Hospitality Marketing Management, 5th Edition Test Bank

Hospitality Marketing Management, 5th Edition

By

Reid, Bojanic

Chapter One Test Bank Multiple Choice Questions 1.

The primary focus of the marketing concept is to: a. generate a high level of customer traffic b. push products into the hands of consumers c. satisfy the wants and needs of consumers d. produce a high profit margin

2.

Which of the following is not a component of the original hospitality marketing mix? a. product-service mix b. communication mix c. presentation mix d. distribution mix

3. Which of the following traditional marketing mix elements is (are) part of the presentation mix? a. price b. product c. place d. promotion e. a and c 4.

Advertising and promotion are elements of the: a. product-service mix b. communication mix c. presentation mix d. distribution mix

5.

Which of the following marketing mix variables would directly affect the cost section of an income statement? a. price b. product c. promotion d. b and c e. none of the above 6.

Changes in the profile of residents within a city or given geographic area represent which of the following types of trends? a. economic b. political c. social d. technological

7.

During the last ten years, the percentage of independent restaurants has: a. increased b. decreased c. remained about the same

8.

Major airlines competing with charter airlines and commuter airlines is an example of: a. product form competition b. product class competition c. general competition d. budget competition

9.

Fast food chains competing with convenience stores and supermarkets is an example of: a. product form competition b. product class competition c. general competition d. budget competition

10. Which of the following is the correct order of the three stages in the marketing management cycle? a. marketing planning – marketing execution – marketing evaluation b. marketing evaluation – marketing planning – marketing execution c. marketing execution – marketing evaluation – marketing planning True/False Questions 1. The larger the firm, the more likely it will have a structured approach to scanning the environment and documenting trends.

2. Self-service applications have increased in the hospitality industry due to labor shortages and the high cost of labor.

3. Selling focuses on the needs of the consumer while marketing focuses on the needs of the seller.

4. Product category competition exists among companies that provide similar products and services to the same customers at a similar price level.

5. A good marketing manager will be able to control the external environment for her firm’s products and services.

Chapter Two Test Bank Multiple Choice Questions 1.

Which of the following is not a characteristic associated with services? a. intangibility b. simultaneous production and consumption c. consumer involvement d. consistent delivery

2.

Purchase decisions for services such as foodservice are heavily slanted towards: a. experience qualities b. search qualities c. credence qualities

3.

The practice of overbooking in hotels can be best attributed to which of the following service characteristics? a. the absence of inventories b. the great involvement of customers in the production process c. the relative importance of time factor d. the nature of service distribution channels

4.

Which of the following service positions would not be considered a boundary spanning role? a. hotel salesperson b. airline pilot c. front desk clerk d. waitress

5.

Which of the following is the first potential gap in the service quality process? a. service gap b. standards gap c. knowledge gap d. delivery gap

6.

When there is a discrepancy between management’s perception of what customers expect and how the firm designs the service delivery process to meet customer expectations, it is referred to as a: a. knowledge gap b. standards gap c. delivery gap d. communications gap

7.

According to Martin’s Five Step Process for Improving Customer Service, which of the following is not part of the procedural dimension? a. displaying a positive attitude and body language b. timeliness of service c. anticipation of customer needs before they occur d. clear and concise communication

8.

Which of the following is not one of the major categories of service failures? a. system failures b. customer needs failures c. unsolicited employee actions d. customer complaint failures e. all of the above are categories of service failures

9.

Which of the following is not a popular service recovery strategy? a. cost/benefit analysis b. anticipating the need for recovery c. training employees d. actively encouraging complaints e. all of the above are popular service recovery strategies

10.

Which of the following is the most straightforward method for evaluating customer satisfaction? a. surveys and comment cards b. shopping reports c. spoken comments and complaints d. trends in sales and market share

True/False Questions 1. Within the last several years, customer loyalty in the hospitality industry has increased.

2. If any of the first four gaps occur in the service quality process, then a service gap will occur as well.

3. Internal marketing refers to the process of communicating with employees.

4. Customer satisfaction occurs when customer expectations exceed the perceptions of the service delivered.

5. Complainers are more likely to do business with a firm again than non-complainers that have a problem.

Chapter Three Test Bank Multiple Choice Questions 1.

Which consumer choice model involves prioritizing service attributes and then using minimum level cutoffs when evaluating a service? a. conjunctive model b. disjunctive model c. lexicographic model

2.

The information retrieval stage of the consumer decision-making model would tend to be the least involved for which of the following hospitality and travel services? a. a rental car for a three day vacation weekend b. a restaurant for a casual lunch c. a hotel for a large wedding reception

3.

Which of the following statements is not true in regard to postconsumption feelings? a. they are based on consumers’ expectations and actual firm performance b. hospitality chains have an advantage because of a lower perceived risk c. from a management perspective, it is better to under-promise and over-deliver d. all of the above are true

4.

The final set of products or service providers that are considered by consumers when making a purchase decision is referred to as the: a. choice set b. reference set c. evoked set

5.

Which of the following problem-solving processes allows consumers to make tradeoffs between product or service attributes? a. compensatory strategies b. conjunctive models c. disjunctive models d. lexicographic models

6.

The amount of search would be most substantial for the ____ problem-solving technique. a. limited b. routine response behavior c. extended

7.

The number of attributes normally considered would be fewest for the ____ problemsolving technique. a. limited b. routine response behavior c. extended

8.

The process of influencing consumers who are innovators and early adopters is referred to as: a. diffusion and innovation b. consumer targeting c. niche marketing

9.

