DECA Note Cards

inelastic demand (EC,19)

demand in which changes in price have little or no effect on the amount demanded

Bar Charts (NF,60)

A bar chart is effective for showing separate data sets that are similar, such as room bookings for different months. A pie chart is best used when there are less than five categories to plot and/or to represent parts of a whole. A Venn diagram is only effective when data sets have a common, or overlapping, element. A scatter chart is used to illustrate a relationship or correlation between two variables.

Company Budget (FI,41)

A budget is an estimate of income and expenses for a specific time period. With a budget, a business is able to keep a record of financial information that is accurate, accessible, and meaningful. Accounts receivables are all monies owed to a firm by its customers. An audit report is a document that describes the accuracy and appropriateness of a business's information, processes, and/or systems. Payroll records indicate the sum of money paid to employees in a given period. Accounts receivables, audit reports, and payroll records do not help businesses keep a comprehensive record of financial information like budgets do.

Applying for a Bank Loan (FI,36)

A creditor is most likely to review a business's financial accounting records if the business is applying for a bank loan, regardless of whether the business uses the cash accounting or the accrual accounting method. The bank grants or denies the loan based on the business's financial information. If the business is profitable and will continue to be profitable, the bank will probably agree to the loan. Creditors are not likely to review a business's financial information when the business selects a new market, unless the business requests funds from the bank to target the market more effectively. While it is good for a businessto comply with regulations, that doesn't necessarily mean that a creditor is going to review the business's financial records.

High Costs of Living Effects (EC,23)

A high cost of living makes it difficult for entry-level employees to afford basic living and housing expenses in the local area. As a result, many such employees seek higher paying jobs or relocate. The availability of higher education has little impact on a hotel's ability to hire local community members as entry-level employees. Hotel/Lodging sales tax rates do not impact a hotel's ability to hire local community members. A hotel can offer wages above the federal minimum wage to attract and hire local community members

Placing Holds on Credit Cards available credit lines (FI,45)

A hold is placed on a portion of the card's available credit line when the guest checks in. An authorization check policy is made when the guest arrives to ensure that there are sufficient funds available on the card to cover all lodging expenses related to the reservation. A credit card is not actually charged until a guest checks out to ensure that the guest's appropriate room rate is charged as well as any other hotel charges the guest made during his/her stay.

More data needs to be captured (NF,63)

A hotel that offers personalized services usually generates a lot of data that need to be captured and entered into the hotel's customer management system. Hotels must maintain the security of their customers' personal information whether they provide personalized services or not. Every hotel must monitor its online reputation, but providing personalized services doesn't often require the hotel to spend more time online. Data can be captured and managed without a cloud-based management system.

A Special Order (OP,63)

A special order is a request for a custom product or a product that a vendor does not normally carry in stock. Window blinds may need to be custom made or special ordered for windows that are an unusual size. Standard replacement parts for popular items on the market are usually carried in stock and do not require special ordering.

Standard Purchase Order (OP,73)

A standard purchase order is used as the need arises, generally for infrequent or one-time purchases. Sunset Airlines is replacing a broken part to deal with a rare mechanical malfunction, rather than ordering mechanical parts on a regular basis, so it is likely to use a standard purchase order. Planned purchase orders are determined in advance and on a regular basis, rather than as needed. Blanket purchase orders involve planning several orders at once, usually for a repetitive purchase. A contract purchase order creates an agreement and terms of supply between a purchaser and a business to form an ongoing relationship. A contract purchase is not likely to be used for an infrequent purchase such as a new mechanical part for a rare malfunction.

Statistics are ...? (NF,54)

areobjective, which means that they are factual and not influenced by bias, prejudice, or outside opinion. When using statistics, decision-making is less likely to be biased by individual employees. While statistics can be affordable, accurate, and persuasive, those are not related to employees' biases

Adapting Communication (CO,7)

Adapting communication for specific audiences. In the Midwest, customers are much more likely to call their soft drinks "pop" than "soda." Therefore, it is a smart advertising tactic to adapt the communications with these customers to reflect their vocabulary. This is not an example of sacrificing company values for popular culture, sloppy advertising, or using personal opinion in advertising copy.

Administrative Law (BL,1,2019 ICDC Cluster)

Administrative law is law pertaining to the actions of government agencies that grant them certain powers, provide guidelines for the regulations they create, and define the relationships they have with other governmental bodies. The Protection for Air, Water, and Land agency's ability to restrict dumping is an example of administrative law—not constitutional, international, or criminal law. Constitutional law is law pertaining to the government's constitution, international law is law regarding other countries, and criminal law is law regarding crime.

Excellent Products (QM,95)

An excellent product is useful and performs its job well. For example, a quality coffee machine grinds coffee beans well. This is an example of an excellent product. When a customer believes that a product is worth the money s/he spends on it, s/he considers the product to be of good value. Conformance refers to a product that conforms to predetermined specifications. Satisfaction refers to whether or not a customer is fully satisfied with a product. Brianna's coffee maker may have also been of good value, conformed to its specifications, and provided her with satisfaction—but in this example, the type of quality described is excellence.

Transitions in Presentations (NF,47)

Applying a transition to a slide within a PowerPoint presentation affects how both the previous slide leaves and the current slide enters.

