HFT 2500 Study Notes - Flashcards

question

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

answer

increasingly intangible services

question

The perishability of a service is especially a problem when demand fluctuates.

answer

True

question

Which of the following is not part of the service profit chain?

answer

External service quality

question

In a well-run hospitality organization, there are two customers-the paying customers and the ___________.

answer

employees

question

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?

answer

Variability

question

Services cannot be seen, tasted, felt, heard, or smelled before purchase

answer

Intangibility

question

Services cannot be separated from their providers

answer

Inseparability

question

Services cannot be stored for later use

answer

Perishability

question

Focuses on serving and satisfying the customer

answer

service culture

question

____________ form(s) when capacity exceeds demand and guests are willing to wait.

answer

Queues

question

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

answer

False

question

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

question

Because services are characterized by the issue of inseparability, service providers often will have to:

answer

Train the customers

question

Disneyland's version of the ride reservation is called:

answer

Fastpass

question

Tangible clues such as promotional material, employees of the firm, and the physical environment of the firm

answer

Physical evidence

question

Three steps to reduce variability and create consistency

answer

1. Invest in good hiring and training procedures 2. Standardize the service-performance process throughout the organization 3. Monitor customer satisfaction

question

The Service Profit Chain

answer

1. Internal Service Marketing 2. Satisfied and productive service employees 3. Greater service value 4. Satisfied and Loyal customers 5. Healthy service profits and growth pg. 42

question

Market definitions of a business are ___________ to product definitions.

answer

superior

question

A hotel company acquiring a tour operator is an example of:

answer

forward integration

question

"Project RED" was the name given to the long-term strategy of which restaurant chain?

answer

Red Robin

question

Companies that diversify too broadly into unfamiliar products or industries can ______ their market focus.

answer

lose

question

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

answer

false

question

The "RED" in Project RED, in addition to referring to a color that is almost universally associated with a sense of urgency, stands for Revenue growth, Expense management, and optimum:

answer

Deployment of capital

question

Market penetration refers to the strategy of creating new products to sell to small niche markets.

answer

False

question

The ideal target market for a firm is the one in which it can profitably generate the greatest customer ________ and ________ it over time.

answer

value; sustain and grow

question

A well worked-out ________ provides company employees with a shared sense of purpose, direction, and opportunity.

answer

mission statement

question

A hotel company acquiring one or more of its competitors is an example of:

answer

horizontal integration

question

Viral marketing uses banners on web pages to advertise.

answer

false

question

The largest advertising media is:

answer

TV

question

The most basic type of website is the:

answer

corporate website

question

Data mining is the systematic removal of bad information from the database.

answer

false

question

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

answer

known

question

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

question

The popular press has paid the most attention to ___________________ online marketing.

answer

business-to-consumer (B2C)

question

The most powerful approach to integrated direct marketing is:

answer

multiple-vehicle, multiple-stage

question

Online security is perhaps the number-one e-commerce concern.

answer

true

question

The Internet now influences _____ percent of total retail sales.

answer

42

question

Defining people by their birthrate may be less valuable to marketers than defining them by their life stage or lifestyle.

answer

True

question

At the core or first level of competition, Hyatt Hotels would consider as their competition:

answer

Marriott, Intercontinental, and Westin

question

The number of women in the American workforce is approaching 30 percent.

answer

False

question

A ____________ is any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives.

answer

Public

question

The first stage of the environmental scanning process is:

answer

Determining the areas that need to be monitored

question

Which of the following is not an example of a financial intermediary?

answer

Departmental Stores

question

The hotel industry characteristically has a _______________ barrier to exit.

answer

High

question

MADD (Mothers Against Drunk Driving) has had a considerable impact on the hospitality industry's approach to serving alcohol.

answer

True

question

Two forces that affect the competition are the ability of companies to ______ and _____ markets.

answer

Enter, exit

question

Each society contains _____________, groups of people with shared value systems based on common life experiences or situations.

answer

Subcultures

question

A marketing research project where the objective is to describe the size and composition of the market is called:

answer

Descriptive research

question

The type of research used to gather preliminary information to help generate a research hypothesis is called:

answer

Exploratory research

question

Among the four contact methods-mail, telephone, personal, and online-which is the poorest in terms of controlling the interviewer effect?

answer

Personal

question

Experimental research is best suited for gathering causal information.

answer

True

question

Mail questionnaires are very expensive per respondent compared to other survey methods.