Which of the following is not a characteristic of organizational buying? a. larger volume purchases b. more emphasis on specifications and services c. derived demand d. less negotiation

10.

Which of the following is an example of organizational buying in the travel industry? a. hotel salespeople selling to meeting planners b. tour operators selling to travel agents c. a rental car agent renting a car to a family on vacation d. all of the above e. a and b only

11.

Which of the following is not an internal influence on consumer behavior? a. personal needs and motives b. experience c. culture d. personality and self-image

12.

Which stage in the consumer adoption process includes the largest percentage of consumers entering the market? a. innovators b. early majority c. early adopters d. late adopters

13.

In Maslow’s hierarchy of needs, the first set of needs individuals seek to satisfy is: a. lower-level needs b. middle-level needs c. higher-level needs

14.

A pattern of behavior associated with a specific position within a social setting is a: a. social force b. attitude c. role d. none of the above

True/False Questions 1. Certain reference groups can influence the purchase decisions of individuals even if they don’t belong to the group.

2. Most hospitality and travel firms expect to fulfill the self-actualization needs of consumers as described by Maslow.

3. Problem recognition occurs when an individual realizes a gap between a desired state and the actual state.

4. The five members of an organizational buying unit must all be represented by different individuals.

5. An individual does not pass through all of the stages in the consumer decision-making model when engaging in routine problem solving.

6. Opinion leaders include formal and informal leaders of reference groups.

Chapter Four Test Bank Multiple Choice Questions 1.

Market segmentation is the process of: a. dividing a total potential market into heterogeneous subsets b. dividing a total potential market into homogeneous subsets c. dividing a total potential market into broad segments d. none of the above

2.

Which of the following is not one of the criteria for effective market segmentation? a. substantiality b. measurability c. marketability d. accessibility

3.

Which of the following refers to the smallest geographic area? a. metropolitan statistical area (MSA) b. primary metropolitan statistical area (PSMA) c. consolidated metropolitan statistical area (CSMA)

4.

The family life cycle would be considered a(n) ________ variable. a. geographic b. demographic c. psychographic d. behavioral

5.

The use of frequent traveler or frequent diner programs would be considered a form of: a. geographic segmentation b. demographic segmentation c. psychographic segmentation d. behavioral segmentation

6.

AIO statements are used in: a. geographic segmentation b. demographic segmentation c. psychographic segmentation d. behavioral segmentation

7.

When restaurants or hotels record the license plates of their guests, it is a form of: a. geographic segmentation b. demographic segmentation c. psychographic segmentation d. behavioral segmentation

8.

When a firm develops one product-service mix that is sold to all potential customers, it is

using a: a. mass-market strategy b. differentiated strategy c. concentrated strategy 9.

The first step in the positioning process is to: a. measure consumer perceptions of available services b. determine the ideal mix for consumers c. look for gaps in coverage d. select a desired position

10.

What is the technique used to construct a graphic representation of how consumers perceive a competing set of products relative to each other? a. competitive benefit matrix b. preference mapping c. perceptual mapping d. gap analysis

11.

Which of the following is not an extension of the traditional family life cycle? a. people are waiting longer to get married b. increased divorce rate has led to more single parents c. there are more same-sex couples that adopt children d. people are living longer e. all of the above are extensions

12.

Which VALS category is primarily motivated by achievement? a. achievers b. believers c. strivers d. both a and c e. all of the above (a, b and c)

13.

Projected demand is equal to: a. total market demand x market share b. total market demand x price c. price x market share

14.

Southwest Airline’s addition of the ‘Business Select’ class to its existing economy class is an example of: a. mass marketing strategy b. differentiated strategy c. concentrated strategy

True/False Questions

1. In practice, it is normally not a good idea to use more than one type of variable to segment markets.

2. The first step in the Market Segmentation Decision Process is to select specific target market segments.

3. Market segmentation is the process of determining how to differentiate a firm’s product offering(s) from those of its competitors in the minds of consumers.

4. Salient attributes are those attributes that are important to consumers in evaluating alternative product offerings.

5. A firm’s positioning statement should differentiate the firm’s product-service mix form that of the competition.

6. The basic tenet of the VALS segmentation framework is that consumers’ purchasing behaviors are based on their culture and ethnic background.

Chapter Five Test Bank Multiple Choice Questions 1.

Which of the following is not considered a disadvantage of marketing planning? a. marketing planning is time-consuming b. marketing planning requires a good deal of knowledge and expertise c. marketing planning does not help firms cope well with change d. marketing planning needs the commitment and support of top management

2.

Which of the following is not a reason why some marketing plans fail? a. strategic planning is not integrated into a firm’s day-to-day activities b. those responsible for planning do not understand the planning process c. no procedures are established to monitor and control the planning process d. financial projections are treated as marketing plans e. all of the above are reasons why marketing plans fail

3.

What is the first step in the marketing planning process? a. define the firm’s goals and objectives b. conduct a situation analysis c. formulate marketing strategies and action plans d. implement action plans and monitor performance

4.

Which step would normally include a S.W.O.T. analysis? a. define the firm’s goals and objectives b. conduct a situation analysis c. formulate marketing strategies and action plans d. implement action plans and monitor performance

5.

Which of the following items would be considered leverage items in a S.W.O.T. analysis? a. strengths and opportunities b. strengths and weaknesses c. threats and opportunities d. threats and weaknesses

6.

Which of the following is not a characteristic of a good objective? a. objectives should be specific and easy to understand b. objectives should identify expected results in specific terms c. objectives should not be constrained to a specific time frame d. all of the above are characteristics of a good objective

7.

