TEST BANK for Marketing for Hospitality and Tourism 8th Edition By Philip Kotler, John Bowen, Seyhmu

Marketing for Hospitality and Tourism 8e Philip Kotler, John Bowen, Seyhmus Baloglu (Test Bank All Chapters, 100% Original Verified, A+ Grade)

Marketing for Hospitality and Tourism, 8e (Kotler) Chapter 1 Creating Customer Value and Engagement Through Marketing for Hospitality and Tourism 1) The social and managerial process by which individuals and groups obtain what they need through creating and exchanging products and value with others is called: A) Economics B) Marketing C) Sales D) Commerce Answer: B 2) Marketing mix elements include all of the following EXCEPT: A) Marketing information systems B) Price C) Promotion D) Distribution Answer: A 3) Which is NOT a purpose of marketing in a customer-centered firm?

A) To generate customer value B) To maximize customer satisfaction C) To improve relationship marketing D) To maximize company revenue Answer: B 4) Instead of simply being defined as "freedom from defects," QUALITY should be defined: A) In terms of total sales B) In terms of employee satisfaction C) In terms of product specifications D) In terms of customer satisfaction Answer: D 5) Relationship marketing is a process where marketers work at building relationships with customers, distributors, dealers and: A) Suppliers B) Competitors C) Managers D) Trade associations Answer: A 6) When backed by buying power, wants become: A) Demands B) Desires C) Satisfied D) Needs Answer: A 1 Copyright © 2020 Pearson Education, Inc.

7) Building strong economic and social ties with customers by delivering high-quality products and services is the foundation of: A) Total quality management B) Return on quality C) Relationship marketing D) The manufacturing concept Answer: C 8) When hotel management establishes no-smoking floors, bar managers no longer allow happy hours with free drink specials, and resort managers eliminate pollution from their properties, the ________ concept is being employed.

A) Societal marketing B) Marketing C) Manufacturing D) Product Answer: A 9) A ________ is anything that can be offered to a market to satisfy a want or need.

A) Service B) Concept C) Choice set D) Product Answer: D 10) A ________ is a state of felt deprivation.

A) Need B) Demand C) Want D) Desire Answer: A 11) It is wise to assess the customer's ________ value and take appropriate actions to ensure a customer's long-term support.

A) Money B) Long-term C) Intrinsic D) Market Answer: B 12) Which of the following is NOT part of the four-p framework of marketing?

A) Product B) Pricing C) Placement D) Promotion Answer: C 2 Copyright © 2020 Pearson Education, Inc.

13) The two main industries that comprise the activities we call tourism are: A) The restaurant and cruise industries B) The hotel and restaurant industries C) The hospitality and marketing industries D) The hospitality and travel industries Answer: D 14) The most basic concept underlying marketing is that of: A) Understanding B) Buying power C) Needs D) Customer Answer: C 15) One of the biggest nonmonetary costs for hospitality customers is: A) Sentiments B) Resources C) Energy D) Time Answer: D 16) One of the biggest nonmonetary costs for hospitality customers is: A) Sentiments B) Resources C) Energy D) Time Answer: D 17) ________ is the act of obtaining a desired object from someone by offering something in return.

A) Marketing B) Transaction C) Exchange D) Sales Answer: C 18) A company's ________ is the set of benefits or values it promises to deliver to consumers to satisfy their needs.

A) Mission statement B) Quality proposition C) Value Proposition D) Value Promise Answer: C

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19) The ________ describes a channel that stretches from raw materials to components to final products that are carried to final buyers.

A) Production cycle B) Supply chain C) Product marketing D) Product placement Answer: B 20) ________ are highly loyal but not very profitable.

A) Strangers B) Butterflies C) True Friends D) Barnacles Answer: D 21) ________ involves organizations interacting with guests to create experiences through this interaction.

A) Co-creation B) Sharing economy C) Customer equity D) Partner relationship management Answer: A 22) All of the following are examples of digital marketing EXCEPT: A) Social media B) Mobile C) Online D) Telemarket Answer: D 23) Organizations want to make continuous relationship investments to delight these customers and engage, nurture, retain, and grow them.

A) Butterflies B) Strangers C) True friends D) Barnacles Answer: C 24) Some companies resist environmental and social responsibility movements until forced by legislation or organized consumer outcries.

Answer: TRUE 25) Mobile marketing is the fastest-growing digital marketing platform.

Answer: TRUE

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26) The sharing economy is not new to the hospitality industry, however, there has been a recent surge due to higher accessibility through technological advancements.

Answer: TRUE 27) Sharing economy accommodations are highly regulated to protect travelers similar to other sectors of the hospitality industry/. For example, high taxes are collected on sharing economy accommodations to help support the promotion of tourism and tourism infrastructure.

Answer: FALSE 28) The simplest definition of marketing is delivering customer satisfaction at a profit.

Answer: TRUE 29) There is no current evidence to suggest long-term customers are more profitable than new customers.

Answer: FALSE 30) The two main industries that comprise what we call tourism are the hospitality and attraction industries.

Answer: FALSE 31) A market is only the set of actual, not potential, buyers who have transacted with a seller.

Answer: FALSE 32) "Quality" could be defined as the features and characteristics of a product that bear on its ability to satisfy customer needs.

Answer: TRUE 33) The practical definition of a marketing manager is one of a person focused entirely on finding enough customers to buy the company's current output.

Answer: FALSE 34) In choosing among products, the guiding principle of most consumers is customer value – the most benefit for the price.

Answer: TRUE 35) The hospitality industry is the second largest employer in the United States.

Answer: TRUE 36) Define marketing. How does this definition differ from the general perception of marketing?

Answer: Answers will vary.

37) Explain a marketer's value proposition.

Answer: Answers will vary.

38) Describe each of the five marketing management orientations and identify which of these appears to be best for society.

Answer: Answers will vary.

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39) What is the key to lasting customer relationships? How is this linked to higher lifetime value and increased customer equity?

Answer: Answers will vary.

40) Illustrate with example the concept of customer equity.

Answer: Answers will vary.

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Marketing for Hospitality and Tourism, 8e (Kotler) Chapter 2 Service Marketing Concepts Applied to Marketing for Hospitality and Tourism 1) The fact that services cannot be seen, tasted, felt, or smelled relates to which service characteristic?

A) Inseparability B) Variability C) Perishability D) Intangibility Answer: D 2) The fact that a business traveler will have a very positive check-in experience during one stay at a hotel and then a very negative check-in experience the next time is an issue related to which service characteristic?

A) Inseparability B) Variability C) Perishability D) Intangibility Answer: B 3) If you manage a 200-room hotel, and only sell 150 rooms tonight, you cannot stockpile the extra 50 rooms to sell tomorrow. This is a problem with the ________ of services.

A) Inseparability B) Variability C) Perishability D) Intangibility Answer: C 4) We as customers cannot take service on a "test drive," meaning we cannot evaluate them before we use them. This is a problem with the ________ of the service.

A) Inseparability B) Variability C) Perishability D) Intangibility Answer: A 5) Because services are characterized by the issue of inseparability, service providers will often have to: A) Reduce inventory B) Train the customers C) Lower their prices D) Improve labor standards Answer: B

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6) Which of the following is NOT a link in the service-product chain?

A) Healthy service profits and growth B) Satisfied and productive service employees C) Greater service value D) Increasingly intangible services Answer: D 7) Perhaps the best measure of service quality is: A) Customer retention B) Low employee turnover C) Profitability D) Total sales Answer: A 8) Which of the following statements is FALSE? A) One goal of CRM is to make switching costs high.

B) CRM combines marketing, business strategy and information technology to better understand customers.

C) CRM calls for developing unique and lasting relationships with customers.

D) The use of CRM in the hospitality industry appears to be strong.

Answer: D 9) A casino employee's uniform or a restaurant's fancy front lobby are a means of: A) Overspending on the part of the service provider B) Creating overly high expectations on the part of the customer C) Paying attention to the perishability of the service D) Tangibilizing the service Answer: D 10) Studies have shown the best way to deal with service failure is to: A) Give the unhappy customer timely information regarding the failure B) Ignore the failure in the hopes the customer will forget about it C) Refund the customer's money whenever a failure occurs D) Replace the unhappy customer with a happier one Answer: A 11) Which of the following is NOT part of the service profit chain?

A) Internal service quality B) External service quality C) Satisfied and productive service employees D) Satisfied and loyal customers Answer: B

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12) Hospitality companies face the task of increasing three major marketing areas: service quality, service productivity, and: A) Service differentiation B) Service focus C) Service profitability D) Service effort Answer: A 13) In a well-run hospitality organization, there are two customers, the paying customers and the: A) Non-paying B) Employees C) Guests of the customer D) Customer's company Answer: B 14) Overbooking is another method that hotels, restaurants, trains, and airlines use to match: A) Demand with marketing B) Growing business needs C) Marketing with budget D) Demand with capacity Answer: D 15) Developing a good ________ policy minimizes the chance of walking a guest.

A) Marketing B) Promotions C) Check-in D) Overbooking Answer: D 16) Price is ________ related to demand for most products.

A) Directly B) Inversely C) Proportionately D) Disproportionately Answer: B 17) ________ form(s) when capacity exceeds demand and guests are willing to wait.

A) Loyalty B) Demand C) Popularity D) Queues Answer: D

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18) Marketing by a service firm to train effectively and motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction is called ________ marketing.

A) Intelligent B) Internal C) Perennial D) External Answer: B 19) A system of values and beliefs in an organization that reinforces the idea that providing the customer with quality service is the principal concern of the business is called: A) Mission statement or vision statement B) Credo or Motto C) Mission and credo D) Service culture Answer: D 20) All of the following are generally true about customers waiting in lines EXCEPT: A) Undefined demands are longer than explained ones B) Uncertain waits are longer than known ones C) Unfair waits are longer than equitable ones D) Unoccupied time feels longer than occupied time Answer: A 21) Dynamic pricing and overbooking strategies are used in: A) Computer demand engineering B) Revenue management systems C) Capacity maximization practices D) Demand fluctuation seasons Answer: B 22) Which of the following is NOT an example of a consideration when designing a hotel's overbooking policy?

A) Weather conditions B) Competitor availability C) Price per room D) Past history Answer: C 23) All of the following are examples of techniques for assisting with managing short-term demand EXCEPT: A) Cross-train existing employees B) Hire more full-time employees C) Alter the service-delivery system D) Increase self-service technologies Answer: B 4 Copyright © 2020 Pearson Education, Inc.

24) Revenue management systems give priority to repeat guests over new ones.

Answer: TRUE 25) The reservation system is not an accurate tool for monitoring demand.

Answer: FALSE 26) In general, government-run tourism promotion organizations have not assumed responsibility for the quality of the services they promote.

Answer: TRUE 27) Unit managers are responsible for matching capacity with long-term demand by planning utilizations of capital investments.

Answer: FALSE 28) Empowering employees in part means giving them the authority to tend to customer needs.

Answer: TRUE 29) The perishability of a service is especially a problem when demand fluctuates.

Answer: TRUE 30) So long as a company sets high standards for service quality, it is not necessary to evaluate its actual performance.

Answer: FALSE 31) Bill Marriott would say that the first set of people you need to satisfy are your customers.

Answer: FALSE 32) To reduce uncertainty caused by service intangibility, buyers look for whatever tangible evidence they can find that will provide information about the service.

Answer: TRUE 33) Within the realm of Customer Relationship Management (CRM) switching costs are only monetary in nature.

Answer: FALSE 34) It is better to tell the customer exactly the anticipated wait time.

Answer: FALSE 35) The three services marketing are: internal, external, and interactive.

Answer: TRUE 36) Service marketers must be concerned with four characteristics of services. What are they?

Describe each.

Answer: Answers will vary.

37) Describe three steps hospitality firms can take to reduce variability and create consistency.

Answer: Answers will vary.

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38) Successful service companies focus their attention on both their employees and customers.

They understand the service profit chain, which links service from profits with employee and customer satisfaction. List and describe the five links that make up the service profit chain.

Answer: Answers will vary.

39) Resolving customer complaints can sometimes be a difficult scenario in the hospitality industry. Service quality will always vary, depending on the interactions between employees and customers. Problems inevitably will occur. As the manager of a high-volume establishment what measures will you take to resolve customer complaints?

Answer: Answers will vary.

40) How can managing the customer relationship be used to enhance revenues and retain customers?

Answer: Answers will vary.

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Marketing for Hospitality and Tourism, 8e (Kotler) Chapter 3 Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships 1) A well worked-out ________ provides company employees with a shared sense of purpose, direction, and opportunity.

