HFT 2500 Final Exam Review – Flashcards

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A company's _______________ is the set of benefits or values it promises to deliver to consumers to satisfy their needs.
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Value proposition
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Building strong economic and social ties with customers by delivering high-quality products and services is the foundation of:
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Relationship marketing
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The most basic concept underlying marketing is that of:
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Needs
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Instead of simply being defined as "freedom from defects," QUALITY should be defined:
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In terms of customer satisfaction
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The production concept holds that consumers will favor products that are __________ and highly ____________, and therefore management should focus on production and distribution efficiency.
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available; affordable
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When backed by buying power, wants become:
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Demands
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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:
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Marketing
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____________ are highly loyal but not very profitable.
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Barnacles
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T or F: During recessions or oil shortages, people rarely travel.
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False
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A casino employee's uniform and a restaurant's fancy front lobby are a means of:
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Tangibilizing the service
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T or F: The three services of marketing are: internal, external, and interactive.
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True
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Because services are characterized by the issue of inseparability, service providers often will have to:
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Train the customers
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T or F: Most restaurant kitchens would be considered examples of invisible organizations.
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True
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Which of the following is NOT a link in the service-product chain?
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Increasingly intangible services
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Service marketing requires both internal marketing and ______________ marketing.
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Interactive
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____________ form(s) when capacity exceeds demand and guests are willing to wait.
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Queues
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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?
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Variability
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T or F: When a market's annual growth rate falls below 10 percent, a star will become a dog if it still has the largest market share.
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False
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T or F: A company's mission statement should provide direction for the company for no more than five years at a time.
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False
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The example of the Las Vegas Hilton's change in strategic focus underscores how companies are increasingly refocusing their attention on the need to manage ________ instead of departments.
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Processes
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"Project RED" was the name given to the long-term strategy of which restaurant chain?
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Red Robin
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Studies have shown that a well-crafted mission statement aids a firm's performance, as the mission statement serves as a statement of:
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Purpose
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_________________ is the marketing logic by which the company hopes to create customer value and achieve profitable relationships.
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Marketing strategy
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T or F: A critical and sometimes overlooked stakeholder group is that of owners of hotels managed by a hotel management company.
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True
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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 _______________________.
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Market Segmentation
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Most large companies consist of four organizational levels: corporate, division, business unit, and:
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Product
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Market definitions of a business are ___________ to product definitions.
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superior
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The most powerful approach to integrated direct marketing is:
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Multiple vehicle; Multiple stage
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A central repository of an organization's customer information is known as:
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Data warehouse
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T or F: 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.
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False
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The most basic type of website is the:
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Corporate website
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The buying or selling process that is supported by electronic means is known as:
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E-commerce
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T or F: One problem with database management is that a company may have a number of databases that do not talk to each other.
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True
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Choose the best option: Effective direct marketing begins with a good _________________.
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Customer database
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T or F: Online marketing is not a growth area of direct marketing.
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False
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In periods of low demand, companies can use direct marketing to target _________ customers and produce quick results.
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known
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T or F: Interstitials are online display ads that appear between screen changes on a website.
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true
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Two forces that affect the competition are the ability of companies to ______ and _____ markets.
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enter; exit
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T or F: Marketing services agencies include banks and credit companies that help hospitality companies finance their transactions.
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False
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A ____________ is any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives.
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Public
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T or F: Existing laws concerning marketing abuses are often difficult to enforce.
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True
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The restaurant industry is characterized by a ______________ barrier to entry.
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Low
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The hotel industry characteristically has a _______________ barrier to exit.
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High
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The hotel industry in general has a _______________ barrier to entry.
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Moderately high
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The most dramatic force shaping our destiny is:
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Technological
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_______________ is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.
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Demography
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Which of the following is not an example of a marketing intermediary?
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Next-day delivery providers
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T or F: Status is the general esteem given to someone fulfilling his/her role in society.
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True
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T or F: People are more likely to notice stimuli that they did not anticipate than those they did anticipate.