Cash Conversion Cycle should be... (FI,44)

As short as possible. The cash conversion cycle should be as short as possible so financial managers have more free cash to work with. A downward trend in the cycle is a positive sign, while an upward trend is a negative one. A downward trend is preferred to equilibrium. Many investors pay close attention to a company's cash conversion cycle.

Behaving in Accordance (EI,23)

Assessing her values and behavior will help Josie treat others with respect and fairness. If she values those traits, she can examine her behavior to make sure it supports them. Josie's values of respect and fairness don't mean that she does not need to monitor her behavior, nor do they mean that she will never struggle to act ethically. Her values also do not ensure that she will experience success both personally and professionally, though they might help her develop strong and beneficial relationships.

Brand Cue (PM,84)

Brand cues are simple reminders of the brand's identity and values. Brand cues are a great way to remind employees about brand values and the brand promise. Touchpoints are all the opportunities that businesses have to connect with customers and reinforce their brand values. Logos are distinctive symbols, designs, or groups of letters. Distributor brands are owned by the retailer or wholesaler that sells the brands, rather than the manufacturer.

Brand Positioning (PM,91)

Brand position is the way consumers see the brand as compared to competitive brands. In brand positioning, the marketer's goal is to separate the brand from its competitors by defining the product's unique characteristics. Brand extension involves using successful brands to introduce new products. Brand licensing involves legal authorization by a brand owner to allow another company to use the brand in exchange for a fee. Brand maintenance means protecting the brand, updating the brand, and evaluating brand strategies.

Relationships ; Value (MK,46)

Businesses that offer services approach marketing differently than those that sell products. Relationships and interactions are important to providing quality service. On the other hand, product marketers must demonstrate the value that customers receive for the money they spend on items. Product marketing, rather than service marketing, is more focused on tangible items. Both service marketing and product marketing focus on customers rather than employees.

Cash from Operations (FI,40)

Cash flow includes three components by which cash enters and leaves a company: cash from operations, investing, and financing. Cash from operations includes how much cash is generated from a company's products or services. Accounts receivable is included in this section. Net income is not the same as cash flow because it also includes sales made with credit.

Promoting Diversity in the Workplace (HR,42)

Companies that have firm policies to deal with discriminatory behavior are more effective at promoting (not reducing) diversity. While policies concerning discriminatory behavior can indirectly reduce workplace violence, those policies are not likely to eliminate workplace violence completely. Company management can model positive attitudes and demonstrate the importance of diversity, but it is not always possible to change or eliminate discriminatory attitudes among employees.

Buying decisions based on price (PI,85)

Consumers who appreciate the extra amenities of luxury rooms typically make their buying decisions by comparing their perceived value of the room with its price. In the travel and tourism industry, price is closely associated with customers' perceptions of value and worth. If customers think the travel product has value and worth, they are often willing to pay for it. Also, value and worth differ from customer to customer, so what is viewed as value by one customer might not be valuable to another. Profit is the monetary reward a business owner receives for taking the risk involved in investing in a business. Place is the marketing element focusing on considerations in getting a selected product in the right place at the right time. Promotion is a marketing function needed to communicate information about goods, services, images, and/or ideas to achieve a desired outcome.

Experiences Political Instability (EC,22)

Currency exchange rates are constantly fluctuating and are affected by many factors. When a nation experiences political instability, the value of its currency tends to decrease because the nation's future is uncertain. A nation's currency value tends to increase when its exports exceed its imports, when it carries a low level of debt, and when it limits the amount of money it prints and circulates.

Customs Duty (BL,2)

Customs duty. Goods that are brought across international borders are often subject to a tax called a customs duty. This is meant to control the flow of goods. It is not called a travel tax, a travel duty, or a souvenir tax.

Happy Employees (CR,9,2020 State Hospitality Cluster)

DHappy employees. When someone says that a business has positive relations with its internal customers, the person means the business has happy employees. Employees are a business's internal customers, and keeping them happy is important because unhappy employees have difficulty creating and maintaining satisfied "external" customers. Positive employee relations does not necessarily relate to updated technology or strong managers.

Delegating Work to Coworkers (OP,70)

Delegate the forms to another team member. One way to easily prioritize work is to take tasks off your plate and delegate them to others. It makes sense for Tyler to delegate the forms because they are the simplest work to pass along to another team member. Rescheduling the phone calls is not necessarily a realistic option because all the work must be done by the end of the day. Shortening the preparation time for the presentation is not necessarily a possibility because Tyler should spend as much time as he needs to ace the presentation. Working on forms while speaking on the phone is not necessarily a good idea because Tyler should dedicate his full attention to one task at a time.

Desire for profit (OP,64)

Desire for profit. Businesses must learn to balance their ethical obligations with their desire for profit. Maximizing profit in ethical ways is the main ethical conflict in operations and in all of business. Businesses should not need to balance ethical obligations with legal obligations, productivity requirements, or employees' schedules.

Digital Records becoming inaccessible (NF,51)

Digital records can become inaccessible if they are stored on old storage devices that become obsolete or decay. Digital recordkeeping takes less time to maintain than paper systems. Digital records can easily be stored in multiple locations. Security is a concern for digital records just as paper ones, but security can easily be achieved by using passwords or encryption when storing the files.

