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Questions and Answers
The econometric method relies on subjective judgment.
The econometric method relies on subjective judgment.
False (B)
The Delphi technique is used for conducting opinion surveys.
The Delphi technique is used for conducting opinion surveys.
True (A)
Time series analysis arranges data in a random order.
Time series analysis arranges data in a random order.
False (B)
Marketing trials can be part of market research efforts.
Marketing trials can be part of market research efforts.
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From 1993-94 to 1996-97, the number of TV sets sold increased each year.
From 1993-94 to 1996-97, the number of TV sets sold increased each year.
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The product cost percentage for all the wines sold by Claudia is 30.00%.
The product cost percentage for all the wines sold by Claudia is 30.00%.
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Wine 1 has a selling price of $16.00 and a product cost of $4.00.
Wine 1 has a selling price of $16.00 and a product cost of $4.00.
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Claudia's approach to pricing the wines focuses solely on the total selling price rather than contribution margin.
Claudia's approach to pricing the wines focuses solely on the total selling price rather than contribution margin.
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The selling price of Wine 3 is $60.00.
The selling price of Wine 3 is $60.00.
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Wine 4 has a product cost of $10.00.
Wine 4 has a product cost of $10.00.
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If a food item costs $1.50 and is sold for $3.75, the food cost percentage is 50%.
If a food item costs $1.50 and is sold for $3.75, the food cost percentage is 50%.
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A predetermined food cost percentage indicates that management believes product cost is important in relation to selling price.
A predetermined food cost percentage indicates that management believes product cost is important in relation to selling price.
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The selling price of an item is calculated by dividing the product cost by the food cost percentage.
The selling price of an item is calculated by dividing the product cost by the food cost percentage.
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The use of a cost factor or multiplier is a method to determine appropriate selling prices based on desired food cost percentages.
The use of a cost factor or multiplier is a method to determine appropriate selling prices based on desired food cost percentages.
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If an item has an EP cost of $1.50 and the desired food cost percentage is 60%, the selling price using the cost factor method would be $2.50.
If an item has an EP cost of $1.50 and the desired food cost percentage is 60%, the selling price using the cost factor method would be $2.50.
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The Market Test Method is primarily used for developing forecasts regarding existing products.
The Market Test Method is primarily used for developing forecasts regarding existing products.
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Regression Analysis can involve one or more independent variables.
Regression Analysis can involve one or more independent variables.
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Sales forecasting has no limitations and is always accurate.
Sales forecasting has no limitations and is always accurate.
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Better control of inventory is one of the benefits of sales forecasting.
Better control of inventory is one of the benefits of sales forecasting.
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A linear regression results can be represented in a pie chart.
A linear regression results can be represented in a pie chart.
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The response received from market tests is used to prepare sales forecasts.
The response received from market tests is used to prepare sales forecasts.
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Sales forecasting only benefits large companies.
Sales forecasting only benefits large companies.
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One independent variable in regression analysis can be population growth.
One independent variable in regression analysis can be population growth.
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Ambiance alone is sufficient for a foodservice operation to be successful.
Ambiance alone is sufficient for a foodservice operation to be successful.
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Guests may initially visit a restaurant because of clever design.
Guests may initially visit a restaurant because of clever design.
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The price of menu items remains the same throughout different meal periods.
The price of menu items remains the same throughout different meal periods.
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Outstanding service and product quality are less important than ambiance.
Outstanding service and product quality are less important than ambiance.
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A smaller portion size at lunch can justify a higher price for the same item served at dinner.
A smaller portion size at lunch can justify a higher price for the same item served at dinner.
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The price/value relationship is vital for encouraging repeat visits to a restaurant.
The price/value relationship is vital for encouraging repeat visits to a restaurant.
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Guests should understand the reasons behind price changes for menu items throughout the day.
Guests should understand the reasons behind price changes for menu items throughout the day.
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Successful foodservice operations rely solely on high prices to attract returning guests.
Successful foodservice operations rely solely on high prices to attract returning guests.
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The contribution margin for wine 2 is $18.00.
The contribution margin for wine 2 is $18.00.
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Wines 3 and 4 are priced to achieve a product cost percentage of 30%.
Wines 3 and 4 are priced to achieve a product cost percentage of 30%.
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Claudia is unsure about the effectiveness of her new pricing structure without testing it.
