2008 DECA Ontario Provincials
Test 947
EMDM
E-COMMERCE TEAM DECISION
1
1. A online business that is owned and managed by one person is called a
A. corporation.
C. partnership.
B. sole proprietorship.
D. cooperative.
2. Which of the following would most likely be protected under the Anticybersquatting Consumer Protection Act:
A. annual-report.doc
C. www.ont.jpg
B. janedoe@hotmail.com
D. www.pepsico.com
3. In order to purchase on a timely basis, in small quantities, and on credit, some e-tailers buy goods from
A. requisition delegates.
C. wholesalers.
B. appraisers.
D. order selectors.
4. Technology has helped improve the distribution process by utilizing __________ among channel members.
A. integrated information sharing
C. automated scheduling
B. electronic receiving
D. audiovisual programming
5. A channel member that knowingly markets a defective product that is determined to be harmful to the environment and
then denies responsibility for its actions is taking a(n) _________ approach to social and ethical responsibility.
A. obstructive
C. proactive
B. accommodating
D. defensive
6. One reason a channel of distribution that has strong leadership is often able to avoid conflict within the channel is
because the leader has the
A. ability to provide training.
C. authority to demand cooperation.
B. personality to develop friendships.
D. capacity to regulate change.
7. An e-tailer that owns its suppliers is using which of the following strategies to control the channels of distribution:
A. Indirect distribution
C. Forward integration
B. Multichannel distribution
D. Backward integration
8. Once you know your group's purpose, what should you do next?
A. Find out what people know about the subject. C. Volunteer a new idea.
B. Agree on ground rules.
D. Contribute in a useful way.
9. Which of the following is a guideline for an e-tailer's employees to use in communicating with coworkers:
A. Use a direct approach in speaking to an angry coworker
B. Feel free to express their complaints about their jobs
C. Be sure to share rumors and gossip with their coworkers
D. Think about what they want to say before they say it
10. What is a good technique for an online business's supervisor to use in order to conduct an effective staff meeting?
A. Limiting discussion
C. Preparing an agenda
B. Developing audiovisuals
D. Providing notebooks
11. One reason management often works to improve relations between employees and customers is because good
relations often create
A. reliable service.
C. employee teamwork.
B. loyal customers.
D. positive comments.
12. Before an e-business can implement an online system to process orders, it must first
A. build customized platforms for each company division and then develop a networked system.
B. determine each step in the ordering process and how it relates to each area of the company.
C. design a specific program platform and computer database program for inventory control.
D. research and solicit outside companies to bid on developing a customized information system.
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
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13. From which of the following forms would an online business obtain the cost of goods that are being returned to the
vendor:
A. Invoice
B. Freight bill
C. Delivery receipt
D.
Bill of lading
14. Employees may allow vendor-caused inventory shrinkage to occur by
A. counting the items the vendor delivers.
C. checking vendors' unloaded boxes.
B. matching the item count to the invoice.
D. signing an invoice that has blank spaces.
15. What is the most important economic resource?
A. Equipment
B. Minerals
C. Energy
D.
People
16. Which of the following is an example of excess supply:
A. Price = $700, demand = 300, supply = 500
C. Price = $600, demand = 400, supply = 400
B. Price = $500, demand = 500, supply = 300
D. Price = $400, demand = 600, supply = 200
17. Human resources management is demonstrated in which of the following statements:
A. The e-business gives its preferred customers a special discount.
B. The e-business takes care of the responsibilities associated with having employees.
C. The e-business includes top-level managers in long-term planning.
D. The e-business acts on new information about a competitor.
18. Which of the following statements is true of a business risk that is categorized as a "pure" risk:
A. There is no way to protect the online business from these risks.
B. The online business will gain as a result of these risks.
C. These risks are similar to the risk of purchasing stock.
D. Insurance may be purchased to cover these risks.
19. The type of work you do in order to earn a living is job specialization by
A. trade or profession.
C. stage of production.
B. geographic region.
D. job task.
20. Why might Internet businesses decide to hold on to products to sell later when the economy is experiencing high levels
of inflation?
A. Taxes will limit production.
C. Cash will be in short supply.
B. Prices will continue to rise.
D. Income will remain constant.
21. Which of the following government policies is intended to benefit online businesses operating within the country by
controlling international trade:
A. Limitations on exports
C. Membership in GATT
B. Protectionism
D. Promotion of tourism
22. Which of the following is a characteristic of online business environments:
A. Manages a large work force
C. Operates on a limited basis
B. Competes on an economic level
D. Protects information from theft
23. What is the impact of e-commerce on productivity?
A. Analysts are still trying to decide how e-commerce and productivity are related.
B. Workers are more productive when they can communicate and access information quickly.
C. Customers are so distracted by Internet sites that their productivity has suffered.
D. Productivity has fallen, but these same workers purchase more on the Internet.
24. The question, “Who is experiencing the conflict?” can provide insight about the
A. type of disagreement that is occurring.
C. other person's personality.
B. core issue surrounding the disagreement.
D. importance of the relationship.
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
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25. The only way that an e-tailer's work team can carry out its assignment in a satisfactory manner is when the team
members
A. are appointed by management.
C. all have the same opinions.
B. cooperate with each other.
D. are dominated by the leader.
26. Jeremy, an employee with InfoTech.com, is resisting some new circumstances. What can he do to increase his
adaptability?
A. Increase his level of fear
C. Lower his expectations
B. Examine his attitude
D. Ignore the situation
27. Workers who like to set their own goals, exercise their creativity, and be free of control by a supervisor would be most
comfortable working for a(n) __________ leader.
A. republican
B. laissez-faire
C. authoritarian
D.
democratic
28. Which of the following financial tools shows an estimate of the start-up costs for a new Internet-based business and the
sources of those funds:
A. Balance sheet
C. Statement of financial requirements
B. Break-even analysis
D. Cash-flow analysis
29. Benny's Bike Shop manufactures bicycles and sells them to its customers from its web site during the year. Benny's
purchases sprockets from Spikes Sprockets, tires from Tiny's Tires, and frames from Freddie's Frames. The expense
of purchasing these items is known as
A. cost of goods sold.
C. revenue.
B. operating expenses.
D. gross profit.
30. Which of the following would be categorized as expenses in an e-business's operating budget:
A. Training and sales
C. Assets and salaries
B. Sales and assets
D. Salaries and training
31. As an Internet-based business owner, you are trying to decide whether to expand. Cost/benefit analysis would tell you
to expand
A. when you can see a break-even point within five years time.
B. only when additional benefits are twice as much as additional costs.
C. as long as additional benefits match additional costs.
D. as long as additional benefits exceed additional costs.
32. What is an e-tailer's return on investment if it has total sales and revenue of $450,000 and total costs and expenses of
$325,000?
A. 30%
B. 33%
C. 35%
D.
38%
33. Which of the following is an example of a cost that is often unique to e-commerce:
A. Purchasing computers
C. Developing software
B. Creating web sites
D. Paying data processors
34. Which of the following is usually the most objective measure for predicting job success:
A. Résumés
B. Interviews
C. Pre-employment tests
D.
Application blanks
35. An example of a company change that might create a need for an e-business's employees to have additional training
and development opportunities is
A. providing employees with a payroll savings plan.
B. installing a new computer network and additional software.
C. adding a canopy and carpet to the building's entrance.
D. offering dental insurance for employees and their families.
36. Which of the following is an action management can take to demonstrate a strong commitment to equity:
A. Posting equity information for staff to read
C. Attending diversity workshops/training sessions
B. Reading articles about workplace equity
D. Talking about equity in staff meetings
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
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37. One of the benefits of a marketing-information management system is that it provides e-tailers with
A. a broad view of customers' changing buying patterns. C. up-to-date financial statements about competitors.
B. enhanced accounting and payroll procedures.
D. greater control of the product life cycle.
38. Which of the following is an overall reason that marketing research is important to Internet businesses:
A. It makes competitors take notice of the business. C.
It contributes to business success.
B. It improves financial management.
D.
It helps the business to base decisions on opinions.
39. One reason Internet businesses often avoid using open-ended questions as a method of obtaining results from a
marketing survey is because the results may be difficult to
A. distribute to management.
C. enter into a database.
B. store for future use.
D. code for evaluation.
40. What is an advantage to e-businesses of using the Internet to search for marketing information?
A. Personal selling ability
C. Around-the-clock accessibility
B. Product storage capability
D. Word-processing flexibility
41. What happens when information collected about web-site visitors is combined with that obtained through other means?
A. Privacy becomes less of an issue.
C. Customer profiles can be developed.
B. The data needs to be analyzed by hand.
D. The data becomes less useful.
42. Which of the following marketing functions is most likely to affect the image of an e-tailer:
A. Product/Service management
C. Financing
B. Risk management
D. Selling
43. How does having too much merchandise in inventory affect e-tailers?
A. They will limit the opportunities for manufacturers to interact with the e-tailer.
B. They will automatically need to reduce the price of the merchandise and lose money.
C. They will create a consumer attitude that the merchandise is less valuable than it really is.
D. They will have excess merchandise to store that will tie up valuable cash.
44. Each marketing activity can fit into one of the 4 Ps of marketing, which means that the marketing mix provides a
framework for the e-business's
A. marketing planning.
C. personnel selection.
B. behavior modeling.
D. performance evaluations.
45. An online business that includes target marketing in its business activities is trying to
A. determine how many people have heard of the online business.
B. forecast how much profit the online business can make.
C. keep its operating expenses within the budget.
D. find out whether there is a market for its products.
46. A start-up e-business is most likely to enter which of the following target markets:
A. All of the potential target markets the business might have in the future
B. The market with the most direct competitors
C. The international market in undeveloped countries
D. The target market that most closely matches its customer profile
47. Marketing planning involves developing objectives and is the basis for developing marketing
A. functions.
B. strategies.
C. elements.
D.
concepts.
