer group of families with children in a child-friendly atmosphere 7 days per week. B. The major menu item will be pasta and a few popular sauces, possibly made fresh on the premises or purchased prepared by others. C. The restaurant will aim to increase the number of families dining in on Mondays or Tuesdays by 10% with coupons for free beverages during the month of June. D. Compared to the primary competitor, the restaurant will charge $0.25 less for a 1/4 lb. burger platter.

C. The restaurant will aim to increase the number of families dining in on Mondays or Tuesdays by 10% with coupons for free beverages during the month of June.

Which tactic can best influence people to read a print ad for a restaurant? A. Avoiding the use of graphics so that there is space for a full copy of the menu B. Producing the ad in black and white rather than in color since color is less effective C. Using a picture of a family enjoying the food at home with a caption below the picture D. Highlighting pictures of the restaurant celebrating how long the business has existed

C. Using a picture of a family enjoying the food at home with a caption below the picture

Quick-service restaurants are most likely to use which pricing technique? A. Midrange B. Upscale C. Value D. Cyclical

C. Value

Which type of vegetarian will NOT consume food of ANY animal origin including milk, cheese, and honey? A. Lacto B. Ovo C. Vegan D. Lacto-ovo

C. Vegan

Strategic marketing activities are those that A. address the way a product will be sold. B. focus on how things are done. C. address an operation's basic business objectives. D. focus on current market trends.

C. address an operation's basic business objectives.

Any form of paid marketing message is referred to as A. event planning. B. sales promotion. C. advertising. D. suggestive selling.

C. advertising.

Good value from the customers' point of view is the A. use of coupons or promotions to save money. B. lowest price they pay for what they buy. C. difference between what they pay and what they get. D. quantity they get for the price they pay.

C. difference between what they pay and what they get.

Public relations events should be designed to A. develop a targeted marketing campaign. B. increase customer sales. C. draw customer awareness to an organization. D. give away free coupons and balloons.

C. draw customer awareness to an organization.

The three main types of market research objectives are A. practical, strategic, and statistical. B. statistical, expansionary, and exploratory. C. exploratory, descriptive, and causal. D. causal, strategic, and environmental.

C. exploratory, descriptive, and causal.

The process of gathering and analyzing relevant and accurate information about customers, competitors, and markets in order to improve decision making is known as A. marketing systems. B. target marketing. C. market research. D. segmenting.

C. market research.

When developing a marketing budget, managers must consider costs and expenses, future revenues, the competition's marketing efforts, and the operation's A. marketing activities schedule. B. expected staffing levels. C. marketing objectives. D. current sales goals.

C. marketing objectives.

One advantage of primary data versus secondary data is that primary data is A. less expensive to gather. B. more readily obtained. C. more relevant to the research. D. less statistically significant.

C. more relevant to the research.

The check average is determined by dividing total revenue by A. number of tables served. B. marketing dollars spent. C. number of guests served. D. menu mix percentage.

C. number of guests served.

Once advertisements are in place, a manager must evaluate their effectiveness by utilizing A. trials to measure usage only. B. subjective measures. C. objective measures. D. trials to measure traffic only.

C. objective measures.

Consumer protection laws enacted at the state and federal level are designed to ensure that customers are informed in advance about the A. level of service that can be expected. B. food items that will be available. C. prices they will pay for the items they buy. D. proper dress code expected of guests.

C. prices they will pay for the items they buy.

A primary advantage of mass media or broadcast media advertising is that it A. doesn't take much time. B. is cost-effective. C. reaches large audiences. D. is effortless.

C. reaches large audiences.

The correct order of the five steps of the purchasing process is A. evaluation of options, purchase decision, recognition of need or want, information search, and purchase assessment. B. information search, purchase decision, recognition of need or want, evaluation of options, and purchase assessment. C. recognition of need or want, information search, evaluation of options, purchase decision, and purchase assessment. D. recognition of need or want, information search, purchase assessment, evaluation of options, and purchase decision.

