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Chapter 02 Quiz
Terms in this set (31)
One of the first things to consider when speaking to clients is determining the prices they are willing to pay.
Trade association is another term for professional association.
When allocating its marketing budget, management generally will consider historical trends as well as new business opportunities.
The primary purpose of performing a sales analysis is to determine how to allocate the gratuities among the service staff.
Probably the biggest advantage of working with the corporate-meetings segment is that these types of clients can usually give you more accurate predictions.
Range pricing is another term for level pricing.
If a large caterer does a lot of business and wants to use the contribution margin (CM) pricing method, it will be necessary to standardize many offerings.
The loss leader pricing method does not cover all of the caterer's variable expenses, thus the caterer has an out-of-pocket expense.
Pricing is a little bit of science blended with a whole lot of art.
With restaurant menus, selection is usually an impulse decision. Catering decisions are usually given much more thought and deliberation.
Caterers will never be willing to price and sell some of their food items "on consumption."
The multiplier pricing method is a version of the CM pricing method.
When using the multiplier pricing method to price a meal function, a caterer will typically multiply the total variable cost needed to serve one meal by a factor that usually varies from 7 to 10.
Few catering operations have standard menus. Most prefer to flatter their clients with the attention and creativity of custom proposals.
Value is determined by the seller, not the buyer
Caterers may consider giving a client a discount today in order to establish a good relationship that may result in additional business later on.
Caterers may be willing to offer a client a discount today if the client agrees to book several events during the coming year.
With meal guarantees, there is no breakage. However, under the meal-couponing procedure, there is.
Which one of the following types of events represents the bulk of the business market?
meetings and conventions
The __________ method of pricing is normally used to calculate a total price for a function that is planned from scratch.
Another term for affiliate event is:
Recognition events are similar to:
Many social events are
When using the thirds method pricing procedure, a per-person price of $75.00, plus, will have a profit of approximately:
When using the CM pricing method, the price markup can be as high as:
Group-history records represent the caterer's major source of:
Another term for tracer file is:
The average CM per attendee is equal to the:
average check minus variable costs needed to serve one attendee
An offer to provide specified goods and services, explaining the terms, the costs, and the suitability to satisfy the client's needs, is referred to as a:
Which one of the following is most likely to be included in the low-end (shallow) budget category?
Caterers usually divide the budgets of the various markets they serve into three classifications: low-end (shallow), mid-level, or:
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