48. What is one reason why many Internet-based businesses are engaging in environmental monitoring?
A. To segment target markets
C. To identify emerging trends
B. To develop recyclable products
D. To analyze ethical issues
49. Which of the following questions is appropriate for determining threats:
A. What are our assets?
C. What niches have our competitors missed?
B.
D. What new needs of customers can we meet?
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
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50. Which of the following is a marketing activity that online businesses consider when conducting a competitive analysis:
A. Purchasing
B. Risk management
C. Promotion
D.
Management research
51. Which of the following statements about sales-forecasting methods is true:
A. Quantitative methods cost less than qualitative methods.
B. Reading industry forecasts is a qualitative method.
C. Qualitative methods are based on numerical facts.
D. Seeking opinions of experts is a qualitative method.
52. In which of the following situations should an e-tailer consider its competitors' prices when developing a marketing
plan:
A. Analyzing a new database
C. Selecting a new supplier
B. Organizing a new division
D. Introducing a new product
53. What is your primary source of marketing-research information once you have started your own
e-business?
A. Online surveys B. Current customers
C. Employees
D.
Accounting records
54. When conducting a marketing audit, it is important to assess an Internet-based business's marketing objectives,
strategies, activities, and
A. personal incentives.
C. human resources.
B. credit standing.
D. fixed assets.
55. Digital certificates are a type of electronic
A. file transfer.
B. virus protection.
C. signature.
D.
presentation.
56. Which of the following should businesses take into consideration when creating an online shopping cart:
A. Advertising strategies
C. Inventory levels
B. Check-out procedures
D. Web-site connections
57. What Windows shortcut will result when "Ctrl" and "V" are held down on the computer keyboard at the same time?
A. The selection will be copied onto the clipboard.
B. The selection will be moved onto the clipboard.
C. The clipboard contents will be pasted at the insertion point.
D. The last change will be reversed.
58. An important consideration for a business when selecting a web host is finding out if the business will have
A. time to make design changes.
C. access to the server logs.
B. control of the search engine.
D. responsibility for copywriting.
59. How has the Internet helped businesses increase the efficiency of their purchasing efforts?
A. The Internet reduces most of the channel conflict that often occurs in the distribution process.
B. Most e-businesses are now using single-sourcing purchasing methods to meet their needs.
C. Businesses are no longer required to conduct extensive research to find appropriate vendors.
D. Businesses can obtain order status and product information from many vendor web sites.
60. Protective devices which an e-tailer uses to prevent such problems as burglary and employee pilferage are part of the
e-tailer's
A. benefits program.
C. compensation policies.
B. security measures.
D. maintenance activities.
61. What do managers often do after the project has been successfully completed?
A. Provide feedback
C. Give up power
B. Close the office
D. Prepare a report
62. Which of the following should an e-business deduct from gross profit in order to arrive at net profit:
A. Operating expenses
C. Product rebates
B. Quantity discounts
D. Cost of goods
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
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63. One reason why WhitmoreGoods.com should evaluate the available options when negotiating the terms of a service
contract for its photocopier is to make sure that the options are
A. worth the price.
C. offered worldwide.
B. maintenance free.
D. acceptable to employees.
64. What is an aspect of an e-business that should be included in a regular maintenance program?
A. Telephone cables
C. Water lines
B. Utility meters
D. Light fixtures
65. Decision making is defined as
A. selecting wisely.
B. choosing among alternatives.
C. selecting the best option.
D. choosing confidently.
66. Rob decides that he really can't know if Patrick will help him unless he asks, so he decides to do so. Which step of the
seven-step problem-solving method does this situation illustrate?
A. Select and implement a solution
C. Define the problem
B. Evaluate the solution
D. Brainstorm possible solutions
67. A necessary step in time management is to analyze the tasks that need to be done and to
A. assign them equal time.
C. determine their priority.
B. reduce each one.
D. make them equally important.
68. When applying for an e-commerce position, is it an acceptable business practice to prepare a job résumé without
listing any references?
A. Yes, the résumé can state that references will be provided upon request.
B. Yes, providing references is a courtesy that is not really necessary.
C. No, a job résumé is incomplete unless it contains a list of references.
D. No, a list of references should be at the beginning of the résumé.
69. An Internet company employee whose daily tasks include answering customers' questions, providing product
information, and solving problems is probably employed as a
A. web-maintenance supervisor.
C. systems programmer.
B. technical analyst.
D. customer-service representative.
70. The use of technology often affects the pricing process by __________ prices.
A. fixing
B. maintaining
C. lowering
D.
simplifying
71. An e-tailer purchased six items for $96.00. A profit of $4.50 per item was desired. Operating expenses were $1.75 per
item. At what price should each item be sold?
A. $22.25
B. $17.75
C. $18.75
D.
$13.25
72. To generate innovative product ideas, an online business often
A. measures feedback.
C. evaluates traits.
B. interprets laws.
D. monitors trends.
73. Purchasers of the Super Veggie Cutter are dissatisfied because the product does not perform as promised on its web
site. The seller can be held responsible because its advertising included a(n) __________warranty.
A. implied
B. limited
C. full
D.
express
74. Which of the following is a responsibility of the Food and Drug Administration:
A. Requiring producers to label all products
C. Educating the public about hazardous products
B. Making sure cosmetics are pure and harmless
D. Forbidding false, misleading, or deceptive advertising
75. Which of the following is an action that can negatively affect a customer's experience with an e-tailer:
A. Available products
C. Active links
B. Web-site design
D. Secure order process
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
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76. Which of the following is a reason that e-tailers offer a deep product mix:
A. To enable the business to compete effectively
C.
To focus on the needs of a specific market
B. To specialize in a product line
D.
To control the business's costs
77. Which of the following is a way that an online business can determine if a product will fulfill its target market's needs:
A. Develop a prospect list
C. Observe workers
B. Distribute promotional materials
D. Ask the customers
78. When an e-tailer provides intangible benefits to add value to its customers' core purchases, it is providing _________
services.
A. ongoing
b. external
C. augmented
D.
conditional
79. A web site using personalization strategies involves gathering and combining information about visitors in order to lead
the visitors to
A. e-mail addresses so they can contact the company.
C. pages that explain the site's credit policies.
B. hyperlinks so they can access additional data.
D. products that exactly meet their specifications.
80. Management can create a positive work environment by encouraging cooperation among the e-business's
A. vendors.
B. external customers.
C. internal customers.
D.
lawyers.
81. Which of the following is an effective way for an e-business to immediately answer its customers' questions:
A. Require the use of personal identification numbers
C.
Hire response specialists
B. Use automatic order confirmation
D.
Mail product information
82. Why should a small business that takes advantage of the Internet as a marketing tool make sure its brand stands out
and connects with customers?
A. Most people become aware of brands from Internet advertisements.
B. The Internet is so slow-paced that people often become bored.
C. There are many things that distract people as they surf the Web.
D. Branding on the Internet is not very effective.
83. What do e-tailers use to plan and control their investment in merchandise inventory?
A. SWOT analysis
C. Merchandise budget
B. Marketing plan
D. Cash flow statement
84. BuyMe.com had net sales of $642,000 last year and spent $376,500 buying the goods it sold, but customers returned
$48,275 worth of goods. What was the company's gross margin?
A. $216,735
B. $217,225
C. $215,575
D.
$218,385
85. For most e-businesses, the ultimate goal of using promotion is to
A. introduce new products.
C. control consumer demand.
B. sell goods or services.
D. get people to surf the Web.
86. A local newspaper reporter interviewed the manager and employees at HarrisonElectronics.com about the latest in
audio and video equipment available to online consumers. The article appeared in the business section of the Sunday
newspaper. What type of exposure did Harrison Electronics receive?
A. Publicity
B. Public relations
C. Promotions
D.
Product mix
87. Which of the following is a contemporary ethical issue that relates to promoting products to children:
A. A national pharmaceutical company advertises a new flavor of children's cough medicine.
B. An Internet service provider displays free announcements that promote reading and literacy.
C. A dairy company pays a slotting fee to a grocery store chain to carry its line of cheeses.
D. A soft-drink company places vending machines that contain their products in elementary schools.
88. Which of the following is an important policy that is included on most web sites:
A. Privacy
B. Advertising
C. Legal
D.
Operating
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
89. Which of the following do many Internet businesses use as a sales promotion technique:
A. News conferences
C. Electronic coupons
B. Press releases
D. Television commercials
8
90. What component of an online business's promotional plan provides detailed information about economic trends?
A. Overview of objectives
C. Situation analysis
B. Executive summary
D. Budget justification
91. Salespeople must be knowledgeable about products being promoted online, and the business must have adequate
stock of promoted items in order to coordinate __________ activities.
A. public relations and selling
C. publicity and selling
B. promotional and selling
D. promotional and advertising
92. One reason why some online stores join a cybermall is to benefit from the
A. brief description. B. shared opinions.
C. free offers.
D.
increased traffic.
93. Creating chat rooms and a Frequently Asked Questions (FAQ) page are strategies that many businesses use to
provide online
A. access control. B. consumer privacy.
C. buying ability.
D.
customer support.
