A restaurant adds seafood and vegetarian entrees to their menu because it has received requests for these items from its customers. From a marketing perspective, the restaurant is trying to
meet the needs and wants of its customers
Marketing is primarily concerned with
the customer's needs and wants
A business that obtains information about the needs of its target market and then provides products and services that are intended to fulfill those needs is using which type of focus?
Customer
All customers desire good value. Good value is
quality products presented as a fair price
The best way to get a target market to notice a restaurant's unique signature recipe is to communicate that the item is
the first in the market
Something that the customer sees as an advantage of one product when compared with another is known as that product's
benefit
The characteristics of the items on a menu and services sold to guests are known as
features
Restaurant managers need to know the difference between a trend and a fad because a
trend will elevate sales for a long period of time
Facts about a target market such as customers' age, gender, race, geographic location, or other personal characteristics are known as
demographic information
Survey questions about age, income, and geography seek to understand which type of information?
Demographic
A restaurant manager decided to place an advertisement for his restaurant in the sports section of a local newspaper. The advertisement will run every day for two weeks and will feature the restaurant's Sunday Hot Wing special.
This series of advertisements will cost $200, and the manager will determine the success of these advertisements by measuring the increase in Sunday sales. The manager has created a(n)
marketing plan
An operation's potential customers are known as the
target market
The manager of a restaurant with a target market of young families with small children is making a decision about where to spend his print media marketing budget. He has narrowed his choices to a magazine that is placed in senior citizen neighborhoods for a low price per reader or a magazine that is made available in pediatricians' offices for a higher per reader cost. The manager asks for your opinion. You advise that the
money be spent with the magazine that is available in the pediatrician's offices because the target market is young families
In the restaurant and foodservice industry, the term "features" refers to the
characteristics of the actual menu items and services
A detailed listing of specific activities designed to reach the revenue goals of an operation is known as the
marketing plan
An appropriate time to begin marketing a restaurant's banquet facilities for holiday parties would be
early fall
Examples of internal marketing include a(n)
advertisement printed especially for placement on tables in the operation's dining room
A restaurant has identified its target market as young families with small children.
An effective marketing activity might be
sponsoring a pee wee soccer team
Marketing plans are completed so that the manager will
better understand existing and potential markets
A couple decides to use their historic home for a restaurant offering a high-quality menu. This restaurant would be classified as a
destination restaurant
A target market consists of
people that a restaurant intends to pursue as customers
Long-term increases or decreases in some factor outside an establishment, such as an increase in population or an upturn in the economy, are known as
a market trend
Once a marketing plan is written, it should be
implemented, shared, reviewed, and updated as situations change
A manager states that one of the objectives for the operation is to increase business by 10 percent. The objective
is not valid because it does not include a time frame for achieving this objective
The formula to determine the check average is
total revenue / number of guests served
On a recent Saturday, an operation served 500 guests for total revenue of $10,000. The guest check average was
$20
Which is an internal factor when evaluating the marketing plan?
Great tasting products at the right price
An advertising campaign in a local newspaper would be referred to as
an external marketing activity
Which of the following would be an example of an identifiable objective for a marketing?
Increase check averages by $3 over the next three months
The name, logo, signage, employee uniforms, décor, pricing, service level, and other characteristics that, when taken together, make one restaurant or foodservice operation different from another are known as
brand identifiers
A brand identifier that has been given special legal status so that only its owners can decide when and how it may be used is known as a
trademark
Once established, a brand must be carefully
managed
An operation has chosen to locate its premises on a bayside harbor overlooking shimmering water and boating enthusiasts. This is an example of which type of decision?
Place
A concise summary of the brand's values, competencies, company culture, and target market is known as the
brand position statement
An example of a well-defined target could be
families with young children living within 5 miles of the operation
The four Ps of marketing are
product, place, price, and promotion
Understanding consumer rationality can better help a restaurateur with
pricing menu items
The restaurant industry adds a fifth ingredient to the 4 Ps of marketing.
It is
service
Many restaurants offer lower prices between 4:00 and 6:00 pm to encourage more people to come to the restaurant during those times. What ingredient of marketing is the focus of this strategy?