A) Mission statement B) Company profile C) Set of objectives D) Strategic plan Answer: A 2) The principle objective of a market-oriented mission statement is to: A) Satisfy basic partnership needs B) Satisfy basic supplier needs C) Satisfy basic stockholder needs D) Satisfy basic customer needs Answer: D 3) Studies have shown that a well-crafted mission statement aids a firm's performance as the mission statement serves as a statement of: A) Fact B) Financial goals C) Purpose D) Values Answer: C 4) According to the Ansoff product-market expansion grid, management should first consider whether: A) It should develop new markets for its current products B) It should find or develop new products for its current market C) It should find new products for a new market D) It should gain more market share with its current products in their current market Answer: D 5) When hotel chains enter such markets as the retirement home industry, they are practicing which type of strategy?

A) Differential diversification B) Concentric diversification C) Horizontal diversification D) Conglomerate diversification Answer: D

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6) If a hotel chain buys one of its suppliers, it is engaging in what type of growth?

A) Backward integration B) Vertical integration C) Forward integration D) Horizontal integration Answer: A 7) The ideal target market for a firm is the one in which it can profitably generate the greatest customer ________ and ________ it over time.

A) Sales; sustain B) Value; sustain and grow C) Loyalty; grow D) Satisfaction; spread Answer: B 8) Market definitions of a business are ________ to product definitions.

A) Superior B) Inferior C) Parallel D) Equivalent Answer: A 9) ________ growth makes sense when good opportunities can be found outside the present businesses.

A) Diversification B) Multi-lateral C) Bi-lateral D) Product development Answer: A 10) Companies that diversify too broadly into unfamiliar products or industries can ________ their market focus.

A) Capitalize B) Enhance C) Sustain D) Lose Answer: D 11) A hotel company acquiring a tour operator is an example of: A) Backward integration B) Forward integration C) Horizontal integration D) Vertical integration Answer: B

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12) A hotel company acquiring a food distributor is an example of: A) Backward integration B) Forward integration C) Horizontal integration D) Vertical integration Answer: A 13) A hotel company acquiring one or more of its competitors is an example of: A) Backward integration B) Forward integration C) Horizontal integration D) Vertical integration Answer: C 14) A company may discover additional sources of ________, by investigating possible integration moves.

A) Sales volume B) Guest loyalty C) Employee satisfaction D) Customer satisfaction Answer: A 15) ________ is the marketing logic by which the company hopes to create customer value and achieve profitable relationships.

A) Marketing alignment B) Marketing integration C) Marketing diversification D) Marketing strategy Answer: D 16) The process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior who might require separate products or marketing programs is called: A) Market segmentation B) Market targeting C) Market differentiation D) Market positioning Answer: A 17) Selecting one or more market segments to enter is part of: A) Market segmentation B) Market targeting C) Market differentiation D) Market positioning Answer: B

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18) Which of the following is one of the four Ps of the marketing mix?

A) People B) Profits C) Propaganda D) Place Answer: D 19) Which of the following is NOT part of the four Ps of the marketing mix?

A) Product B) Price C) Promotion D) Profits Answer: D 20) ________ is the net return from a marketing investment divided by the costs of the marketing investment.

A) Net return B) Marketing POS C) Marketing ROI D) Investment cycle Answer: C 21) ________ involves deciding on marketing strategies that will help the company attain its overall strategic objective.

A) Marketing planning B) Implementation C) Goal formulation D) Marketing analysis Answer: A 22) Which of the following is NOT one of the three generic types of strategies proposed by Porter for a good starting point for strategic thinking?

A) Focus B) Cost leadership C) Differentiation D) Growth Answer: D 23) All of the following are examples of important tradeoffs during goal formulation EXCEPT: A) High growth versus low risk B) Deep penetration of existing markets versus developing new markets C) Profit goals versus nonprofit goals D) Competitive advantage versus market position Answer: D

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24) Marketers see return on marketing investment as the second biggest issue after economy.

Answer: TRUE 25) The hotel-resort industry, like other hospitality industries such as airlines and cruise lines, may approach strategic planning in much the same manner as a manufacturing company.

Answer: FALSE 26) A company starts the strategic planning process at the customer level by defining its values statement and mission.

Answer: FALSE 27) Mission statements should be realistic and general in nature.

Answer: FALSE 28) A business portfolio is the collection of businesses and products that make up the company.

Answer: TRUE 29) Market penetration refers to the strategy of creating new products to sell to small niche markets.

Answer: FALSE 30) Critics of strategic alliances point out the high failure rate of such alliances, which is probably unfair, since short-term objectives may have been met.

Answer: TRUE 31) One of the major effects of the marketing plan process is that it forces marketing managers to objectively review all steps in the marketing process.

Answer: TRUE 32) A critical and sometimes overlooked stakeholder group is that of owners of hotels managed by a hotel management company.

Answer: TRUE 33) A company's mission statement should provide direction for the company for no more than five years at a time.

Answer: FALSE 34) Companies should use performance measures such as brand awareness and sales to assess return on investment instead of customer-centered measures like customer experience.

Answer: FALSE 35) An internal environmental analysis is essentially a strengths and weaknesses analysis.

Answer: TRUE 36) Briefly discuss the components of a strategic plan.

Answer: Answers will vary.

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37) Discuss the differences in approach between the traditional four Ps and the current four Cs. Answer: Answers will vary.

38) Explain the role of the target market as the marketer attempts to build the marketing mix.

Answer: Answers will vary.

39) What role does the marketing mix play in target marketing?

Answer: Answers will vary.

40) Define a strategic business unit (SBU). What is contained in one?

Answer: Answers will vary.

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Marketing for Hospitality and Tourism, 8e (Kotler) Chapter 4 Analyzing the Marketing Environment 1) Which of the following is NOT a type of micro-environment?

A) The company B) Marketing channel C) Demographics D) Broad range of public Answer: C 2) Which of the following is NOT a type of macro-environmental impact?

A) Competitive B) Monopolistic C) Natural D) Technological Answer: B 3) The ________ consists of the forces close to the company that affect its ability to serve its customers.

A) Legal environment B) Microenvironment C) Macroenvironment D) Marketing environment Answer: B 4) The most dramatic force shaping our destiny is: A) Political B) Natural C) Environmental D) Technological Answer: D 5) The ________ environment includes institutions that affect society's basic values, perceptions, preferences and behaviors.

A) Political B) Technological C) Cultural D) Legislative Answer: C 6) The first stage of the environmental scanning process is: A) Determining how information will be collected B) Determining the areas that need to be monitored C) Implementing the plan D) Collecting data Answer: B 1 Copyright © 2020 Pearson Education, Inc.

7) Which of the following can be cited as an example of microenvironment as well as macroenvironment?

A) Competitors B) Demographics C) The company D) Cultural forces Answer: A 8) The Internet has created both ________ transparency.

A) Disintermediation and pricing B) Mediation and pricing C) Intermediation and pricing D) Intercession and supply Answer: A 9) A ________ is any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives.

A) People B) Public C) Profile D) Pro-association Answer: B 10) Two forces that affect the competition are the ability of companies to ________ and ________ markets.

A) Enter, exit B) Finance, propose C) Plan, control D) Supply, sustain Answer: A 11) The restaurant industry is characterized by a ________ barrier to entry.

A) Low B) Moderate C) High D) Does not apply Answer: A 12) The hotel industry in general has a ________ barrier to entry.

A) Low B) Moderately low C) Moderately high D) High Answer: C

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13) The hotel industry characteristically has a ________ barrier to exit.

A) Low B) Moderately low C) Moderately high D) High Answer: D 14) The competitive environment in the hospitality industry is: A) Predictable B) Unpredictable C) Reliable D) Unstable Answer: B 15) ________ is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.

A) Demography B) Geographics C) Relative Statistics D) General Statistics Answer: A 16) One of the outcomes of currency devaluations in a destination country such as Argentina is that those location see a(n) ________ in conventions and meetings.

A) Decrease B) Increase C) Scarcity D) Outflow Answer: B 17) Each society contains ________, groups of people with shared value systems based on common life experiences or situations.

A) Elements B) Character sets C) Clicks D) Subcultures Answer: D 18) All of the following are trends in the natural environment EXCEPT: A) Increased interactive customer experiences (ICE) B) Increased pollution C) Increased government intervention D) Increased pollution Answer: A

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19) The ________ environment consists of factors that affect consumer purchasing power and spending patterns.

A) Political B) Economic C) Socio-cultural D) Technological Answer: B 20) All of the following are true about the changing US population EXCEPT: A) The traditional household is the largest percentage of household makeups.

B) Increased populations are moving to the Sunbelt states.

C) The U.S. population is becoming better educated.

D) 47% of women work.

Answer: A 21) Which of the following is the largest U.S. market representing almost $200 billion in annual spending power?

A) Asians B) African Americans C) Hispanics D) Disabled Answer: D 22) This generational group accounts for 80% of luxury travel in America.

A) Baby Boomers B) Generation X C) Millennials D) Generation Z Answer: A 23) Segmenting the market based on their generation is the most effective segmenting method.

Answer: FALSE 24) Governmental agencies are highly involved in hospitality business practices.

Answer: TRUE 25) Political differences between countries or groups within a country have little to no impact on hospitality companies.

Answer: FALSE 26) Cause-related marketing has become a primary form of corporate giving.

Answer: TRUE 27) It is sufficient when using environmental scanning to just gather the necessary data.

Answer: FALSE

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28) The environmental management perspective states that the marketing environment is an uncontrollable element to which they must adapt.

Answer: FALSE 29) Almost every aspect of marketing involves ethical and societal issues.

Answer: TRUE 30) Good marketers have two methods – marketing intelligence and marketing research – for collecting information about the environment.

Answer: TRUE 31) Existing laws concerning marketing abuses are often difficult to enforce.

Answer: TRUE 32) Hotel developers generally have lower barriers to entry than restaurant developers.

Answer: FALSE 33) A company could see its competition as all other companies that compete for the consumer dollar.

Answer: TRUE 34) Marketing services agencies include banks and credit companies that help hospitality companies finance their transactions.

Answer: FALSE 35) Hotel marketers could see the accounting department as a part of their microenvironment.

Answer: TRUE 36) One component of the marketing microenvironment are groups both within and external to the company. Who are these major players in a company's microenvironment?

Answer: Answers will vary.

37) Describe important factors in the marketing macroenvironment.

Answer: Answers will vary.

38) Differentiate between the basic marketing intermediaries.

Answer: Answers will vary.

39) Distinguish among the five types of customer markets.

Answer: Answers will vary.

40) Why is the study of customer demographics important to marketers?

Answer: Answers will vary.

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Marketing for Hospitality and Tourism, 8e (Kotler) Chapter 5 Managing Customer Information to Gain Customer Insights 1) If a menu item is estimated to bring in $300,000 in future earnings without doing any market research, but it is believed the earnings could be increased to $330,000 by spending $40,000 on research, then the marketing director should: A) Veto the research B) Somewhat support the research C) Highly encourage the research D) Eliminate the menu item Answer: A 2) The single most important element in any hospitality information system is a process for: A) Doing primary research B) Acquiring employee information C) Capturing guest history information D) Forecasting sales Answer: C 3) All of the following statements about comment cards are true EXCEPT: A) If a comment card is left in a hotel room for customers to fill out, it reflects the opinions of the customers as a whole.

B) Comment cards can be useful in spotting trouble areas.

C) Often less than 50% of the hotel guests will fill out a comment card.

D) If the process is not well thought out, employees may selectively distribute comment cards to guests they feel will have a positive response.

Answer: A 4) The type of research used to gather preliminary information to help generate research hypotheses is called: A) Descriptive research B) Exploratory research C) Experimental research D) Causal research Answer: B 5) Secondary data: A) Involves finding people to interview B) Is collected for the purpose at hand C) Involves finding people to observe D) Can be found more quickly and is cheaper than primary data Answer: D

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6) If you are in a hurry to collect survey data, the worst method to use is: A) Personal surveying B) Internet surveying C) Mail surveying D) Telephone surveying Answer: C 7) This exam is an example of: A) An open-ended survey B) An unstructured survey C) A qualitative survey D) A close-ended survey Answer: D 8) ________ is the most widely used method of primary data collection.