94. Is the following situation legal? Why? Mississippi Mud Make-up produces skin-care products and requires online
businesses to purchase a carton of their slow-selling lotions before orders will be filled for their more popular cleansers.
A. Yes, according to the Federal Trade Commission, this is legal.
B. Yes, according to the Sherman Act, this is legal.
C. No, this arrangement is prohibited by the Clayton Act.
D. No, this arrangement is prohibited by the Robinson-Patman Act.
95. Employer-related sales activities that can involve ethical issues include:
A. Giving gifts
B. Recording expenses
C. Entertaining clients
D.
Answering questions
96. Caroline is an employee for a large online business. She is unable to travel to a client's office but needs to demonstrate
product features and be able to answer questions as they arise. What technology tool would be helpful to her in making
a sale?
A. High-tech sales-support office
C.
Cell phone with wireless faxing
B. Web presentation combined with a teleconference
D.
PowerPoint presentation on CD
97. Before developing a product feature-benefit chart, a salesperson must first
A. obtain the necessary facts.
C. explain the product's apparent benefits.
B. evaluate the competition's reactions.
D. list the product's most important features.
98. Offering which of the following brands is most likely to help a new e-business to get started:
A. Descriptive
B. Private
C. Generic
D.
National
99. One of the features of online account management is the ability to
A. locate browsers. B. design web pages.
C. confirm orders.
100. In which section of his business plan will Paulo discuss each key manager's skills?
A. Management team
C. Executive summary
B. Company description
D. Market analysis
D.
target markets.
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
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2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
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1. B
Sole proprietorship. In a sole proprietorship, one individual carries all the risk and responsibility for
the online business but also receives all the profit. Partnerships are businesses owned by two or
more persons. A corporation is a group of individuals organized by a charter granted by the state. A
cooperative is designed to supply goods and services to its members who are also its owners.
SOURCE: BL:003
SOURCE: BA LAP 7—Own It Your Way
2. D
www.pepsico.com. The Anticybersquatting Consumer Protection Act is a law that makes it illegal to
register a domain name for the purpose of selling it to its trademarked owner for a profit. The web
sitewww.pepsico.com is the Internet location for Pepsi soft-drink products. Assuming another
person registered the domain name (Pepsi) before the company established its web site and this
person tried to sell the Pepsi company the domain name in order to make money, the individual
would have violated the Anticybersquatting Consumer Protection Act. Therefore, the Pepsi domain
name is protected by the law. The address janedoe@hotmail.com is a personal e-mail address and
is not subject to the law. Annual-report.doc is the name of a computer-generated document.
Domain names or web sites do not end in jpg. The jpg indicates a computer file that might be a
graphic.
SOURCE: BL:057
SOURCE: BA LAP 5—Legal Considerations in E-Commerce
3. C
Wholesalers. Wholesalers buy goods from producers in large quantities. They are able to sell to
several retailers on a timely basis, offering smaller quantities than the producer would be willing to
sell. Producers actually produce and/or package the original product, which is then made available
to wholesalers. Appraisers estimate the value of property for buying, selling, or lending purposes.
Order selectors work for wholesalers, assembling smaller quantities of goods to be sent to area
businesses. Requisition delegate is a fictitious term.
SOURCE: CM:003
SOURCE: MB LAP 3—Channels of Distribution
4. A
Integrated information sharing. Integrated information sharing allows near-instantaneous computer
decisions related to market information, customer information, supply and inventory information,
etc. The combination of all available information allows for more efficient supply-chain
management. Electronic receiving, automated scheduling, and audiovisual programming do not
improve the distribution process. In fact, the receiving process involves having employees check
deliveries, and deciding when deliveries are scheduled.
SOURCE: CM:004
SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an
e-commerce world (7th ed.) [pp. 436-438]. Mason, OH: South-Western.
5. A
Obstructive. An obstructive approach occurs when a business does as little as possible to solve the
social or environmental problems it creates when marketing a product. If a business refuses to
accept responsibility for actions that harm the environment, the business is being obstructive. When
a business takes a defensive approach, it is doing only what is required by law. An accommodating
approach is when a business goes beyond its obligation to remedy the situation and extends help
to those who ask. In a proactive approach, the business actually seeks out opportunities to
contribute to the community/society.
SOURCE: CM:006
SOURCE: Griffin, R. (2002). Management (7th ed.) [pp. 116-117]. Boston: Houghton Mifflin.
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
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6. C
Authority to demand cooperation. Strong leaders have the authority and power to influence others
and direct the actions of others. A channel of distribution that has strong leadership is often able to
avoid conflict within the channel because the leader has the authority to set goals for the entire
channel and demand cooperation, which reduces the possibility of conflict. The leader's authority
makes it possible for the leader to assign specific responsibilities to each channel member and
persuade members to accomplish their individual tasks. When each member is cooperating and
working for the good of the channel, there is less chance of conflict. It is not necessary for the
leader to develop friendships. Channel leaders usually do not provide training. It is not possible to
regulate change, although an effective leader will help channel members adjust to change.
SOURCE: CM:008
SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 444-445].
Mason, OH: Thomson/South-Western.
7. D
Backward integration. E-tailers wishing to maintain control of the products as they move through
the distribution channel often use backward integration. Backward integration involves owning the
suppliers. Forward integration is a strategy in which the suppliers own the retail outlets. Indirect and
multichannel distribution involve intermediaries.
SOURCE: CM:009
SOURCE: Czinkota, M.R., & Kotabe, M. (2001). Marketing management (2nd ed.) [p. 347].
Mason, OH: South-Western Publishing Co.
8. B
Agree on ground rules. Once you know your group's purpose, you can (as a group) lay some
simple ground rules for appropriate behavior during the discussion. Finding out what people know
about the subject and contributing in a useful way occur later in the process. Volunteering a new
idea is a discussion tool for contributing in an open-minded way.
SOURCE: CO:053
SOURCE: QS LAP 29—Put In Your Two Cents
9. D
Think about what they want to say before they say it. An e-tailer's employees should be able to
express themselves to their coworkers. However, they should always think about what they want to
say before saying it so that they do not cause problems or misunderstandings. Legitimate
complaints or problems about the job should be discussed with the supervisor, not coworkers.
Rumors and gossip should not be passed on to coworkers as they may not be true and could cause
harm. A nondirective approach is best in communicating with angry coworkers as it helps to defuse
their anger.
SOURCE: CO:014
SOURCE: Leskiar, R.V., & Flatley, M.E. (2005). Basic business communication: Skills for
empowering the Internet generation (10th ed.) [pp. 413-414]. Boston: McGrawHill/Irwin.
10. C
Preparing an agenda. An agenda is a list of topics that will be discussed at the staff meeting. It is
the plan that an online business's manager follows in order to cover all the issues in a timely
manner. Managers usually develop an agenda in advance and give it to staff members so that they
will be prepared to discuss the topics during the meeting. Managers usually encourage discussion
during staff meetings. It is not necessary for an online business's manager to develop audiovisuals
or provide notebooks in order to conduct an effective staff meeting.
SOURCE: CO:140
SOURCE: Hyden, J.S., Jordan, A.K., Steinauer, M.H., & Jones, M.J. (1999). Communicating for
success (2nd ed.) [pp. 553-554]. Cincinnati: South-Western Educational.
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
12
11. B
Loyal customers. A business's goal is to create loyal customers who will continue to buy and refer
others to the business. An effective way to create loyal customers is to develop good relations
between employees and customers. Employees have the most contact with customers and are in
the best position to encourage repeat business. By treating customers well and providing good
service, employees will improve relations and create loyalty. Offering reliable service is one way to
improve relations with customers. Loyal customers often make positive comments about a
business. However, businesses are more concerned with creating loyal customers than with what
customers say. Employees who work together as a team may be able to provide better service to
customers.
SOURCE: CR:008
SOURCE: Rokes, B. (2000). Customer service: Business 2000 (pp. 17-18). Mason, OH: SouthWestern.
12. B
Determine each step in the ordering process and how it relates to each area of the e-business. The
managers and owners need to understand the channels of communication within the e-business
and how each department works and interfaces with one another in order to develop an online
system to process orders. Designing and building platforms and soliciting bids to develop the
platforms are done after the steps in the ordering process have been determined.
SOURCE: DS:056
SOURCE: Coyle, J.J., Bardi, E.J., & Langley, C.J. (2003). The management of business logistics:
A supply chain perspective (7th ed.) [p. 454]. Mason, OH: South-Western.
13. A
Invoice. The invoice is the supplier's bill to the purchaser. It shows the cost of each item that was
shipped. A bill of lading is a contract between the shipper and the transportation company. A freight
bill is a list of shipping charges. A delivery receipt is the carrier's form accompanying a shipment
that is signed by the purchasing company to acknowledge receipt of the goods.
SOURCE: DS:086
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 350).
New York: Glencoe/McGraw-Hill.
14. D
Signing an invoice that has blank spaces. Invoices should not have any blank spaces that could be
filled in by vendors at a later time because this gives dishonest vendors an opportunity to cheat the
business. Counting the vendors' deliveries, matching the count with the invoice, and checking
vendors' carts and boxes after they have been unpacked are all ways to reduce vendor-caused
shrinkage.
SOURCE: DS:026
SOURCE: DS LAP 4—Inventory Shrinkage
15. D
People. Human resources, people, are the most important economic resource because they
combine the other resources to produce goods and services. Without the work of people, land
would not be used to grow crops, roads would not be built, and equipment would not be used to
manufacture goods. Minerals and energy are natural resources. Equipment is capital goods.