Price
A customer enters a restaurant and admires the décor. This is an indication that the manager has done a good job managing an aspect of marketing known as
place
Good value from the customers' point of view is the
difference between what they pay and what they get
A customer selects a restaurant based on an advertisement in the local paper. This is an indication that the manager has done a good job managing the aspect of marketing known as
promotion
Which of the 4 Ps of marketing refers to the items selected for an establishment's menu?
Product
Customers who come to trust that a brand will meet or exceed their expectations on a consistent basis are
loyal customers
Which is a decision place?
Drive-through service
Menu items that customers associate with a single restaurant or a chain of restaurants are known as
signature items
The golden arches of McDonald's would be categorized as a
place brand identifier
To increase check averages, the manager and the chef work together to feature complimentary appetizers and entrees at an attractive price.
This practice is known as
bundling
McDonald's restaurant's golden arches logo is a recognizable sign of quality, affordable fast food. This is an example of successful
branding
Buyers tend to make their buying decisions based on the belief that the purchase will be a direct benefit to them. This is known as
consumer rationality
The results of service training may be difficult to access because the product known as service
is intangible
One Saturday night guests visit a particular restaurant and receive excellent service and quality food, so they decide to return to the same restaurant the following Saturday night. On this second visit they receive the same high-quality food, but the service is poor. This restaurant lacks
consistency
Which term describes the groupiong of several products together for one lower price?
Bundling
A key to consistently providing good service to customers is
properly training all employees
Unlike the taste, smell, and texture of a food ingredient, friendliness of a server is which type of trait?
Intangible
What is most likely to cause a customer to not return to a restaurant?
Poor service
The economic, legal, vendor, and competitor conditions faced by a business is known as the
marketing environment
The means of recording an operation's sales, product usage, and other important information on a daily, by shift, hourly, or other basis is known as the
point of sale system
The three main types of market research objectives are
descriptive, exploratory, and causal
The National Restaurant Association provides restaurant operators with data and relevant information about the restaurant and foodservice industry. This type of information is referred to as
secondary information
Information collected internally for decision-making purposes is known as
primary information
Factual records collected about actual sales, product usage, customers served, and other operating information are examples of which type of information?
Internal
The process that seeks to obtain relevant and accurate information about particular groups of people or segments in a market is known as
market research
A group of investors is planning on opening a new restaurant in an urban area.
Before they invest their funds, they hire a firm to survey local residents about their dining-out practices. This group has hired the firm to conduct
market research
One advantage of using primary data rather than secondary data is that primary data is
more relevant to the research
As part of the information gathering process before opening a new restaurant, the owners of the restaurant hold several meetings in which they invite small groups of local residents to learn what they think of their restaurant concept. This is known as gathering information by
focus group
The factors that directly affect the purchasing power and the spending habits of those in a target market are known as the
economic environment
The first step in the market research process is
defining the purpose
A group of investors is considering opening a new restaurant. Their early research reveals that three local large corporations will be expanding their businesses and hiring highly paid workers. As one of their advisors you recommend that they
go ahead with their project because the economic outlook for the area is positive
A person dining in a restaurant in the company of another who is paying the bill is known as a
guest
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
market share
A restaurant has a signature shrimp dish on their menu.
Recently, a foodborne illness was discovered in shrimp from a particular seafood processor. The restaurant buys some, but not all of their shrimp from this processor. Rather than risk running out of shrimp over the busy holiday weekend, they decide to combine all of the shrimp, thinking that this will lessen the severity of any resulting foodborne illness. This restaurant is showing a
lack of responsibility related to serving food
A local government passes an ordinance prohibiting the sale of alcohol after 11 pm Monday through Thursday. This action impacts the area's
legal environment
A rural area is served by only one foodservice distributor, which does not sell seafood. A group of investors would like to open a seafood restaurant in the area.
As an advisor you recommend against this decision based on the area's
vendor environment
The money left after a person has met all his or her expenses or debts is known as
discretionary income
An area is served by three large foodservice distributors and seven specialty distributor. As a restaurant owner you would expect
to pay fair prices and have access to a broad range of items for your menu
You have noticed that a local restaurant specializing in seafood is often busy in spite of their reputation for terrible service. As a restaurateur interested in opening a new restaurant in the area, this indicates to you that
you would be successful if you opened a competing seafood restaurant that provides good service
An area has an established market for steak sandwiches. For the past several years, 10,000 steak sandwiches have been sold at an average cost of $7 per sandwich. Currently, six operations in the town sell steak sandwiches.