answer

False

question

A marketing research project where the objective is to test hypotheses about cause-and-effect relationships is called:

answer

Casual research

question

From its Total Rewards data, Harrah's has learned that ___ percent of its customers produce ____ percent of revenues.

answer

26; 82

question

Qualitative research is useful to gain insight into definitions and concepts.

answer

True

question

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:

answer

Marketing research

question

________ is the most widely used method of primary data collection.

answer

Survey research

question

The first stage of the buyer decision process is:

answer

Need Recognition

question

Buyer decision process

answer

1. Need Recognition 2. Information Search 3. Evaluation of Alternatives 4. Purchase Decision 5. Postpurchase Behavior

question

A group to which a person wishes to belong is called a(n):

answer

Aspirational group

question

In which of the following countries are men likely to kiss each other in greeting, and never kiss a woman in public?

answer

Saudi Arabia

question

People are more likely to notice stimuli that they did not anticipate than those they did anticipate.

answer

False

question

The technique used to measure lifestyles is called:

answer

Psychographics

question

____________ describes changes in an individual's behavior arising from experience.

answer

Learnings

question

When purchasing hospitality and travel products, customers often use __________ as an indication of quality.

answer

Price

question

________________________ are the most affluent U.S. demographic segment.

answer

Asian American

question

Status is the general esteem given to someone fulfilling his/her role in society.

answer

True

question

Almost all major purchases result in discomfort caused by postpurchase conflict (cognitive dissonance).

answer

True

question

Actionability is the degree to which the segment's size and purchasing power can be measured.

answer

False

question

The degree to which segments can be assessed and served is the ____________ of the market segment.

answer

Accessibility

question

Evaluating each market segment's attractiveness and selecting one or more of the market segments to enter is called:

answer

Market targeting

question

Undifferentiated marketing is more suited for _____________ products.

answer

homogeneous - degree of product homogeneity

question

Which of the following is a psychographic segmentation variable?

answer

Social Class Lifestyle Personality

question

A "typical" male or female does not exist.

answer

True

question

The lodging industry is particularly effective in using income segmentation.

answer

True

question

Underpositioning is defined as:

answer

Failing to ever position the company at all

question

Marketers in hospitality companies need to work to establish images that differentiate their company from competitors.

answer

True

question

Offering consumers greater value either through lower prices or by providing more benefits that justify higher prices is called:

answer

Competitive advantage

question

Demographic segmentation variable

answer

Age and life cycle Gender Income

question

Behavioral segmentation variable

answer

Occasion Benefits Sought User Status Usage Rate Loyalty Status Using Multiple Segmentation bases

question

Product differentiation

answer

Physical Attributes Service Personnel Location Image

question

Formulating competitive position for a product and a detailed marketing mix

answer

Market positioning

question

If buyers have the same tastes, buy a product in the same amounts, and react the same way to marketing efforts, undifferentiated marketing is appropriate

answer

Market homogeneity

question

Giving buyers a too-narrow picture of the company

answer

Overpositioning

question

Leaving buyers with a confused image of company

answer

Confused positioning

question

Choosing and implementing a positioning strategy

answer

1. Identify a set of possible comparative advantages 2. Selecting the right advantages 3. communicating and delivering the chosen position to a carefully selected target market

question

Undifferentiated marketing

answer

a company ignores segmentation, goes after the entire market with one offer

question

Differentiated Marketing

answer

targets several market segments and designs separate offers for each

question

Concentrated Marketing

answer

pursues large share of one or a few small markets

question

Measurability

answer

the degree to which the segment's size and purchasing power can be measured

question

Substantiality

answer

the degree to which segments are large or profitable enough to serve as markets

question

Actionability

answer

The degree to which effective programs can be designed for attracting and serving segments

question

Geographic segmentation

answer

diving the market into different geographic units, such as nations, states, regions, counties, cities, or neighborhoods

question

The travel industry is the world's largest industry

answer

True

question

The set of beliefs consumers hold about a particular brand

answer

brand image

question

The stages through which families might pass as they mature

answer

family life cycle

question

Two or more people who interact to accomplish individual or mutual goals

answer

Group

question

A person's pattern of living as expressed in his or her activities, interests, and opinions

answer

Lifestyle

question

Groups that have a direct influence on a person's behavior and to which a person belongs

answer

Membership groups

question

A need that is sufficiently pressing to direct a person to seek satisfaction of that need

answer

Motive

question

The activities that a person is expected to perform according to the persons around him or her