SOURCE: EC:003
SOURCE: EC LAP 14—Economic Resources
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
13
16. A
Price = $700, demand = 300, supply = 500. Excess supply is the situation that exists when supply
is greater than demand. When the price is $600, supply and demand are equal. At the prices of
$500 and $400, demand is greater than supply, and excess demand exists.
SOURCE: EC:006
SOURCE: EC LAP 12—Price
17. B
The e-business takes care of the responsibilities associated with having employees. Human
resources management involves taking care of the responsibilities associated with having
employees. Giving preferred customers a special discount is part of marketing. Including top-level
managers in long-term planning is part of strategic management. And, acting on new information
about a competitor can be marketing and/or operations management.
SOURCE: EC:071
SOURCE: EC LAP 19—Strictly Business (Business Activities)
18. D
Insurance may be purchased to cover these risks. "Pure" risk means the possibility of loss or no
loss, as in the case of fire or a hurricane. An online business may gain from a speculative risk,
where there may be a loss, no change, or a gain. Buying shares of stock is an example of a
speculative risk. "Pure" risks can be insured against; no insurance will cover speculative risks.
SOURCE: EC:011
SOURCE: EC LAP 3—Lose, Win, or Draw (Business Risk)
19. A
Trade or profession. This is the most common type of job specialization. Specialization by job task
occurs when a worker becomes skilled in one, very small portion of a job. Specialization by stage of
production occurs when more than one stage is required to change a raw material into a finished
product. Geographic region may affect your work if it is subject to climatic conditions, but it is not a
category of specialization.
SOURCE: EC:014
SOURCE: EC LAP 7—Specialization of Labor
20. B
Prices will continue to rise. When inflation is at a high level, prices are also high. During times of
inflation, prices often continue to rise. As a result, some Internet businesses might decide to hold
on to products to sell later because they anticipate that prices will continue to increase, and they
can sell products for more at a later time. Consequently, inflation can cause a decrease in supply
because businesses are waiting to sell products at the highest price possible. Businesses do not
hold on to products to sell later because taxes will limit production, cash will be in short supply, or
income will remain constant.
SOURCE: EC:083
SOURCE: O'Sullivan, A., & Sheffrin, S.M. (2003). Economics: Principles in action (pp. 119-120).
Upper Saddle River, NJ: Prentice Hall.
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
14
21. B
Protectionism. Protectionism is a government's policy to protect domestic industry and online
businesses against foreign competition. It involves limiting trade through the use of trade barriers
such as tariffs, quotas, licenses, and product standards. Limitations on exports would harm online
companies within the country rather than benefit them. Membership in GATT (the General
Agreement of Tariffs and Trade) is not a government policy but an international organization that
helps expand world trade. The promotion of tourism helps to support and improve international
trade rather than control it.
SOURCE: EC:016
SOURCE: EC LAP 4—International Trade
22. B
Competes on an economic level. The business environment is the environment in which the
business operates. The online business environment is highly competitive because similar
businesses are competing on an economic level for the same customers. There are only so many
customers and those customers have only so much money to spend. As a result, online businesses
are competing for limited customer dollars. Many online businesses are small and have only a few
employees rather than a large work force. Online businesses operate 24/7 which means they do
not operate on a limited basis. Although businesses try to protect information from theft, that is not
always possible because of the advanced skills of many computer hackers.
SOURCE: EC:090
SOURCE: Kleindl, B.A. (2001). Strategic electronic marketing: Managing e-business (pp. 221222). Cincinnati: South-Western College Publishing.
23. B
Workers are more productive when they can communicate and access information quickly. Ecommerce links people together instantly, even globally, and gives people access to information
that would have taken hours and days to gather manually. It frees people up from mundane tasks,
such as order entering, and lets them concentrate on more meaningful activities, such as sales
analysis. Internet access at work may be viewed by some employers as a threat to their employees'
productivity, but many have taken steps to remedy the situation, such as restricting access to some
types of sites. Productivity has risen, not fallen, and it is true that a large percentage of the
population overall makes purchases via the Internet. Even though there are questions about the
many different ways e-commerce impacts the economy, analysts are clear that it has and continues
to improve productivity.
SOURCE: EC:063
SOURCE: Oelkers, D.B. (2002). E-commerce: Business 2000 (p. 13). Cincinnati: South-Western
Educational.
24. D
Importance of the relationship. Identifying who is involved in a conflict, such as a salesperson and a
customer, provides insight about the nature of the relationship and its importance. Identifying who is
involved in the conflict does not necessarily provide insight about personality, disagreement type, or
the disagreement's core issue.
SOURCE: EI:015
SOURCE: EI LAP 7—Stop the Madness (Conflict Resolution in Business)
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
15
25. B
Cooperate with each other. Teamwork and cooperation are synonymous. The members of a team
must help each other and work well together. This is true whether the team is voluntary or
appointed by the
e-tailer's management. Team members should not all have the same opinions but contribute their
individual thoughts and ideas. The leader should guide the team, not dominate it.
SOURCE: EI:045
SOURCE: HR LAP 26—Teamwork
26. B
Examine his attitude. One characteristic of an adaptable person is a positive or “can-do” attitude. A
person who resists new situations or circumstances often has a negative attitude. By being aware
of personal attitudes and being willing to change them, a person can effectively adapt to new
circumstances. A person's expectations can be defined as the anticipated outcome of a specific
action. Low expectations do not necessarily make a person adaptable. Fear is a negative effect of
low adaptability. Ignoring the situation, or pretending that it doesn't exist, does not generally
increase a person's adaptability.
SOURCE: EI:006
SOURCE: QS LAP 15—Stuff Happens
27. B
Laissez-faire. Persons in creative occupations who need free rein and only general guidance
perform best under a laissez-faire leader. Democratic and authoritarian styles provide more
structure and control than laissez-faire. There is no style of leadership classified as republican.
SOURCE: EI:037
SOURCE: EI LAP 5—Can You Relate?
28. C
Statement of financial requirements. The start-up costs include fixed assets, prepaid items and
deposits, pre-opening expenses, inventory and supplies purchases, and working capital (cash)
requirements. The monthly cash-flow analysis predicts whether the cash generated by the Internetbased business can cover the operating expenses and loan repayments. The break-even analysis
shows the level of sales needed to pay the operating expenses and to make the debt payments.
The balance sheet shows the financial status of the Internet-based business.
SOURCE: FI:084
SOURCE: BA LAP 2—Risk Management
29. A
Cost of goods sold. Cost of goods sold includes all costs used in obtaining or producing the goods
or services that an Internet-based business sells such as materials and supplies. Operating
expenses are all other expenses in operating the Internet-based business such as wages,
advertising, insurance, rent, and utilities expenses. Gross profit is revenue minus cost of goods
sold. Revenue is the total amount of money earned by a business.
SOURCE: FI:094
SOURCE: FI LAP 4—Watch Your Bottom Line (Income Statements)
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
16
30. D
Salaries and training. An operating budget is an estimation of all expenses involved in running an ebusiness during a certain period of time. An expense is the money that an e-business spends.
Some expenses that an e-business includes in its operating budget are for salaries, training,
equipment, rent, utilities, inventory, and insurance. Assets are anything of value that an e-business
owns. Assets can be converted to cash and are considered a source of income rather than an
expense. Sales are a source of income.
SOURCE: FI:098
SOURCE: Eggland, S.A., Dlabay, L.R., & Burrow, J.L. (2004). Intro to business (5th ed.) [p. 185].
Mason, OH: South-Western.
31. D
As long as additional benefits exceed additional costs. Cost/benefit analysis estimates the cost of
an action and compares it with an estimate of the benefits of that action. As long as the benefits
exceed the costs, the project should be pursued. Cost/benefit analysis does not require benefits to
be twice as much as costs. Additional benefits should exceed, not match, additional costs.
Cost/benefit analysis does not require you to estimate a break-even point in any particular time
period.
SOURCE: FI:357
SOURCE: Miller, R.L. (2005). Economics: Today and tomorrow (pp. 265-267). Columbus, OH:
Glencoe/McGraw-Hill.
32. D
38%. Return on investment (ROI) is a cost/benefit analysis that is calculated by dividing the profit
by the investment, which includes the total costs and expenses involved in operating the business.
To calculate ROI, first determine the profit by subtracting the costs and expenses from total sales
and revenue ($450,000 – $325,000 = $125,000). Then, divide that figure by the amount of
investment ($125,000 ÷ $325,000 = .038 or 38%). In this example, the e-tailer invested a total of
$325,000 in the business and achieved a 38% return on investment. E-tailers calculate return on
investment to determine if they are earning a sufficient profit based on the cost.
SOURCE: FI:302
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 528529).
New York: Glencoe/McGraw-Hill.
33. B
Creating web sites. E-commerce businesses either create their own web sites or buy space on a
commercial online service. There are costs associated with both because businesses often hire
professionals to create appealing web sites and then update them on a regular basis. If the
businesses buy space on an online service, there are annual fees and possibly creative charges.
Businesses need to consider these costs because they may be significant over time. Creating web
sites is more unique to e-commerce than to other types of businesses because not all businesses
have web sites. However, many businesses today purchase computers and pay data processors.
Businesses involved in e-commerce usually purchase software rather than develop it.
SOURCE: FI:306
SOURCE: Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [pp. 522-523].
Upper Saddle River, NJ: Prentice Hall.