You are considering opening an additional outlet for steak sandwiches. In composing your marketing plan you estimate getting an equal share of the market and that that share will be approximately
$10,000
Useful market-related data that have been generated by sources outside the operation are known as which type of information?
Secondary
The process of treating everyone in the market as having the same needs and wants is known as
mass marketing
Restaurateurs recognize that not all people have identical wants and needs, and to seek a focused appeal to the distinct portion of potential customers that make up their customer base they define their
target market
The process of gathering and analyzing relevant and accurate information about customers, competitors, and markets in order to improve decision making is known as
market research
Two of the more important demographic areas for nearly all restaurants and foodservice operations are
age and income level
The characteristics of a customer that relate to that customer's personality, values, attitudes, interests, or lifestyle are known as
psychographic
A restaurant has a large number of customers who frequently dine there. This restaurant would be said to have a
high degree of customer loyalty
An emotional or physical requirement that occurs when a person is deprived of something is known as a
need
A desire that is shaped by a person's culture and personality is known as a
want
Which is the fastest growing segment in the restaurant and foodservice industry?
Fast-casual
The tendency of consumers to make their buying decisions based on the belief that their purchases will be a direct benefit to them is known as
consumer rationality
A couple has decided that they would like to go out to dinner for their anniversary. In terms of the decision-making process this couple has
recognized a need or a want
After a customer has completed their dining experience, they may then decide whether they would come back, if the meal was satisfying, or how they rate the service. This is known as
purchase assessment
The final step in the decision-making process is the
purchase assessment
Before most consumers decide to spend their money, they must have
the desire and the ability to buy
An external influence on buying behavior is
income
A couple would like to go out to dinner to celebrate their first anniversary.
Both of them were just laid off from their jobs. They would like to go to the most expensive restaurant in town to celebrate, but most likely they will not be able to because they lack
the ability to buy
The financial position of a consumer or group of consumers relative to other consumers is known as
socioeconomic status
Which is a characteristic of a fine-dining restaurant?
Complex food
After attending a church service, a family decides to have lunch at a restaurant owned by a member of the church and frequented by many members, particularly after church. This family's decision to go to this restaurant is most heavily influenced by which factor?
Peer group affiliation
The way people live their lives, what they like to do, and what interests them and/or their opinions is referred to as their
lifestyle
Quick-service restaurants are most likely to use which pricing technique?
Value
Which of the following is an example of a promotional activity that would attract customers of a particular household status—families with young children?
Free apple slices or a small yogurt with fruit for children under 12 years of age
Which establishment is most likely to attract someone interested in sports?
A bar with many widescreen TVs tuned into sports broadcasts
A restaurant that serves a limited menu, has fast service, and prices its food moderately is known as a
quick service restaurant
In some fine dining operations, a person formally trained on wine selection is called a
sommelier
In which restaurant and foodservice industry segment will service be at the highest level?
Fine dining
A group of investors has decided to open a new restaurant. The servers in this restaurant will take the orders and deliver the food to the tables.
The menu will follow an Italian theme and the prices will be moderate. This restaurant will fall into which restaurant and foodservice industry segment?
Casual
An example of a noncommercial operation is a
school
A restaurant has decided to change its style of service. Now, the food will be placed into serving dishes and then brought out on a cart. It will be served directly from the serving dishes to the customers' plates, in front of the customers.
The restaurant will need to purchase serving carts equipped with warmers for the food. This type of service will be expensive to implement because of the need to purchase these heated and cooled carts and because the staff will require additional training. This restaurant feels that since it has a chef known for excellent cuisine, this type of service will meet the needs and expectations of their customers. The style of service that the restaurant has chosen is known as
French
Shortly after being seated in a fine dining restaurant, a couple is approached by a member of the staff.
This person asks them questions about what they will be eating and suggests a wine to go with their meal. This person is known as the
sommelier
The first step in the purchasing decision process for a customer is
recognizing a need or a want
What is the fastest growing segment of the restaurant and foodservice industry?