Buying an existing business (PD,82)

Entrepreneurial opportunities typically involve establishing or purchasing ownership of a business enterprise. Entrepreneurs usually don't work for someone else as a store manager, human resources manager, etc., although doing so may help prepare an individual for success as an entrepreneur. Entrepreneurs may produce custom-made products, but purchasing such a product is not an example of an entrepreneurial opportunity.

Respect (EI,31)

Ethical people always honor the rights, freedoms, views, and property of others. This means not taking things that don't belong to you. Transparency means being truthful when you communicate. People who are accountable for their actions accept responsibility for all their decisions. Being trustworthy means doing what you say you will do and telling the truth. While these are all important ethical principles, they are not illustrated in Tori's example

Extrinsic Motivation (EI,34)

Extrinsic motivation drives people to engage in a behavior to earn a reward or avoid a punishment. Intrinsic motivation, on the other hand, comes from within an individual and is the result of the work or task itself. Intrinsic motivation drives people to engage in a behavior because it is personally rewarding or contributes to the achievement of their goals. Working hard to win employee-of-the-year is an example of extrinsic motivation—not a lack of motivation, intrinsic motivation, or punishment avoidance

Finance Charge (FI,39)

Finance charges are interest charges on accounts that are not paid in full at the end of each payment period. They are usually a percentage of the total amount due. Annual fees are yearly fees charged for the privilege of using a bank credit card. Interest rates are fees the lender charges the borrower for the use of money. Installment payments are set amounts paid by specific times to repay an installment loan or to pay for an installment credit purchase.

Franchisee (BL, 1, 2020 Area Cluster Exam H&T)

Franchisee. Franchising is a method of distributing recognized goods and services through a legal agreement between two parties. The franchisee (in this case, Janelle) acquires the rights to operate the business using the parent company's name. That parent company is known as the franchisor. For someone who wants to be a business owner, purchasing a franchise is often a desirable ownership option because the product has an established brand with a solid reputation. Licensing refers to an owner's authorization or permission for another entity to use trademarked, copyrighted, or patented material for a specific activity, during a specific time period, for the profit of both parties. The licensor is the owner of the material, and the licensee is the buyer.

Recommending Hospitality Services (SE,98)

Front-desk employees often tell guests about the hotel's dining options to encourage guests to use the hotel's food service. This is an example of recommending hospitality services. The advantage of recommending services, such as the dining room or room service, is that these services generate additional revenue for the hotel. If guests are unaware that the hotel has a restaurant or offers room service, they may leave the property and dine elsewhere. Telling guests about the hotel's restaurant and room-service menu is not an example of explaining complimentary offers, describing local opportunities, or promoting recreational activities.

Marketing-Info Management (MK,54)

Gathering information through surveys is an example of the marketing-information management function. Specialty advertising is categorized as "other media" such as pens and calendars embossed with a company's name. Behavioral segmentation is the division of a market on the basis of customers' responses to a product. Promotion communicates information about goods, services, images, and/or ideas to achieve a desired outcome.

Gift Certificates (SE,99)

Gift-certificate/card sales are an important source of revenue for many types of hospitality businesses. Consumers like to purchase gift certificates/cards for others because the gift recipients can book a reservation where and when they want it, which provides them with flexibility. Hotel chains do not sell reward points, contest passes, or keyless cards.

Give Receipts to Customers to track money (FI,43)

Give receipts to all customers. Most businesses use a variety of procedures to control cash. One of these is to train employees how to use the cash register and require that they ring up each sale on the register and give receipts to all customers. When an employee rings up a sale, the register automatically records the sale and prints a customer receipt. This procedure helps control cash because it reduces the possibility of employees accepting payment from customers without recording the sale and issuing a receipt. Monitoring intangible assets, tracking dividends paid to owners, and evaluating projected budgets are not internal procedures that many businesses use to control cash.

Proper Staff Training Pertaining to Security (OP,77)

Hospitality businesses must provide employees with proper training so that they know how to recognize and respond to security threats. The host at BeeBee's restaurant knew how to react when a suspicious person was in the waiting area, thereby preventing a serious incident. This example is not related to making assumptions about customers. Preventing security issues is possible, especially through methods such as staff training. While it might be true that limiting employee access can reduce security threats, this example is not related to that concept.

Value-added Promotions (PR,94)

Hotel airport shuttle. Value-added hotel promotions are typically complimentary "add-on" services or products that give customers an additional incentive to book a room. Many guests value an airport shuttle that provides convenience and reduces transportation costs. Daily housekeeping is a basic service that is typically included with any hotel room. An indoor swimming pool is a built-in hotel amenity. Discounting rooms is a promotional technique that does not provide anything additional to guests.

When to End Customer Interactions (CR,12)

If said customer threatens violence, don't try to communicate or problem solve. This could be dangerous and employees should remove themselves from the situation.

Improved Materials and Methods (NF,58)

Improved materials and methods, such as plastics and textiles, have made manufacturing processes more efficient over time. Satellites combined with software, cell phones, and the Internet do not affect manufacturing processes.