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False
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The stages through which families pass as they grow older are called:
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Family life cycles
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________________________ are the most affluent U.S. demographic segment.
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Asian American
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T or F: The working class depends heavily on relatives for both economic and social support.
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True
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______________ describes a person's relatively consistent evaluations, feelings, and tendencies toward an object or an idea.
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Attitudes
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In which of the following countries are men likely to kiss each other in greeting, and never kiss a woman in public?
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Saudi Arabia
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People from which country are likely to expect promptness and prefer quick, unfriendly service over having a conversation with the service provider?
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Japan
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T or F: It is easy to change a person's attitude by reasoning with them.
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False
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Which of the following does not comprise the U.S. Hispanic market?
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Spanish descent
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Which is not a purpose of marketing in a customer-centered firm?
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To maximize customer satisfaction
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T or F: Actionability is the degree to which the segment's size and purchasing power can be measured.
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False
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T or F: The use of CRM in the hospitality industry appears to be strong.
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False
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When analyzing the competition, a question put to customers might be "Name the company from whom you would prefer to buy the product." In this case you are looking for:
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Share of heart
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According to Maslow, the most important need to be satisfied is:
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Physiological
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Developing a good ______________ policy minimizes the chance of walking a guest.
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Overbooking
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T or F: A segment may have desirable size and growth and still not offer attractive profits.
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True
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The ________ environment includes institutions that affect society's basic values, perceptions, preferences, and behaviors.
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Cultural
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Companies that diversify too broadly into unfamiliar products or industries can ______ their market focus.
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Lose
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One of the biggest nonmonetary costs for hospitality customers is ___________.
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Time
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T or F: In choosing among products, the guiding principle of most consumers is customer value-the most benefit for the price.
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True
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Which of the following is a psychographic segmentation variable?
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Social class
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T or F: 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.
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False
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T or F: It is no longer possible for one restaurant to sue another over the "trade dress" issue.
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False
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T or F: 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
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True
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Buyer discomfort caused by postpurchase conflict is called:
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Cognitive dissonance
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T or F: Empowering employees in part means giving them the authority to tend to customer needs.
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True
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Which important consumer subculture's annual buying power is $913 billion and is estimated to reach $1.2 trillion by 2013?
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African American
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A ________ is a state of felt deprivation.
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need
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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:
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Deployment of capital
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Which of the following is not a characteristic affecting consumer behavior?
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Post-purchase behavior
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Data mining is NOT used to determine which of the following?
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The occupancy and ADR of a hotel
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Overbooking is another method that hotels, restaurants, trains, and airlines use to match:
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Demand with capacity
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Which American social class comprises the largest part of the population?
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Working (38%)
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To effectively use data mining and to be useful, the data stored in a database must be __________.
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accurate
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Online _____________ is perhaps the number-one e-commerce concern.
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privacy
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T or F: The process of marketers choosing to position their products based on specific product attributes can actually be dangerous.
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True
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Which of the following do not contribute to a company's product differentiation efforts?
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Profitability
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T or F: Bill Marriott would say that the first set of people you need to satisfy are your customers.
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False
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T or F: So long as a company sets high standards for service quality, it is not necessary to evaluate its actual performance.
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False
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T or F: "Quality" could be defined as the features and characteristics of a product that bear on its ability to satisfy customer needs.
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True
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T or F: A company starts the strategic planning process at the customer level by defining its values statement and mission.
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False
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At the Ritz-Carlton, each employee can spend up to __________to redress a guest grievance.
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$2,000
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The sequence of integrated direct marketing technique is:
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Paid ad with a response channel > Direct mail mechanism > Outbound telemarketing > Face-to-face sales calls
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Studies have shown the best way to deal with service failure is to:
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Give the unhappy customer timely information regarding the failure
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A ________ is anything that can be offered to a market to satisfy a want or need.
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Product
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A product's ________ is the way the product is defined by consumers on important attributes.