answer

Role

question

A group of people with shared value systems based on common life experiences and situations

answer

Subculture

question

Groups that have a direct or indirect influence on a person's behavior or attitude

answer

Reference groups

question

Cultivating opinion leaders and getting them to spread information about a product to others in their community

answer

Buzz marketing

question

Buyer discomfort caused by post-purchase conflict

answer

Cognitive dissonance

question

People within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert influence on others

answer

opinion leaders

question

Selective Attention

answer

People are more likely to notice stimuli that -relate to their current need -they anticipate -whose deviations are large in relation to the normal size of the stimuli

question

Selective Distortion

answer

the tendency to twist information into personal meanings and interpret information in a way that will fit our preconceptions (marketing can't do much about this)

question

Selective Retention

answer

More likely to retain information that supports their attitudes and beliefs

question

Hispanic, African American, Asian American consumers

answer

pgs. 160-161

question

Especially punctual, present unwrapped flowers to hostess, greet women first and wait until they extend their hands before extended yours

answer

Germany

question

Toasts are given at formal dinners, business entertaining done more at lunch than dinner

answer

United Kingdom

question

Friendliness from service providers is viewed as disrespectful, formality preferred. promptness

answer

Japan

question

In choosing among products, the guiding principle of most consumers is customer value-the most benefit for the price.

answer

True

question

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

answer

True

question

The simplest definition of marketing is delivering customer satisfaction at a profit.

answer

True

question

The hospitality industry is the second largest employer in the United States.

answer

True

question

A company's _______________ is the set of benefits or values it promises to deliver to consumers to satisfy their needs.

answer

Value proposition

question

A product can be:

answer

Tangible or intangible

question

Which of the following is not part of the four-P framework of marketing?

answer

Public Relations

question

It is wise to assess the customer's __________ value and take appropriate actions to ensure a customer's long-term support.

answer

Long-term

question

When backed by buying power, wants become:

answer

Demands

question

Marketing mix elements include all of the following EXCEPT:

answer

Marketing information systems

question

Internal marketing

answer

marketing by a service firm to train effectively and motivate its customer-contact employees and all of the supporting service people to work as a team to provide customer satisfaction

question

Interactive marketing

answer

marketing by a service firm that recognizes perceived service quality depends heavily on the quality of the buyer-seller interaction

question

Needs

answer

a state of felt deprivation

question

Wants

answer

The form that a human need takes when shaped by culture and individual personality

question

Customer equity

answer

the discounted lifetime values of all the company's current and potential customers

question

CRM (Customer Relationship Management)

answer

managing detailed information about individual customers and carefully managing customer "touch points" in order to maximize customer loyalty

question

Customer touch point

answer

any occasion on which a customer encounters the brand and product - from actual experience to personal or mass communications to casual conversation

question

Marketing

answer

the art and science of finding, retaining, and growing profitable customers

question

Production concept

answer

customers will favor products that are available and highly affordable - focus on distribution efficiency

question

Product concept

answer

customers prefer existing products - focus on development of good versions of these products

question

Selling concept

answer

consumers will not buy enough of the organization's products unless the organization undertakes a large selling and promotion effort

question

Marketing concept

answer

achieving goals depends on determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors

question

Societal marketing concept

answer

organization should determine wants, needs, interests of target markets and deliver the desired factors more effectively and efficiently than competitors in a way that maintains or improves the consumer's and society's well-being

question

Backward integration

answer

a growth strategy by which companies acquire businesses supplying them with products or services (i.e., a restaurant train purchasing a bakery)

question

Forward integration

answer

a growth strategy by which companies acquire businesses that are closer to the ultimate consumer, such as a hotel acquiring a chain of travel agents

question

Marketing opportunity

answer

an area of need in which a company can perform profitably

question

SWOT analysis

answer

Strengths Weaknesses Opportunities Threats

question

Marketing Information System

answer

consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers

question

Primary data

answer

information collected for the specific purpose at hand

question

Secondary data

answer

information already in existence somewhere, having been collected for another purpose

question

Levels of relationships with customers

answer

Basic - no follow up Reactive - encourage to call w/questions Accountable - phones back Proactive - suggestions about improvements Partnership

question

In the ________ phase of the new product development process, prototypes appear for the first time.

answer

Product development

question

The additional consumer services and benefits built around the actual product are called the:

answer

Augmented product

question

The ________ product level answers the question of what is really being bought.

answer

core

question

A product image is a detailed version of a product idea stated in meaningful consumer terms.

