HCM 212 Menu Marketing and Management Chapters 6-11

Costs and concern for customers’ perceptions.
What two factors are most likely to affect a seller’s perception of a price?
Perceived value.
What most affects a buyer’s perception of a price?
The decline in popularity of an establishment’s best-selling menu item.
Which is an example of a food trend that could affect menu pricing decisions?
Revenue-Expense= Profit.
What are the three components of the profit formula?
25%.
A menu item costs $3 to make and it sells for $12. What is the item’s food cost percentage?
Sales-oriented pricing.
Which pricing strategy emphasizes revenue maximization over all other factors?
Status quo pricing.
In which pricing strategy do managers set their prices with the goal of being similar in price to their competitors?
4
A manager using the food cost percentage pricing method has an entree whose ingredient costs are $2. The manager’s food cost target is 25%. What pricing factor will the manager use to determine the menu price of this entree?
Food cost and labor cost.
What are the two factors used to calculate menu prices using the prime cost pricing method?
$14.00.
A manager using the ratio pricing method has an entree whose ingredient costs are $4.00. The manager’s nonfood and profit ratio is 2.5. What will be the selling price of the item?
Interest.
What does the letter I represent in the AIDA communication concept?
Print.
Which is the oldest form of customer communication?
People eating in the establishment.
What type of photo would likely draw the most attention to an ad?
The number of listeners who will hear the spot.
Which factor is most likely to impact the price of a radio spot?
A Cartoon Network.
An establishment specializes in family-friendly cuisine. Which of the following types of television networks would likely be the best fit?
Using stamps rather than a meter.
Which is one way that managers can increase the likelihood that a mail piece will be read?
Cell phone applications.
Which communication channel has features that allow customers to get real time-updated driving directions to establishments of their choice?
Web sites for professional food societies.
Which Web sites would make the best link partners for a manager of a fast-casual restaurant?
With a greeting to the reader.
How should managers begin their emails used for marketing their operations?
75 to 100%.
Approximately what proportion of computer users have viewed online guest reviews prior to selecting an establishment?
Trial.
Which advertising objective is intended to increase customers’ first-time usage of an establishment?
Provide training.
What can managers do to best enhance the impact of their entire staff’s suggestive selling efforts?
To promote company recognition.
What is the purpose of a logo?
Traffic.
What marketing term describes the total number of an establishment’s new and returning customers?
Managers can track which advertisements are most effective.
Which reason best explains why managers should develop advertising schedules?
Increase check average 10% in 90 days.
Which is an objective measure of advertising effectiveness?
Improve drink quality at night.
Which is a subjective measure of advertising effectiveness?
They can be very time-consuming.
What is a primary disadvantage of event selling activities?
Prospecting.
What marketing term describes a salesperson’s continual search for customers?
Placement.
What component of an establishment’s on-site merchandising program would most directly result in a guest’s impulse buy?
To provide incentives for guests to return.
What is the main purpose of a frequent dining program?
Holiday glassware.
Which is an example of a promotional premium?
Before the promotion begins.
When should managers train staff in use of POP and POS promotional materials?
On their customers’ tables.
Where would managers display POP materials describing a current sales promotion?
Advertising messages can be controlled by a manager.
What primary advantage does advertising have over publicity?
Issue a press release highlighting the establishment’s new safety measures.
An establishment recently received bad publicity because a fight broke out on the sidewalk in front of its location. What action represents a positive way that the manager can minimize the damage of this bad publicity?
Media kit.
What is the tool used by reporters to create stories about an establishment?
Contributing unused food to a food bank.
Which is an example of a public service activity that could be undertaken by an establishment?
Program evaluation.
What is a manager’s final consideration in the development of an effective customer rewards program?
Its members are in the establishment’s target market.
Which characteristic is the strongest reason to form a partnership with a particular community group?
Food prepared according to Jewish dietary laws.
Which types of food are considered kosher?
The establishment’s target market.
The concerns of which group are of most importance when designing an establishment’s menu?
Costs incurred will be wasted when interest in the menu item fades.
What is the greatest danger in modifying an establishment’s operation and menu to include a fad food?
QSR.
When using a value-pricing approach, in which restaurant or foodservice market segment would there be the smallest variation between an operation’s highest- and lowest-priced menu items?
College cafeteria.
Which restaurant or foodservice operation would be most likely to use a cyclical menu?
12.
What is the minimum type point size recommended for easy reading of items listed on a menu?
50%.
How much of a menu should be blank space?
Its selling price would be too high.
A proposed new menu item is popular with customers. What is the reason for a manager deciding against putting this new item on the menu?
Offer wines by the glass and bottle.
How can managers best optimize the sale of wine and their guests’ dining experiences?
Vintage.
What term, when used on wine lists, identifies the year in which a wine is bottled?
Actual sales levels exceed planned sales levels.
Which would result in a positive sales variance?
25% (2,000/8,000)
Larry is the manager of Pepper Peak Pizza. Larry forecast that he would serve 8,000 customers this month. Larry actually served 10,000 customers. What was the percentage variance in Larry’s customer forecast for this month?
Publicity
Which area of marketing could be partially assessed by counting the number of times the operation is mentioned positively in articles appearing in the local press?
Customers pairing the daily special with a bottle of wine.
Which is an example of a secondary sale?
25% (150/600)
Sharon’s establishment offers 15 entree choices. On a day Sharon served 600 guests, her Cajun Seafood Pasta entree sold 150 servings. What was the menu mix sales volume percentage for Cajun Seafood Pasta on that day?
$15,000
Theresia’s very busy operation served 500 guests on Friday night. Her check average on Friday night was $30. What were Theresia’s sales on that Friday night?
$10.55 (13.95-3.40)
The Herbed Chicken and Stuffing currently sells in Carl’s establishment for $12.95. It costs $3.40 to make. Carl wants to raise the price of this dish to $13.95. What will be the contribution margin of the dish if Carl raises the price?
Check plates before they leave the kitchen.
Managers can assess service quality using which approach?
Four years.
Latisha wants to purchase a new grill. The grill will cost $8,000. Latisha estimates she will increase profits by $2,000 per year by allowing her chef to expand the number of menu items available. What is the payback period for this proposed investment?
The item’s yearly financial return was underestimated.
Which change in an item would cause its actual return on investment to exceed its originally projected ROI?