Fast casual
A foodservice operation located within a business is available only to the employees of that business and their guests because the operation is subsidized by the business and does not seek to make a profit. This operation is known as a
noncommercial foodservice operation
An internal factor that influences individual buying behavior is
age
A foodservice operation is located in a shopping center and open to the general public, although its target market is families with young children. The operation has not made a profit for the past three years although it would like to.
This foodservice operation is known as a
commercial foodservice operation
A document that contains a formal statement of business goals, an explanation of how the goals can be achieved, and the detailed steps for reaching these goals is known as a
business plan.
A guide for an operation's marketing efforts outlining what will be done to attract the number of customers needed to achieve the operation's revenue targets is known as a
marketing plan.
When developing a marketing budget, managers must consider costs and expenses, future revenues, the competition's marketing efforts, and the operation's
marketing objectives.
An estimation of the cash needed to open a business or to buy an existing business is known as a
The amount of money the owner has on hand, as well as the total amount needed to start the business are known as
start-up funds.
An operation usually assesses its primary or direct competitors through
observation.
Banks often require a business plan before they consider loaning a business money. This is because
a well-developed business plan can help minimize the risk of failure for new businesses.
A year after the restaurant opened, the investors are asked to contribute some additional funds. What document should they review as part of this decision-making process?
Business plan
Which term best describes the formal statement of business goals and the detailed steps for reaching them?
Business plan
This part of the business plan is typically the last part written and is a brief description of the highlights of the business plan.
Executive summary
A recent graduate of a hospitality management program would like to start a new restaurant. She has prepared a part of the business plan detailing the items that will be on the menu, including the prices for these items, as well as a description of the unique and distinguishing features of the restaurant. This section of the business plan is known as the
concept statement.
A critical tool to determine exactly how to attract, please, and retain customers and achieve target profits is a
A recent culinary school graduate decides to open up a food truck. He believes that he can handle the work by himself and has sufficient money to start this business. He will be operating as a
sole proprietorship.
A manager of a successful restaurant and a friend who has inherited a large sum of money have decided to go into business together. The manager will run a restaurant, and the friend will invest all of the money necessary to get the business started but will be busy with his own business. They have drawn up an agreement, which details their arrangement, including how they will share in any profits of the business.
This restaurant will operate as a
partnership.
In a SWOT analysis, which category is represented by the entry of a new competitor with lower prices?
Threats
Sally Jones opened a small café and named it Sally's Sandwiches. This is an example of a
DBA
The part of the business plan that details the strengths and weaknesses of other similar businesses is known as the
competitive assessment.
An operation's concept is defined by its menu, prices, and
A SWOT analysis identifies an operation's
strengths, weaknesses, opportunities, and threats.
The explanation in the marketing plan that refers to how an operation gets its target market to notice its products and services and consider them for future purchase is known as the
market positioning.
Successfully attracting customers from a target market is the result of
an effective marketing plan.
A local restaurant has decided to work closely with a well-known local farm, advertising that it uses produce from this farm.
The farm will also use the fact that its produce is used by this restaurant in its promotions because it thinks this will improve the farm's image. This restaurant and farm have entered into what type of arrangement?
Co-branding
A valid goal included in a marketing plan might be for the operation to
increase bar sales each month by 5 percent when compared to the same month the previous year.
Which section of the business plan provides readers with the highlights and is typically written last?
Executive summary
A restaurant has predicted sales for the coming year to be $875,000. Its budget has allocated 4 percent for marketing. Its marketing budget for the coming year will be
$35,000
In determining the amount of money that should be spent on marketing, many businesses look to
money that is left over after paying all expenses and satisfying profit goals.
A marketing objective should be
measurable, reasonable, and have a time frame.
A restaurant business has identified an opportunity to grow. The restaurant has enough funds to operate the business but not enough funding to pay the expenses associated with this expansion. Before going to ARSs it has prepared a detailed estimate of the income, expenses, and profits associated with this project for the next three years.
This document is known as a
pro forma.
A marketing activities schedule can be thought of as a "to-do" list for marketing. It should include
the who, what, and when of the marketing activities.
A value proposition or value statement describes the
target customers' assessment of the products and services they purchase
A restaurant offers diners a choice of multicourse meals for one predetermined price. This restaurant is using what type of pricing?
Prix fixe
In what type of menu is each item priced individually?