Transportation in H&T (PM,85)

In the hospitality and tourism industry, the coreproduct is the primary service that is provided. In the case of cruise lines, the core product is transportation because that is what the cruise lines are selling. Cruise lines are offering the service of transporting passengers from one location to another. In conjunction with transportation, some cruise lines offer food service. Some cruise lines offer movies and music to entertain passengers, but entertainment is not the core product. Luggage handling is available to passengers who check their luggage. However, luggage handling is not the core product. Customers pay for transportation, not for food service, entertainment, or luggage handling.

Transfer Payment (FI,33)

Income is money received from outside sources. Sources of income include salaries, interest earned, dividends, rent, and transfer payments. Transfer payments are monies paid by the government in which no goods or services are received in exchange, such as welfare benefits, veterans' benefits, disaster aid, and unemployment compensation. To receive transfer payments, individuals, businesses, or jurisdictions must meet certain criteria. A rebate is a return of part of the price a customer pays for a product, usually from the product's manufacturer. A refund is a sum of money given back to individuals or businesses. Refunds are issued when an excessive amount has been paid (e.g., tax refund) or when items have been returned to a business. Wage garnishments are court-ordered initiatives that involve taking income from an employee's salary and submitting it to anotherperson or organization. Examples of garnishments include child support and alimony.

Industry Market Trends (NF,53)

Industry market trends. Online databases are sources of scholarly research such as journal and news articles related to a particular topic—in this case, hospitality and tourism. In an online database, you might find information such as industry market trends. Customer reviews for a specific hotel, competitors' sales data, and a restaurant's customer demographics might be found online but would not necessarily be found in an online database.

Internal Control Procedures (FI,44)

Internal control procedures. Businesses often develop procedures to control cash or other assets in order to prevent loss. These fall under the category of internal controls. These procedures might include training employees on how to use the cash register, and requiring that they ring up each sale on the register and give receipts to all customers. These procedures help control cash by reducing the possibility of employees accepting payment from customers without recording the sale, charging the wrong price, or giving customers too much change. Businesses do not develop credit card restrictions, two-person teams, or break-even requirements to reduce the possibility of employees accepting payment from customers without recording the sale.

Interviewing Hotel Guests (NF,55)

Interviews with guests are a way to capture in-depth, personalized information that is likely to be based on thoughts and feelings, not on numbers. Qualitative data are subjective information based on opinion and personal interpretations, not numbers. Analyzing web pages visited, counting guests' use of amenities, and identifying which spa services are used most are all research activities that would provide quantitative data based on numerical information.

Invoice Tracking Software (OP,75)

Investing in invoice tracking software. Invoice tracking software makes it easy to manage invoices automatically and to integrate the invoicing process with the rest of business operations. Only accepting electronic payments will not necessarily make it easier to track invoices. Limiting a client base is not necessarily a smart business decision and will not help the business grow. Reminding clients of deadlines is a good idea, but it will not necessarily make the tracking process easier.

Trade Journals contain... (PD,85)

Job postings. Trade journals are targeted at the people in a specific industry. They identify industry trends, recognize industry leaders, contain job postings, and provide advertisements of interest to the particular industry. The job postings can be reviewed to identify new career opportunities in the industry. Although they contain good information, trade journals cannot substitute for job training. It's unlikely that hospitality and tourism trade journals would list new patents nor recommend newspaper subscriptions.

Negative Stereotypes (HR,48)

Joe does not hire women to be drivers because he believes they are more accident-prone. A stereotype is a generalized, set assumption about a person or thing. Joe is stereotyping women because he believes that all women are more accident-prone than all men. He is allowing this stereotype to prevent him from hiring a diverse workforce. Collaborating only with personal friends is not related to workplace diversity. It is inappropriate for Ronnie to delegate the easiest tasks to Heidi in hopes of going on a date with her; however, it is not related to a stereotype that could prevent workplace diversity. Finally, Larissa is being prejudiced against people who are from different countries, but she is not necessarily acting in accordance with a specific stereotype.

Leaving the room immediately when a coworker is on a call (EI,31)

Leave the room immediately and shut the door. An employee who respects others' privacy would leave the room when a coworker is on the telephone. Standing quietly until being noticed, coughing loudly, and shutting the door and waiting for the telephone call to end are not ways of respecting a coworker's privacy.

Positioning (PM,86)

Positioning is a strategy in which a business creates a certain image or impression of a product in the minds of consumers. By creating and promoting special entrees using local produce, the restaurant is positioning itself as supportive of the local farming community. Test marketing involves introducing the product to a limited market to see how it will be accepted. Licensing means buying permission from another person or company to sell a product. Commercialization is the point at which the product goes into full-scale production, a marketing plan is put in place, service and sales training are conducted, and the product's life cycle begins.

Child Care offered as a service to... (PM,94)

Leisure customers. The hospitality industry offers many services to consumers, including dining, entertainment, and lodging facilities. Within the lodging facility, the amount of services and the level of service vary. Economy motels located near major highways offer traveling motorists simple, inexpensive sleeping accommodations. Upscale conference centers might offer meeting and banquet rooms and audiovisual equipment. Resorts might offer guests opportunities to enjoy on-site eating establishments, entertainment and tours, horseback riding, and child-care services for parents. Lodging facilities might participate in travel packages that include airline transportation. However, lodging facilities do not offer or provide the transportation. The transportation company provides the service. Resorts generally provide a wide variety of services. By offering a variety of options, guests spend more time and money on the property. Although it is possible for a resort to cater outside events, the services are generally developed to serve leisure or vacation guests.

