HFT 2500 Test 1

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The purpose of a business is to
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create and maintain profitable customers
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The two main industries that comprise the activities we call tourism are:
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hospitality and travel industries
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A human need is part of the human makeup.
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All of the following statements are true, except:
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The concept of product is limited to physical objects. ———- -Anything capable of satisfying a need can be called a product. -A Disneyland experience can be considered to be a product. -Experiences, information, and ideas can be called products.
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Which of the following are not considered part of the hospitality service industry?
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advertising agencies
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All of the following statements are true, except:
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Marketers have no control of customers’ expectations. ———– -Costs include both monetary and non-monetary costs. -If a product’s performance falls short of the customers’ expectations, the customers are dissatisfied. -Marketers must be careful to set the right level of expectations.
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Which of the following statements is true?
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Quality begins with customer needs and ends with customer satisfaction.
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The __________________ holds that consumers will favor products that are available and highly affordable.
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production concept
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_________ is most appropriate with customers who most affect the company’s future.
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Relationship marketing
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All of the following statements are true, except:
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The selling concept holds that customers will buy enough of the organization’s products without a large sales and promotion effort.
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Two main industries that comprise the activities we call tourism are: (Choose all that apply.)
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the hospitality and travel industries the hospitality and destination industries
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Which of the following are NOT part of the five principles of heritage tourism listed by Colorado Preservation Inc? (Choose all that apply.)
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Focus on preserving and protecting resources Focus on authenticity and quality Focus on making the site come alive for the visitor Focus on developing partnerships for sustainability
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The manufacturing concept (also called the production concept) is the newest philosophy.
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False
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The hospitality industry is the third major industry in the world.
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False
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The first basic concept to marketing is that of human wants.
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False
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Quality can be defined as “freedom from defects.”
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True
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Exchange is an act of obtaining a desired object from someone by offering something in return.
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True
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A product is anything that can be used to satisfy a want or a need.
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True
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Transaction marketing is part of the larger idea of relationship marketing.
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True
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Marketing management is the analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives.
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True
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There are three (3) concepts under which organizations conduct their marketing activity.
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False
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Government and quasi-government agencies play an important role in travel industry marketing through legislation aimed at enhancing the industry and through promotion of regions, states, and nations.
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True
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Customer expectations are based on past buying experiences.
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True
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Quality does not have a direct impact on product or service experience.
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False
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The manufacturing concept is also called the production concept.
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True
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Societal marketing holds that customers prefer existing products, and the job of management is to develop good versions of these products.
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False
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Customers cannot evaluate the quality of the service because of which characteristic of service?
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intangibility
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All of the following statements are true, except:
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The service culture believes that sales come first. ———————— -The service culture has to start with top management and flow down. -The service culture can be supported through empowering employees to solve customer problems. -The service culture focuses on serving and satisfying the customers.
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Which of the following statements is true?
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-Tangibles provide signals as to the quality of the intangible service. -Tangible evidence can reduce purchase uncertainty. -The condition of grounds and the overall cleanliness of a restaurant provide cues as to how well the restaurant is run.
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The fact that a traveler may have one very positive experience flying with an airline and then a very negative flying experience on a subsequent visit is the evidence of service
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variability.
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That hospitality organizations have to train customers just as they train employees is an implication of:
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inseparability
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A restaurant that charges a fee to customers who do not show up for reservations is an example of which characteristic of service?
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perishability
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Club Med uses e-mail to pitch unsold, discounted packages to the customers in its database. This is in response to which characteristic of service?
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perishability
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Which of the following is NOT an example of “tangibilizing” a service product?
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resetting a banquet room behind closed doors ————– -employee uniforms -exterior of the property -plate presentation
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Efforts to standardize customer experiences are steps that address which aspect of service?
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variability
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When a service firm effectively trains and motivates its customer-contact employees and its support personnel to work as a team to provide customer satisfaction, it is practicing:
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internal marketing
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Which of the following is not a service-profit chain link?
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tangibilizing the product —————– -greater service value -satisfied and loyal customers -internal service quality
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The distinctive nature of a hospitality company’s total visual image and overall appearance is known as
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trade dress.
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Four characteristics of services are intangibility, separability, variability, and perishability.
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False
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Trade dress is the distinctive nature of a hospitality industry’s total visual image and overall appearance.
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True
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The task of marketing to employees involves the effective training and motivation of customer-contact employees and supporting service personnel is known as external marketing.
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False
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Consistency means that customers will receive the expected product without unwanted surprises.
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True
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The five links of the service profit chain are these: -healthy service profits and growth, -satisfied and loyal customers, -greater service value, -satisfied and productive service employees, -internal service quality.
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True
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A point of encounter is any point at which an employee encounters the customer.
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True
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Physical surroundings should be designed to reinforce the product’s position in the customer’s mind.
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True
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Interactive marketing means that perceived service quality depends heavily on the quality of the buyer-seller interaction during the service encounter.
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True
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The term “servuction” was developed to describe a production system for manufacturing.
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False
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An inanimate environment provides tangible evidence and can be used to provide a point of differentiation.
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True
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The use of outside natural landscaping and inside use of lights and plants called “greening” is a popular method of creating differentiation and tangibilizing a product.
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True
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A 100-room hotel that sells only 60 rooms on a particular night can inventory the 40 unused rooms and then sell 140 rooms the next night.
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False
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A clear ___________ acts as an “invisible hand” that guides people in the organization.
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mission statement
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Questions such as “What is our business?” and “Who is the customer?” are generally answered in a company’s__________.
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mission statement
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All of the following statements are true, except:
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An SBU can not be planned for separately from the rest of the company. ——– -SBU stands for Strategic Business Unit. -An SBU can be a single business or collection of related businesses. -An SBU has its own set of competitors.