Increasing or maximizing market share is an example of a _____ objective. a. financial b. competitive c. customer d. sales

8.

A _____ strategy focuses on selling the existing product-service mix to the existing target markets. a. product development b. market penetration c. market development d. product diversification

9.

Which of the following is not a key control area that can be used to evaluate a firm’s performance? a. sales control data b. profit control data c. cost control data d. consumer feedback e. all of the above are key control areas

10.

Which of the following sales forecasting techniques would normally work best for predicting changes in the basic sales pattern over the long-term? a. expert opinion b. time series analysis c. moving average d. trend extrapolation

True/False Questions 1. Strategic marketing plans typically cover a period of one year and focus on specific activities that must be implemented by the firm to achieve its goals.

2. Marketing planning forces managers to carefully examine the firm’s operations.

3. A mission statement is created by a firm to describe its mission to the firm’s external stakeholders in terms of the public’s perceptions of the benefits the firm is offering.

4. The strengths and weaknesses components of a S.W.O.T. analysis reflect an evaluation of the firm’s internal situation.

5. Quantitative sales forecasting techniques tend to be used when data is not readily available and rely on judgment or intuition.

Chapter Six Test Bank Multiple Choice Questions 1.

Within the components of a marketing information system, the statement “Nearly 20 percent of the population moves each year,” represents which component? a. macroenvironment b. competitive environment c. organizational environment

2.

A hospitality manager who measures consumer reaction to new menu items offered by the restaurant is obtaining which of the following? a. internal data b. secondary data c. primary data d. syndicated data

3.

One of the advantages of collecting secondary data is _____. a. specificity b. cost c. timeliness d. b and c

4.

One of the advantages of collecting primary data is _____. a. specificity b. cost c. timeliness d. b and c

5.

The first step in the marketing research process is to: a. plan the research b. collect the data c. define the problem d. conduct a preliminary investigation

6.

The best survey method for sensitive questions would be: a. telephone b. direct mail c. personal interviews

7.

The survey method with the best response time would be: a. telephone b. direct mail c. personal interviews

8.

The best survey method for complicated or complex questions would be:

a. b. c.

telephone direct mail personal interviews

9.

A study used to measure the same population over an extended period of time is referred to as a: a. causal study b. cross-sectional study c. focus group d. longitudinal study

10.

When a closed-ended question is designed so that respondents will belong to at least one category, the available responses are said to be: a. mutually exclusive b. collectively exhaustive c. fully closed d. both a and b

11.

Which of the following types of information would not be important for a restaurant manager to assess? a. the characteristics of the current customers b. the characteristics of potential new customers c. the media habits of current customers and potential new customers d. the profile of the consumers of all available media e. all of the above types of information are important to access

12.

Which of the following is not one of the basic criteria for a well-designed marketing information system? a. it must include a structured organization or established system of people and information gathering procedures b. information should only be gathered from outside the organization c. the system should be designed to generate a continuous flow of information d. information should be compiled so that management can use it for decisions

13.

The basic level of investigation in a research design is referred to as a: a. sample b. census c. population d. sample unit

14.

Test marketing is a common form of: a. experimentation b. observation c. survey

True/False Questions 1. Marketing research is a broader and more encompassing term than marketing information systems.

2. The use of a marketing information system helps an organization to shorten the reaction time to changing market conditions.

3. Sampling error increases at a diminishing rate as sample size increases.

4. Nonprobability samples cannot be representative of the population.

5. When considering marketing research ethics, the respondent, the researcher, and the client all have rights and obligations.

6. Measuring the relationship between price and quality for hospitality services would be an example of causal research.

Chapter Seven Test Bank Multiple Choice Questions 1.

Which of the following fast food restaurants has the reputation for being the major innovator in the industry? a.

Burger King b.

Arby’s c.

McDonald’s d.

Wendy’s

2.

Which of the following is not a reason for developing product lines. a. it offers new growth opportunities for the business b. it helps a company to concentrate its business risk in one area c. it leads to more efficient use of company resources d. it can help a company increase its market share

3.

Which of the following would be considered a proactive strategy for developing new products? a. acquisition b. imitative c. responsive d. all of the above

4.

Wyndham Hotels recent introduction of its line of “Garden” hotels targeted at business travelers would be an example of a strategy. a. proactive b. reactive c. innovative

5.

Which of the following is not a good source for new product ideas? a. employees b. research and development teams c. customers d. competitors e. all of the above are good sources for new product ideas

6.

Just prior to performing business analysis for new-product development, a firm must engage in: a. idea generation b. product screening c. concept testing d. none of the above

7.

Which of the following is the most expensive stage in the new product development process? a. market introduction b. product screening c. concept testing d. business analysis and test marketing

8.

The symbol or logo design that is used to identify a product or service is a: a. brand name b. brand mark c. trademark d. brand concept

9.

Which of the following is not a characteristic of effective branding? a. easy to pronounce b. describes the benefits of the product or service c. can be translated into foreign languages d. all of the above

10.

Which of the following is true regarding test markets? a. locations should be representative of the planned markets b. there shouldn’t be any influence by competitors from neighboring locations c. the period for the test market should not exceed one month d. all of the above e. a and b only

True/False Questions 1. Customers are a good source for new product ideas.

2. During the product screening phase of the new product development process, both qualitative and quantitative analyses should be performed.