answer

false

question

Phase-out is the ideal way of removing a product from the market.

answer

true

question

The main aural dimensions of atmosphere are scent and freshness.

answer

false

question

The dimension of atmosphere relating to volume and pitch is called:

answer

aural

question

Facilitating products are services or goods that must be present for the guest to use the core product.

answer

true

question

About ________ percent of all new product ideas come from consumers.

answer

28

question

The final stage in the new product development process is:

answer

commercialization

question

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

answer

true

question

Distribution specialists that serve the casino industry as intermediaries for premium players are called:

answer

junket reps

question

Alliances are informal agreements between two organizations that stand to benefit from each other's strengths.

answer

true

question

In channel conflicts, conflicts between different levels of the same channel are termed:

answer

vertical conflict

question

To date, the restaurant industry has had little use for the Internet as a distribution channel.

answer

false

question

Which of the following is not an advantage of a franchise to the franchisee?

answer

royalties

question

In a supply chain, "downstream" from the company is a set of firms that:

answer

provide a connection between the firm and its customers

question

All of the following are considered marketing intermediaries except:

answer

independent contractors

question

The first step in selecting a location for a hotel is:

answer

Understanding the target market of the company

question

Which of the following is not a function of the distribution channel?

answer

provide consulting on feasibility of new products

question

________ advertising is used when introducing a new product.

answer

informative

question

The type of message appeal that relates to an audience's self-interest is:

answer

rational

question

The four pillars of the AIDA model of communication design are:

answer

Attention, Interest, Desire, Action

question

One major disadvantage of public relations is its lack of believability.

answer

false

question

The first stage of the promotion process is:

answer

identifying the target audience

question

The most logical method of setting the promotion budget is the:

answer

objective and task method

question

________ 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.

answer

reach

question

____________________ advertising is used for mature products.

answer

reminder

question

When marketing activities are directed at channel members, a pull strategy is being used.

answer

false

question

The promotional tool that rewards customers for a quick, short-term response is/are:

answer

sales promotions

question

Casino operator Harrah's Entertainment has built a customer database containing _________________ of customer information.

answer

30 terabytes

question

Data mining is NOT used to determine which of the following?

answer

The occupancy and ADR of a hotel

question

Choose the best option: Effective direct marketing begins with a good _________________.

answer

customer database

question

To effectively use data mining and to be useful, the data stored in a database must be __________.

answer

accurate

question

Online _____________ is (are) perhaps the number-one e-commerce concern.

answer

privacy

question

Which of the following is NOT a way to measure direct marketing efforts?

answer

internal promotion

question

The Internet now influences _____ percent of total retail sales

answer

42

question

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

answer

true

question

Which of the following is a reason that direct marketing has grown?

answer

precision targeting

question

People from which country are likely to expect promptness and prefer quick, unfriendly service over having a conversation with the service provider?

answer

japan

question

A company starts the strategic planning process at the customer level by defining its values statement and mission.

answer

false

question

Social scientists have identified _________ American social classes.

answer

seven

question

Data that consists of information already in existence somewhere, having been collected for another purpose, is called:

answer

secondary data

question

Which of the following is not a part of the buyer decision process?

answer

solution

question

Marketing mix elements include all of the following EXCEPT:

answer

place of business operation

question

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

answer

competitors

question

It is better to give the customer a time ____________ the anticipated wait time.

answer

more than

question

Most large companies consist of four organizational levels: corporate, division, business unit, and:

answer

product

question

The second-largest advertising media is:

answer

internet

question

Revenue management grew out of ___________ management, which was introduced in the 1980s.

answer

yield

question

Hospitality companies face the task of increasing three major marketing areas:

answer

Service differentiation, service quality, and service productivity

question

Which of the following is not part of the four Ps of the marketing mix?

answer

profits

question

Telephone interviewing runs little risk of interviewer bias since the respondent cannot actually see the interviewer.

answer

false

question

CRM stands for:

answer

Customer Relationship Management

question

Hotel marketers could see the accounting department as a part of their microenvironment.

answer

true

question

Which of the following is not a type of objective for a marketing research project?

answer

data research

question

Hotel developers generally have lower barriers to entry than restaurant developers.

answer

false

question

In using a(n) ________ marketing strategy, a company ignores market segmentation and goes after the entire market with one market offer.

answer

undifferentiated

question

The ________________ describes a channel that stretches from raw materials, to components, to final products that are carried to final buyers.