Lending Investments (FI,41)

Lending investments. Investments in which individuals allow borrowers to use their money for a period of time for a specified fee or rate of interest are lending investments. Certificates of deposit and municipal bonds are types of lending investments. Ownership investments are those in which individuals purchase a portion or all of an item (e.g., stocks). Value stocks trade at lower-than-average prices because they have been overlooked or undervalued by investors. Commodities, which are often traded on stock exchanges, are inputs or goods used to produce other products such as oil, grains, gold, etc.

Locating backup sources of goods and services (OP,68)

Locate backup sources of goods and services. It's important for purchasing specialists to be sure they can get the goods and services they need when they need them. It's good to have backup sources because if a purchasing specialist doesn't do his/her job correctly or get the items or services that the business needs, then the business cannot produce its finished good or service. That could lead the business to lose money or maybe even close. A purchasing specialist doesn't necessarily want to purchase as much as s/he possibly can; instead, s/he should purchase in amounts that make sense economically. Getting a good price is important, but a purchasing specialist does not want to do so at the expense of his/her relationship with the supplier. Although some companies require purchasing specialists to always choose the lowest bidder, buyers are often permitted to select the bidder with the best overall terms, including quality and quantity, even if that supplier's price isn't the lowest.

Definition of MRO (OP,70)

MRO. MRO (maintenance, repair, and operations) inventory refers to supplies consumed during production, such as cleaning products, office supplies, and repair tools, that do not become part of the finished product. Finished goods inventory refers to the completed products that are ready to be marketed. Work-in-process inventory refers to products that are being used to make the finished goods. Raw materials inventory refers to the component parts that have not yet been used in production.

Managers internal control system (RM,93)

Managers override control processes. An internal control system consists of procedures and practices designed to ensure compliance, protect resources, and increase reliability of company data. When managers fail to follow procedures, they hinder the company's ability to control internal risks. Maintaining detailed audit trails, communicating the importance of internal risk control to employees, and continuously monitoring the control efforts are actions that help the business control internal risks.

Online Booking (NF,61)

Many hospitality and tourism businesses offer websites that enable customers to conveniently book their reservations online. This gives customers 24-hour access to reservation systems when it's convenient for them to quickly make a reservation. Customer reservation systems are used by travel agents. Customer relationship management software is databases of customer information. Websites by themselves would not expedite the reservation process for customers.

Net Income (FI,43)

Net income. A business's net income consists of all the money remaining after operating expenses are subtracted from gross profit. It's considered the "bottom line" because it's the final calculation on the income statement. Operating expenses and gross profit are not referred to as the "bottom line." A profit-and-loss statement is another term for an income statement.

Tax Evasion (FI,42)

No; this practice is known as underreporting. Not recording all of a company's revenue to avoid paying taxes is known as underreporting. Any sort of income tax evasion is a felony. Money laundering, which involves taking money from illegal sources and passing it through a business to make it seem legal, is not the same as underreporting. Even if other companies practice underreporting or if Mariana's boss asks her to do it, that doesn't make it legal. It's still an illegal practice that qualifies as tax evasion.

Status (SE,97)

One of the factors that motivates people to choose a hospitality site is status—a person's place or standing in society. Charlie is hoping to convey a successful, prestigious status by choosing high-end restaurants that require a reservation. In this instance, Charlie's choice of restaurant is not motivated by culture, economic status, or life-cycle stage.

Collect as little data as possible (OP,76)

One way that businesses can prevent large-scale breaches of customer data is to collect as little data as possible. If the business only collects the data that is necessary, rather than keeping a large amount of extraneous personal information, it will be less vulnerable. Sharing data with all employees increases the risk that customer data will be compromised. Storing data indefinitely also increases the risk of a data breach. Reporting data security issues is good practice, but it will not necessarily prevent data breaches in the first place.

Outdoor Advertising (PR,95)

Outdoor advertising includes billboards, painted bulletins, electric spectaculars, blimps, hot-air balloons, and skywriting. Hotels and motels often place advertising on billboards near airports to attract airline travelers to their facilities. Hotels and motels also place advertising on display panels in airports, and may even provide a direct phone for the convenience of airline passengers. This type of advertising is designed to attract the attention of travelers visiting a city who may not be familiar with the local hotels and motels. Open houses and window displays are more likely to attract local customers. Sweepstakes are designed to attract a wide range of customers, not specifically airline travelers.

Exhausting Secondary Research (NF,52)

Primary research is that which a person orcompany generates on their own for their exact needs and purposes. Primary research is generally done when the needed information does not exist yet. Therefore, the airline executive should first do an exhaustive search of secondary sources before deciding to conduct primary research. Even if no one on the executive's team has the information she needs, the executive still might not need to conduct primary research because she might be able to use secondary research. If the airline has little money for research, the executive might be better off focusing on secondary research because it is cheaper than primary research.