3. Profits are usually positive during the market introduction stage.

4. Firms that use proactive strategies will be more profitable than firms that use reactive strategies.

5. Firms within the restaurant industry tend to follow the criteria for branding very closely.

Chapter Eight Test Bank Multiple Choice Questions 1.

A hotel concierge service is an example of a: a. core product b. supporting product c. facilitating product

2.

The core product and peripheral services combine to form the: a. supporting product b. facilitating product c. augmented product

3.

Profits are normally negative during the ____ stage of the product life cycle. a. introduction b. growth c. maturity d. decline

4.

Sales are normally at a maximum during the ____ stage of the product life cycle. a. introduction b. growth c. maturity d. decline

5.

The largest number of competitors is normally found during the ____ stage of the product life cycle. a. introduction b. growth c. maturity d. decline

6.

Increasing sales and maximizing market share is the main marketing objective during the _____ stage of the product life cycle. a. introduction b. growth c. maturity d. decline

7.

Market growth rate in the Boston Consulting Group matrix serves as a surrogate for: a. relative market share b. competitive position c. industry attractiveness d. none of the above

8.

Strategic business units with high market growth rates and low relative market shares are labeled: a. question marks b. stars c. cash cows d. dogs

9.

The main purpose of using a growth-share matrix like the BCG matrix is for: a. forecasting sales b. allocating resources c. formulating promotion strategies d. setting prices

10.

Which of the following is not a strategy used by hospitality firms to manage supply and demand? a. modify price b. shift demand through reservations c. increase personnel efficiency d. all of the above are strategies used to manage supply and demand

11.

The menu sales mix analysis matrix is an example of: a. a resource allocation model b. the Wheel of Retailing c. the Product Life Cycle

12.

Which of the following is not a way to extend the product life cycle? a. increasing sales to existing customers b. increasing the number users or customers c. increasing the price level on existing products or services d. finding new uses for products or services

13.

The horizontal axis in the Boston Consulting Group Matrix is referred to as: a. market growth rate b. relative market share c. industry attractiveness

14.

Darden Restaurant Group’s relatively new restaurant brand, Seasons 52, would be an example of a ____ in the Boston Consulting Group Matrix. a.

Star b.

Dog c.

Cash Cow d.

Question mark

True/False Questions 1. The core product and the peripheral services combine to form the augmented product.

2. It is fairly easy to forecast the stages in the product life cycle.

3. The Wheel of Retailing concept applies to product industries, but not very well to the hospitality industry.

4. Cash cows would most resemble products in the growth stage of the product life cycle.

5. The difference between REVPAR and ARGE is that REVPAR does not compare actual revenue to maximum potential revenue.

6. Menu engineering is a less sophisticated approach than menu sales mix analysis.

Chapter Nine Test Bank Multiple Choice Questions 1.

Independent restaurants and hotels that have one or two locations are practicing: a. intensive distribution b. exclusive distribution c. selective distribution

2.

Which of the following restaurants would be the best example of selective distribution? a.

McDonald’s b.

Applebee’s c.

Hard Rock Café

3.

What type of power is used by a firm such as Microsoft to become successful? a. reward b. coercive c. legitimate d. referent e. all of the above

4.

_____ power is obtained through contractual arrangements between channel members. a. reward b. coercive c. legitimate d. referent

5.

Franchising is an example of a: a. contractual system b. corporate system c. administered system

6.

Which of the following is not an advantage for the franchisor in a franchising arrangement? a. diversified risk b. cost economies c. rapid expansion d. increased control

7.

Which of the following is not considered an intermediary in the hospitality and travel industry? a. travel agent b. tour operator c. hotel salesperson d. meeting planner

8.

Which one of the following is not an activity associated with distribution? a. communicating and negotiating b. reducing storage c. installing products d. providing service

9.

Which of the following is considered a channel-length strategy? a. selective distribution b. redirect channel c. exclusive distribution d. indirect channel

10.

In choosing a channel system, which of the following does not increase customer benefits? a. expanding operations by franchising b. delivering product benefits c. building brand image d. delivering service products

11.

The following is not an advantage for the franchisee in a franchising arrangement. a. less operating capital is needed b. more opportunities for growth c. less costs/fees involved d. cooperative advertising

12.

The type of intermediary that is responsible for promoting the long-term development of a destination is: a. destination management company b. tour wholesalers and operators c. travel agents d. destination marketing organizations

13.

If you have 5 customers and 5 service providers, how many contacts or communications would be necessary if you added one intermediary? a.

25 b.

10 c.

5

14.

Which of the following companies would be considered an intermediary? a.

Expedia.com b.

Marriott International c.

Hertz Rental Car Agency

True/False Questions 1. The main objective of the distribution function is to get products and services to consumers where, when, and how they prefer them.

2. The channel width decision involves the number of intermediaries between the manufacturer and the final consumer.

3. There are no indirect channels in service operations like hospitality and travel.

4. Meeting planners are considered intermediaries in the hotel distribution system for guest rooms.

5. For a franchisor, the sharing of risk and ownership results in the sharing of profits.

6. The ability of one channel member to influence the behavior of other channel members is referred to as channel leadership.