A la carte
An external factor that affects menu pricing is the
A restaurant specializes in breakfast. Knowing that many adults order coffee with their breakfast, it has decided to keep the price for coffee low; so low, it is below cost. This type of pricing is known as
loss leader.
Pricing products and services based on their worth in usefulness or importance to the buyer is known as
value pricing.
Restaurant prices must cover
all of the tangible costs, such as the cost of the goods, and the intangible costs, such as service.
A restaurant offers a hamburger platter using a leaner, higher grade of ground beef.
In order to become a quality leader, a competitive analysis was performed. Relative to the competition, the platter should be
higher priced.
Proper pricing is important because when
customers consider prices to be fair, they are more likely to become loyal customers.
What most affects a buyer's perception of the price of an item?
Perceived value
The town in which a restaurant is located experiences a large layoff by one of the major employers.
As a result, the restaurant has decided to offer more specials. This pricing decision was influenced by which external pricing factor?
Economic conditions
which is an internal factor that affects pricing?
Costs
The manager of a new restaurant is pricing his menu. In addition to calculating the actual costs of the menu items, the manager also looks at the prices that other restaurants are charging for similar items. This practice is known as
competitive analysis.
In an interview a popular movie star announces that he eats frozen coffee every day. As a result, sales of frozen coffee have increased dramatically.
This phenomenon would be known as a
temporary fad.
During the months of November through March a restaurant sells twice as much soup as it does in the other months of the year. This is caused by
taste seasonality.
What does direct labor include?
Hours worked at a specific wage only
In the fall an area experiences a terrible hurricane that knocks out power for a large number of homes and businesses. An area restaurant that has its own generator is one of the few places open for business.
It has decided to double its prices because there is so much demand for its products. This probably would be
a violation of pricing-related laws.
Because of a $0.50 per serving increase in the cost of shrimp, a restaurant is reviewing prices on its menu for the two shrimp entrees to see how it can increase the prices while minimizing the negative impact on sales. Right now, both items sell well and at about the same percentage of total sales. One is priced at $7.
25 while the other is $7.75. The plate cost for both items is about the same. As a consultant, you advise that the restaurant
raise the menu price for both items to $7.95 because customers will not notice the increase.
The amount of profit an owner hopes to achieve is known as the
A la carte menus are used to
provide a range of lower- and higher-priced menu items.
Profits can be increased by
increasing revenue while keeping expenses the same amount.
A recipe that gives a known quality and quantity at a known cost is known as a
standardized recipe.
A restaurant has an item on the menu priced at $21.00. The food cost associated with this item is $7.
00. The food cost percentage for this item is
33.3%
Two employees each work an 8-hour shift for a total of 16 hours. One employee earns $8 per hour, while the other employee earns $12 per hour.
The direct labor cost for this shift would be
$160.
The cost of hosting the website for a restaurant would be classified as
other operating cost.
When pricing items for the menu, a restaurant manager prices items to target profits. This practice is known as
A restaurant uses the food cost percentage pricing method to determine the prices for its menu. The food cost for a popular item on the menu is $5.00, the labor cost for this item is $3.00, and the desired food cost percentage is 32 percent. The menu price for this item will be
$15.62
The two costs considered in the Prime Cost Pricing Method are
food and labor costs
Inclusively, the means by which a business talks to its customers are known as
AIDA, the acronym for the commonly used model for creating effective messages, stands for
attention, interest, desire, and action.
A restaurant named "The Farmer's Table" advertises that it uses only the freshest locally grown produce to create its menu. One of its signature items is strawberry shortcake (made with fresh strawberries), and the dish is on the menu year round. The climate allows strawberries to be locally produced for only about 60 days out of the year.
This restaurant is in danger of violating
regulations regarding truth in advertising.
Which tactic increases the effectiveness of direct mail as a marketing tool?
Write address information on colored envelopes that have the operation's logo
Mail sent to the home or workplace of potential customers is known as
direct mail.
Billboards are a form of which type of advertising?
Print
When potential restaurant customers view an advertisement, they are most interested in
what the business can do for them.
An example of an interactive communication channel is a
website.