A) Experimental research B) Survey research C) Causal research D) Observational research Answer: B 9) "Customers" who are in reality undercover employees of hotel management are called: A) Auditors B) Identifiers C) Spies D) Mystery shoppers Answer: D 10) CRM stands for: A) Customer Revenue Marketing B) Critical Review Methods C) Customized Recurrence Manufacturing D) Customer Relationship Management Answer: D 11) DataStar, LEXIS-NEXIS, Dow Jones News Retrieval, UMI ProQuest, and Dun & Bradstreet's Online Access are examples of: A) Online marketing platforms B) Online search engines C) Online database and information search services D) Online marketing databases Answer: C

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12) A process that identifies and defines marketing opportunities and problems, monitors and evaluates marketing actions and performance, and communicates the findings and implications to management, is called: A) Marketing research B) Marketing database management C) Market segmentation analysis D) Customer oriented marketing Answer: A 13) Which of the following is NOT a type of objective for a marketing research project?

A) Exploratory research B) Data research C) Descriptive research D) Casual research Answer: B 14) Data that consists of information already in existence somewhere, having been collected for another purpose, is called: A) Primary data B) Secondary data C) Tertiary data D) Real data Answer: B 15) A marketing research project where the objective is to test hypotheses about cause-and-effect relationships, is called: A) Exploratory research B) Data research C) Descriptive research D) Casual research Answer: D 16) A marketing research project where the objective is to describe the size and composition of the market, is called: A) Exploratory research B) Data research C) Descriptive research D) Casual research Answer: C 17) The information collected for the specific purpose at hand is called: A) Primary data B) Secondary data C) Tertiary data D) Real data Answer: A 3 Copyright © 2020 Pearson Education, Inc.

18) The most scientifically valid research is: A) Primary research B) Experimental research C) Survey research D) Tertiary research which combines both primary and secondary research Answer: B 19) Among the four contact methods: Mail, Telephone, Personal and Online, which one is the poorest in terms of controlling the interviewer effect?

A) Mail B) Telephone C) Personal D) Online Answer: C 20) Among the four contact methods: Mail, Telephone, Personal and Online, which one is the poorest in terms of costs?

A) Mail B) Telephone C) Personal D) Online Answer: C 21) Among the four contact methods: Mail, Telephone, Personal and Online, which one is the best in terms of control of sample?

A) Mail B) Telephone C) Personal D) Online Answer: B 22) Which of the following is NOT true of online research?

A) Online research is inexpensive.

B) Online research is fast.

C) People tend to be honest online.

D) Samples are never small or skewed.

Answer: D 23) When the researcher selects the easiest population members from which to obtain information, the sample is called: A) Simple random sample B) Stratified random sample C) Convenience sample D) Judgment sample Answer: C

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24) All of the following are research problem areas EXCEPT: A) Missing ROI explanation B) Lack of qualitative information C) Improper statistical analysis D) Non-representative sample Answer: A 25) Typically, marketing research can only be done by experts in large companies with large research budgets.

Answer: FALSE 26) Primary data are simply the highest priority information used by the company to make decisions.

Answer: FALSE 27) A sample is a segment of the population selected to represent the population as a whole.

Answer: TRUE 28) Closed-ended questions include all possible answers from which the subjects must choose.

Answer: TRUE 29) International marketing researchers follow the same steps as domestic researchers, from defining the research problem and developing a research plan to interpreting and reporting the results.

Answer: TRUE 30) Descriptive research gathers preliminary information that will help define the problem and suggest hypotheses.

Answer: FALSE 31) Experimental research is best suited for gathering causal information.

Answer: TRUE 32) Mail questionnaires are very expensive per respondent compared to other survey methods.

Answer: FALSE 33) Qualitative research is useful to gain insight into definitions and concepts.

Answer: TRUE 34) Interpretations of research findings need to be left entirely to the researcher.

Answer: FALSE 35) Telephone interviewing runs little risk of interviewer bias since the respondent cannot actually see the interviewer.

Answer: FALSE

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36) What does a typical marketing information system (MIS) do?

Answer: Answers will vary.

37) An MIS often consists of three separate components. Describe each of these.

Answer: Answers will vary.

38) Discuss the four basic steps in the marketing research process.

Answer: Answers will vary.

39) Provide the advantages/benefits of each of the contact methods.

Answer: Answers will vary.

40) Among all of the various contact methods, which provides the worst response rate and least control of the sample? Which provides the most flexibility?

Answer: Answers will vary.

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Marketing for Hospitality and Tourism, 8e (Kotler) Chapter 6 Consumer Markets and Consumer Buying Behavior 1) The factor that exerts the broadest and deepest influence on behavior is: A) Sub-culture B) Social class C) Family D) Culture Answer: D 2) Which of the following is NOT a characteristic affecting consumer behavior?

A) Personal B) Culture C) Postpurchase behavior D) Social Answer: C 3) The stages through which families pass as they grow older are called: A) Family crisis cycles B) Family formulation cycles C) Family life cycles D) Family aging cycles Answer: C 4) The technique used to measure lifestyles is called: A) Geographics B) Economics C) Demographics D) Psychographics Answer: D 5) The most important consumer buying unit in the United States (one that has been researched extensively) is the: A) Individual B) Family C) Social class D) Reference group Answer: B 6) The first stage of the buyer decision process is: A) Need recognition B) Evaluation of alternatives C) Information search D) Purchase decision Answer: A

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7) ________ groups are those groups we would like to belong to but do not.

A) Membership B) Reference C) Aspirational D) Motivational Answer: C 8) According to Maslow, the most important need to be satisfied is: A) Ego B) Safety C) Social D) Physiological Answer: D 9) When we screen out information coming at us, we are engaged in the act of: A) Selective retention B) Selective attention C) Selective distortion D) Selective choice Answer: B 10) ________ is the most affluent U.S. demographic segment.

A) Hispanic B) African American C) Asian American D) International Answer: C 11) Which American social class comprises the largest composition of the population?

A) Upper uppers B) Lower uppers C) Working D) Upper lowers Answer: C 12) ________ may also have a strong influence on family buying decisions.

A) Children B) Head of the family C) Elders D) Friends Answer: A

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13) ________ describes changes in an individual's behavior arising from experience.

A) Belief B) Attitude C) Learning D) Selective Retention Answer: C 14) ________ describes a person's relatively consistent evaluations, feelings, and tendencies toward an object or an idea A) Attitude B) Belief C) Learning D) Selective Retention Answer: A 15) Buyer discomfort caused by postpurchase conflict is called: A) Social discord B) Cognitive dissonance C) Mental dissention D) Internal dilemma Answer: B 16) Which of the following is NOT a part of the buyer decision process?

A) Problem recognition B) Information search C) Solution D) Postpurchase behavior Answer: C 17) When purchasing hospitality and travel products, customers often use ________ as an indication of quality.

A) Price B) Features C) Number of rooms D) Size of the room Answer: A 18) A group to which a person wishes to belong is called: A) Spiritual group B) Social group C) Membership group D) Aspirational group Answer: D

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19) Dissatisfied consumers could take any of the following actions EXCEPT: A) Change esteem status B) Do nothing C) Request an exchange D) File a lawsuit Answer: A 20) ________ is an application of the understanding of sensation and perception to the field of marketing.

A) Corporeal marketing B) Sensory marketing C) Physical marketing D) Applicable marketing Answer: B 21) Life-stage segmentation provides a powerful marketing tool for marketers in any industry to better find, understand, and engage customers.

Answer: FALSE 22) A person's economic situation does not affect product choice and purchase decisions.

Answer: FALSE 23) Short three- and four-day trips are on the decline as trends show preferences for longer vacations.

Answer: FALSE 24) Personal sources, commercial sources, public sources, and the internet are considered integral to the information search process.

Answer: TRUE 25) Marketers should identify consumers' sources of information and the importance of each source.

Answer: TRUE 26) In the United States, social class is something you are born into.

Answer: FALSE 27) A belief describes a person's relatively consistent evaluations, feelings and tendencies toward an object.

Answer: FALSE 28) The marketer's job ends when the customer buys the product.

Answer: FALSE 29) Consumer behavior cannot be influenced.

Answer: FALSE 4 Copyright © 2020 Pearson Education, Inc.

30) When evaluating alternatives, consumers pay the most attention to the attributes connected with their needs.

Answer: TRUE 31) Status is the general esteem given to someone fulfilling his/her role in society.

Answer: TRUE 32) It is easy to change a person's attitude by reasoning with them.

Answer: FALSE 33) Almost all major purchases result in discomfort caused by post purchase conflict.

Answer: TRUE 34) Most human behavior is learned.

Answer: TRUE 35) People are more likely to notice stimuli they did not anticipate than notice stimuli they did anticipate.

Answer: FALSE 36) Cultural factors exert a broad and deep influence on consumer behavior. Describe the differences between a person's culture and subculture.

Answer: Answers will vary.

37) A consumer's behavior is also influenced by social factors, such as the consumer's small groups, family and social roles and status. Explain the differences among these social factors.

Answer: Answers will vary.

38) Each person's distinct personality influences their buying behavior. Personality is usually described in terms of traits. What do we mean when we discuss traits? What are some examples of traits, and how do they affect the way people purchase items?

Answer: Answers will vary.

39) Explain Maslow's needs hierarchy.

Answer: Answers will vary.

40) Listing them in the proper order, what are the stages in the buyer decision process? Describe each.

Answer: Answers will vary.

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Marketing for Hospitality and Tourism, 8e (Kotler) Chapter 7 Organizational Buyer Behavior 1) Those individuals that have the power to prevent sellers from reaching the buying center are called: A) Influencers B) Deciders C) Gatekeepers D) Approvers Answer: C 2) Those that have the formal authority to select suppliers and arrange the terms of the purchase are called: A) Deciders B) Buyers C) Influencers D) Gatekeepers Answer: B 3) Which of the following is NOT an influence on organizational buying?

A) Individual factors B) Interpersonal factors C) Organizational factors D) Technological factors Answer: D 4) The total demand for many business products that is NOT affected much by price changes is called: A) Inelastic demand B) Determined demand C) Derived demand D) Induced demand Answer: C 5) The first step in the buygrid framework is that of: A) Supplier search B) Problem recognition C) Product specification D) General need description Answer: B

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6) When meeting planners review proposals for a convention site and start to evaluate such features as sleeping rooms and meeting rooms, they are engaged in which stage of the buygrid framework?

A) Performance review B) Proposal solution C) Order-routine specification D) Supplier selection Answer: D 7) ________ are rewards participants receive for achieving a goal.

A) Annual conventions B) Corporate meetings C) Trade association meetings D) Incentive meetings Answer: D 8) Which of the following is NOT a part of the SMERF market?

A) Military B) Social C) Religious D) Economic Answer: D 9) A nongroup form of organizational business is the: A) Corporate traveler B) Trade show attendee C) Incentive market D) Package tour Answer: A 10) Which of the following is NOT a part of the organizational buying process?

A) Problem Recognition B) Product Specification C) Product Solicitation D) Supplier Selection Answer: C 11) Incentive travel, a unique subset of corporate group business, is a reward participants receive for: A) Winning a lottery B) Attending a timeshare presentation C) Achieving or exceeding a goal D) Meeting loyalty standards Answer: C

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12) The LEED Green Building Rating System provides design guidelines for certain standards of building. LEED stands for: A) Leadership in Energy and Environmental Design B) Learning in Evaluative and Educational Development C) Loyalty in Economics and Efficiency Delivery D) Layout in Equipment and Elegant Decor Answer: A 13) Convention delegates stay an average of 3.6 days and spend an average of just over $1,500 per event. This market is ________ price sensitive.

A) Highly B) Somewhat C) Least D) Occasionally Answer: A 14) Which of the following provides the highest opportunity for upsell?

A) Conventions B) Conferences C) Seminars D) Meetings Answer: D 15) Which of the following provides a strong to definite repeat sales opportunity?

A) Conventions B) Conferences C) Seminars D) Meetings Answer: D 16) Organizational demand that ultimately comes from the demand for consumer goods is called: A) Intrinsic demand B) Extrinsic demand C) Tertiary demand D) Derived demand Answer: D 17) ________ is the stage of an industrial buying process in which the buying organization decides on and specifies the best technical product characteristics for a needed item.

A) Product selection B) Product evaluation C) Product solicitation D) Product specification Answer: D

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18) Users, Influencers, Approvers, Buyers, Gatekeepers are participants in the: A) Organizational buying process B) Organizational convention process C) Organizational decision-making process D) Organizational chart Answer: A 19) ________ is a command performance for employees of a company.

A) A Convention B) A Meeting C) A Corporate meeting D) Incentive travel Answer: C 20) In an Organizational Buying process, ________ select product requirements and suppliers.