Chapter Ten Test Bank Multiple Choice Questions 1. Which of the following was a previous form of electronic business? a. CGI b. EDI c. WWW d. ATM’s e. b & d above 2. The precursor of the Internet was first introduced by the Rand Corporation in which decade? a. 1960s b. 1970s c. 1980s d. 1990s 3. Which of the following is not an aspect of Internet security a. Authentication b. Zone defense c. Firewall d. Encryption 4. Email that is sent to prior users and web sites which customize content based on the user’s prior visits are engaging in ___________ . a. Targeted marketing b. Push technology c. Pull technology d. Data encryption 5. The largest percentage of electronic commerce transactions are in which classification? a. Business-to-business (B2B) b. Business-to-consumer (B2C) c. Consumer-to-business (C2B) d. Consumer-to-consumer (C2C) 6. Which of the following is not a common objective for firms to engage in electronic commerce? a. Create brand awareness b. Provide information about the products and services offered c. Build loyalty through frequent guest programs d. Sell products and services e. Lower the cost of the products and services sold

7. Which revenue business model is used by Marriott.com a. Sales b. Transaction fees c. Subscription fees d. Advertising fees e. Affiliate fees f. None of the above 8. Web content normally consists of which of the following? a. Text b. Links c. Forms d. Images e. All of the above 9. Benefits of electronic commerce include all but which one of the following? a. Cost reduction and supply chain improvements b. Ability to pressure franchisees to conform c. Improved customer communications and relations d. Availability of updated materials and information e. All of the above 10. Which of the following pertains to Internet security? a. TCP/IP b. Firewall c. JPEG d. DNS True/False Questions 1. One of the reasons for growth of the Internet is the ability for manufacturers and service providers to sell directly to consumers at retail or near-retail prices without channel partners.

2. Pure Internet companies, such as Expedia.com or priceline.com, have low barriers to entry and high variable costs.

3. The percentage of sales from Internet sales of hospitality and tourism service such as airline tickets is much lower than other purchases, such as books.

4. Amazon.com is an example of B2C electronic commerce.

5. The two most common electronic commerce business models are based on revenue models and value proposition models.

Chapter Eleven Test Bank Multiple Choice Questions 1.

Which of the following components of the promotion mix is a paid form of nonpersonal presentation of ideas and promotion of ideas, goods, or services by an identified sponsor? a. advertising b. personal selling c. public relations d. sales promotions

2.

Which of the following components of the promotion mix involves interpersonal communication? a. advertising b. personal selling c. public relations d. sales promotions e. b and c

3.

Which of the following components of the promotion mix does not have an identified sponsor? a. advertising b. personal selling c. public relations d. sales promotions e. b and c

4.

_____ refers to the elements in the environment that may distract the receiver from properly decoding an intended message. a. interference b. complications c. interruptions d. noise

5.

Advertising and promotion are focused on building name recognition and persuading consumers to buy your brand during the _____ stage of the product life cycle. a. introduction b. growth c. maturity d. decline

6.

Sales promotions are used primarily during the _____ stage(s) of the product life cycle. a. introduction b. growth c. maturity d. decline e. a and c

7.

The most complicated method for developing a promotional budget would be the: a. percentage of sales method b. desired objective method c. competitive parity method d. all-you-can-afford method

8.

Which of the following types of hospitality firms is most likely to use the all-you-canafford method? a. an international hotel chain b. a government tourism bureau c. a bed and breakfast d. a restaurant franchise

9.

If an evaluation shows that the promotional mix is not successful, a firm can take the following action: a. the promotional mix can be changed to increase the probability of success b. the budget can be modified based on changing market conditions c. the short- and long-range objectives can be changed based on new information d. all of the above e. a and b only

10.

Which of the following is not one of the rules of thumb in developing a central appeal for advertising? a. the appeal should be complex and multifaceted b. the appeal should offer some value to the customer c. the appeal should be believable d. the appeal should be distinctive

11.

Which of the following is not one of the four checkpoints for an advertising campaign? a. maintain visual similarity b. maintain competitive similarity c. maintain similarity of sound d. maintain similarity of attitude

12.

When advertisements are shown to a group of consumers and the consumers are asked questions about the ads, it is referred to as: a. copy testing b. inquiry and sales c. coupons and split runs d. sales tests

13.

Which of the following is not an advantage of using an advertising agency? a. an agency can increase the effectiveness of advertising b. agencies can overcome special production requirements of the media c. agencies are able to maintain closer contacts with media representatives d. all of the above are advantages of using an advertising agency

14.

Advertising agencies usually receive a _____ commission for advertisements placed in the media. a.

5 percent b.

10 percent c.

15 percent d.

20 percent

15.

Which of the following is not a common criticism of advertising? a. advertising can be offensive or in poor taste b. advertising encourages materialism c. advertising encourages people to buy things they don’t need d. all of the above are common criticisms of advertising

True/False Questions 1. Advertising is a broader term that encompasses all the elements of promotion.

2. Any promotion that is not paid for is referred to as public relations.

3. When promotional budgets are established, all management personnel with marketing responsibilities should be involved in their preparation.

4. Advertising effectiveness can only be measured over the short-term.

5. Given a firm’s limited resources, it is virtually impossible to reach the saturation point for advertising with all market segments.

Chapter Twelve Test Bank Multiple Choice Questions 1.

_____ refers to the number of people exposed to a specific advertisement. a.

Reach b.

Frequency c.

Milline rate d.

Cost per thousand

2.

_____ is used to compare the cost of advertising in different newspapers. a.

Reach b.

Frequency c.

Milline rate d.

Cost per thousand

3.

Magazines offer _____ as a primary advantage. a. timeliness b. low production costs c. good reproduction of artwork d. flexibility

4.

Advertising that is scheduled to run for three continuous weeks, stop for a week, and then run for another three weeks is referred to as _____ scheduling. a. continuous b. flighting c. pulsing d. none of the above

5.