In advertising, visual representations are referred to as
Recently, a restaurant placed an ad with a coupon in a local newspaper. The manager has asked all of the cashiers to save the coupons each day, noting on them the total of the customer's check. This manager is trying to
track the effectiveness of that particular advertisement.
Broadcast media are controlled by the
Which tactice can influence people to read a print ad for a restaurant?
Using a picture of a family enjoying the food at home with a caption below the picture
Effective broadcast-based advertising should begin with an attention grabber and end with
a summary of the message.
A sports bar is looking for a programming partner for its fall television advertising campaign. The best partner would be a station that specializes in
sports programing.
Which advantage of an operation using cell phone applications is both convenient and environmentally advantageous?
Paperless techniques do not require the use of coupons to be printed, mailed, or carried
In broadcasting, the estimated number of unduplicated audience members that tune in to a particular channel or program at least once during a reported time period is known as
reach.
In broadcasting, the average number of times a single viewer is exposed to an ad during a given time period is known as
By which method could an operation make coupons available to a target market?
Direct-mail advertisements
Two advantages of a direct mail campaign are that it
can target specific markets, and there is a great deal of control over the content.
Computer-based and non-computer-based systems that deliver information via public airwaves are known as
wireless communication channels.
A primary advantage of mass media or broadcast media advertising is that
reaches large audiences.
A restaurant has established a list of e-mail addresses for its customers. This weekend it will be offering a special discount on its signature item, crab cakes. Which of the following would be an effective way to end this e-mail?
Call now for reservations.
Individuals who stay electronically connected for reasons that include friendship, common interest, romantic relationship, or shared knowledge are referred to as
social media networks.
In the subject line of an email used for marketing, a manager should include
information stating the main purpose of the email.
A restaurant would like to optimize their use of social networking. It should
communicate various things happening at the restaurant in addition to specials.
The biggest challenge in using apps for marketing is
staying current with the latest trends.
Which communication channel or media type generally has the lowest costs for advertising?
Newspaper
Cell phone apps are important in today's marketing efforts because
they are so popular and are able to do so many things
Any form of marketing message that managers pay for and deliver in an identifiable but nonpersonal way is known as
Because it takes the form of making recommendations to guests about items the guests might be interested in buying, personal selling undertaken by service staff is often referred to as
suggestive selling.
The most visible part of a company's advertising campaign is its
advertising.
Once advertisements are in place, a manager must evaluate their effectiveness by utilizing
objective measures.
The management team of a new restaurant has worked very hard to launch a series of advertisements and promotions for the restaurant's grand opening that use various media. This is known as
A restaurant advertises that this week, children under the age of 6 eat for free. This is an example of
a promotion.
An established restaurant is about to reopen after a fire. The focus of its advertisements will probably be
awareness.
To ensure a successful sales promotion, a manager should prepare staff members because the staff
is the operation's best sales force.
A restaurant with an unusual concept is about to open.
Management feels that the food is good and that if it can just get people to experience the food once, they will become loyal customers. The initial ads offer a grand opening special of a $5 discount on any entrée. The objective of this ad is
trail.
A restaurant tracks how many times per month customers come into the store for lunch. It is tracking
A bakery consistently uses the tag line "where freshness begins" in every advertisement and on all of its printed material. This bakery is trying to build
its brand.
Suggestive selling in a restaurant setting should be performed by a trained
server.
A manager has created a document in which he carefully notes the name of the activity, when it is to be initiated and completed, and the total cost for each advertising or promotional activity.
This document is known as
an advertising schedule.
In evaluating the effectiveness of an advertising campaign, the manager of a restaurant counts the number of customers that come to the restaurant and determines that as a result of the advertising campaign there were 10 percent more customers this month than last month. This form of measurement is said to be
objective.
A manager sets a goal for the upcoming advertising campaign to increase customer counts significantly. This goal is said to be
subjective
Which action must a manager take with final objective advertising data?
Follow up on the information.
Trying to find new customers for a business is known as
While meeting with a potential customer, a manager is told that the customer is not willing to book their event on the grounds that the banquet hall may be too small to accommodate all of the employees and their guests. This is known as
an objection.
A customer orders an entrée. The server suggests that the customer may want to order the recently introduced appetizer while waiting for the entrée.
This practice is known as
upselling.
The number of times a customer frequents an operation is known as
usage.