A) Buyers B) Users C) Deciders D) Approvers Answer: C 21) Besides dividing group markets into convention, association, and SMERF, they can also be broken into groups based on: A) Buying power B) Meeting purpose C) Company value D) Decision time Answer: B 22) According to a study, all of the following are factors that reflect travel preferences among U.S.-based employees eligible for incentive travel EXCEPT: A) New destination B) Short travel time C) Sun and sand destinations D) Luxury Answer: B 23) The most important attributes of a destination for an association meeting planner are availability of hotel and facilities, ease of transportation, and: A) Climate B) Distance for attendees C) Recreation D) Cultural activities Answer: B

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24) When negotiating with meeting planners, it is better to negotiated items separately, starting with room rate.

Answer: FALSE 25) Most group rates are noncommissionable.

Answer: TRUE 26) Compared with consumer purchases, a business purchase usually involves more buyers and more professional effort.

Answer: TRUE 27) Culture and customs are types of forces that are seen as major influences on business buying behavior.

Answer: TRUE 28) In current business buying there is a trend toward single sourcing or using one supplier.

Answer: TRUE 29) Deciders are those individuals that will actually use the product being purchased.

Answer: FALSE 30) A convention can be a major source of revenue for the sponsoring organization.

Answer: TRUE 31) Conventions are a specialty market requiring few meeting facilities.

Answer: FALSE 32) In most associations the elected president is in charge of arranging association meetings.

Answer: FALSE 33) One of the most important aspects in creating a successful function is a pre-function meeting between the hotel staff and meeting planner.

Answer: TRUE 34) Demand for consumer goods is derived from demand for business goods.

Answer: FALSE 35) One feature of attendance at a corporate meeting is having a long lead time in planning a corporate meeting.

Answer: FALSE 36) What are the typical roles played by the various participants in the organizational buying process?

Answer: Answers will vary.

37) Provide a brief explanation of the major influences on business buyers.

Answer: Answers will vary.

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38) Describe the eight steps in the business buying process.

Answer: Answers will vary.

39) There are four main categories of group business. Briefly describe each.

Answer: Answers will vary.

40) What does a company whose product's demand is derived face in the market?

Answer: Answers will vary.

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Marketing for Hospitality and Tourism, 8e (Kotler) Chapter 8 Customer-Driven Marketing Strategy: Creating Value for Target Customers 1) Evaluating each market segment's attractiveness and selecting one or more of the market segments to enter is called: A) Market targeting B) Market segmentation C) Market mixing D) Market positioning Answer: A 2) The three stages of target marketing are market segmentation, market targeting and: A) Product introduction B) Product segmentation C) Market positioning D) Mass marketing Answer: C 3) Dividing buyers into groups based on their knowledge, attitudes, uses or responses to a product is called: A) Psychographic segmentation B) Geographic segmentation C) Demographic segmentation D) Behavioristic segmentation Answer: D 4) Which of the following is a psychographic segmentation variable?

A) Age B) Organization membership C) Income D) Gender Answer: B 5) Which of the following is NOT a requirement for effective segmentation?

A) Accountability B) Substantiality C) Accessibility D) Measurability Answer: A 6) In using a(n) ________ marketing strategy, a company ignores market segmentation and goes after the entire market with one market offer.

A) Differentiated B) Undifferentiated C) Unconcentrated D) Concentrated Answer: B 1 Copyright © 2020 Pearson Education, Inc.

7) The increasing fragmentation of the mass market into hundreds of smaller markets is called: A) Macromarketing B) Deindividualized marketing C) Mass-marketing D) Micromarketing Answer: D 8) A product's ________ is the way the product is defined by consumers on important attributes.

A) Differentiation B) Position C) Strategy D) Homogeneity Answer: B 9) Which of the following is NOT a part of the psychographic variable?

A) Social class B) Lifestyle C) Loyalty D) Personality Answer: C 10) Which of the following is NOT a demographic variable?

A) Age B) Gender C) User status D) Religion Answer: C 11) Loyal customers are price ________ compared to brand-shifting patrons.

A) Sensitive B) Insensitive C) Economic elastic D) Economic inelastic Answer: B 12) The degree to which segments can be assessed and served is the ________ of the market segment.

A) Measurability B) Accessibility C) Substantiality D) Actionability Answer: B

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13) The degree to which effective programs can be designed for attracting and serving segments is the ________ of the market segment.

A) Measurability B) Accessibility C) Substantiality D) Actionability Answer: D 14) Instead of going for a small share of a large market, the firm pursues a large share of one or a few small markets. This marketing strategy is called: A) Selective marketing B) Elective marketing C) Concentrated marketing D) Concentric marketing Answer: C 15) Undifferentiated marketing is more suited for ________ products.

A) Homogeneous B) Heterogeneous C) High-priced D) Low-priced Answer: A 16) When a firm introduces a new product, it may be practical to launch only one version, so ________ marketing makes the most sense.

A) Undifferentiated or homogeneous B) Homogeneous or concentrated C) Undifferentiated or concentrated D) Differentiated or diluted Answer: C 17) Which of the following do NOT contribute to a company's product differentiation efforts?

A) Physical attributes B) Service C) Personnel D) Profitability Answer: D 18) Dividing a market into groups based on consumers' knowledge, attitude, use, or response to a product is called: A) Market segmentation B) Psychographic segmentation C) Market bifurcation D) Behavioral segmentation Answer: D

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19) Formulating competitive positioning for a product and a detailed marketing mix is called: A) Market evaluation B) Market positioning C) Market targeting D) Market competitive advantage Answer: B 20) Under-positioning is defined as: A) Failing to ever position the company at all B) Failing to correctly position the company C) Positioning the company on a level below its par D) Positioning the company on a level above its par Answer: A 21) Over-positioning is defined as: A) Giving buyers a too-broad picture of the company B) Positioning the company on a level above its par C) Giving buyers a too-narrow picture of the company D) Failing to ever position the company at all Answer: C 22) Offering consumers greater value either through lower prices or by providing more benefits that justify higher prices, is called: A) Smart marketing B) Effective market positioning C) Bifurcation marketing D) Competitive advantage Answer: D 23) All of the following attributes are examples of differences worth establishing EXCEPT: A) Communicable B) Important C) Distinctive D) Mechanical Answer: D 24) When competing offers look the same, buyers are not able to differentiate based on company or brand image.

Answer: FALSE 25) Before choosing the target-market segments, a company must decide on its value proposition.

Answer: FALSE 26) To an economist, a market is all the buyers and sellers who transact for a good or service.

Answer: TRUE 4 Copyright © 2020 Pearson Education, Inc.

27) Income and occupation are psychographic segmentation variables.

Answer: FALSE 28) Perceptual maps show consumer perceptions of brands versus competing products across important attributes.

Answer: TRUE 29) The lodging industry is particularly effective in using income segmentation.

Answer: TRUE 30) The effectiveness of frequent-flyer and frequent-guest programs is clearly enormous.

Answer: FALSE 31) A segment may have desirable size and growth and still not offer attractive profits.

Answer: TRUE 32) Using an undifferentiated marketing strategy, a company ignores market segmentation differences and goes after the entire market with one market offer.

Answer: TRUE 33) Advertising agencies hired by the company may not like a selected position and may overtly or covertly work against it.

Answer: TRUE 34) Marketers in hospitality companies need to work to establish images that differentiate their company from competitors.

Answer: TRUE 35) Actionability is the degree to which the segment's size and purchasing power can be measured.

Answer: FALSE 36) Explain the four major segmenting variables for consumer markets.

Answer: Answers will vary.

37) Why do marketers segment the market?

Answer: Answers will vary.

38) Describe the basis for geographic segmentation.

Answer: Answers will vary.

39) What factors might make a segment more or less attractive?

Answer: Answers will vary.

40) What is the one major assumption that marketers, who use an undifferentiated marketing strategy, have made as they approach their market?

Answer: Answers will vary.

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Marketing for Hospitality and Tourism, 8e (Kotler) Chapter 9 Designing and Managing Products and Brands: Building Customer Value 1) The ________ product level answers the question of what is really being bought.

A) Core B) Supportive C) Facilitating D) Augmented Answer: A 2) The additional consumer services and benefits built around the actual product are called the: A) Core product B) Augmented product C) Facilitating product D) Supportive product Answer: B 3) In the joining phase of the customer delivery system: A) The customer arrives at the service location B) The customer consumes the service C) The customer refers new customers to the service D) The customer makes the initial inquiry contact Answer: D 4) The added value endowed on products and services is the: A) Brand equity B) Brand mark C) Brand name D) Trademark Answer: A 5) The stage of the new product development process where the number of new product ideas is reduced is called: A) Idea screening B) Business analysis C) Concept testing D) Test marketing Answer: A 6) In the ________ phase of the new product development process prototypes appear for the first time.

A) Idea generation B) Concept development C) Test marketing D) Product development Answer: D 1 Copyright © 2020 Pearson Education, Inc.

7) The final stage in the new product development process is: A) Test marketing B) Commercialization C) Idea screening D) Concept testing Answer: B 8) SSTs are a rapidly growing means for increasing customer coproduction in food-service experiences. SST stands for: A) Self-serving technique B) Self-service technology C) Sure selling technique D) Sure shot technology Answer: B 9) The differential effect that knowing the brand name has on customer response to the product and its marketing is termed: A) Brand presence B) Brand positioning C) Brand equity D) Brand liability Answer: C 10) Which of the following is NOT something to which brand should be positioned?

A) Product attributes B) Product pricing C) Product benefits D) Beliefs and values Answer: B 11) The process of sourcing ideas by inviting broad communities of people is called: A) External idea sourcing B) Crowdsourcing C) Outsourcing D) Innovating Answer: B 12) The most important source of new-product ideas is from: A) Employees B) Board members C) Customers D) Stockholders Answer: C

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13) The purpose of idea screening is: A) To generate a great number of ideas in a short time span B) To segregate ideas into categories based on brands C) To spot good ideas and drop poor ones as quickly as possible D) To differentiate between ideas based on brand presence Answer: C 14) A detailed version of an idea stated in meaningful consumer terms is defined as: A) Product idea B) Product concept C) Product image D) Product advancement Answer: B 15) When a company envisions a possible product that company managers might offer to the market, it is called: A) Product idea B) Product concept C) Product image D) Product advancement Answer: A 16) Market testing is a concept that: A) Applies to each new product equally B) Varies with each new product C) Must be implemented uniformly to each new product D) May be waived for product that are deemed cleared by the board Answer: B 17) Marketing tests give management the information it needs to make a final decision about: A) Shelving a product B) Launching a new product C) Allocating priority of the product D) Allocating budget to an existing product Answer: B 18) The dimension of atmosphere relating to volume and pitch is called: A) Vocal B) Volume C) Aural D) Visual Answer: C

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19) The stage in a product life cycle when sales growth slows or levels off is called: A) Phase out B) Out phase C) Exit phase D) Maturity Answer: D 20) Which of the following is NOT a desirable quality for a brand name?

A) It should be distinctive.

B) It should be easy to pronounce.

C) It should create a transformation.

D) It should be extendable.

Answer: C 21) Removing a product after existing stock has been depleted; used when sales for an item are low and costs exceed revenues, such as the case of a restaurant serving a crabmeat cocktail with sales of only one or two items per week.

A) Phase out B) Run out C) Exit phase D) Maturity Answer: B 22) Those services or goods that must be present for the guest to use the core product are called: A) Supporting products B) Ancillary products C) Secondary products D) Facilitating products Answer: D 23) The action taken toward a product that may cause harm or customer dissatisfaction is called: A) Run out B) Drop C) Phase out D) Maturity Answer: B 24) Prices are not able to attract new users or competitors' customers.

Answer: FALSE 25) International product and service marketers face the same challenges as domestic product and service marketers.

Answer: FALSE 26) A high-load environment creates a relaxing mood.

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27) A brand name derives its value from customer perceptions.

Answer: TRUE 28) Brand equity is a function of brand loyalty, name awareness, and other factors.

Answer: TRUE 29) The detachment phase occurs when a customer is through using a product or service and departs.

Answer: TRUE 30) A product image is a detailed version of a product idea stated in meaningful consumer terms.

Answer: FALSE 31) Facilitating products are those services or goods that must be present for the guest to use the core product.

Answer: TRUE 32) The main olfactory dimensions of atmosphere are scent and freshness.

Answer: TRUE 33) Companies can leverage an existing brand by employing co-branding and ingredient branding.

Answer: TRUE 34) Phase-out is the ideal way of removing a product from the market.

Answer: TRUE 35) It is a commonly accepted fact that some products can avoid ever entering a decline phase.

Answer: FALSE 36) Hospitality managers need to think about the product on four levels. Briefly describe each level.