The advertising medium with the least amount of wasted coverage is: a. newspapers b. television c. direct mail d. outdoor advertising

6.

Which of the following advertising media has the longest lead time? a. newspapers b. direct mail c. radio d. television

7.

Short life span is a limitation of: a. newspapers b. magazines c. radio d. a and c e. a, b and c

8.

Which advertising medium has the best “pass along” value? a. newspapers b. magazines c. direct mail d. television

9.

Which of the following is not an advantage associated with outdoor advertising? a. short lead time b. low cost per exposure c. high repetition d. ability to target location e. all of the above are advantages

10.

Which of the following would not be an example of specialty advertising? a. hotel pens b. a Hard Rock Café t-shirt c. a McDonald’s kid’s meal toy d. a pack of matches with a restaurant’s name on them e. all of the above are examples are specialty advertising

True/False Questions 1. Publicity is always favorable.

2. An advertising medium should be selected based on its ability to reach the maximum number of potential consumers at the lowest cost per thousand.

3. Print advertising is the most commonly used media by restaurants.

4. Video brochures are the most common item used by hotels to create awareness and interest among potential customers.

5. Consumers normally need only one exposure to an advertisement for it to be effective.

Chapter Thirteen Test Bank Multiple Choice Questions 1.

Which of the following is not an example of a sales promotion pull technique? a. sampling b. premiums c. point-of-sale displays d. price reduction coupons

2.

When a restaurant uses a wine display in the dining room to promote the purchase of wine, this is an example of: a. a premium b. a push technique c. a pull technique d. none of the above

3.

The use of coupons as a promotional vehicle is: a. increasing each year b. decreasing each year c. remaining relatively stable

4.

Which of the following is not considered a commonly used sales promotion technique among hotels? a. coupons b. price reduction coupons c. premiums d. contests and sweepstakes

5.

The net effect of a sales promotion (e.g., a coupon) depends on: a. the amount of sales to new customers b. the loss in revenues due to current customers using the promotion c. the costs of printing and administering the promotion d. all of the above e. a and c only

6.

Which of the following is not a suggestion for effective suggestive selling? a. develop a positive mental attitude b. always be attentive to guests’ needs c. be aggressive and try to manipulate the guest d. turn guests’ negative comments into a positive

7.

The most difficult aspect of training guest-contact personnel involves the _____ aspect. a. affective b. cognitive c. psychomotor

8.

An effective brochure should: a. identify the facility b. contain basic information c. minimize the amount of descriptive facts d. all of the above are characteristics of effective brochures

9.

At what point should a hotel launch its public relations campaign to the local media before its grand opening? a.

30-60 days before opening b.

60-90 days before opening c.

90-120 days before opening

10.

Which of the following methods is (are) used to evaluate a public relations program? a. personal observation b. public opinion surveys c. number of impressions d. all of the above

True/False Questions 1. McDonald’s use of a toy in the kid’s meal is an example of a push technique.

2. A firm is most likely to get more participants with a contest than with a sweepstakes.

3. Sales promotions are useful at increasing customer brand loyalty.

4. Waiters should suggest their favorite items from the menu because they are familiar with them.

5. In general, public relations programs are effective because they require little cost and they have the ability to generate interest in a firm’s product.

Chapter Fourteen Test Bank Multiple Choice Questions 1.

A hotel salesperson at a popular resort hotel would most likely be a(n): a. order taker b. order getter

2.

Which of the following is not a characteristic associated with a successful salesperson? a. complete knowledge of the product-service mix b. professional appearance and behavior c. organizational ability d. all of the above are characteristics of successful salespeople

3.

The FAB Selling Technique refers to: a. facility, advantages, benefits b. features, advantages, benefits c. features, attributes, benefits d. facility, attributes, benefits

4.

The first stage in the personal selling process is: a. planning the sales presentation b. overcoming objections c. prospecting and qualifying d. scheduling a sales meeting

5.

When a hotel sales manager makes a sales call on a prospective client without making an appointment, it is referred to as: a. a cold call b. an initiating call c. a blind call

6.

Which of the following is not a recommended method for handling an objection? a. agree and counter b. stick your ground and argue your point c. postpone the objection d. turn the objection into a reason for buying

7.

Which of the following types of lodging facilities would most be able to use a standing room only close? a. a rural motel b. a bed and breakfast c. an airport hotel d. not enough information is provided

8.

Key account management is based on the theory that _____ percent of the business that is

booked will be generated by _____ percent of the clients. a.

50, 50 b.

60, 40 c.

70, 30 d.

80, 20 9.

Which of the following is not a useful tip for negotiating? a. use price as a major negotiating tool b. when you give something up, try to gain something in return c. do not defend your position; ask for feedback d. all of the above are useful tips

10.

When salespeople make disparaging comments about their competitors to customers, it is referred to as: a. reciprocity b. libel c. defamation d. illegal

11.

The type of accounts that have high potential for increased business, but low profit margins at the present time, would be: a. developed accounts b. undeveloped accounts c. desirable accounts d. undesirable accounts

12.

What is the name of the sales and catering software that is used by many hotel chains? a.

Delphi b.

Fidelio c.

Marsha

13.

What type of SPIN selling question is focused on gathering background information? a. problem questions b. need-payoff questions c. implication questions d. situation questions

14.