Competitive Promotions (PR,87)

Promotions that convince customers to buy are especially important for competitive products. Marketers need to persuade customers to buy theirproduct over all the similar ones on the market. Persuasive promotions are not as important for new, old, or noncompetitive products.

Purchasing Inefficiency (OP,69)

Purchasing efficiency. Purchasing efficiency is a performance measurement that relates to how well the purchasing department is performing against the budget that is in place for the department. Purchasing functionality is a performance measurement that measures the department against the functional requirements to provide the correct item at the right time at the lowest cost. Supplier relationships are not a performance measurement, although good supplier relationships should increase performance. Purchasing improvements would be measured from past measurements.

Reconciling your checking account (FI,39)

Reconciling your checking account. The check register is a central location to record and track all of the checks that you write and the amount of money you spend in your checking account. Each month, you receive a bank statement that details your checking account activity. You should reconcile your check register with your bank statement to ensure that they match. This step is important for many reasons. For example, if you forget to enter transactions in your checkbook register, you may overdraft your account and be fined for insufficient funds. When you compare your bank statement with your checkbook register, you are not managing your mutual funds, reviewing credit card balances, or endorsing your paycheck.

Researching Prospective Employers (PD,80)

Researching prospective employers. By researching a company on the Internet, you can obtain a wealth of information that would be useful to you in your job search. This research would probably include such things as products offered, location, size of the company, sales, company image, problems, employee benefits, etc. Knowing about a company can enable you to size up how well you'd fit in with the company. Although you could use the Internet to search for a company's product reviews or if they have any pending lawsuits, these should not necessarily influence a decision about whether or not to apply for a job. Searching for careers that pay the most might result in useful information for career planning or deciding on a course of study in college, but is probably not that useful in looking for a job.

Responding to Online Reviews (CR,17)

Responding to negative and positive online reviews. Online reviews of products on social media can have a huge impact. A business can increase customer satisfaction post-sale by responding to online reviews. This shows that the business cares about its customers and can lead to repeat business. Posting about the release of a product line, obtaining new followers that could make a purchase, and offering discounts for first-time customers are not related to customers' post-sale experiences.

Review Customer Comments in the Hotel Database (NF,54)

Review customer comments in the hotel database. Secondary research examines information that was previously collected for other purposes. Reviewing customer comments stored in a database is an example of secondary research since the data were previously collected. Creating a survey, interviewing staff members, and observing guests are primary research activities since they are designed to collect information specific to the research goal.

Reviewing Invoices (OP,62)

Review the invoice. One way to evaluatesupplier performance after the purchased goods or services have been delivered is to review the invoice. By reviewing the invoice, a purchasing specialist can determine whether the supplier charged the agreed upon price. A purchasing specialist should contact the supplier's references, visit the supplier's plant, and/or check the supplier's credentials before doing business with that supplier.

Appropriate Info Management (NF,57)

Save time and money. Appropriate information management has many benefits for a business, including saving time and money by making operations run more smoothly. Appropriate information management should make decisions easier and should reduce a business's risk of undergoing an unnecessary audit. Appropriate information management may or may not create more jobs.

Trade Associations (NF,49)

Secondary information is information that has already been collected by others. A trade association is a group of persons in the same industry (e.g., hospitality) or geographic area who form a society to solve their common problems. Trade associations often gather marketing information about their industries, so they are a good source for obtaining secondary information about industry trends. A sampling plan is an outline or document that describes the process of choosing a representative group of consumers to survey. Guest comment cards and telephone interviews are sources of primary information, which is new information collected for a specific purpose.

Shopping goods (EC,22)

Shopping goods are consumer goods that are purchased by consumers after comparing goods and stores in order to get the best quality, price, and/or service. Consumers tend to pay more for shopping goods than for convenience goods, and they usually want the advice of a salesperson. Convenience goods, such as milk and bread, generally are purchased quickly and without much thought or effort. Industrial goods are items purchased by producers for resale, to make other goods, and/or to use in business operations. Specialty goods have unique characteristics that consumers are willing to pay higher prices to buy them.

Local Ordinance (BL,2)

Sign permits are typically governed by local ordinances to ensure business signage is appropriate for the appearance of the community and safety of consumers. Zoning laws specify whether a property may be used for residential or commercial purposes and sometimes regulate building placement and height of structures. Securities regulations govern a publicly traded business's financial reporting practices. Health departments govern the safety of local food service providers' facilities and practices.

Increase bookings for other seasons of the year (NF,59)

Since the hotel was booked near to capacity last year during the pumpkin festival, there is very little opportunity to gain new growth from the festival this year. Therefore, it is more effective and profitable to increase bookings for the other seasons of the year when the hotel has vacant rooms available. Booking all available rooms during the festival will not create any significant increase over last year's occupancy rate. Offering discounted rooms or free festival tickets during a high demand period is ill-advised because it will decrease overall profits.

Strategy Development (SM,99)

Strategy development. The central goal of managerial planning is establishing future goals and developing strategies to realize those goals. While capital fundraising and staff recruitment may be parts of this strategy, they are not the overall focus of managerial planning. Task performance may be an important aspect of management, but is not necessarily related to planning.

