DECA vocab 1

Question 1

Accounting

Answer 1

Process of keeping records. Businesses use -accounting- to keep track of the things they own, the account owed to them, and the amounts they owe to others.

Question 2

Active Listening

Answer 2

To listen actively, you pay attention to the customer´s statements, ask questions when necessary, and restate for clarity.

Question 3

Advertising

Answer 3

Any message paid for by an identified sponsor and appearing in the media. A form of promotion. Paid for, non-personal (not one-on-one), sponsor is identified.

Question 4

Advertising Agency

Answer 4

Helps a client write, create, and design ads and commercials,
including the purchase of media and follow-up. Most of the
income an advertising agency makes is from commission.
Example: If you place an ad with a newspaper for $100.00 and
the advertising agency receives 20% commission, then they
receive $20.00.

Question 5

Agent

Answer 5

Intermediary who negotiates the terms of agreement or sale. Used
in retailing and in the sports & entertainment industry. Agents do not own the actual product.

Question 6

AIDCA Formula

Answer 6

A consumer’s mind process before a purchase is made; while unique to each person, same steps:
 Attention – consumer must look at product

 Interest – consumer gains interest by learning benefits of
ownership

 Desire – consumer learns how product fulfills needs

 Conviction – consumer is convinced that product will enhance
lifestyle.

 Action – consumer is forced to make an action, purchase
product, redeem coupon, or other related act.

Question 7

Allowance

Answer 7

Type of reduction from a list price. Example: Trade-in allowance, if you trade in your old car, your receive a discount on your new car.

Question 8

Anchor Store

Answer 8

Usually a large chain retail operation located in a shopping center serving as the attracting force for the center.

Question 9

Approach

Answer 9

The second step in the sales process, try to get customer’s
attention. Be creative, friendly. There are a variety of approaches
available to use.

Question 10

Arrears

Answer 10

A charge account that is behind in payments

Question 11

Assets

Answer 11

Anything of monetary value that a company owns. This includes
cash, accounts receivable, merchandise inventory, equipment, fixtures, supplies, land, and buildings.

Question 12

Assumptive Close

Answer 12

A form of closing in the sales process. The sales representative
begins to ring up the sale assuming the customer is making the purchase.

Question 13

Automation

Answer 13

The use of machines to get things done. Mass production is
possible through the use of machines giving products more uniformity and making them available more cheaply. Example: Krispy Kreme doughnut machine

Question 15

Business Plan

Answer 15

Proposal that describes every part of a new business to potential investors and bankers.

Question 16

Buyer

Answer 16

Person in charge of purchasing merchandise; needs to know
customer likes and dislikes, market trends, how merchandise
moves, quality control, and other related issues. Small stores
generally do not have a separate position for the buyer; rather the
buying is done by the manager or an assistant.

Question 17

Buyer’s Market

Answer 17

In a buyer’s market the quantity supplied is large and the quantity
demanded is small, therefore the buyers have leverage over the
suppliers in negotiating price.

Question 18

Buying

Answer 18

Also called purchasing Act of deciding what, when, and how much merchandise to buy,
what price to pay and what vendors to use

Question 19

Capital

Answer 19

Money that is needed to run a business.

Question 20

Capital Resources

Answer 20

Man-made items such as money, buildings, machinery and other equipment.

Question 21

Capitalism

Answer 21

See Economic Systems, Market Economic System. Also known as Free Enterprise system, market economy.

Question 22

Card Readers/Credit
Readers

Answer 22

Machine that allows debit or credit payment at the point of
purchase, user friendly for customers, often seen at gas stations or grocery stores.

Question 23

Cash Cow

Answer 23

Term given to a product in the maturity stage of its life cycle, has

a defined customer base and is making money.
See also Product Life Cycle

Question 24

Cash Discounts

Answer 24

Price reduction to buyers who pay their bills promptly.
Example: 2/10, N30
This on an invoice would mean a 2% cash discount if the invoice
is paid within 10 days, and the full invoice must be paid within 30
days.

Question 25

Chain store

Answer 25

A group of stores, usually eleven (11) or more of the same type,
owned and managed centrally. Examples include Belk’s, Hecht’s,
Sears, Circuit City, Walmart, etc.

Question 26

Channel of Distribution

Answer 26

Route along which goods flow.

Question 27

Clearance

Answer 27

Type of markdown, used by a retailer to remove leftover items from the selling floor.

Question 28

Clientele

Answer 28

A group of customers who account for significant repeat business for a company.

Question 29

Close

Answer 29

The sixth step in the sales process, sales representative must ask
for the sale. Ask again if the customer says no. Ask several times. Verify information once customer has agreed. There are a
variety of methods to close.