Which closing technique involves the salesperson asking a series of questions? a. assumptive close b. prestige or status close c. continued affirmation d. closing on a minor point

True/False Questions

1. Corporations tend to hold fewer meetings than associations.

2. Successful salespeople tend to have grades in the upper 25% of their graduating class.

3. Association meeting attendees are typically more price-sensitive than corporate meeting attendees.

4. It is more important for a salesperson to be a good talker rather than a good listener.

5. Business practices that are unethical will be illegal as well.

6. The SPIN Selling approach is based on research with performed with companies that sell in large volume.

Chapter Fifteen Test Bank Multiple Choice Questions 1.

When individuals or organizations exchange goods and services without exchanging money, it is referred to as: a. an exclusive tying arrangement b. bartering c. fair trade

2.

The fact that corporate travelers are less price sensitive than most leisure travelers because the corporation pays for the travel is referred to as the: a. unique value effect b. expenditure effect c. shared cost effect d. price-quality effect

3.

_____ is the cost of the competing service that the customer views as the best alternative to your service. a.

Reference value b.

Differentiation value c.

Economic value

4.

A price skimming strategy is appropriate when: a. the market is price sensitive b. the service or product is unique c. the service or product is easy to duplicate d. a and c

5.

A price penetration strategy is appropriate when: a. the market is price sensitive b. the service or product is unique c. the service or product is easy to duplicate d. a and c

6.

The breakeven point in pricing occurs where: a. profits are maximized b. costs are minimized c. total cost is equal to total revenue

7.

When restaurants set menu prices based on the cost of the product ingredients, they are practicing: a. cost-plus pricing b. breakeven pricing c. target-return pricing

8.

The maximum price that a consumer is willing to pay for a product or service is referred to as the: a. prestige price b. reservation price c. threshold price d. premium price

9.

Yield management is an example of: a. segmenting by purchase location b. segmenting by purchase volume c. segmenting by time of purchase d. segmenting by product design

10.

The highest level of ethical restraint on pricing is when: a. the price is paid voluntarily b. the price is based on equal information c. the price is justified by costs d. the price provides equal access to goods for all people

11.

Increasing or maximizing market share would be a: a. financial performance objective b. volume objective c. competition objective d. image objective

12.

When tour operators offer a group of travel products together for one price it is called: a. product bundling b. price lining c. segmented pricing d. exclusive tying arrangement

13.

Which of the following is not a reason for using yield management in hospitality? a. perishable inventory b. fluctuating demand c. ability to segment customers d. high variable costs

14.

The fact that 4-star hotels charge higher prices than 3-star and lower is an example of: a. the unique value effect b. end-benefit effect c. price-quality effect d. expenditure effect

True/False Questions 1. In regard to pricing objectives, maximizing sales revenue and maximizing market share represent the same thing.

2. Consumers tend to be less price-sensitive when it is easier to compare brands.

3. It is possible for economy hotels (e.g., Motel 6) and premium hotels (e.g., Four Seasons) to offer the same relative value.

4. Price elasticity of demand is a measure of price sensitivity.

5. “Meeting competition” is a legal defense for price discrimination.

6. The perceived-substitutes effect applies to all substitute products or services whether the consumer is aware of them or not.

Chapter Sixteen Test Bank Multiple Choice Questions 1.

What is the primary concern for destination marketing organizations? a. raising funds for tourism product development in the region b. promoting the long-term development and marketing of a destination c. providing research for its members

2.

Which of the following is not one of the four primary market segments for CVBs? a. associations b. corporations c. sports teams d. individual travelers

3.

Which of the following type of organization would not be a member of a CVB? a. hotels and other lodging facilities b. convention centers c. tourist attractions d. shopping centers e. all of the above are potential members for a CVB

4.

The first task in the product development process for the DMO is: a. to combine the various destination elements to create packages b. to develop marketing programs c. to take an inventory of the various elements available at the destination

5.

Which of the following is not considered a tangible attribute? a. the cleanliness of a destination b. the accommodations available at a destination c. tourist attractions located at a destination d. all of the above are tangible attributes

6.

The question regarding the first level of the destination branding pyramid is: a.

What does value mean for the typical repeat tourist? b.

What is the essential nature and character of the destination brand? c.

What are the tangible and verifiable characteristics of this destination? d.

What benefits to the tourist result from this destination’s features?

7.

The stage in the tourist area life cycle that occurs when there is a limited interaction between tourists and the local community, resulting in only basic services is: a. the exploration stage b. the involvement stage c. the development stage d. the stagnation stage

8.

Which of the following is not true regarding a bureau’s communications plan? a. the CVB should be reactive in its communications b. there should be an open dialogue between the bureau and its publics c. the bureau should create a theme for the destination and its communications d. the CVB’s sales staff should actively seek out leads and continually prospect

9.

Which of the following is not an objective for a bureau in dealing with its publics? a.

Increase awareness, interest, and participation of the attractions and hospitality firms. b.

Increase awareness, interest, and participation of the residents. c.

Develop and maintain good relationships with the media so they can help to communicate the bureau’s goals and objectives to the destination’s target publics. d. all of the above are objectives

10.

Which type of destination research focuses on the effectiveness of the destination marketing organization’s advertising materials in attracting visitors? a. economic impact studies b. destination image studies c. conversion studies d. none of the above

11.

Six Flags amusement parks would be an example of: a. a destination marketing organization b. an individual service provider c. a destination management company

12.

Which of the following types of organizations is not involved in developing regional tourism products? a. destination management companies b. destination marketing organizations c. individual service providers d. tour operators and wholesalers

13.

Which of the following is not an advantage of branding a destination? a. it provides a means of communicating the destination’s unique proposition b. it helps the DMO to create a theme and a consistent message c. it gives the DMO a reason to ask for more money from the government d. all of the above are advantages of branding

14.