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
17
34. C
Pre-employment tests. When pre-employment tests are valid, they can be some of the most
objective measures for predicting job success. The evaluation of résumés and application blanks is
usually subjective. Interviews have been highly criticized for providing unreliable results due to the
subjectivity of interviewers.
SOURCE: HR:356
SOURCE: MN LAP 51—Selecting New Employees
35. B
Installing a new computer network and additional software. Employees would need additional
training and development to use and to understand this new technology. Payroll-deducted savings
and dental insurance are employee benefits to be explained, rather than skills to be taught. A
canopy and carpet at the entrance are conveniences for employees and customers.
SOURCE: HR:362
SOURCE: MN LAP 42—Training/Human Resource Development
36. C
Attending diversity workshops/training sessions. This is a positive step that requires management
to give both time and attention to learning how to create an equitable work environment. Talking
about equity with staff, posting articles for them to read, and reading articles are indications of an
interest in equity but don't show a strong commitment to ensuring equity for workers.
SOURCE: HR:367
SOURCE: MN LAP 55—Managing Diversity in the Workplace
37. A
A broad view of customers' changing buying patterns. The scope of marketing has become wider
and more complicated, and product life cycles have become shorter. Customers buy the same
items for a shorter amount of time, which means that e-tailers must bring out new products at a
faster rate. A marketing-information management system helps e-tailers to track buying trends and
develop new products to meet consumer demand.
SOURCE: IM:001
SOURCE: IM LAP 2—Marketing-Information Management
38. C
It contributes to business success. Marketing research contributes to business success because
Internet businesses that obtain reliable marketing-research data are better able to make good
decisions because their decisions are based on fact, not opinion. Whether marketing research
improves an Internet business's financial management would depend upon the kind of problem the
Internet business is trying to solve and the data gathered. Competitors are often unaware of an
Internet business's marketing-research efforts.
SOURCE: IM:010
SOURCE: IM LAP 5—Nature of Marketing Research
39. D
Code for evaluation. Internet businesses assign codes to survey responses in an effort to use the
information in a numerical mode. Open-ended questions are designed so that respondents react to
questions in a manner that requires more than "yes" or "no" as an answer. Because possible
responses are not controlled or limited, coding is often more difficult. If businesses are not able to
assign codes to the responses, the survey results may be extremely difficult to evaluate. The
results of surveys that contain open-ended questions are not difficult to store for future use, to enter
into a database, or to distribute to management.
SOURCE: IM:062
SOURCE: Hair, J.F., Jr., Bush, R.P., & Ortinau, D.J. (2000). Marketing research: A practical
approach for the new millennium (p. 488). Boston: Irwin/McGraw-Hill.
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
18
40. C
Around-the-clock accessibility. One of the advantages of using the Internet to search for marketing
information is that the Internet can be accessed at any time of the day or night. Businesses located
in one time zone are able to access the web sites and online documents of businesses and
organizations located in distant time zones at any time that is convenient. There is no need to wait
for the traditional work hours to search for information. Computer software programs provide wordprocessing capability. The Internet makes it possible to access documents online but does not
store products. Most often done face-to-face, personal selling is an element of promotion that aims
to meet the a customer's specific needs and is used to build long-term customer relationships.
SOURCE: IM:185
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)
[pp. 170-171]. Woodland Hills, CA: Glencoe/McGraw-Hill.
41. C
Customer profiles can be developed. Marketers collect data obtained through various means to
develop customer profiles that will help them to sell more products. These customer profiles consist
of many different pieces of demographic information, including age, income, and lifestyle. Data
actually becomes more useful to marketers as it becomes more abundant; marketers get a better
idea as to what products are most likely to appeal to customers. Analyzing information by hand is
okay when the amount of data is limited, but when there is a lot of it, computers are necessary for
the analysis. The more information that marketers collect about customers, the more of an issue
privacy becomes. People are very concerned that the collected information will be misused in some
way.
SOURCE: IM:232
SOURCE: Wilson, R.F. (2002). Planning your Internet marketing strategy (p. 80). New York: John
Wiley & Sons.
42. A
Product/Service management. The product/service management function involves obtaining,
developing, maintaining and improving a product or service mix in response to market
opportunities. It affects the image of the e-tailer by creating an image for the products the e-tailer
offers. Risk management is a business activity intended to limit business losses and help to assure
financial security. Selling is a marketing function that involves determining client needs and wants
and responding through planned, personalized communication that influences purchase decisions
and enhances future business opportunities. Financing is a business function that involves
understanding the financial concepts used in making business decisions.
SOURCE: MK:002
SOURCE: MK LAP 1—Work the Big Six (Marketing Functions)
43. D
They will have excess merchandise to store that will tie up valuable cash. An e-tailer that has too
much inventory on hand must pay for it even if it doesn't sell quickly, which ties up cash. Also, the
merchandise must be stored to prevent damage and insured to protect it in case of disasters.
Having a lot of merchandise on hand does not automatically mean that the e-tailer must lower the
price or that customers will think it less valuable. The amount of merchandise does not limit the
opportunities for manufacturers to interact with the e-tailer.
SOURCE: MK:009
SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)
[pp. 395-396]. Cincinnati: South-Western.
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
19
44. A
Marketing planning. Each e-business must select the marketing mix that is most appropriate for its
purposes. This mix then becomes the basis for the firm's marketing planning and problem solving.
Personnel selection is usually by department or function, rather than by the elements of the
marketing mix. Performance evaluations are formal assessments by the supervisor of a worker's
job performance. Behavior modeling is an instructional method in which trainees are given a
specific model of behavior to follow.
SOURCE: MP:001
SOURCE: IM LAP 7—Pick the Mix (Marketing Strategies)
45. D
Find out whether there is a market for its products. Target marketing is the identification and
selection of markets for a business or for a product. Online businesses need to know whether there
are consumers who are likely to buy from them in order to know what to sell and how to sell it.
Identifying the target market will not enable the online business to predict the amount of profit that it
can earn. Finding out how many consumers have heard of the online business is not a purpose of
target marketing since those who have heard about the online business still may not buy from it.
Identifying the target market does not help to control operating expenses, the costs of running the
online business.
SOURCE: MP:003
SOURCE: IM LAP 9—Have We Met?
46. D
The target market that most closely matches its customer profile. Start-up e-companies want to first
focus on target markets where they will find it easiest to make sales. Those markets are the ones
that match their customer profile. Then, these sales provide for future growth and expansion into
other markets. The international market in undeveloped countries is appropriate only for certain
businesses. Underdeveloped countries tend to have less access to technology and Internet
capabilities. A start-up e-business would look for a market that was not filled with direct
competitors. Future markets are important after a e-business has successfully entered its original
market.
SOURCE: MP:005
SOURCE: Meyer, E.C., & Allen, K.R. (2000). Entrepreneurship and small business management:
Teacher's manual (2nd ed.) [p. 94]. New York: Glencoe/McGraw-Hill.
47. B
Strategies. Marketing planning involves developing objectives that a business wants to achieve.
Once a business has clearly-defined objectives, it can develop strategies to achieve those
objectives. Marketing strategies are the specific plans of action for achieving marketing goals and
objectives. However, it is impossible to develop plans of action until the business identifies its
objectives. Marketing functions are interrelated activities that must work together to get goods and
services from producers to consumers. Marketing elements are product, place, promotion, and
price. Marketing concepts are based on beliefs that all business activities should be aimed toward
satisfying consumer wants and needs while achieving company goals.
SOURCE: MP:006
SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [p. 39]. Mason,
OH: Thomson/South-Western.
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
20
48. C
To identify emerging trends. Environmental monitoring involves tracking a variety of data and
statistics to identify emerging trends. The benefit of environmental monitoring is that it enables
Internet-based businesses to understand trends and make changes in order to remain competitive.
For example, environmental monitoring might indicate that consumers are buying more Americanmade products than products made in foreign countries. Internet-based businesses do not engage
in environmental monitoring to develop recyclable products, to segment target markets, or to
analyze ethical issues.
SOURCE: MP:008
SOURCE: Zikmund, W.G., & d'Amico, M. (1999). Marketing (6th ed.) [pp. 42-43]. Cincinnati:
South-Western College.
49. B
What obstacles do we face? "What obstacles do we face?" is an appropriate question for
determining threats. Obstacles in a business's path pose threats to the business. "What are our
assets?" is a question for determining strengths. "What niches have our competitors missed?" and
"What new needs of customers can we meet?" are questions for determining opportunities.
SOURCE: MP:010
SOURCE: IM LAP 8—Analyze This! (SWOT Analysis)
50. C
Promotion. Promotion is a marketing activity that refers to the various types of communications that
marketers use to inform, persuade, or remind customers of their products. When online businesses
conduct a competitive analysis, they consider their competitors' promotional activities because
promotional activities have an impact on an online business's success in attracting customers and
selling products. As a result of analyzing competitors' promotional activities, an online business
might decide to use similar activities because they have proven to be effective. Risk management
and purchasing are business activities rather than marketing activities. Management research is not
a marketing activity.
SOURCE: MP:012
SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 64-68].
Mason, OH: Thomson/South-Western.
51. D
Seeking opinions of experts is a qualitative method. Qualitative methods of sales forecasting are
based on expert opinion and personal experience. Quantitative methods are based on the results of
gathering and analyzing all kinds of numerical market data. Quantitative methods are generally
more expensive than qualitative methods. Reading industry forecasts is not a method of forecasting
but is a step in quantitative forecasting.