Answer: Answers will vary.

37) Define a hospitality industry product.

Answer: Answers will vary.

38) Atmosphere is appreciated through the senses. Sensory terms provide descriptions for the atmosphere of a particular set of surroundings. Describe the main sensory channels.

Answer: Answers will vary.

39) Define brand. What is the importance of a brand name? Provide examples to support your answer.

Answer: Answers will vary.

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40) Each product will have a life cycle, although its exact shape and length is not known in advance. Briefly explain each step in the product life cycle.

Answer: Answers will vary.

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Marketing for Hospitality and Tourism, 8e (Kotler) Chapter 10 Internal Marketing 1) A moment of truth occurs when employees and ________ have contact.

A) Place B) Product C) Customer D) Skill Answer: C 2) Which of the following would NOT be considered a "moment of truth"?

A) Guest makes reservation with agent over the phone B) Guest pays bill by mail C) Guest checks in at front desk D) Guest is greeted by dining room serviceperson Answer: B 3) An internal marketing program requires a strong commitment from: A) Consumers B) New hires C) Management D) One to two employees Answer: C 4) The first stage in the internal marketing process should be: A) Implementation of a reward and recognition system B) Development of a marketing approach to human resource management C) Dissemination of marketing information to employees D) Establishment of a service culture Answer: D 5) In firms that have ________ cultures, there are few or no common values and norms.

A) Strong B) Diverse C) Stable D) Weak Answer: D 6) In a service-oriented organizational culture ________ are at the top of the organization.

A) Customers B) Corporate management C) Line employees D) Department heads Answer: A

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7) "Emotional labor" has been defined as: A) The emotional wear and tear on service providers when dealing with moments of truth B) The necessary involvement of the service providers emotions in delivering a service C) The cost to the company of dealing with emotional employees D) The need of employees to work hard to control their emotions Answer: B 8) ________ is when a firm moves the authority and responsibility to make decisions to the line employees from the supervisor.

A) Emotional labor B) Empowerment C) Cross training D) Service culture Answer: B 9) A pattern of shared values and beliefs that gives members of an organization meaning, providing them with the rules for behavior in the organization, is called: A) Organization Structure B) Organization Chart C) Organization Culture D) Organization's internal marketing Answer: C 10) Marketing by a service firm to train effectively and motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction, is called: A) Effective hiring protocol B) Effective empowerment C) Internal marketing D) Training Answer: C 11) A system of values and beliefs in an organization that reinforces the idea that providing the customer with quality service is the principal concern of the business, is called: A) Organizational culture B) Organization sub-culture C) Service culture D) Moment of truth Answer: C 12) An internal customer for an organization is: A) The long-term loyal customer B) The customer who takes the initiative to market the organization C) The customer who is in house at any given time D) An employee Answer: D 2 Copyright © 2020 Pearson Education, Inc.

13) Training employees to do two or more jobs within the organization, is called: A) Multiple training B) Super training C) Functional training D) Cross-training Answer: D 14) The most effective way of communicating with customers is through: A) TV ads B) Direct mails C) Customer-contact employees D) Interviews Answer: C 15) Service organizations need to hire for ________ and train for: A) Qualifications, customer satisfaction B) Skills, attitudes C) Attitudes, skills D) Qualifications, skills Answer: C 16) When a company has a service culture, the organizational chart is: A) Meaningless B) Validated C) Turned right side up D) Turned upside down Answer: D 17) An advantage of a strong culture is that it prepares employees to handle ________ transactions.

A) Routine B) Nonroutine C) Standardized D) Simulated Answer: B 18) Companies who hire large numbers of foreign employees should have all of the following EXCEPT: A) Special rewards and payrates B) On-the-job training in the spoken language C) Translation services D) Effective communication Answer: A

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19) All of the following are examples of items discussed daily briefings EXCEPT: A) New POS system B) Special hospitality events C) New menu items D) Special guests Answer: A 20) To make new employees feel welcome in the first week, organizations should make sure to do all of the following EXCEPT: A) Use bulletin boards to include the new employee B) Partner them with a more veteran employee C) Give basic tours D) Have them arrive first thing in the morning Answer: D 21) Managers must use the principles of marketing to attract and retain employees through researching and developing an understanding of: A) Employee needs B) Overhead C) The hiring process D) Human resources Answer: A 22) Techniques and procedures must be developed to ensure that employees are able to deliver high-quality service.

Answer: TRUE 23) In general, it is unnecessary to share customer comments with all employees, instead organizations should let managers know.

Answer: FALSE 24) Employees should be involved in the selection of the uniforms they wear every day.

Answer: TRUE 25) Companies commonly establish conditions for participation in stock ownership programs through ranking of the position held by the employee and the number of years employed.

Answer: TRUE 26) In the hospitality industry, most marketing activity is carried out by employees within the marketing department.

Answer: FALSE 27) Monetary motivations are the strongest form of incentives available to part-time seasonal help.

Answer: FALSE

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28) Two principle characteristics have been identified in companies that lead their industries in customer service: upselling and emotional labor.

Answer: FALSE 29) There is no relationship between guest satisfaction levels and employee turnover levels.

Answer: FALSE 30) One major barrier to internal marketing is middle management.

Answer: TRUE 31) Coworker support impacts internal relations but is not typically transmitted to the guests.

Answer: FALSE 32) When management empowers employees, responsibility to make decisions moves to the employees.

Answer: TRUE 33) An effective internal marketing program demands close cooperation between marketing and human resources.

Answer: TRUE 34) The issue of non-routine transactions will become increasingly more important.

Answer: TRUE 35) The hiring process is the attitude the employee displays when delivering the service experience.

Answer: FALSE 36) What are the three steps of the internal marketing process?

Answer: Answers will vary.

37) What are the differences between a service culture and organizational culture? How can a strong culture help an organization? How would you describe the culture of your place of employment?

Answer: Answers will vary.

38) In regard to developing a marketing approach to human resources management, what is meant by creating jobs that attract good people? Provide examples to support your response.

Answer: Answers will vary.

39) What is the importance of initial on the job training? Why is continuous and cross training so important?

Answer: Answers will vary.

40) What is meant by emotional labor?

Answer: Answers will vary.

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Marketing for Hospitality and Tourism, 8e (Kotler) Chapter 11 Pricing: Understanding and Capturing Customer Value 1) If a server in a restaurant convinces a patron to buy a t-shirt at the front counter, they are: A) Upselling B) Cross-selling C) Split-selling D) Overselling Answer: B 2) For which goods could the demand slope curve upward?

A) Necessary goods B) Prestige goods C) Discretionary goods D) Most goods Answer: B 3) Which of the following is an example of an elastic demand situation?

A) Demand rises 4% if price falls 6% B) Demand falls 8% when price increases 5% C) Demand rises 7% if price falls 10% D) Demand falls 7% when price increases 9% Answer: B 4) The factor that sets the floor for a product's price is: A) Elasticity B) Quality C) Availability D) Cost Answer: D 5) In the short run, the most important pricing strategy is: A) Survival B) Penetration C) Profit maximization D) Sales maximization Answer: A 6) Which of the following is NOT a factor affecting price sensitivity?

A) Total expenditure effect B) Customer satisfaction effect C) End-benefit effect D) Unique value effect Answer: B

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7) The basic break-even price is: A) Variable costs divided by selling price B) Fixed costs divided by selling price C) Fixed costs divided by contribution D) Contribution divided by variable costs Answer: C 8) Charging $0.99 instead of $1.00, or using 3s in the price instead of 7s, is an attempt to engage in: A) Competition-based pricing B) Psychological pricing C) Yield management D) Price discrimination Answer: B 9) Which of the following statements is TRUE? A) Price points are rare if not non-existent in the hospitality industry.

B) Today, yield management is used by everyone.

C) Excess capacity is a good reason to cut prices.

D) Business travelers are usually more price-sensitive than pleasure travelers.

Answer: C 10) Hotels often use this strategy when the economy slumps: A) Price gouging B) Survival C) Price hike D) Price maintenance Answer: B 11) In the first few months upon opening a new hotel, a hotel company wanting to achieve market share leadership is most likely to: A) Try to influence supply B) Try to influence demand by offering buy three nights, get fourth free, packages C) Use low opening rates to influence demand D) Charge a high price Answer: C 12) A restaurant seeking to establish an exclusive clientele is likely to: A) Deflate food and beverage prices B) Inflate food and beverage prices C) Keep prices similar to other restaurants in the area D) Use geographic marketing techniques Answer: B

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13) Costs that do NOT vary with production levels are called: A) Non-operating costs B) Variable costs C) Fixed costs D) Permanent costs Answer: C 14) With increased demand, or higher guest/customer traffic, the total costs are likely to: A) Increase B) Decrease C) Stay the same D) Remain undetermined Answer: A 15) A hotel trying to sell its food and beverage facilities, meeting rooms, retails, etc. to its guests, is an example of: A) Up-selling B) Down-stream selling C) Cross-selling D) Internal promotion Answer: C 16) When employees try to sell a higher priced alternative to a potential customer, it is called: A) Up-selling B) Down-stream selling C) Cross-selling D) Internal promotion Answer: A 17) An executive fully reimbursed for all travel expenses is most likely to be attracted to a(n): A) Discount rate offer for a hotel room and a free breakfast the next day B) Discount rate offer for a hotel room and a restaurant offering a $9.99 dinner special C) Limited service property with free breakfast and free evening cocktails D) Upscale hotel, having a room-service breakfast, and eating lunch and dinner in a more expensive restaurant.

Answer: D 18) Customers are more price-sensitive when the price of the product accounts for a large share of the total cost of the: A) Flight ticket B) Perceived benefit C) End benefit D) Monthly budget Answer: C

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19) The more someone spends on a product, the more ________ he or she is to the product's price.

A) Sensitive B) Insensitive C) Neither sensitive nor insensitive D) Comfortable Answer: A 20) During periods of weak demand, very few competitors escape the effect of a ________ market.

A) Weak B) Strong C) Volatile D) Spiraling Answer: A 21) The establishment of price based largely on those of competitors, is called: A) Cost based pricing B) Value based pricing C) Going-rate pricing D) Break-even pricing Answer: C 22) The strategy of setting a high price when the market is price-insensitive, is called: A) Market-penetration pricing B) Market skimming pricing C) Target profit pricing D) Going-rate pricing Answer: B 23) Pricing based on segmentation of the market and pricing differences based on price elasticity characteristics of these segments, is called: A) Elasticity pricing B) Inelastic pricing C) Market segmentation D) Discriminatory pricing Answer: D 24) With a product or service price change, the action affects buyers, however, competitors, distributors, and suppliers are insulated from the price change affects.

Answer: FALSE 25) A restaurant seeking to establish a heavy demand is likely to offer high quality products for high prices.

Answer: FALSE

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26) Upselling is part of effective revenue management.

Answer: TRUE 27) Fixed costs are the same as overhead.

Answer: TRUE 28) When pricing, creative judgment can be as important as technical expertise.

Answer: TRUE 29) Target profit pricing refers to the profit a company can make from a particular target market.

Answer: FALSE 30) Value-based pricing is based on the seller's perception of value.

Answer: FALSE 31) Product-bundling involves combining several products into a package with a reduced price.

Answer: TRUE 32) Value-pricing is a very safe way to price.

Answer: FALSE 33) One major benefit to yield management is that it is removed from any ethical problems.

Answer: FALSE 34) Going-rate pricing is an example of competition-based pricing.

Answer: TRUE 35) A firm considering a price change has to worry about competitors' reactions.

Answer: TRUE 36) Identify and define the internal factors affecting a firm's pricing decisions.

Answer: Answers will vary.

37) How important is price among the elements of the marketing mix?

Answer: Answers will vary.

38) What can a business learn from a demand curve for their product?

Answer: Answers will vary.

39) Which costs come together to make up a product's total cost?

Answer: Answers will vary.

40) What do we know about a product when we understand its price elasticity? What determines the price elasticity of demand?

Answer: Answers will vary.

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Marketing for Hospitality and Tourism, 8e (Kotler) Chapter 12 Distribution Channels Delivering Customer Value 1) One function of the distribution channel is ________, which involves gathering and distributing marketing research and intelligence.

A) Contact B) Information C) Matching D) Physical distribution Answer: B 2) Which of the following is NOT a function of the distribution channel?

A) Risk taking B) Promotion C) Linking D) Financing Answer: C 3) All of the following are considered marketing intermediaries EXCEPT: A) Independent contractors B) Travel agents C) Consortia D) Tour wholesalers Answer: A 4) Supranational, Logis de France and Leading Hotels of the World are examples of: A) Consortia B) Associations C) Global distribution systems D) Alliances Answer: A 5) ________ are computerized reservation systems that serve as a product catalog for travel agents and other distributors of hospitality products.