C. recognition of need or want, information search, evaluation of options, purchase decision, and purchase assessment.

In some fine dining operations, a person formally trained on wine selections is called a A. saucier. B. concierge. C. sommelier. D. commis.

C. sommelier.

Restaurant managers need to know the difference between a trend and a fad because a A. trend will grow rapidly, peak, then decline, not sustaining profits. B. fad will elevate sales for a long period of time. C. trend will elevate sales for a long period of time. D. restaurant is expected to constantly change its menu.

C. trend will elevate sales for a long period of time.

A value statement describes the A. financial plan for the operation that assists managers in marketing efforts. B. characteristics of a product or service that will be provided to the guest. C. value targeted customers will experience when they purchase products and services. D. products and services that are priced lower than close competitors.

C. value targeted customers will experience when they purchase products and services.

A fast-casual restaurant using midrange value pricing will most likely use which price for an entrée? A. $11.10 B. $11.50 C. $11.65 D. $11.95

D. $11.95

For a dish with a target food cost of 32% and a food cost of $2.29, the BEST menu price using the factor pricing method would be A. $6.95. B. $7.15. C. $7.16. D. $7.95.

D. $7.95.

Who ultimately defines the promptness of service? A. Manager B. Kitchen C. Server D. Customer

D. Customer

Which is the fastest growing segment in the restaurant and foodservice industry? A. Fine dining B. Quick-service C. Casual D. Fast-casual

D. Fast-casual

Which is an internal factor when evaluating the marketing plan? A. Good economy B. Successful local events C. Improved national situations D. Great tasting products at the right price

D. Great tasting products at the right price

Which action must a manager take with final objective advertising data? A. Hold the information for later analysis. B. Inform his or her superior. C. Store in manager's office. D. Summarize and analyze the data.

D. Summarize and analyze the data.

In a SWOT analysis, which category is represented by the entry of a new competitor with lower prices? A. Strengths B. Weaknesses C. Opportunities D. Threats

D. Threats

Effective trial sales promotion campaigns should be based on A. accepting competitors' coupons. B. reviewing only quarterly data. C. reading customer comment cards. D. a beginning and end date of any promotion.

D. a beginning and end date of any promotion.

McDonald's restaurant's golden arches logo is a recognizable sign of quality, affordable fast food. This is an example of successful A. product positioning. B. marketing. C. promotion planning. D. branding.

D. branding.

A popular chain restaurant offers "2 for $20" dinner specials which include a shared appetizer and two entrées. This type of pricing is called A. special pricing. B. à la carte. C. the daily special. D. bundling.

D. bundling.

In the restaurant and foodservice industry, the term "features" refers to the A. benefits derived by customers from purchasing menu items and services. B. favorable results obtained by purchasing menu items and services. C. advantages obtained from purchasing menu items and services. D. characteristics of the actual menu items and services.

D. characteristics of the actual menu items and services.

The first step in the market research process is A. collecting data. B. analyzing data. C. sampling details. D. defining the purpose.

D. defining the purpose.

A critical tool to determine exactly how to attract, please, and retain customers and achieve target profits is a(n) A. market area. B. industry standard C. target market. D. marketing plan.

D. marketing plan.

A target market consists of A. everyone who is currently a customer of a restaurant. B. the "Four P's of Marketing." C. customers of competing restaurants. D. people that a restaurant intends to pursue as customers.

D. people that a restaurant intends to pursue as customers.

Secondary sales are A. actual sales of a promotional item. B. sales directly related to a promotion. C. ongoing sales after a promotion is over. D. purchases made in addition to a promoted item.

D. purchases made in addition to a promoted item.

An example of a noncommercial operation is a A. sports arena. B. grocery store. C. casino. D. school.

D. school.

An operation's potential customers are known as the A. value seekers. B. brand placement. C. loyal guests. D. target market.

D. target market.

The number of times a customer frequents an operation in a specific time period is known as A. covers. B. traffic. C. counts. D. usage.

D. usage.