Reducing Expenses (FI,41)

Switching to a different Internet provider to save money on a monthly bill is a way to reduce expenses. Managers often use financial information to determine ways to reduce expenses. Saving money on the Internet bill is not the same as increasing sales, creating a budget, or planning business expansion.

Target Market (MP,49)

Target market. A target market is the particular group of customers a business seeks to attract. Jake is a soccer player with a need for new cleats—he fits the target market for a soccer specialty store perfectly. A market segment is more specific—it is one of the groups into which the total target market is divided. For example, female goalkeepers or male defensemen are both market segments within the larger target population of soccer players. An industrial market includes customers or potential customers who purchase items for use in the operation of a business, for resale, or for making other goods. Geographic segmentation is the division of a market on the basis of where customers are located.

The Borrower Defaults on a loan (FI,38)

The borrower defaults on the loan. When borrowers agree to a loan, they are making a legal contractual agreement to pay back the loan in a certain manner within a specific period of time. When the borrower does not have the collateral or credit history to obtain the loan, the lender often requests that another person cosign for the loan. A cosigner is responsible for paying the loan if the borrower defaults on it, which means the borrower does not make the scheduled payments to the lender. Changes in interest rates do not affect a cosigner's legal responsibility for paying the balance owed on a loan.

itemized deductions (FI,40)

expenses you can subtract from adjusted gross income to determine your taxable income

Vice President of Finance (PD,77)

The chain of command defines the level of authority and the specific individual who supervises particular employees. A hierarchical chain of command provides structure and organization for the business. Large companies often set up their chain of command by department.For example, all of the vice presidents of various departments (e.g., finance, operations, marketing, etc.) report directly to the CEO. A regional marketing manager generally reports to the vice president of marketing. The production coordinator reports to the production manager. The board of directors consists of individuals who are selected by the shareholders (owners) to manage the corporation. The CEO reports to the board of directors.

Multiprocessing (NF,46)

The computer's operating system consists of the components needed to run all of the computer applications and programs. An operating system that allows several central processing units (computers) to access a single program has multiprocessing capabilities. Multithreading capabilities allow different components of one computer program to run at the same time. Augmented and hosted are not types of operating systems

Negotiable Hotel Room Pricing (PI,88)

The hospitality industry experiences fluctuations in demand for hotel accommodations. Supply and demand fluctuations occur for many reasons. For example, seasonal factors affect how resorts price their rooms. They often charge higher prices during typical vacation times because more people are traveling and need sleeping accommodations. Room prices are also affected by the economy. When the economy is good, more people take vacations and more organizations hold off-site business meetings. This creates a higher demand, which lowers the availability of hotel rooms. When people are traveling less, there is a decrease in demand and an increase in room availability. When this occurs, guests can often negotiate lower prices for the guest rooms. The hotels are willing to negotiate so that rooms do not go unoccupied, which is a financial loss for the hotels. Hotel room prices are not consistent, classified, or imprecise as a result of changes in supply and demand.

Returns (EC,21)

The marginal output gained from hiring another worker is less than it was for each previous worker hired. There is no such thing as the law of diminishing production, output, or utility.

Owners and Managers responsibility of Ethics (OP,67)

The overall responsibility for maintaining business ethics lies with owners and managers, although employees should also be accountable for acting ethically in their day-to-day tasks. Suppliers and customers are not responsible for the integrity of a business.

Receipt of Cash (CR,20)

When a business receives payment from a customer, it records the amount of payment as a receipt of cash. As customers pay, the business's cash increases. The increase in cash also increases the assets of the business. When a business processes a customer's payment, it does not record the payment as a debit transaction, a type of sale, or a financial expense.

Attending Industry Seminars (PD,81)

Theo attends a seminar about product-standard changes that are affecting his industry. Professional development consists of steps that an individual takes to enhance or improve skills or traits that are needed to excel in her/his career or profession. Attending a seminar to learn about changes that are occurring in your field or industry is one form of professional development. Zoe and Talia are performing work-related tasks, and Nick is asking a work-related question.

Extensive Purchases (PD,78)

There are different types of decisions. You can make routine decisions—the ones you hardly have to think about, such as whether or not you should wear a clean T-shirt. You can make limited decisions—the ones that require a little time to look at each alternative, such as whether or not you should sign up for the drama club or flag football. And, you can make extensive decisions—the ones that demand a lot of careful consideration, such as what career you would like to begin to prepare for. Kayla's decision to major in biology was probably the result of lots of research, discussion, and planning—in other words, it was probably an extensive decision.

Rolling Budget (FI,39)

There is always a year-long plan in place. Many businesses use rolling, or continuous, budgets. Beginning with a 12-month budget, a new month is added as each month goes by. Advantages to this system are that there is always a year-long plan in place and that a major, annual budgeting effort is avoided. In addition, rolling budgets tend to be more flexible. Zero-based budgeting requires managers to demonstrate the need for every expense instead of relying on figures from aprevious period. Rolling budgets are not always zero-based budgets. While it is true that a master budget is made up of information from specialized budgets that are generated by individual departments, it is not an advantage of a rolling budget. The rolling budget does not eliminate all variances, which are the differences between budgeted amounts and actual amounts.