A) Consortia B) Concierges C) Global distribution systems D) Internet sites Answer: C 6) ________ provide incentive travel for employees and distributors.

A) Motivational houses B) Concierges C) Junket reps D) Consortia Answer: A 1 Copyright © 2020 Pearson Education, Inc.

7) The first step in selecting a location for a hotel is: A) Regional analysis B) Selection of an individual site C) Understanding the target market of the company D) Selection of an area within a region Answer: C 8) In a supply chain, "upstream" from the company is a set of firms that: A) Market the product B) Provide distribution channels C) Provide retail networks D) Provide expertise in product creation Answer: D 9) In a supply chain, "downstream" from the company is a set of firms that: A) Supply the raw material B) Supply information C) Provide financing D) Provide a connection between the firm and its customers Answer: D 10) Which of the following is NOT a function of the distribution channel?

A) Gathering marketing research B) Providing consulting on feasibility of new products C) Customizing orders to customers' needs D) Storage Answer: B 11) Which of the following is the least expensive distribution channel for hotel rooms?

A) Brand.com B) Consortia C) Global distribution system D) Online travel agent Answer: A 12) Which of the following is the most expensive distribution channel for hotel rooms?

A) Brand.com B) Consortia C) Global distribution system D) Online travel agent Answer: D

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13) Distribution specialists that serve the casino industry as intermediaries for premium players are called: A) Casino distribution specialists B) Motivations houses C) Junket reps D) Leisure tour brokers Answer: C 14) Distribution specialists that provide incentive travel offered to employees or distributors as a reward for their efforts are called: A) Casino distribution specialists B) Motivations houses C) Junket reps D) Leisure tour brokers Answer: B 15) In channel conflicts, conflicts between different levels of the same channel are termed: A) Vertical conflict B) Horizontal conflict C) Diagonal conflict D) Recurring conflict Answer: A 16) A ________ consists of producers, wholesalers, and retailers acting as a unified system.

A) Vertical Marketing System B) Horizontal Marketing System C) Multi-channel Marketing System (MMS) D) Consortia Answer: A 17) Which of the following is NOT an advantage of a franchise to the franchisee?

A) Brand recognition B) Financing assistance C) Royalties D) Architectural plans Answer: C 18) When two or more companies at one level join to follow a new marketing opportunity, it is termed: A) Vertical Marketing System B) Horizontal Marketing System C) Multi-channel Marketing System (MMS) D) Consortia Answer: B

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19) When a single firm sets up two or more marketing channels to reach one or more customer segments, it is termed: A) Vertical Marketing System B) Horizontal Marketing System C) Multi-channel Marketing System D) Consortia Answer: C 20) Which of the following is NOT a marketing intermediary?

A) Travel agents B) Tour operators C) Government tourist associations D) Concierges Answer: D 21) All of the following are examples of agreements between channel members EXCEPT: A) Location B) Type of rates C) Amount of commission D) Maintenance of company standards Answer: A 22) An advantage of using multiple channels is that it does not incur any additional costs.

Answer: FALSE 23) Location represents one of the most critical aspects of distribution for hospitality.

Answer: TRUE 24) Using sales representatives offers better control than building your own sales force.

Answer: FALSE 25) A direct marketing channel has no intermediary level.

Answer: TRUE 26) There are several types of flows that connect all the institutions in the channel.

Answer: TRUE 27) What is good for one member of the channel may not be good for another.

Answer: TRUE 28) Priceline is an example of a company that uses a system where the buyer cannot specify any particular brand of hotel or airline.

Answer: TRUE 29) The primary reason for the use of intermediaries is their superior efficiency in making goods available and accessible to target markets.

Answer: TRUE 4 Copyright © 2020 Pearson Education, Inc.

30) Franchising is an example of a corporate VMS. Answer: FALSE 31) Alliances are informal agreements between two organizations that stand to benefit from each other's strengths.

Answer: TRUE 32) To date, the restaurant industry has had little use for the Internet as a distribution channel.

Answer: FALSE 33) Vertical conflict in a channel occurs between firms at the same level in the channel.

Answer: FALSE 34) Franchising works well in the restaurant industry but has had limited success in the hotel industry.

Answer: FALSE 35) Why is the phrase "value delivery network" a more relevant expression than "supply chain" or "demand chain"?

Answer: Answers will vary.

36) How do channel members such as travel agents, wholesalers, hotel representatives and other agencies add value to a marketing system?

Answer: Answers will vary.

37) What are the five key functions that members of the marketing channel perform to complete transactions and to help fulfill the completed transaction?

Answer: Answers will vary.

38) What are two types of channel conflict? Give an example of each.

Answer: Answers will vary.

39) What is a vertical marketing system? Explain channel power in a vertical marketing system.

Answer: Answers will vary.

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Marketing for Hospitality and Tourism, 8e (Kotler) Chapter 13 Engaging Customers and Communicating Customer Value and Advertising 1) The first stage of the promotion process is: A) Selecting the communication channels B) Selecting the message source C) Identifying the target audience D) Determining the communication objectives Answer: C 2) In the buyer readiness process, the state that immediately precedes purchase is: A) Preference B) Knowledge C) Conviction D) Liking Answer: C 3) The type of message appeal that relates to an audience's self-interest is: A) Emotional B) Moral C) Economic D) Rational Answer: D 4) The most logical method of setting the promotion budget is the: A) Most affordable method B) Objective and task method C) Percentage of sales method D) Competitive parity method Answer: B 5) The ________ method of promotion budgeting views sales as the cause of promotion rather than as the result.

A) Competitive parity B) Objective and task C) Affordable D) Percentage of sales Answer: D 6) The promotional tool that rewards customers for a quick, short-term response is: A) Public relations B) Sales promotions C) Personal selling D) Advertising Answer: B

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7) When hospitality firms market to general consumer markets, the least used element of the promotion mix is: A) Personal selling B) Public relations C) Advertising D) Sales promotions Answer: A 8) ________ advertising is used when introducing a new product.

A) Suggestive B) Persuasive C) Reminder D) Informative Answer: D 9) ________ is a measure of the percentage of people in the target market who are exposed to an ad campaign over a given period of time.

A) Impact B) Frequency C) Reach D) Penetration Answer: C 10) Viral marketing messages have a higher chance of being opened because they are coming from a: A) Friend B) Known sale associate C) Reliable advertisement media D) Previously known advertisement media Answer: A 11) Which of the following does NOT comprise a promotion mix?

A) Advertising B) Personal selling C) Viral marketing D) Public relations Answer: C 12) The process by which the receiver assigns meaning to the symbols encoded by the sender is called: A) Communication B) Reception C) Decoding D) Messaging Answer: C

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13) The unplanned static or distortion during the communication process, which results in the receiver getting a different message than the one the sender sent, is called: A) Loss of signal quality B) Excessive feedback C) Echo D) Noise Answer: D 14) The four pillars of the AIDA model of communication design are: A) Attention, Interest, Desire, Action B) Attention, Inclination, Desire, Action C) Attention, Inclination, Designation, Action D) Attention, Interest, Designation, Action Answer: A 15) Which of the following is NOT an example of a sales promotion?

A) Coupon B) Contests C) Personal selling D) Cents-off deals Answer: C 16) Which of the following is NOT an example of direct marketing?

A) Mail B) Catalogs C) Online marketing D) TV advertisement Answer: D 17) Which of the following is NOT a major department in an advertising agency?

A) Accounts Receivable B) Creative C) Media D) Business Answer: D 18) ________ advertising is used heavily when introducing a new product category and when the objective is to build primary demand.

A) Persuasive B) Informative C) Research D) Media Answer: B

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19) ________ advertising is used for mature products.

A) Informational B) Content based C) Reminder D) Follow up Answer: C 20) Which of the following media types is likely to cost the most?

A) Newspaper B) Television C) Magazine D) Radio Answer: B 21) Scheduling ads evenly within a given period, is called: A) Pacing B) Balancing C) Continuity D) Pulsing Answer: C 22) To spend a large advertising budget wisely, advertisers must do all of the following EXCEPT: A) Create a good message B) Make media decisions C) Increase budget projections D) Evaluate the results Answer: C 23) ________ is the process of measuring the communication effects for a given ad.

A) Copy testing B) Continuity testing C) Scoping D) Quantify testing Answer: A 24) International advertisers face many complexities not encountered by domestic advertising such as the degree to which global advertising should be adapted to various country markets.

Answer: TRUE 25) Many brands hold contests for consumer created advertisements.

Answer: TRUE 26) Many companies set the promotional budget at what they think they can afford, which can make long-range planning difficult.

Answer: TRUE 4 Copyright © 2020 Pearson Education, Inc.

27) The objective and task method of budgeting defines specific objectives, determines tasks that must be performed, and estimates the cost of performing them.

Answer: TRUE 28) Sales promotions are most effective in building long-run brand preferences.

Answer: FALSE 29) A large advertising budget guarantees a successful advertising campaign.

Answer: FALSE 30) When marketing activities are directed at channel members a pull strategy is being used.

Answer: FALSE 31) One major disadvantage of public relations is its lack of believability.

Answer: FALSE 32) Today, fewer companies are adopting the concept of integrated marketing communications.

Answer: FALSE 33) Atmospheres are considered to be a personal form of communication.

Answer: FALSE 34) The purpose of persuasive advertising is to build selective demand.

Answer: TRUE 35) The intangibility of the hospitality product creates many advertising problems.

Answer: TRUE 36) A company's total marketing communications mix–also called its promotion mix–consists of the specific blend of five different parts. Name and define these parts.

Answer: Answers will vary.

37) Companies are adopting the concept of integrated marketing communications (IMC). Here the company carefully integrates its many communications channels to deliver a clear, consistent, and compelling message about two things. Identify and discuss what they are.

Answer: Answers will vary.

38) Outline the steps in developing effective marketing communications.

Answer: Answers will vary.

39) How does a company set its promotion budget and design their promotion mix?

Answer: Answers will vary.

40) How does a push strategy and pull strategy work in a promotion mix?

Answer: Answers will vary.

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Marketing for Hospitality and Tourism, 8e (Kotler) Chapter 14 Promoting Products: Public Relations and Sales Promotions 1) The best measure used in evaluating the success of public relations is to: A) Consider its direct impact to the consumer B) Conduct surveys of buyer awareness C) Determine the effect on sales and profit D) Count the number of media exposures Answer: C 2) Public relations campaigns can contribute to all but which of the following objectives?

A) Build awareness B) Stimulate the salesforce C) Build credibility D) Replace most other promotion costs Answer: D 3) ________ covers internal and external communications and promotes understanding of the organization: A) Corporate communication B) Lobbying C) Counseling D) News Answer: A 4) Cause-related marketing is directly used to create: A) Awareness B) Goodwill C) Sales D) Satisfaction Answer: B 5) ________ are certificates that offer buyers savings when they purchase specific products.

A) Coupons B) Samples C) Premiums D) Flyers Answer: A 6) ________ crises give warning before they occur.

A) Smoldering B) Superficial C) Sensitive D) Sudden Answer: A

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7) Frequent guest points that hotel guests build up for repeat stays are an example of: A) Samples B) Point-of-purchase promotions.

C) Patronage rewards D) Premiums Answer: C 8) ________ are goods offered at a low price to encourage the purchase of other goods.

A) Samples B) Patronage rewards C) Premiums D) Point-of-purchase promotions Answer: C 9) All of the following are objectives of the sales promotion process EXCEPT: A) Luring customers away from the competition B) Enticing customers to try a new product C) Increasing short-term sales D) Reducing bad publicity Answer: D 10) Free goods, cooperative advertising, and push money are examples of: A) Consumer promotion B) Sales force promotion C) Trade promotion D) Competitor promotion Answer: C 11) Which of the following is NOT a PR technique?