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The decision to increase an SBU’s short-term cash flow regardless of the long-term effect is an example of
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harvesting
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Which of the following is not one of the scopes to be included in a corporate mission statement?
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shareholder scope —————- -vertical scope -competencies scope -market-segment scope
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The product-market expansion grid is useful in helping managers visualize and identify market opportunities. Which of the following is not part of that grid?
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market penetration
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If a company makes the decision to phase out an SBU and use the resources elsewhere in the company, this decision is called a _______ strategy.
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divest
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According to the growth-share matrix portfolio evaluation model, a company’s SBUs can be evaluated in terms of their
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market growth rate and relative market share.
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Under the product/market expansion grid, the strategy of finding new markets for current products is called
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market development.
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When a hotel company acquires one of its suppliers it is called
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backward integration
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A useful framework for examining a company’s growth is the
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Ansoff- product-market expansion grid
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A few years ago Tricon Global developed restaurants which housed KFC, Taco Bell, and Pizza Hut under one roof with the primary soda of choice for customers being Pepsi. Tricon Global was therefore using a __________ method of strategic planning
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strategic alliance
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The four factors of a high-performance business are stakeholders, processes, resources, and organization.
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True
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SWOT analysis is one of the four planning activities that all corporate headquarters must undertake.
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False
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Diversification growth makes sense when good opportunities can be found outside the present business.
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True
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Product development strategy refers to the strategy of offering new products to current markets.
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True
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The first step of business strategic planning process is goal formulation.
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False
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The global expansion of business has created the need for alliances.
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True
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A company does not need to track the results of its strategy implementations.
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False
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Product development offers modified or new products to current markets.
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True
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SWOT analysis evaluates the customer’s overall strengths, weaknesses, opportunities and threats.
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False
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Strategic planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.
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True
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Skills and objectives are a part of the micro environmental forces affecting the company.
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False
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Customers, competitors, distribution channels, and suppliers are all micro environmental forces
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True
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History is not one of the four natures of high performance.
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True
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Corporate, division, business, and product are all major organizational levels.
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True
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The starting point of any business is to define the stakeholders and their needs.
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True
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A company’s microenvironment consists of all of the following except
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Competitors ——- -marketing intermediaries. -suppliers. -publics.
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________ are firms and individuals that provide the resources needed by the company to produce its goods and services.
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Suppliers
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Banks, credit companies, and insurance companies that help hospitality companies finance their transactions are called
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financial intermediaries.
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A company’s macroenvironment consists of all of the following except
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customers ——- -competitors. -technological environment. -demographics.
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One of the reasons that cruises are popular with ________ is because of the value of the all-inclusive vacation.
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baby boomers.
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Which of the following statements is true?
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The U.S. population is becoming better educated.
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Which of the following statements is true?
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Income distribution in the United States is still very skewed.
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When Disney shreds its paper products and sends the shredded paper to the gift shops to use as packing material, it is responding to _________ an environmental factor.
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natural
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Which of the following is not one of the three reasons that legislation and regulation affects business?
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It protects consumers from each other. —— -It protects companies from each other. -It protects consumers from unfair business practices. -It protects society’s interests against unrestrained business behavior.
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Which of the following is not part of the environmental scanning steps?
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-determining the environmental areas that need to be monitored -determining how the information will be collected -implementing the data collection, analyzing the data, and using them in the market planning process.
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The work of groups like People for the Ethical Treatment of Animals (PETA) influence the ____________ environment in which businesses operate.
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political
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Market intermediaries are part of a company’s microenvironment.
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True
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All companies making the same product or class of products are the first level of competitors.
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False
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Hotels have moderately high barriers of entry and high barriers to exit.
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True
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Echo boomers are also called the baby boomlet generation.
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True
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The economic environment consists of factors that affect consumer purchasing power and spending patterns.
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True
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The damages to water, earth, and air caused by industrial activities will not affect marketing activities.
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False
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Computerized video checkout services are examples of the technological environmental factor.
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True
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Government legislation and regulation aimed at protecting consumers from unfair business practices is an example of the political environmental factor.
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True
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Companies should simply watch and react to the marketing environment.
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False
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Companies can use an environmental scanning plan to determine the environmental areas that need to be monitored.
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True
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The Internet is a major technological force influencing how we market hospitality and tourism products and services.
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True
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Institutions are not a part of the cultural environment.
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False
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Twitter:
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Carnival CEO Lies Low After Wreck: http://online.wsj.com/article/SB10001424052970204624204577177131752006116.html?mod=googlenews_wsj HFT 2500: Cruise bookings down notably in wake of Costa accident – http://USATODAY.com http://usat.ly/wfRM2i via @USATODAY HFT 2500 Read: Acquisitions are part of Darden’s growth strategy: http://investor.darden.com/releasedetail.cfm?releaseid=614552 HFT2500 read the rise of facebook: http://mashable.com/2012/01/12/facebook-1-billion-users/ Top 10 hospitality industry trends for 2012: http://hotelmarketing.com/index.php/content/article/top_10_hospitality_industry_trends_for_2012
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Marketing
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Marketing’s task is to provide real value to target customers, motivate purchase, fulfill consumer needs, without fooling the customer or endangering the company image.
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Brand Strategies
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Head Heart Gut
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Importance of customer service
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Steps of strategic planning and growth models – what they are and how they are applied
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Defining the company mission -> setting company objectives and goals -> designing the business portfolio -> Planning marketing and other functional strategies
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Micro v macro environmental factors -Know how to define each -Which have the greatest impact -Understand levels of competition
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Microenvironment = factors closeto the company that affect its ability to serve its customers. Macroenvironment = larger societal forces that affect the entire microenvironment.

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