Product Core Values (PM,83)

Through your brand. Your product's core values are the beliefs or qualities that the product—and your entire business—stand for and are built around. Your brand is the most effective and common way to communicate those core values to your different stakeholders, including customers, investors, vendors, and employees. You definitely should communicate your product's core values through your annual report, website, and advertising, but each of those elements is simply a fraction of your overall product and corporate brands. In fact, a brand is all of the combined impressions and experiences associated with your company and/or product.

Trade Shows (SE,94)

Trade shows. Trade shows are sponsored by many businesses within the same industry as a way of promoting their goods and services and generating customer interest. Salespeople often attend trade shows to talk to their colleagues in the industry and obtain additional information about new and existing products. Salespeople can see products being demonstrated and have the opportunity to ask questions to obtain product information that will help them sell. Union events are sponsored by labor unions and usually concern wage and benefit issues of interest to their members. Sales meetings are held within individual businesses or departments of a business to discuss specific sales activities. Open houses are primarily social events designed to introduce a business to the community.

Personnel (CR,10)

When a customer has received inaccurate or insufficient information about a product, the complaint usually applies to personnel. In other words, the salesperson or employee did not do her/his job correctly if the customer is still confused or has questions. Inaccurate or insufficient product information would be less likely to generate complaints about advertisers, the product, or the business itself.

Transferring of Contractual agreements (EC,21)

Transferring. Contractual agreements, such as warranties, are one way to transfer risks to another person or business. This option enables businesses to move forward with their decisions without bearing the risks involved. Marlon might not be able to afford to pay for a new oven if this one breaks, but because he's transferred the risk to the oven company, he knows they'll replace it if he has any problems. Avoiding risk is demonstrated by not taking a chance, as a risk not encountered presents no danger. Preventing or controlling a risk happens when a business takes measures to prevent or reduce the risk. Businesses retain a risk if they do nothing to reduce or eliminate

Email's Reputational Risk (CO,8)

Using email can create reputational risk for him/her if it is shared with others. Email can easily be intercepted and shared with others, so it is typically wise to avoid using email to share confidential information. It is legal to share negative information about a company with others. Slander and defamation are intentional acts to damage an individual or organization and do not apply to the situation described. Since consultants are hired to give expert and honest evaluations, an unfavorable review of a company is not likely to cause the consultant to be perceived as a negative or judgmental individual.

Visitor Trends (NF,65)

Visitor trends are studied so that the property can predict the number of upcoming reservations and bookings it is likely to receive based on such things as people's ages, incomes, marital status, and travel habits. Competitive trends identify the directions that other properties are moving, including their price adjustments, renovation plans, levels of service, and so forth. Trends in technology provide information about how computers, the Internet, and new equipment are likely to change the way in which properties operate. Industry trends give an idea as to the impact that other businesses are likely to have on the property, especially those (e.g., airlines, convention centers, and highway departments) in which the property depends upon for their success.

Weak Passwords (OP,66)

Weak passwords are a leading cause of cybersecurity breaches. Weak passwords that are not changed regularly can lead to security breaches. It's important to change company passwords often so that hackers are unable to access sensitive information. Employees should create passwords that are difficult for hackers to deduce; employers aren't usually the ones trying to hack employees' accounts, though. It's not necessarily true that employees cannot be trusted with their own passwords; however, even employees should change their personal account passwords regularly to avoid security breaches.

Writing an Exploratory Report (NF,61)

Write an exploratory report. Exploratory reports present facts so readers can understand an issue or situation. They are useful when explaining concepts or results. The general manager wants to know information about recent technological changes, so a written informational report would be appropriate. The general manager has not asked for a recommendation, so the IT director should not make one. Purchasing new software is not the most effective way to teach the general manager about recent technological changes. Finally, the general manager has not requested analytical data because he has not asked for the reasons why or how the technological changes have occurred.

Overhearing other's Salaries (EI,32)

You overhear a coworker discussing her salary. Certain information about other people should be kept confidential to build trust, protect privacy, and abide by the law. In the workplace, individuals' salaries should be treated as confidential. Therefore, if you overhear someone disclosing her salary, you should not share that information with anyone; rather, you should keep it to yourself. You do not have to keep information about a meeting confidential, unless information discussed in the meeting was specifically stated as confidential. Recognizing an employee's performance does not require confidentiality, unless that employee chooses to remain anonymous. Finally, if a coworker has knowingly shared something on social media, s/he cannot expect that information to remain confidential.

Expectation influencing Buying Behavior (MK,43)

Your buying behavior is being influenced by an expectation, or something you anticipate to happen based on past experience. Expectations are an important part of our perceptions, or personal pictures of the world. An opinion leader is a role model. A special occasion might become a situational influence on your buying behavior. A cultural norm refers to the usual behavior in the place where you live.

Quality-Control Measures (OP,65)

businesses also use quality-control measures to evaluate products, processes, and other business functions. Quality control is ensuring the degree of excellence of a good, service, process, or activity. Efficiency levels are one measure that evaluates a variety of business processes and activities, including employee efficiency levels. If employees are not performing as efficiently as theycould, there could be a problem with equipment, a process, or a procedure. Governments, industries, and management develop product-quality standards.