A) News events B) Publications C) Telemarketing D) Community relations Answer: C 12) Corporate communications promotes understanding of the organization and covers: A) Only external communication B) Only internal communication C) Both internal and external communication D) Mostly external communication Answer: C

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13) Short-term incentives to encourage the purchase or sale of a product or service are called: A) Media promotions B) PR blasts C) Sales promotions D) Advertisements Answer: C 14) Goods offered either free or at low cost as an incentive to buy a product are called: A) Premiums B) Promotional materials C) Samples D) Push money Answer: A 15) All of the following are examples of possible products used in publicity efforts EXCEPT: A) Food festival B) New chef introduction C) New airline route D) Nonfat desserts Answer: B 16) Advising management about public issues and company positions and image is called: A) Media guidance B) Counseling C) Media selection D) Public relations Answer: B 17) Marketing PR contributes to all of the following objectives EXCEPT: A) Stimulate channel intermediaries B) Lower promotion costs C) Build awareness and credibility D) Prevent negative word of mouth Answer: D 18) All of the following are possible sales promotion objectives EXCEPT: A) Increase short-term sales B) Build long-term market share C) Improve product design D) Obtain new customers Answer: C

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19) Besides stimulating sales of a mature product, coupons are also used to: A) Promote new product trials B) Edge out the competition C) Reduce overhead D) Enter price wars Answer: A 20) ________ are cash or other rewards for regular use of a company's products or services.

A) Promotional packages B) Premiums C) Push cash D) Patronage rewards Answer: D 21) Advertising and a telemarketing campaign played a major role in recovering from a natural disaster that flooded Calgary weeks before the Calgary Stampede in 2013.

Answer: FALSE 22) Publicity is typically seen as more credible because it is seen as third-part information.

Answer: TRUE 23) Nazare, Portugal lost thousands of visitors as a result of climate change impacting the size of the waves on the coast that used to attract extreme surfers.

Answer: FALSE 24) PR is the most important promotional tool available to entrepreneurs and individual properties.

Answer: TRUE 25) Lobbyists' only role is to promote new legislation and regulation.

Answer: FALSE 26) In the event of a crises, a company spokesperson should make timely statements to keep the press updated and express "no comment" or "I don't know at this time" if the information has not yet been clarified.

Answer: FALSE 27) The town of Cheshire, UK attracted visitors by repositioning into a railway-based destination.

Answer: TRUE 28) Quantity is more important than quality when it comes to PR and publicity.

Answer: FALSE 29) PR efforts are a reflection of organic and planned company activities that create newsworthy stories.

Answer: TRUE 4 Copyright © 2020 Pearson Education, Inc.

30) In the past, it was common for the marketing function and PR function to be handled by different departments in a firm.

Answer: TRUE 31) Advertising costs are continuing to rise and audience reach is continuing to fall.

Answer: TRUE 32) Corporate communications is a branch of public relations that is limited to business-tobusiness publicity.

Answer: FALSE 33) Tourist destinations are hospitality components relatively unaffected by negative publicity.

Answer: FALSE 34) As a part of good crisis management a firm should appoint a spokesperson to ensure the delivery of a consistent story.

Answer: TRUE 35) When a crisis does occur, it is in the company's best interest to alert the media.

Answer: TRUE 36) The first step in the sales promotion process is setting the conditions for participation.

Answer: FALSE 37) PR costs less than direct mail and media advertising.

Answer: TRUE 38) Describe the 5 activities performed by the public relations department.

Answer: Answers will vary.

39) Define publicity. In what ways is it a popular public relations tool? How is a press release used for publicity?

Answer: Answers will vary.

40) What are the six major steps in the public relations process?

Answer: Answers will vary.

41) What are some public relations opportunities for the hospitality industry?

Answer: Answers will vary.

42) What are sales promotions? Provide examples.

Answer: Answers will vary.

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Marketing for Hospitality and Tourism, 8e (Kotler) Chapter 15 Professional Sales 1) Standards stating the amount a salesperson should sell are called: A) Performance measures B) Sales quotas C) Incentive programs D) Profit goals Answer: B 2) Which of the following is NOT an activity or task that a sales representative performs for their company?

A) Selling B) Staging C) Servicing D) Prospecting Answer: B 3) The first step in the personal selling process is: A) Prospecting B) Closing C) The presentation D) The approach Answer: A 4) If one sales team concentrates on the association business while another team concentrates on the corporate market a ________ sales force structure is being used.

A) Territorial-structured B) Customer-structured C) Market-channel-structured D) Market-segment-structured Answer: D 5) Members of a sales force need three types of training: product/service, policies and procedures, and: A) Market B) Territorial C) Revenue/expense D) Sales techniques Answer: D

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6) Sales representatives deciding how to allocate their scarce time among prospects and customers is known as: A) Prospecting B) Targeting C) Selling D) Servicing Answer: B 7) When Sales representatives find and cultivate new customers, it is called: A) Prospecting B) Selling C) Targeting D) Servicing Answer: A 8) The two common approaches used to determine appropriate competitive set or cluster for a hotel are: A) ADR and RevPAR B) Occupancy and RevPAR C) Product Type and Occupancy D) ADR and Product Type Answer: D 9) Which one of the following is NOT a good measure of sales volume within the hospitality industry?

A) Occupancy B) Passenger miles C) Total covers D) Inventory Answer: D 10) ________ responsibility increases the sales representative's incentive to cultivate local business and personal ties.

A) Territorial B) Departmental C) Structural D) Social Answer: A 11) Which of the following is NOT a way to structure a sales organization?

A) Product based B) Market segment based C) Employee based D) Customer based Answer: C

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12) Which of the following is a good way to develop prospects?

A) Getting a competitor's database B) Having a booth at a trade show C) Reading comment cards D) Analyzing the profit and loss statements Answer: B 13) The ________ department should be trained to make inquiries of guests representing companies to find out if more business exists from those companies.

A) Housekeeping B) Reservations C) Front Desk D) Accounting Answer: B 14) A basic model of motivating sales representatives is: A) effort → motivation → performance → rewards → satisfaction B) motivation → effort → performance → satisfaction → rewards C) motivation → effort → performance → rewards → satisfaction D) effort → motivation → performance → satisfaction → rewards Answer: C 15) Which of the following is NOT a way to improve trade show effectiveness?

A) Construct a mailing list of prospects using in-house information of the list of expected visitors from the trade show management company.

B) Avoid recording any visitor contacts due to privacy considerations.

C) Follow up with qualified prospects after the show.

D) Send letters to prospective buyers Answer: B 16) Which of the following is NOT a key indicator of sales performance?

A) Average sales calls per salesperson per day B) Entertainment cost per sales call C) OTA reservation percentage D) Number of lost customers per period Answer: C 17) Which of the following are NOT part of the inside sales force?

A) Technical support B) Sales assistants C) Sales agents D) Telemarketers Answer: C

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18) All of the following are roles of the salesperson EXCEPT: A) Conducting payroll B) Allocating the product C) Counseling unhappy customers D) Selling other products in the company Answer: A 19) Sales force objectives ensure that corporate goals are met. Goals may include revenue, improved corporate image, and: A) Employee engagement B) Internal marketing C) Market share D) QA scores Answer: C 20) Which of the following is an advantage of pursuing a sales career in the hospitality industry?

A) Wealth from commissions and bonuses B) Personable clients C) Highly competitive D) Intermittent hours Answer: B 21) The field of selling requires encouragement and special incentives to work at the best level for all the following reasons EXCEPT: A) Human nature B) Long hours C) Personal problems D) Nature of the job Answer: B 22) The only real goal of the salesperson is to produce sales.

Answer: FALSE 23) The two issues in designing territories are territory size and territory shape.

Answer: TRUE 24) One advantage of the territorial-structured sales force approach is that territorial responsibility will increase the salesperson's incentive to cultivate local business.

Answer: TRUE 25) Electronic selling is still not very entrenched in the hospitality industry.

Answer: FALSE 26) Prospecting is the process of searching for new accounts.

Answer: TRUE

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27) One major objection to buying salespeople often have to overcome is the price of their product.

Answer: TRUE 28) When business risks cannot be accurately predetermined, you negotiate.

Answer: TRUE 29) Putting presentation skills secondary to customer-needs analysis skills is the key to the salesoriented approach to selling.

Answer: FALSE 30) Closing sales has more to do with professionalism than anything else.

Answer: TRUE 31) Sales managers are not responsible for selecting the competitive set and are therefore not accountable for the comparative sales analysis.

Answer: FALSE 32) Sales managers should focus on the actions and results of the competition.

Answer: FALSE 33) Strategic alliances are a rare form of relationship marketing that combines vendors and buyers into binding contracts.

Answer: FALSE 34) Salespeople working with people under relationship marketing should monitor key accounts, know their problems, give extra service, and become part of the client's team.

Answer: TRUE 35) Effective salespeople have two basic qualities: passion and team-orientation.

Answer: FALSE 36) Describe six classifications of sales positions that have applications in the hospitality industry.

Answer: Answers will vary.

37) Sales personnel serve as a company's link to customers. Personal selling is often the most effective, albeit costly, tool. What tasks do sales representatives perform for their companies?

Define each.

Answer: Answers will vary.

38) Why is establishing objectives for sales force important?

Answer: Answers will vary.

39) What are inside salespeople? Discuss the various types of inside sales people and the importance of each in the hospitality industry.

Answer: Answers will vary.

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40) When and where is team selling advantageous? What are its pros and cons?

Answer: Answers will vary.

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Marketing for Hospitality and Tourism, 8e (Kotler) Chapter 16 Direct, Online, Social Media, and Mobile Marketing 1) Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships are known as: A) Consumer marketing B) Network marketing C) Direct marketing D) Growth marketing Answer: C 2) The buying or selling process that is supported by electronic means is known as: A) E-mail B) E-commerce C) The Internet D) Viral marketing Answer: B 3) A central repository of an organization's customer information is known as: A) E-commerce B) Direct mail marketing C) Data warehouse D) Direct marketing Answer: C 4) Interchanges of ideas in forums and Internet news groups are functions of which domain?

A) Consumer-to-business (C2B) B) Business-to-consumer (B2C) C) Business-to-business (B2B) D) Consumer-to-consumer (C2C) Answer: D 5) Which of the following is NOT a form of direct marketing?

A) Telephone marketing B) Marketing Web site C) Direct mail marketing D) Kiosk marketing Answer: B 6) Which of the following is a reason direct marketing has grown?

A) Low cost B) Loss of other marketing methods C) Relaxed laws D) Precision targeting Answer: D

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7) In periods of low demand, companies can use direct marketing to target ________ customers and produce quick results.

A) New B) Developing C) Known D) Growing Answer: C 8) Which of the following is NOT a way to measure Direct-marketing efforts?

A) Communication impact B) Internal promotion C) The number of inquiries generated D) The ratio of conversions or purchases realized from inquiries generated Answer: B 9) Effective direct marketing begins with a good: A) Competitive plan B) Customer database C) Management team D) Shareholder meeting Answer: B 10) Data mining predicts all of the following EXCEPT: A) Which customers are most likely to respond to an offer B) How to segment a market C) The occupancy and ADR of a hotel D) The company's most loyal customers Answer: C 11) Online ________ is perhaps the number one e-commerce concern.

A) Piracy B) Theft C) Privacy D) Booking Answer: C 12) All of the following factors influence the transformation of direct marketing EXCEPT: A) New internet and networking protocols B) New computing devices C) Social media tools and online communities D) New governmental agencies and regulations Answer: D

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13) All of the following are benefits of direct and digital marketing to buyers EXCEPT: A) Low-cost B) Convenience C) Access D) Personalize Answer: A 14) The information on a brand Web site is persuasive in nature and provides the ________ to support a customer's purchase.

A) Intellect B) Preference C) Contribution D) Information Answer: D 15) ________ reflects the ability of a Web site to encourage customers to stay on the Web site instead of leaving the Web site.

A) Capture B) Stay rate C) Stickiness D) Continuance Answer: C 16) All of the following are goals of online advertising EXCEPT: A) Build brand sales B) Create improved product offerings C) Consolidate traffic to the company Web site D) Consolidate traffic to the company social media platforms Answer: B 17) Which of the following is a challenge associated with the use of social media marketing?

A) Effectiveness B) Competition C) Redundancy D) Effort Answer: A 18) Which of the following is an important use of mobile device engagement platforms in the hospitality industry?

A) Creativity stage B) Product development stage C) Pre-arrival stage D) Competition stage Answer: C

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19) All of the following are uses for customer databases EXCEPT: A) Identify the best customers B) Generate sales leads C) Learn about purchasing behavior D) Combat the competition Answer: D 20) Viral marketing uses banners on Web pages to advertise.

Answer: FALSE 21) Pop-up ads are the Internet version of word-of-mouth marketing that are so infectious that customers will want to pass them along to friends.

Answer: FALSE 22) Even with the advent of Internet marketing, the role of direct marketing has stayed the same.

Answer: FALSE 23) Viral marketing can be very expensive and is ineffective.

Answer: FALSE 24) Online marketing is not a growth area of direct marketing.

Answer: FALSE 25) Search related or contextual advertising is not a growth area for online advertising.