answer

supply chain

question

A hotel company acquiring a food distributor is an example of:

answer

backward integration

question

Which of the following is not a characteristic affecting consumer behavior?

answer

postpurchase behavior

question

The hotel industry in general has a _______________ barrier to entry.

answer

moderately high

question

A market is only the set of actual, not potential, buyers who have transacted with a seller.

answer

false

question

A central repository of an organization's customer information is known as:

answer

data warehouse

question

During recessions or oil shortages, people rarely travel.

answer

false

question

If you are in a hurry to collect survey data, the worst method to use is:

answer

mail surveying

question

Existing laws concerning marketing abuses are often difficult to enforce.

answer

true

question

Closed-ended questions include all possible answers from which the subjects must choose.

answer

true

question

Instead of simply being defined as "freedom from defects," QUALITY should be defined:

answer

in terms of customer satisfaction

question

The stages through which families pass as they grow older are called:

answer

family life cycles

question

Perhaps the best measure of service quality is:

answer

customer retention

question

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

answer

internal

question

Interpretations of research findings need to be left entirely to the researcher.

answer

false

question

The competitive environment in the hospitality industry is __________________.

answer

unpredictable

question

The ________ consists of the forces close to the company that affect its ability to serve its customers.

answer

microenvironment

question

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

answer

actionability

question

Which of the following is not a demographic variable?

answer

user status

question

Studies have shown the best way to deal with service failure is to:

answer

Give the unhappy customer timely information regarding the failure

question

This test is an example of:

answer

a closed-ended survey

question

The ________ environment includes institutions that affect society's basic values, perceptions, preferences, and behaviors.

answer

cultural

question

The factor that exerts the broadest and deepest influence on behavior is:

answer

culture

question

Which is not a purpose of marketing in a customer-centered firm?

answer

To maximize customer satisfaction

question

The three services of marketing are: internal, external, and interactive.

answer

true

question

If you manage a 200-room hotel, and only sell 150 rooms tonight, you can't stockpile the extra 50 rooms to sell tomorrow. This is a problem with the ________ of services.

answer

perishability

question

Mission statements should be realistic and general in nature.

answer

false

question

The Forum Company found that the cost of retaining a loyal customer is just ____ percent of the cost of attracting a new one.

answer

20

question

When the researcher selects the easiest population members from which to obtain information, the sample is called a:

answer

convenience sample

question

A product's ________ is the way the product is defined by consumers on important attributes.

answer

position

question

The buying or selling process that is supported by electronic means is known as:

answer

e-commerce

question

Which of the following is NOT a sampling decision that must be made?

answer

who will do the sampling?

question

There is no current evidence to suggest that long-term customers are more profitable than new customers.

answer

false

question

The two main industries that comprise the activities we call tourism are:

answer

the hospitality and travel industries

question

Most human behavior is learned.

answer

true

question

The fact that services cannot be seen, tasted, felt, or smelled relates to which service characteristic?

answer

intangibility

question

When dealing with issues of Internet privacy, the group we have to be the most concerned about is:

answer

the children

question

The increasing fragmentation of the mass market into hundreds of smaller markets is called:

answer

micromarketing

question

When we screen out information coming at us, we are engaged in the act of:

answer

selective attention

question

The principal objective of a market-oriented mission statement is to:

answer

satisfy basic customer needs

question

A company could see its competition as all other companies that compete for the consumer dollar.

answer

true

question

The process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior and might require separate products or marketing programs is called _______________________.

answer

market segmentation

question

____________ is the act of obtaining a desired object from someone by offering something in return.

answer

exchange

question

Primary data are simply the highest priority information used by the company to make decisions.

answer

false

question

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

answer

True

question

________ are certificates that offer buyers savings when they purchase specific products.

answer

Coupons

question

When a crisis does occur, it is in the company's best interest to alert the media.

answer

True

question

PR stands for:

answer

Public Relations

question

Public relations campaigns can contribute to all but which of the following objectives?

answer

Replace most other promotion costs

question

Only in a few cases have sales promotions given consumers the impression that profit margins were unreasonably high to start with.

answer

False

question

In preparing for crisis communication, it is important to train employees regularly and document such training for:

answer

Legal purposes

question

Which of the following is not a PR technique?

answer

Telephone

question

During crisis communication, if some information has been reported incorrectly, then the company should:

answer

Not interfere and let the media do its work

question

________ crises give a warning before they occur.

answer

Smoldering

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