Claudia is unsure about the effectiveness of her new pricing structure without testing it.
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Guests are generally indifferent to the pricing of bottled wine.
Guests are generally indifferent to the pricing of bottled wine.
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Wine 1 has a contribution margin of $14.00.
Wine 1 has a contribution margin of $14.00.
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Bottled-wine sales may decline if operators seek to achieve profits that guests perceive as inappropriate.
Bottled-wine sales may decline if operators seek to achieve profits that guests perceive as inappropriate.
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The contribution margins for wines 3 and 4 suggest they are potentially overpriced.
The contribution margins for wines 3 and 4 suggest they are potentially overpriced.
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Study Notes
Food and Beverage Management and Cost Control
- This module covers the management of food and beverage operations, including pricing, cost control, and forecasting.
- It examines factors influencing pricing, methods for assigning prices, applying special pricing in restaurant operations, and forecasting sales.
- It details the components of total revenue, the formula for calculating Total Revenue, and possible effects of price increases on revenue.
- It distinguishes between price and revenue.
- It discusses several factors affecting menu pricing, including local competition, service levels, guest type, and product quality.
- It addresses the importance of portion size and ambiance in influencing menu pricing.
- It explores special pricing situations, such as coupons, value pricing, bundling, salad bars, buffets, and beverages at receptions.
- The module explains methods for assigning menu prices: product cost percentage and product contribution margin.
- It discusses different methodologies for forecasting sales: market test and statistical relationships.
- It details several aspects of service level and its impact on pricing.
- It explains factors that influence menu pricing, such as location, and meal period.
- It provides examples of factors to consider, including forecasting sales.
Pricing (3 hours Lecture, 6 hours Lab)
- Factors influencing food and drink pricing are discussed, along with illustrations of how prices are assigned, applying special pricing to restaurant operations and illustrating how to forecast sales.
- Understand how each factor can influence pricing: competition, service levels, guest type and products
- Examples of different pricing strategies: coupons, value pricing, bulk-purchasing, bundling,
- How to forecast sales and the significance of this for pricing
Cost Analysis and Control (3 hours Lecture, 6 hours Lab)
- The module covers calculating and analyzing food cost percentage, including costs associated with ingredients, labor, and other expenses (utilities, rent, maintenance, etc);
- It examines the implications of high or low food cost percentages for profitability and how contribution margin is used to ensure profits.
- It emphasizes the importance of comparing actual costs to potential costs.
- It discusses the formula for calculating food cost percentage.
- It explains how to control food costs.
Revenue Control & Cash Handling (3 hours Lecture, 6 hours Lab)
- Explains external and internal threats to revenue generation, focusing on guest and employee behaviors.
- Includes common methods of revenue theft such as "walking" or skipping the bill, and the use of counterfeit money.
- Control measures for guest checks are detailed which include techniques to secure checks during service, record accurately and consistently.
- Presents ways to handle cash and control theft through employee training and procedures.
- Explains how different banking systems can be used to handle cash transactions including Server vs Cashier banking functions, and how each process can be optimized for efficiency and reduced risk.
- Various methodologies for handling and controlling guest checks and the reasons for using these methodologies are detailed.
- The module also explains special situations like gift certificates and travel vouchers.
Managing Labor & Other Expenses (6 hours Lec, 12 hours Lab)
- This section introduces strategies for controlling labor costs, including employee selection, training, supervision, break schedules, and morale.
- It outlines methods for managing other expenses, like utilities, facility upkeep, and occupancy costs..
- It details methods for evaluating productivity ratios to support and inform labor cost decisions.
Food and Beverage Purchasing Control System
- Details the process for purchasing, receiving, and storing food items and maintaining control.
- This describes how to determine the costs associated with these items.
- It explores methods for calculating and analyzing food related costs (e.g., cost of food sold, cost of labor, etc.).
- Explains various factors affecting labor costs.
- It identifies various aspects of hospitality management, including managing the relationship between employees and customers, controlling expenses, and using various methodologies to determine productivity.
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Description
This quiz covers essential concepts in marketing research and pricing strategies, including the Delphi technique, time series analysis, and cost percentage calculations. It explores practical examples of product pricing in the wine industry and the importance of product cost in relation to selling price. Test your knowledge on these critical marketing topics!