Answer: FALSE 26) One problem with database management is that a company may have a number of databases that do not talk to each other.

Answer: TRUE 27) Data mining is the systematic removal of bad information from the database.

Answer: FALSE 28) Direct marketing channels contain no intermediaries.

Answer: TRUE 29) Face-to-face, direct-mail, catalog, telemarketing, and kiosk marketing are major forms of digital and social media marketing.

Answer: FALSE 30) Companies find it easy to promote their brands online and to communicate information about their products and services.

Answer: TRUE 31) An important element in the development of digital marketing is the ability to synchronize content on a customer's multiple devices.

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32) A company Web site represents the integrated platform that supports all other promotional and retail activities.

Answer: TRUE 33) Social media marketing represents a feasible solution to the natural intangibility of hospitality products and services.

Answer: TRUE 34) Advantages of social media marketing include personalization, interactivity, timeliness, and sharing.

Answer: TRUE 35) UGC influences consumers to switch brands and products.

Answer: TRUE 36) Explain the major benefits of direct marketing.

Answer: Answers will vary.

37) Describe the uses and importance of the different elements of online marketing.

Answer: Answers will vary.

38) Explain the concept of viral marketing.

Answer: Answers will vary.

39) Explain how and why Web communities and social networks have developed on the Internet.

How can the hospitality industry use them?

Answer: Answers will vary.

40) Internet marketing practices have raised a number of ethical and legal questions. Why is online privacy perhaps the number one e-commerce concern?

Answer: Answers will vary.

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Marketing for Hospitality and Tourism, 8e (Kotler) Chapter 17 Destination Marketing 1) Which of the following would be considered a macrodestination?

A) The United States B) New York City C) The Eiffel Tower D) Disney World Answer: A 2) Which of the following is NOT a benefit of tourism?

A) Employment B) Stimulates exports C) Source of taxes D) Decline in population Answer: D 3) All of the following are tourist classifications EXCEPT: A) Drifters B) Eccentrics C) Explorers D) Bleisure Answer: B 4) Which of the following destinations would allocentrics most likely visit?

A) Mexican rain forest B) Kansas C) New York City D) Europe Answer: A 5) Which of the following is NOT a responsibility of National Tourism Organizations?

A) Flow of research data B) Infrastructure development C) Consumer assistance and protection D) Familiarization trips Answer: B 6) The travel segment where people have the least influence over their travel experience once it begins is the: A) Education and religious traveler B) Pass-through tourist C) Business traveler D) Group mass tourist Answer: D

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7) Psychocentrics are best described as: A) People with a need for new experiences B) People who do not travel C) People who like to travel regularly D) People who do not desire change when they travel Answer: D 8) The two major strategies used by tourist destinations to attract visitors are: A) Cleanliness and proximity B) Infrastructure and climate C) Group and individual tours D) Events and attractions Answer: D 9) The top three tourism destinations in the world are: A) China, France, and India B) China, Spain, and Turkey C) Malaysia, Mexico, and United States D) France, Germany, and Spain Answer: D 10) The benefit of tourism where tourist expenditures are recycled through the local economy, is called: A) Multiplier effect B) Secondary effect C) Tertiary economic impact D) Primary economic impact Answer: A 11) ________ and attractions are the two primary strategies used by tourist destinations to attract visitors.

A) Hotels B) Events C) Monuments D) Historic preserves Answer: B 12) Which of the following is NOT a psychological determinant of travel demand?

A) Prestige B) Escape C) Social interaction D) Conventions Answer: D

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13) Self-discovery is one of the ________ determinants of travel demand.

A) Metaphysical B) Physiological C) Psychological D) Natural Answer: C 14) ________ is one of the fastest growing and most lucrative segments of tourism.

A) Medical tourism B) Religious tourism C) Volunteer tourism D) Hiking tourism Answer: A 15) A trip where travel agents or others who can send business to a tourist destination attraction, cruise, or hotel are invited to visit at a low cost or no cost, is called: A) Familiarization trip B) Introduction trip C) Goodwill trip D) Promotional trip Answer: A 16) In order to promote movie-induced tourism, DMOs engage in all of the following marketing activities EXCEPT: A) Encourage producers to film at the destination B) Generate ongoing publicity around the film and destination C) Develop activities focused around the film D) Provide tax incentives to film producers Answer: D 17) All of the following are trends in external environment that influence elements of the marketing system and destination competitiveness EXCEPT: A) Exchange rates B) Employee wages C) Disease outbreaks D) Fuel costs Answer: B 18) Destination benchmarking should include the following elements: A) Visitor satisfaction, brand recognition, market share B) Destination image, number of visitors, terrorism events C) Revenue generated, visitor loyalty, population growth D) DMO performance, sustainable growth, population decline Answer: A

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19) Which of the following is an example of a modified environment for ecotourism?

A) Natural vegetation instead of manicured lawns B) Towel reuse program in hotels C) Sales taxes to build tourist-related infrastructure D) Local school outreach programs Answer: A 20) Destinations have no form of actual or perceived boundary.

Answer: FALSE 21) Entry into the tourism market is open, so new destinations have a chance at gaining a market.

Answer: TRUE 22) The long-run success of tourism will depend on continual development of man-made attractions.

Answer: TRUE 23) It is possible that destinations experience a life cycle much like the product life cycle, with successful periods followed by decline and/or destruction.

Answer: TRUE 24) Eco-tourism is viewed as a kind of sustainable tourism.

Answer: TRUE 25) Longer vacations are becoming more frequent and shorter vacations less frequent.

Answer: FALSE 26) Stopovers do not count as tourists.

Answer: FALSE 27) People visiting friends and relatives should count as tourists, even if they stay at a private home.

Answer: TRUE 28) Seaside destination marketers have found it is advantageous to show beaches with no one on them as a way of creating the image of the tourist being alone.

Answer: FALSE 29) The "100% Pure" destination branding campaign in New Zealand had a large impact on tourism perceptions but minimalized the country's economic diversity.

Answer: FALSE 30) When ranking top tourist destinations, one should consider two key tourism indicators– international tourist arrivals and international tourism receipts.

Answer: TRUE

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31) Destination marketing is more challenging than marketing other products because a destination is a bundle of highly diverse products, including geographic size, attractions, accommodation, food and beverage, and entertainment.

Answer: TRUE 32) Attractions alone do not attract visitors.

Answer: TRUE 33) Destination competitiveness requires an understanding of two important concepts: comparative and growth advantages.

Answer: FALSE 34) Destinations should consider the triple bottom line–economic, social/cultural, and environmental–when it comes to product development, competitiveness, and marketing.

Answer: TRUE 35) UNESCO helps tourists select destinations that work to conserve sites of outstanding cultural or natural importance by listing tourism destinations that meet necessary preservation requirements.

Answer: TRUE 36) Why is tourism such an important aspect of the hospitality industry? (Provide examples to support your response.)

Answer: Answers will vary.

37) What is meant by sustainable tourism?

Answer: Answers will vary.

38) Compare and contrast tourism events and tourism attractions.

Answer: Answers will vary.

39) How does a destination recognize its natural target market?

Answer: Answers will vary.

40) Discuss the roles of National Tourism Organizations.

Answer: Answers will vary.

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Marketing for Hospitality and Tourism, 8e (Kotler) Chapter 18 Next Year's Marketing Plan 1) Which of the following is NOT an environmental factor on hospitality organizations?

A) Social B) Geographic C) Political D) Economic Answer: B 2) Generally, the first section of a formal, written marketing plan would be the: A) Segmentation and targeting process B) Positioning statement C) Executive summary D) Environmental analysis Answer: C 3) Which is an example of a good objective?

A) "Have an occupancy of 79 percent next year" B) "Be the best in town" C) "Be successful" D) "Excellence in customer satisfaction" Answer: A 4) A two- to four-page document written for top management is called the: A) Budget B) Marketing plan C) Executive summary D) Mission statement Answer: C 5) Useful marketing trend information includes related industry trends, competitive trends, and: A) Personnel trends B) Supplier trends C) Political trends D) Visitor trends Answer: D 6) Growing key accounts is an example of a(n): A) Action strategy B) Advertising/promotion strategy C) Product strategy D) Sales strategy Answer: D

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7) The ________ is essentially a projected profit-and-loss statement.

A) Mission statement B) Action plan C) Quota system D) Budget Answer: D 8) Sales objectives must be established for each sales area, division, region, salesperson and: A) Time period B) Customer demographic C) General manager D) Selling tactic Answer: A 9) Which of the following statements is true?

A) Management and the sales force will always have access to the same market research information.

B) Sales force members have no reason to give lower sales estimates than are actually possible.

C) Hospitality companies have little need for outside professionals to assist in market research.

D) It is important for sales managers to monitor actual sales force expenditures against budgets on a regular basis.

Answer: D 10) At the Rittenhouse Hotel in Philadelphia, frequent guests are greeted nightly with ________ on their pillow instead of the usual chocolate.

A) An expensive necklace B) An expensive pearl C) The weekend game tickets D) Complimentary dinner reservations Answer: B 11) A new marketing plan must be written once every: A) Six months B) One year C) Two years D) Five years Answer: B 12) ________ is the total available demand for a hospitality product within a particular geographic market at a given price.

A) Market gain B) Market supply C) Market potential D) Market subsidy Answer: C

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13) Market potential estimates should be shown as demand estimates at various: A) Geographic locations B) Cities C) States D) Price points Answer: D 14) An analysis of the primary strengths and weaknesses, objectives, strategies, and other information relative to competitors, is called: A) Primary analysis B) Secondary analysis C) Competitive analysis D) Internal analysis Answer: C 15) Social, political, and economic factors that affect a firm and its marketing program are called: A) Important factors B) Internal factors C) Governmental factors D) Environmental factors Answer: D 16) A short summary of the marketing plan to quickly inform top executives is called: A) Top Summary B) Cover Summary C) Executive Summary D) Marketing Addendum Answer: C 17) Quantitative and time-specific accomplishment measurements established for members of a sales force are called: A) Profitability analysis B) Quotas C) Profitability objective D) Marketing profitability Answer: B 18) ________ serve(s) as a roadmap for all marketing activities of the firm.

A) Organizational Objectives B) Organization's Mission Statement C) Marketing Plan D) Organization's Vision Answer: C

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19) The process of examining various submarkets and selecting those most appropriate for a company, is called: A) Segmentation analysis B) Marketing analysis C) Executive summary D) Market potential Answer: A 20) The marketing plan serves all of the following purposes EXCEPT: A) Explain the corporate vision to potential shareholders B) Assist in the budgeting process C) Ensure the marketing activities match the corporate strategic plan D) Create a process to monitor actual against expected results Answer: A 21) The following are all examples of external data analyses EXCEPT: A) Marketing research B) Credit card receipts C) Published industry information D) Guestimates after talking with competitors Answer: B 22) Marketing plan objectives include the following characteristics EXCEPT: A) Quantitative B) Time specific C) Profit/margin specific D) Aspirational Answer: D 23) A marketing plan is a stand-alone tool.

Answer: FALSE 24) It is essential to go through the thought process of examining market potential.

Answer: TRUE 25) Marketing strategies are designed to help achieve marketing objectives.

Answer: TRUE 26) A competitive analysis dealing solely with physical characteristics of a competitor can miss major competitive advantages and disadvantages.

Answer: TRUE 27) The maintenance department is an example of a hotel department that remains unaffected by changes in a marketing plan.

Answer: FALSE

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28) What is good for an advertising agency may not be good for the client.

Answer: TRUE 29) If an advertising agency is being used it should be given sole control of the advertising component of the marketing plan.

Answer: FALSE 30) Fencing refers to placing limits on the marketing plan budget.

Answer: FALSE 31) When developing a market plan, marketers need only look at internal data sources for information.

Answer: FALSE 32) The MSPA is used to evaluate market segments by revenue, cost, and profitably.

Answer: TRUE 33) The selection of a customer mix must support the positioning strategy of the company.

Answer: TRUE 34) The marketing plan is a reflection of past success and failures and provides a snapshot of last year's profit and revenue.

Answer: FALSE 35) The marketing plan is created solely for the use of the marketing team and top management.

Answer: FALSE 36) What are the major sections of a marketing plan?

Answer: Answers will vary.

37) What is a marketing plan, and what is its purpose?

Answer: Answers will vary.

38) What is the executive summary of a marketing plan and for whom is it written?

Answer: Answers will vary.

39) How is a marketing plan related to other operational plans?

Answer: Answers will vary.

40) What does the position statement of a marketing plan provide?

Answer: Answers will vary.

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