Which of the following is a reason why branding a destination is difficult? a.

DMOs have direct control of the delivery of the brand promise b. destinations are more one-dimensional than most other products or services c. it is difficult to measure the brand loyalty of the visitors to the destination d. the market interests of the stakeholders are very similar

True/False Questions 1. Convention and Visitors Bureaus are normally governed by a board of directors that follows a published list of by-laws.

2. The statement used to describe the elements that are unique to a destination in an attempt to differentiate it from other destinations is referred to as a unique destination proposition.

3. The decision-making process for people planning a trip is different than the decision-making process for other products and services.

4. The community relations plan is the component of the communication plan developed to foster business partnerships and alliances.

5. An input-output model is a common approach for estimating the economic impacts of tourism by directly surveying tourists to obtain their spending data.

6. The majority of CVBs are part of the local government for the destination.

Test Bank Answer Key Chapter 1– The Functions of Marketing Multiple Choice 1.

C 6.

2.

D 7.

3.

E 8.

4.

B 9.

5.

D 10.

True/False 1.

T 2.

T 3.

F 4.

F 5.

F

C B B C A

Chapter Two – Introduction to Hospitality Services Marketing Multiple Choice 1.

D 6.

2.

A 7.

3.

A 8.

4.

B 9.

5.

C 10.

True/False 1.

F 2.

T 3.

T 4.

F 5.

T

B A D E C

Chapter Three – Understanding the Behavior of Hospitality Consumers Multiple Choice 1.

A 8.

2.

B 9.

3.

D 10.

4.

C 11.

5.

A 12.

6.

C 13.

7.

B 14.

True/False 1.

T 2.

F 3.

T 4.

F 5.

F 6.

T

A D E C B A C

Chapter Four – Market Segmentation and Positioning Multiple Choice 1.

B 8.

2.

C 9.

3.

A 10.

4.

B 11.

5.

D 12.

6.

C 13.

7.

A 14.

True/False 1.

F 2.

F 3.

F 4.

T 5.

T 6.

F

A B C E D A B

1

Chapter Five – Developing a Marketing Plan Multiple Choice 1.

C 6.

2.

E 7.

3.

B 8.

4.

B 9.

5.

A 10.

True/False 1.

F 2.

T 3.

F 4.

T 5.

F

C D B E A

Chapter Six – Information Systems for Marketing Decisions Multiple Choice 1.

A 8.

2.

C 9.

3.

D 10.

4.

A 11.

5.

C 12.

6.

B 13.

7.

A 14.

True/False 1.

F 2.

T 3.

F 4.

F 5.

T 6.

T

C D B E B D A

Chapter Seven – Developing New Products and Services Multiple Choice 1.

C 6.

2.

B 7.

3.

A 8.

4.

B 9.

5.

E 10.

True/False 1.

T 2.

T 3.

F 4.

F 5.

F

C A B D E

Chapter Eight – Managing Products and Services Multiple Choice 1.

B 8.

2.

C 9.

3.

A 10.

4.

C 11.

5.

C 12.

6.

B 13.

7.

C 14.

A B D A C B D

True/False 1.

T 2.

T 3.

F 4.

F 5.

T 6.

F

143

Chapter Nine – Marketing Channels Multiple Choice 1.

B 8.

2.

C 9.

3.

E 10.

4.

C 11.

5.

A 12.

6.

D 13.

7.

C 14.

True/False 1.

T 2.

F 3.

F 4.

T 5.

T 6.

F

B D A C D B A

Chapter Ten – Electronic Commerce Multiple Choice 1.

E 6.

2.

A 7 3.

B 8 4.

B 9 5.

A 10

True/False 1.

T 2.

F 3.

F 4.

T 5.

T

E A E B B

Chapter Eleven – Promotion and Advertising Multiple Choice 1.

A 9.

2.

B 10.

3.

C 11.

4.

D 12.

5.

B 13.

6.

E 14.

7.

B 15.

8.

C

True/False 1.

F 2.

T 3.

T 4.

F 5.

T

D A B A D C D

Chapter Twelve – Advertising and Media Planning Multiple Choice 1.

A 6.

2.

C 7.

3.

C 8.

4.

B 9.

5.

C 10.

True/False 1.

F 2.

T 3.

T 4.

F 5.

F

D D B A C

144

Chapter Thirteen – Sales Promotions, Merchandising, and Public Relations Multiple Choice 1.

C 6.

2.

B 7.

3.

A 8.

4.

B 9.

5.

D 10.

True/False 1.

F 2.

F 3.

F 4.

T 5.

T

C A C B D

Chapter Fourteen – Personal Selling Multiple Choice 1.

A 8.

2.

D 9.

3.

B 10.

4.

C 11.

5.

A 12.

6.

A 13.

7.

D 14.

True/False 1.

F 2.

T 3.

T 4.

F 5.

F 6.

T

D A C B A D C

Chapter Fifteen – Pricing Strategy Multiple Choice 1.

B 8.

2.

C 9.

3.

A 10.

4.

B 11.

5.

D 12.

6.

C 13.

7.

A 14.

True/False 1.

F 2.

F 3.

T 4.

T 5.

T 6.

F

B C D B A D C

Chapter Sixteen – Destination Marketing Multiple Choice 1.

B 8.

2.

C 9.

3.

E 10.

4.

C 11.

5.

A 12.

6.

C 13.

7.

B 14.

True/False 1.

T 2.

T 3.

F 4.

F 5.

T 6.

F

A D C B A D C

145