SOURCE: MP:013
SOURCE: IM LAP 3—Nature of Sales Forecasts
52. D
Introducing a new product. E-tailers usually develop a marketing plan before introducing a new
product. They take into consideration a variety of factors that may have an effect on the success of
the new product, such as the prices that competitors are charging for similar products. When
introducing a new product, e-tailers usually want to set prices that are comparable to, or lower than,
the prices offered by their competitors in order to attract customers and build market share. The etailers do not consider their competitors' prices when organizing a new division, selecting a new
supplier, or analyzing a new database.
SOURCE: MP:018
SOURCE: Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd
ed.) [pp. 98-100]. Boston: Irwin/McGraw-Hill.
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
21
53. B
Current customers. Current customers are an excellent source of marketing information. You can
gather information from current and former customers in surveys by mail, on the phone, in personal
interviews, etc. Internet surveys are effective if they involve current customers. Employees may
provide useful information, but the primary source is current customers. Accounting records are a
type of secondary information.
SOURCE: MP:022
SOURCE: Meyer, E. C., & Allen, K. R. (2000). Entrepreneurship and small business management:
Teacher's manual (2nd ed.) [p. 171]. New York: Glencoe/McGraw-Hill.
54. C
Human resources. A marketing audit is an evaluation of a company's marketing activities. In
addition to analyzing the Internet-based business's marketing objectives, strategies, and activities,
the audit should assess the capacity in which marketing personnel perform necessary tasks. Credit
is the arrangement by which Internet-based businesses or individuals can purchase a product now
and pay later. An Internet-based business's credit standing reveals a business's ability to pay its
financial debts. A personal incentive is a reward that motivates an individual to engage in a specific
behavior. Fixed assets are items of value that an Internet-based business owns (e.g., building) that
are not expected to change. Credit standing, personal incentives (e.g., financial bonus), and fixed
assets are important factors that affect the financial well-being of an Internet-based business, but
are not necessarily the primary considerations in a marketing audit.
SOURCE: MP:024
SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an
e-commerce world (7th ed.) [p. 634]. Mason, OH: South-Western.
55. C
Signature. Digital certificates are a type of electronic signature that verify that the person sending a
message is the legitimate sender. It is a method of making sure the sender is not an imposter. The
use of digital certificates is one type of e-commerce security. A digital certificate is not an example
of an electronic virus protection, file transfer, or presentation.
SOURCE: NF:027
SOURCE: Tiernan, B. (2000). e-tailing (pp. 199-200). Chicago: Dearborn Financial.
56. B
Check-out procedures. A shopping cart is a computer program designed to act as an online catalog
and order processing center. When creating an online shopping cart, businesses should consider
the check-out procedures. These procedures should be as simple as possible to prevent customers
from becoming confused and giving up on trying to complete a purchase. For example, asking a lot
of questions during the check-out process may discourage customers who then abandon their carts
and leave the site. When creating online shopping carts, businesses do not consider advertising
strategies, inventory levels, or web-site connections. Businesses focus on making the shopping
easy to use.
SOURCE: NF:030
SOURCE: Tiernan, B. (2000). e-tailing (pp. 169-170). Chicago: Dearborn Financial.
57. C
The clipboard contents will be pasted at the insertion point. Pressing "Ctrl" and "V" at the same time
will paste whatever content has been copied onto the clipboard next to the cursor. Copying a
selection to the clipboard is accomplished by holding down "Ctrl" and "C" simultaneously. The
Windows shortcut, "Ctrl" + "X", will move a selection onto the clipboard. The Windows shortcut that
reverses a last change is "Ctrl" + "Z."
SOURCE: NF:067
SOURCE: WebmasterNow. (n.d.). How to copy and paste. Retrieved November 5, 2007, from
http://www.webmasternow.com/copyandpaste.html
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
22
58. C
Access to the server logs. Many businesses do not have the resources in-house to maintain their
web sites and select an outside company to host the site. When selecting a web host, it is important
to find out if the business will have access to the server logs. These logs contain the history of
every transaction on the site such as number of visits, length of time visitors stay on the site, what
they viewed, if they made any purchases, etc. Businesses need this information to monitor the site
and the traffic, and to make changes to keep the site effective. The web host stores a business's
web pages, which means that the business makes design changes and is responsible for
copywriting. The web host does not control the search engine.
SOURCE: NF:074
SOURCE: Chorney, R. (n.d.). How to select a web hosting provider. Retrieved November 5, 2007,
from http://www.globaldesigns.ca/article_2.asp
59. D
Businesses can obtain order status and product information from many vendor web sites. The
Internet is available to users twenty-four hours a day, seven days a week. A purchasing agent who
uses a vendor with a web site can log onto a web site at anytime to obtain product information (e.g.,
pricing, specifications).The information posted on a web site reduces the need to wait for returned
telephone calls from sales representatives or for materials sent by the traditional postal services.
Use of the Internet can increase the conflict among members of a distribution channel. For
example, a manufacturer might develop a web site to sell directly to the consumer and reduce the
need to use distributors to sell to retail outlets. Although the Internet can greatly reduce the time it
takes to research suppliers, it does not eliminate the research process. Single-sourcing is the use
of one vendor. It cannot be assumed that most businesses use one source to meet all of their
needs.
SOURCE: OP:116
SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an
e-commerce world (7th ed.) [p. 192]. Mason, OH: South-Western.
60. B
Security measures. Taking security measures involves using a variety of security methods and
devices to protect the physical building and its contents. If used properly, they protect the e-tailer
from the risk of theft of inventory, office equipment, and other valuables and even loss of life. Etailers must work toward detecting and preventing losses that result from such activities as burglary
and employee pilferage. Maintenance activities involve the repair and general upkeep of e-tailer's
equipment and property. A benefits program includes all of the vacation time, health insurance, and
other employee benefits provided by the e-tailer. Compensation policies are guidelines the e-tailer
follows in paying employees.
SOURCE: OP:013
SOURCE: RM LAP 4—Security Precautions
61. D
Prepare a report. When the project has been successfully completed, it's a good idea to have a
final meeting. Group members often will have suggestions for improvement that the manager can
include in a report. Managers usually prepare some type of brief report that explains the project,
what worked, and what didn't work. This is particularly helpful if the project is one that will be
completed again. The information in the report will make next year's project much easier to plan
and manage. In many cases, there is no office to close. Managers do not actually give up power or
authority. The project they were in charge of is simply over. After the project has been completed,
managers often obtain feedback from the group to include in a report.
SOURCE: OP:002
SOURCE: QS LAP 18—Make It Happen
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
23
62. A
Operating expenses. Operating expenses are the expenditures necessary to keep the e-business
running. Gross profit does not take into consideration these types of expenses. Therefore, an ebusiness must deduct operating expenses from gross profit in order to arrive at net profit. Cost of
goods is the amount of money an e-business pays for the products it sells or for the raw materials
from which it produces goods to sell. Quantity discounts are deductions from the seller's price for
purchasing large volumes of goods. Product rebates are returning part of the price customers pay
for goods.
SOURCE: OP:024
SOURCE: MN LAP 57—Operating Expenses
63. A
Worth the price. Many service contracts are available with a variety of optional features that usually
add to the overall cost of the contract. For example, a basic contract might include a certain number
of repairs per month. If the business wants unlimited repairs or wants the service company to make
a house call, it often adds to the cost. However, businesses should analyze the extra cost involved
to decide if the options are worth the price. In some cases, businesses will never use the options.
Options are additional services and do not require maintenance. It is usually not important to the
business if the options are offered worldwide or acceptable to employees.
SOURCE: OP:027
SOURCE: CCH Inc. (n.d.). Service contracts. Business owner's toolkit. Retrieved November 5,
2007, from http://www.toolkit.cch.com/text/P06_4488.asp
64. D
Light fixtures. An e-business should plan to check the facility's light fixtures on a regular basis in
order to make sure that they are working properly. Part of the maintenance program should involve
routinely replacing the bulbs in light fixtures. Many e-businesses set a schedule for checking lights
and replacing bulbs in order to prevent them from burning out at inconvenient times. Utility meters,
water lines, and telephone cables usually are maintained by their respective utility companies.
SOURCE: OP:033
SOURCE: Berman, B., & Evans, J.R. (1998). Retail management: A strategic approach (7th ed.)
[p. 409]. Upper Saddle River, NJ: Prentice Hall.
65. B
Choosing among alternatives. Decision making is defined as choosing among alternatives.
Although selecting the best option is wise, it is not the definition of decision making. Selecting
wisely and choosing confidently are helpful—but, again, they are not definitions for decision
making.
SOURCE: PD:017
SOURCE: PD LAP 10—Weigh Your Options
66. A
Select and implement a solution. Rob has decided to take an action (asking Patrick for help) that
can solve his problem with an assignment. The problem has already been defined, and Rob is no
longer brainstorming possible solutions because he has decided on one. He won't be able to
evaluate this solution until after he talks to Patrick.
SOURCE: PD:077
SOURCE: IS LAP 2—No Problem
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
24
67. C
Determine their priority. It is important in time management to evaluate tasks so that an appropriate
amount of time is assigned to them according to their priority or importance. Some tasks are more
important than others and should be completed first. In some cases, the time assigned to the task
may be reduced if the importance of the task does not seem to be great. However, it is not possible
to reduce the time needed for all tasks. Tasks cannot be done in equal amounts of time or given
equal importance.
