CFSP Marketing & Sales Management 3

Question 1

When analyzing price elasticity of demand, a foodservice item is considered 'price inelastic' when:

Accepted Answer

Demand does not change significantly in response to a price change

Answer

A price increase leads to a proportionally larger decrease in demand

Answer

The item can only be sold at a fixed regulated price

Answer

Lowering the price doubles the quantity sold

Question 2

What is the purpose of a competitive analysis in foodservice marketing planning?

Accepted Answer

To understand competitors' strengths, weaknesses, pricing, and market position

Answer

To determine the exact recipes used by competing restaurants

Answer

To establish legal grounds for filing complaints against competitors

Answer

To copy the menu offerings of the most successful local competitor

Question 3

Which social media metric BEST measures the effectiveness of a foodservice promotional post?

Accepted Answer

Engagement rate (likes, comments, shares relative to reach)

Answer

Number of followers on the account

Answer

Number of posts published per week

Answer

Date and time of publication

Question 4

A foodservice manager wants to calculate the 'customer acquisition cost' (CAC). Which formula is correct?

Accepted Answer

Total marketing spend divided by number of new customers acquired

Answer

Total revenue divided by total number of customers served

Answer

Net profit divided by marketing budget percentage

Answer

Average check multiplied by customer satisfaction score

Question 5

What is 'brand identity' in the context of a foodservice operation?

Accepted Answer

The visual, verbal, and experiential elements that communicate who the operation is and what it stands for

Answer

The legal trademark registration of the restaurant's name and logo

Answer

The total dollar value of the restaurant's brand on the open market

Answer

The operational standards manual used to train new employees

Question 6

Which pricing strategy is MOST appropriate when introducing a new foodservice concept to attract a large customer base quickly?

Accepted Answer

Penetration pricing

Answer

Price skimming

Answer

Premium pricing

Answer

Psychological pricing

Question 7

A foodservice operator tracks that 40% of new customers come from word-of-mouth referrals. This MOST directly indicates:

Accepted Answer

High customer satisfaction is driving organic advocacy and brand promotion

Answer

The operation's paid advertising campaigns are underperforming

Answer

The operation needs to increase its social media advertising budget

Answer

The target market demographic is older and does not use digital media