The first step in assessing the effectiveness of a personal selling campaign is for the manager to
record all sales calls and the amount of revenue generated by each person assigned personal selling tasks.
A manager meets one of the event sales staff people in the hallway and asks what she or he thinks of the new event menu. The manager is trying to
informally access the event sales staff person's knowledge of the new menu.
The term that describes all of the activities that retail managers perform when selling their products is
Any form of paid marketing message is referred to as
advertising.
A restaurant is known for its wonderful desserts, particularly, its pies. It decides to sell whole pies to its customers. Which component of its on-site merchandising program would this be?
Products
A casual restaurant does primarily lunch business for business people.
It sells freshly baked cookies in small bags and has them available for purchase right beside the cash register, as people are paying their bills. Which component of the restaurant's on-site merchandising program would this be?
Placement
Poor customer service can cause a marketing plan to fail. Poor customer service is
an internal factor.
Evaluation of the marketing plan
should begin immediately after the completion of the last event in the plan.
The purpose of evaluating the marketing plan is to determine
what went right and what went wrong.
When evaluating personal selling, managers
compare the number of activities in the marketing plan to the number of activities actually completed.
When managers evaluate a marketing plan, the differences between planned results and actual results are known as the
variances.
Who ultimately defines the promptness of service?
Customer
Comparison of all the servings of a menu item that are sold to the total sale of all competing menu items is referred to as
Last Saturday night, 27 servings of the most popular entrÈe were sold. In all, 90 entrees were sold. This specific entrÈe represents
30 percent of the menu mix.
The formula for contribution margin is
Item selling price ñ item food cost = contribution margin
The industry term that refers to the thoughts and opinions about an operation that customers express to the operationís owners, managers, and staff is
customer feedback.
A customer has complained about a server.
The manager should
take the comment seriously.
Management assessment techniques used for product quality control should include
random taste-testing and secret shoppers.
The first step in assessing product quality is for the manager to
check each plate as it comes from the kitchen on its way to the customers.
An advantage of the manager assessing food quality by observing the kitchen employees prepare orders and the employeesí approach to mise en place is that
it allows the manager to see how things are actually done.
A manager notices a customer looking around the dining room and with an empty plate.
An appropriate action for the manager would be to
ask the customer whether everything is all right.
To ensure that all areas of the restaurant are cleaned on a regular basis, a manager should
develop a cleaning schedule.
A manager expects a marketing campaign to generate $12,000 of revenue. The actual results are only $9,000.
What is the variance expressed as a percentage?
-25%
The length of time it takes for an investment to pay for itself is known as the
payback period.
A restaurant would like to purchase an additional grill for the cook line at a cost of $15,000. Because of its increased cooking capacity, the restaurant estimates that this grill would allow it to serve an additional 1,000 people per year with an average contribution margin of $5.00. What is the payback period?
3 years
A restaurant has decided to purchase an additional grill for the cook line at a cost of $15,000. The restaurant estimates that this grill will last 20 years and that it will be able to serve approximately 5,000 steaks per year.
The steak dinner has a contribution margin of $5.00. What is the expected return on investment over the life of the grill?
333.3 percent
A restaurantís most effective marketing tool is
its menu.
To lessen the impact of price in the decision-making process, menus should list the price of the item
immediately following the itemís description.
This type of vegetarian includes eggs in their vegetarian diet.
Ovo-vegetarian
These eight food itemsópeanuts, fish, shellfish, milk, tree nuts, soy, eggs, and wheatóaccount for what percentage of all allergies?
90 percent
When designing a menu, which important aspects should be considered?
Target market, competition, and consumer trends
One main principle of pricing psychology states that customers perceive
a price of $6.00 and $6.99 as being about the same.
One way to attract customers is to offer
a unique or signature item.
A food fad
grows rapidly, peaks, and declines quickly.
Pricing products and services based on their worth in usefulness or importance to the buyer is known as
value pricing.
Low-end value pricing typically ends in
This type of menu has different prices for each menu item. The customer bill is based on the total of the prices of the items ordered.
a la carte menu.
A nursing home is most likely to have which type of menu?
Cyclical
The number of times a dining room table is seated during a meal period is referred to as
Menus should focus the readerís attention on the
item descriptions.
On a tri-fold menu the prime real estate area is
the center panel, toward the top.