SOURCE: PD:019
SOURCE: OP LAP 1—About Time (Time Management in Business)
68. A
Yes, the résumé can state that references will be provided upon request. This statement is often
made at the end of the résumé where the references would customarily be listed. It indicates that
the job applicant has references available and that s/he will provide their names, telephone
numbers, and addresses if asked to do so. This is an acceptable business practice since the
employer does not need the names unless s/he is considering hiring the applicant. A résumé is
complete if it contains all other necessary information and either a list of references or the promise
of them.
SOURCE: PD:031
SOURCE: Daggett, W.R., & Miles, J.E. (1998). The dynamics of work: Introduction to occupations
(2nd ed) [pp. 53-57]. Cincinnati: South-Western Educational.
69. D
Customer-service representative. Internet companies often hire individuals who are trained to know
and understand products so that they can help customers with their questions or problems. Internet
companies might have customer-service representatives work with customers via telephone or by
computer (e.g., e-mail). A technical analyst usually evaluates different types of technical data. A
systems programmer develops programs or platforms for computer networks. A web-maintenance
supervisor is generally responsible for managing the department that updates and maintains a
company's web site.
SOURCE: PD:065
SOURCE: PD LAP 3—E-Commerce Career Options
70. C
Lowering. Modern technology has enabled some manufacturers to create quality products that are
inexpensive to produce. As a result, companies can charge lower prices for these products. As the
technology improves, the quality of some of the products increases, and the prices decrease. The
use of technology often lowers prices rather than simplifying, maintaining, or fixing them.
SOURCE: PI:016
SOURCE: Kotler, P., & Keller, K.L. (2006). Marketing management (12th ed.) [pp. 446-447]. Upper
Saddle River, NJ: Prentice-Hall.
71. A
$22.25. The selling price of an item is the price at which it is sold by the e-tailer. The price must
cover the costs of buying the item, the expenses involved in selling it, and an amount of profit for
the e-tailer. In this problem, the cost of one item is found by dividing 6 into $96.00 ($16.00) and
adding to that the operating expenses and desired profit per item ($16.00 + $1.75 + $4.50 =
$22.25).
SOURCE: PI:002
SOURCE: PI LAP 3—Factors Affecting Selling Price
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
25
72. D
Monitors trends. A trend is the general direction in which people or events are moving. By
monitoring economic, cultural, and societal trends, an online business can identify needs and
develop new-product ideas to accommodate these needs. Businesses do not need to interpret laws
so they can generate product ideas. Traits are an individual's personal characteristics, which s/he
expresses by exhibiting a regular pattern of behavior that becomes a part of that person over time.
Feedback can take place only after the business generates product ideas.
SOURCE: PM:128
SOURCE: Kuratko, D.F., & Hodgetts, R.M. (2001). Entrepreneurship: A contemporary approach
(5th ed.) [pp. 133-135]. Mason, OH: South-Western.
73. D
Express. An express warranty is a warranty that is written or expressed verbally. An oral promise
given in advertising or by the salesperson is an express warranty. A full warranty is a warranty
which covers the entire product. A limited warranty is a warranty that does not contain the
provisions of a full warranty. An implied warranty is an unwritten warranty understood by the
consumer and the seller that the product will perform as expected.
SOURCE: PM:020
SOURCE: PP LAP 4—Warranties and Guarantees
74. B
Making sure cosmetics are pure and harmless. The FDA sets standards for cosmetics to ensure
that they contain no harmful ingredients and are produced under sanitary conditions. Other areas of
responsibility for the FDA are making sure the food supply is safe, making sure drugs and medical
devices are safe, ensuring that labels are honest and informative, and removing harmful products
from the market. The FDA administers labeling laws that apply only to foods, drugs, medical
devices, and cosmetics. The Consumer Product Safety Commission is responsible for educating
the public about hazardous products and requiring producers to provide warnings and instructions.
The Federal Trade Commission forbids false, misleading, or deceptive advertising of consumer
products.
SOURCE: PM:017
SOURCE: PP LAP 7—Consumer Protection in Product Planning
75. B
Web-page design. To compete effectively in today's market, an e-tailer must make sure that its
customers are satisfied with its products, services, and experiences with the business. The web site
is the primary selling tool for the e-tailer. Customers do not want to spend a lot of time navigating
through a lot of pages to get information they want, nor do they want to wait for large graphics to
load on their computer screens. These design flaws can negatively affect a customer's experience
with the e-tailer. Therefore, an e-tailer must streamline the web site so customers can navigate to
the web pages quickly. Available products, active links, and secure ordering processes usually
enhance a customer's experience with an e-tailer.
SOURCE: PM:138
SOURCE: Rokes, B. (2000). Customer service: Business 2000 (pp. 55-62). Mason, OH: SouthWestern.
76. A
To enable the business to compete effectively. The e-tailer with a deep product mix offers a great
many items in the product line. This allows the e-tailer to meet the needs of a variety of consumers,
use a range of prices, and compete effectively. A shallow product mix helps an e-tailer to control its
costs. The use of a narrow product mix enables an e-tailer to specialize in a product line and to
relate the products to a target market.
SOURCE: PM:003
SOURCE: PP LAP 3—Product Mix
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
26
77. D
Ask the customers. To compete in the marketplace, an online business must develop or find
products that will fulfill its customers' changing needs and wants. One way to determine what the
customers want is by asking them. Obtaining customer feedback is a good way for an online
business to evaluate how it is meeting its customers' needs and what it needs to do to increase
customer satisfaction. Distributing promotional materials, observing workers, and developing a
prospect list are not activities that necessarily help an online business identify products that will
fulfill its customers' needs.
SOURCE: PM:130
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p.
550]. Woodland Hills, CA: Glencoe/McGraw-Hill.
78. C
Augmented. A core product is the primary product that a customer purchases. To entice customers
to buy, e-tailers often provide additional services, or augmented services, to increase the perceived
value of the core purchase. For example, an e-tailer might offer free gift wrapping when customers
purchase gifts from a bridal registry. External, ongoing, and conditional are not types of services
that add value to core products.
SOURCE: PM:036
SOURCE: Solomon, M.R., & Stuart, E.W. (2000). Marketing: Real people, real choices (2nd ed.)
[p. 297]. Upper Saddle River, NJ: Prentice Hall.
79. D
Products that exactly meet their specifications. One aspect of personalization involves providing
web-site visitors with the products that exactly meet their specifications. One way to do this is to
gather and combine information about visitors in order to lead them to the correct product. For
example, a site might ask a series of questions and the answers to those questions take visitors to
other pages, finally ending on the page that displays the product that exactly matches the visitor's
specifications. Using personalization strategies does not involve gathering and combining
information about visitors in order to lead them to pages that explain the site's credit policies,
hyperlinks so they can access additional data, or e-mail addresses so they can contact the
company.
SOURCE: PM:115
SOURCE: Hanson, W. (2000). Principles of Internet marketing (pp. 210-213). Cincinnati: SouthWestern College.
80. C
Internal customers. Employees are an e-business's internal customers, and they need to be
encouraged by management to work together serving each other and customers. In turn, this
creates a positive work environment. External customers are who a person normally thinks of as
customers, and management's role is not to get them to work together but rather help them to enjoy
buying from the e-business. A manager's responsibility regarding the e-business's vendors is to get
them to deliver products in a timely fashion with minimal interruption to employees and customers.
Managers do not have control over the actions of the e-business's lawyers; besides, most lawyers
work off the e-business's premises.
SOURCE: PM:013
SOURCE: PM LAP 1—Customer Service Supersized!
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
27
81. C
Hire response specialists. Customer response specialists are service representatives who are
available to answer customers' questions online or on the telephone. Hiring response specialists
can facilitate the e-business's service efforts because the response specialists can help customers
with questions or problems in real time. Positive outcomes of hiring response specialists are that
the e-business has satisfied customers and sales may increase. Automatic order confirmation
occurs when an online business automatically provides confirmation that it has received a
customer's order. Requiring personal identification numbers (PINs) and mailing product information
does not answer customers' questions immediately.
SOURCE: PM:118
SOURCE: Kleindl, B.A. (2001). Strategic electronic marketing: Managing e-business (pp. 124125). Cincinnati: South-Western College.
82. C
There are many things that distract people as they surf the Web. Not only does the Internet consist
of millions of web pages, it is plagued with pop-up ads, sweepstakes, and contests of all kinds. This
makes it very easy for a person to start out with a research goal in mind only to find themselves
somewhere completely different from where they set out to be. All of this can happen with a single
click of the mouse button in a relatively fast-paced manner, which many people consider to be far
from boring. Traditional advertising through print, broadcast, and out-of-home media is still the
primary method in which people learn about brands. Amazon.com and Yahoo! are two great
examples of how powerful and effective branding on the Internet can truly be.
SOURCE: PM:126
SOURCE: PM LAP 10—Building Your Business's Brand
83. C
Merchandise budget. A merchandise budget allows e-tailers to plan and control their investment in
inventory, including such things as how much stock they have on hand, sales volumes, and
profitability. A marketing plan is a set of procedures or strategies for attracting targeted customers
to a business. A SWOT analysis outlines a business's strengths, weaknesses, opportunities, and
threats. A cash flow statement is a financial summary with estimates as to when, where, and how
much money will flow into and out of a business.
SOURCE: PM:061
SOURCE: Diamond, J., & Diamond, E. (1999). Contemporary visual merchandising (pp. 10-11).
Upper Saddle River, NJ: Prentice Hall.