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Position
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T or F: A "typical" male or female does not exist.
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True
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Which of the following is NOT a form of direct marketing?
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Marketing Website
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Marketing mix elements include all of the following EXCEPT:
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Marketing Information Systems
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The Internet now influences _____ percent of total retail sales.
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42
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T or F: To an economist, a market is all the buyers and sellers who transact for a good or service.
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True
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Which of the following is not a part of the buyer decision process?
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Solution
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T or F: In the United States, social class is something you are born into.
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False
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One of the outcomes of currency devaluations in a destination country such as Argentina is that the country ____________ as a destination of conventions and meetings.
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starts gaining
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Revenue management grew out of ___________ management, which was introduced in the 1980s.
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Yield
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The second-largest advertising media is:
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Internet
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Which of the following is NOT a way to measure direct marketing efforts?
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Internal promotion
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____________ is the act of obtaining a desired object from someone by offering something in return.
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Exchange
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"Unaware," "Aware," and "Informed" are three examples of which behavioristic segmentation variable?
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Buyer readiness stage
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"We are Ladies and Gentlemen serving Ladies and Gentlemen" is a motto for:
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Ritz Carlton
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The degree to which segments can be assessed and served is the ____________ of the market segment.
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accessibility
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Hospitality companies face the task of increasing three major marketing areas:
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Service differentiation, service quality, and service productivity
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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.
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Internal
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Offering consumers greater value either through lower prices or by providing more benefits that justify higher prices is called:
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competitive advantage
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T or F: SRI's VALS framework is one of many different psychographic segmentation systems available today.
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False
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T or F: Using an undifferentiated marketing strategy, a company ignores market segmentation differences and goes after the entire market with one market offer.
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True
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Today's baby boomers spend about $______ trillion annually.
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2
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The first stage of the environmental scanning process is:
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determining the areas that need to be monitored
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A company may discover additional sources of ________________ by investigating possible integration moves.
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sales volume
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T or F: To reduce uncertainty caused by service intangibility, buyers look for whatever tangible evidence they can find that will provide information about the service.
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True
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A _________________ stores the information that the company receives in a central repository of customer data.
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Data warehouse
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The process of sourcing ideas by inviting broad communities of people is called:
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crowdsourcing
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In the joining phase of the customer delivery system:
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The customer makes the initial inquiry contact
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T or F: It is a commonly accepted fact that some products can avoid ever entering a decline phase.
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False
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The most important source of new product ideas is:
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customers
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The stage of the new product development process where the number of new product ideas is reduced is called:
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Idea screening
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The services or goods that must be present for the guest to use the core product are called:
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Facilitating products
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About ________ percent of new product ideas come from within the company.
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55
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T or F: The detachment phase occurs when a customer is through using a product or service and departs.
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True
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T or F: Facilitating products are services or goods that must be present for the guest to use the core product.
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True
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An internal marketing program requires a strong commitment from ________.
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Management
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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:
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Service Culture
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Which of the following would NOT be considered a moment of truth?
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Guest pays bill by mail
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T or F: In the hospitality industry, most marketing activity is carried out by employees within the marketing department.
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False
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A moment of truth occurs when employees and ________ have contact.
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Customer
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Full-service restaurants have an employee turnover rate of ______ percent for hourly employees.
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88
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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:
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Internal Marketing
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T or F: When pricing, creative judgment can be as important as technical expertise.
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True
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Pricing based on segmentation of the market and pricing differences based on price elasticity characteristics of these segments is called:
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Discriminatory pricing
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T or F: Going-rate pricing is an example of competition-based pricing.
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True
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Customers are more price-sensitive when the price of the product accounts for a large share of the total cost of the __________________.
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End Benefit
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Which of the following is NOT a factor affecting price sensitivity?
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Customer satisfaction effect
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The factor that sets the floor for a product's price is:
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Cost
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The more someone spends on a product, the more _________________ he or she is to the product's price.
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sensitive
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