When considering the type size for a menu, the most important factor to remember is that the type should
be easy to read.
The most effective sales and marketing tool in a restaurant is its
Which guidelines were issued by the National Restaurant Association in 1984 to ensure that the menu description matches what was actually served?
Truth in Menu Guidelines
Savings on the amount of equipment needed for production, inventory, and space needed are all advantages of the
limited menu.
In deciding whether to add a new item to the menu, the first step is to
establish goals for the new item.
While supporting the theme or type of food offered, an important goal of a beverage menu is to
make customers aware that the restaurant serves alcoholic beverages.
A fast-casual restaurant using midrange value pricing will most likely use which price for an entree?
$10.95
Beverage menus should
follow the same format and theme as the food menu.
Approximately what percentage of the space on a menu page should be blank?
50 percent
A restaurant is offering an incentive for customers to come and have a meal there. This is known as
sales promotion.
A story about the grand opening of a local restaurant is printed in the local paper. The restaurant did not pay for this article nor does it have any control over what is printed. This is known as
Effective public relations activities have the impact of
building name recognition.
A marketing message whose content is paid for and controlled by the business is known as
advertising.
When the marketing message is presented face-to-face, it is referred to as
personal selling.
Public relations events should be designed to
draw customer awareness to an organization.
A manager is analyzing last monthís sales figures and determines that business is slowest on Monday nights. The manager would like to increase business on Monday nights by initiating a sales promotion.
Which step in the sales promotion process has the manager just completed?
Identify sales promotion objectives.
A manager would like to increase the customer base for the restaurant. In order to do this, a sales promotion will be initiated in which
a coupon good for one free entrÈe with the purchase of another entrÈe will be included in an upcoming advertisement in the local paper.
Which statement best reflects a reasonable and measurable sales promotion objective?
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.
Every week a local pizzeria includes a flyer with that weekís special offers in the local newspaper.
It decides to continue this practice, even though it cuts into profits because most of the customers use the coupons listed on the flyer. As the pizzeriaís marketing advisor, you suggest that the business
gradually phase this practice out or limit the offers, since they have effectively lowered the customerís perception of the value of its pizza.
A restaurant offers customers a card that is initialed every time they purchase an entrÈe of $8.00 or more. When the card is full, they receive a free entrÈe with a value of $10 or less. This is known as
a frequent dining program.
To introduce a new beer, a local brewpub is offering a free beer glass with the purchase of a pint of this beer. This is known as a
promotional premium.
Providing publicity material to the media and working with media representatives is known as
media relations.
A restaurant has a small bulletin board placed right beside the cash register where customers can easily see it as they are paying their bills. This bulletin board is used to display the daily specials, all POP and POS materials, customersí business cards, and the announcement for the employee of the month.
Often announcements are posted on top of other information. As the new manager of this operation you decide to
move the POP, POS, and special information to an attractive and new light-board that will be placed just inside the entrance where customers will see it as they walk in.
Providing publicity materials to the media and working with media representatives is known as
media relations.
Effective trial sales promotion campaigns should be based on
a beginning and end date of any promotion.
The manner in which a business handles a major event that threatens the reputation and survival of a business is known as
crisis management.
A new restaurant provides a packet of information to the local media.
This packet includes information about the opening, the management, and the chef. This packet of information is known as
a press release.
Which is an example of publicity?
A restaurant review by a food critic
A series of targeted activities, promotions, and advertisements designed to raise awareness or enhance the image of an establishment is known as a
PR campaign.
In an urban area, one street is home to several nightclubs, restaurants, and music venues. This type of area is known as
an entertainment district.
Which sales promotion method is used primarily to increase customer loyalty?
Frequent diner programs
An advantage of public relations is that it
can lower the advertising budget.
Policies and procedures managers put in place to identify the specific ways an operation will reward its best customers are known as a
guest loyalty program.
To create loyal customers, the first question managers need to ask is,
"What do my customers want?"
The first step to ensure good publicity is to build positive relationships with the
local community.
Restaurants that involve interacting with the people in the local area in order to create awareness of and trust of their business are practicing good
community relations.
A restaurant with a target market of young professionals would like to partner with an organization to create a positive image with its customer base.
The best partner would be a
local business club