84. B
$217,225. Gross margin is calculated by subtracting the cost of goods sold and customer returns
from net sales. To determine gross margin, first subtract customer returns from net sales ($642,000
- $48,275 = $593,725). Then subtract the cost of goods sold from that figure ($593,725 - $376,500
= $217,225).
SOURCE: PM:065
SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 234-235).
Cincinnati: South-Western Educational.
85. B
Sell goods or services. The major purpose of using promotion for most businesses is to increase
their sales. Promotion helps to do this by informing, reminding, and persuading customers.
Promotion is also used to introduce new products and to attract customers to a business rather
than to get people to surf the Web. Consumer demand can be created but not controlled.
SOURCE: PR:001
SOURCE: PR LAP 2—Promotion
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
28
86. A
Publicity. Publicity is any nonpersonal presentation of ideas, goods, or services that is not paid for
by the company or individual that benefits from it. The newspaper article provided information about
HarrisonElectronics.com to a wide audience, but the business did not have to pay for the exposure.
Promotion is the marketing element referring to the various types of communications that marketers
use to inform, persuade, or remind customers of their products. Public relations is a type of
institutional promotion created to deal with controversial public issues that are related to a company
or its products. Product mix is the particular assortment of products that a business offers in order
to meet its market's needs and its company's goals.
SOURCE: PR:003
SOURCE: PR LAP 1—Promotional Mix
87. D
A soft-drink company places vending machines that contain their products in elementary schools.
Many vending machines provide offerings that have little, if any, nutritional value. Often, young
children do not make appropriate choices when selecting food items. Some research attributes
childhood obesity and other health issues to poor nutritional habits and lack of exercise. Some
people feel that this is an ethical issue and support the notion that soft-drink companies are
promoting unhealthy nutritional habits by placing these types of vending machines in schools. As a
result, there has been an effort to place healthier options in school vending machines. Although
slotting fees are controversial, a dairy company that pays a slotting fee to a grocery store chain
does not necessarily present an ethical issue as it relates to children. In addition, flavored cough
medicine and the promotion of reading and literacy do not necessarily present an ethical dilemma.
SOURCE: PR:099
SOURCE: De Gersdorff, S. (2004, May 12). School Vending Machines Fattening Kids, Study
Says. Retrieved November 5, 2007, from
http://www.wcfcourier.com/articles/2004/05/12/news/top_news/7b5ae5953d780951862
56e920049c04b.txt
88. A
Privacy. Policies are general rules to be followed by the web site. An important policy that is
included on most web sites is a privacy policy, which explains how the site handles the personal
information that visitors provide. Before giving out personal information, visitors have a right to
know what web sites do with their information and if they provide it to other businesses. Although
businesses have legal, advertising, and operating policies, these policies usually are not included
on their web sites.
SOURCE: PR:103
SOURCE: PR LAP 15—Planning Your Web Site
89. C
Electronic coupons. Sales promotion is promotional activities other than advertising, personal
selling, and publicity that stimulate customer purchases. The sales promotion techniques that
Internet businesses use are similar to the techniques used by other types of businesses. An
example is coupons, which many Internet businesses provide electronically to regular customers or
to users who visit their web sites. These types of coupons may be sent to customers by e-mail or
downloaded by customers directly from the business's web site. Press releases and news
conferences are examples of publicity. Television commercials are a type of advertising.
SOURCE: PR:169
SOURCE: Strauss, J., & Frost, R. (1999). Marketing on the Internet: Principles of online marketing
(pp. 220-225). Upper Saddle River, NJ: Prentice Hall.
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
29
90. C
Situation analysis. A situation analysis is a determination of an online firm's current business
situation and the direction in which the online business is headed. The analysis includes
information regarding the internal and external factors currently affecting the online business.
Information regarding economic, demographic, and industry trends are often included in the
situational analysis. The executive summary is the introductory element of the promotional plan that
highlights key points of the document's content. The objectives are the goals of the promotional
plan. The budget justification provides the rationale for funding promotional activities.
SOURCE: PR:073
SOURCE: Semenik, R.J. (2002). Promotion and integrated marketing communications (p. 68).
Mason, OH: South-Western.
91. B
Promotional and selling. Failing to inform salespeople about promotions or failing to have adequate
stock on hand can lead to dissatisfied customers and lost sales. Promotional and selling activities
should be coordinated in order to increase sales. Promotional activities include advertising, visual
merchandising, public relations, and publicity.
SOURCE: PR:076
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p.
302]. Woodland Hills, CA: Glencoe/McGraw-Hill.
92. D
Increased traffic. Cybermalls are made up of online stores, often related to a specific category. As
in physical shopping malls, customers sometimes stumble upon stores located within a cybermall
that they might not have known existed otherwise. Online stores that join a cybermall benefit from
the increased traffic that results from customers accidentally locating them. The purpose of a
cybermall is not to provide free offers, shared opinions, or brief descriptions.
SOURCE: PR:170
SOURCE: PR LAP 16—WWW Site Promotion
93. D
Customer support. Online businesses realize the importance of providing customer support,
although that is often more difficult because there is no face-to-face contact. To overcome the
problem of being able to speak directly to customers, businesses use various strategies such as
creating chat rooms and a FAQs page. These strategies enable customers to quickly find the
answers to many routine questions or to discuss problems or concerns with others. For example,
chat rooms allow users to communicate with each other in real time, which enables them to obtain
immediate assistance. Access control and consumer privacy are security issues. Chat rooms and
FAQ pages do not allow customers to buy.
SOURCE: SE:305
SOURCE: Tiernan, B. (2000). e-tailing (pp. 176-177). Chicago: Dearborn Financial.
94. C
No, this arrangement is prohibited by the Clayton Act. The Clayton Act prohibits tying arrangements
in which the purchase of one good or service depends on other purchases. The Clayton Act is a
federal law intended to ensure fair competition among businesses. The Federal Trade Commission
Act declares competition illegal that is deemed unfair by the Commission. Examples would include
deceptive product claims or interfering with the efforts of a competitor's sales staff. The RobinsonPatman Act is a federal law that forbids businesses from discriminating in the prices or services
offered to competing customers. The Sherman Act is a federal law that prohibits competing
businesses from conspiring to control, or fix, their prices.
SOURCE: SE:932
SOURCE: SE LAP 121—Selling Policies
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
30
95. B
Recording expenses. Employer-related sales activities that can involve ethical issues include
recording sales expenses. Fudging an expense account is a questionable activity, even if you think
the result is in the company's favor. Ethical issues can also surround customer-related activities,
such as giving gifts, entertaining clients, and answering questions.
SOURCE: SE:106
SOURCE: SE LAP 129 — Keep It Real—In Sales (Selling Ethics)
96. B
Web presentation combined with a teleconference. Utilizing this combination, Caroline's client could
view the demonstration online as she walks the customer through the presentation.
Teleconferencing allows her to answer questions as they arise during the presentation. A
PowerPoint presentation on CD could be sent to the client to view, but this would not provide a live
demonstration. Also, questions would have to be addressed via another method. The high-tech,
sales-support office is maintained for the use of salespeople who may be dispersed geographically
or travel a great deal. A cell phone with wireless faxing would provide a static picture while allowing
questions to be answered. This could also be time consuming for the salesperson and the client.
SOURCE: SE:107
SOURCE: Ingram, T.N., LaForge, R.W., Avila, R.A., Schwepker, C.H., & Williams, M.R. (2001).
Professional selling: A trust-based approach (pp. 131-132). Mason, OH: SouthWestern.
97. A
Obtain the necessary facts. A salesperson can get information about product features from many
sources. These sources include manufacturers, coworkers, promotional materials, repeat
customers, and the product itself. Once the salesperson obtains the necessary product information,
s/he can develop a feature-benefit chart. A salesperson doesn't evaluate the competition's
reactions or explain the product's apparent benefits before developing a feature-benefit chart for a
product. A salesperson lists the product's features while s/he is developing the chart rather than
before developing it.
SOURCE: SE:109
SOURCE: SE LAP 113—Find Features, Boost Benefits (Feature-Benefit Selling)
98. D
National. These brands are well established and may attract customers to the new e-business.
Private brands are brand names owned by the seller, and the private brands of a new e-business
would be unfamiliar to customers. Generics are products sold without a brand. A descriptive brand
is a name that has fallen into everyday use so that the brand is used to refer to every product in the
brand's product category (e.g., aspirin).
SOURCE: SE:019
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 656659).
New York: Glencoe/McGraw-Hill.
99. C
Confirm orders. Businesses that sell online must be able to manage customers' accounts and
process orders. One feature of online account management is the ability to confirm orders.
Customers want to know that their online orders have been received. Therefore, businesses
develop a method of acknowledging the order and providing a customer with a confirmation
number. This method allows the business to track the order from the time it was placed until it is
shipped, and gives the customer a way of checking on the status of the order. Designing web
pages, locating browsers, and targeting markets are not features of online account management.
SOURCE: SE:344
SOURCE: Tiernan, B. (2000). e-tailing (pp. 217-219). Chicago: Dearborn Financial.
2008 DECA Ontario Provincials
Test 947
E-COMMERCE TEAM DECISION
31
100. A
Management team. The managers' skills are discussed in the management team section. The
managers' capabilities (and track record) are often considered to be the single most important
indicator of success. The company description accurately portrays the new company or venture,
provides a history of the company, and shows the current business structure, among other things.
The executive summary gives an overview of the entire document. In the market analysis, you see
how the market has responded (or is likely to respond) to the new company or product/venture.
SOURCE: SM:007
SOURCE: SM LAP 1—Plan Now, Succeed Later