Exam 1 (chap 1 – 6)

boundary spanning role
Front-line employee (ex: front desk agent, server)
The practice of overbooking
the absence of inventories
Primary focus of Marketing
to satisfy the needs and wants of consumers
Credence qualities are difficult to evaluate even after the service is consumed
true
marketing mix variables would directly affect the cost section of an income statement?
Product and Promotion
Presentation mix
elements that marketing managers use to increase the tangibility of the product-service mix as perceived by consumer. (physical location, atmosphere, personnel)
Hospitality Marketing Mix
1. product-service mix
2. presentation mix
3. communication mix
4. pricing mix
5. distribution mix
The marketing concept focuses on designing products as efficiently as possible and selling them at a profit
False
Which of the following is not a characteristic associated with services
consistent delivery (p.8)
Purchase decisions for services such as foodservice are heavily slanted towards
experience qualities
Which of the following traditional marketing mix elements is (are) part of the presentation mix?
price & place
Which of the following is not a component of the original hospitality marketing mix?
Distribution mix
Which of the following is a key aspect of corporate social responsibility?
It focuses on the triple bottom line
All of the above are popular service recovery strategies
employee turnover
A measure of the relative level of prices for consumer goods is known as
Consumer Price Index – CPI
The “triple bottom line” is an accounting and recording system used by firms to monitor sustainability performance on people, planet and profits.
true
Fast food chains competing with convenience stores and supermarkets is an example of
general competition
Product category competition exists among companies that provide similar products and services to the same customers at a similar price level.
False (p.24)
area of concern for environmental sustainability?
energy management
waste management
water conservation
Changes in the profile of residents within a city or given geographic area represent which of the following types of trends?
social
Perfect competition
the competitive structure in an industry with many buyers and sellers of homogeneous products that are almost exactly the same.
product class competition
Major airlines competing with charter airlines and commuter airlines
monopolistic competition
A monopoly consists of a few sellers and many buyers
he three major components of sustainability in hospitality and tourism operations
social, environmental, and economic
Which of the following is not a sustainability indicator for the social component?
employee turnover
The amount of search would be most substantial for the ____ problem-solving technique.
Extended
The number of attributes normally considered would be fewest for the ____ problem-solving technique.
routine response behavior (p.52)
attitude
A learned predisposition to act in a consistently favorable or unfavorable manner toward an object
Opinion leaders include formal and informal leaders of reference groups.
True
Most hospitality and travel firms expect to fulfill the self-actualization needs of consumers as described by Maslow
False (p. 45)
Which of the following is an example of organizational buying in the travel industry?
Hotel salespeople selling to meeting planners.
Tour operators selling to travel agents. (P. 54)
Which of the following statements IS TRUE in regard to postconsumption feelings?
They are based on consumers’ expectations and actual firm performance.

Hospitality chains have an advantage because of a lower perceived risk.

From a management perspective, it is better to under-promise and over-deliver.

Problem recognition occurs when an individual realizes a gap between a desired state and the actual state.
True
Which of the following is NOT a characteristic of organizational buying?
less negotiation
Diffusion and adoption.
The process of influencing consumers who are innovators and early adopters
Which of the following problem-solving processes allows consumers to make tradeoffs between product or service attributes?
Compensary strategies.
The five roles of an organizational buying unit MUST ALL be represented by different individuals.
False
The final set of products or service providers that are considered by consumers when making a purchase decision is referred to as the:
evoked set
Which of the following is not an internal influence on consumer behavior?
Culture
Which consumer choice model involves choosing important service attributes and then eliminating brands that do not exceed minimum thresholds on all of those attributes?
Conjunctive model
An individual does not pass through all of the stages in the consumer decision-making model when engaging in routine problem solving.
False (p. 54)
Which stage in the consumer adoption process includes the largest percentage of consumers entering the
Early majority
Certain reference groups can influence the purchase decisions of individuals even if they don’t belong to the group.
True
In Maslow’s hierarchy of needs, the first set of needs individuals seek to satisfy is
physiological needs
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 restaurant for a casual lunch
The family life cycle would be considered a(n) ________ variable
demographic
Which of the following refers to the smallest geographic area?
Metropolitan statistical area (MSA) (p. 66)
Salient attributes
attributes that are important to consumers in evaluating alternative product offerings
When a firm develops one product-service mix that is sold to all potential customers, it is using a
mass-market strategy
AIO statements are used in
psychographic segmentation
Projected demand is equal to
total market demand x market share
The basic tenet of the VALS segmentation framework is that consumers’ purchasing behaviors are based on their culture and ethnic background.
false (p. 70)
Which VALS category would be most loyal to an independent restaurant?
Makers
The first step in the Market Segmentation Decision Process is to select specific target market segments.
False (p. 71)
The first step in the positioning process is to
Determine the ideal mix for consumers
The criteria for effective market segmentation?
Measurability
Accesibility
Substantiality
(p. 65)
In practice, it is normally not a good idea to use more than one type of variable to segment markets
False
What is the technique used to construct a graphic representation of how consumers perceive a competing set of products relative to each other?
Perceptual mapping
extension of the traditional family life cycle
People are waiting longer to get married.

Increased divorce rate has led to more single parents.

There are more same-sex couples that adopt children.

People are living longer.

A firm’s positioning statement should differentiate the firm’s product-service mix form that of the competition.
True
Southwest Airline’s addition of the ‘Business Select’ class to its existing economy class is an example of:
differentiated strategy
The use of frequent traveler or frequent diner programs would be considered a form of
behavioral segmentation
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.
False
Market segmentation is the process of
dividing a total potential market into homogeneous subsets
When restaurants or hotels record the license plates of their guests, it is a form of
geographic segmentation
Which step would normally include a S.W.O.T. analysis?
Conduct a situation analysis
The strengths and weaknesses components of a S.W.O.T. analysis reflect an evaluation of the firm’s internal situation
True (p. 93)
Which of the following items would be considered leverage items in a S.W.O.T. analysis?
Strengths and opportunities
A _____ strategy focuses on selling the existing product-service mix to the existing target markets
Market penetration (p. 96)
three stages in the marketing management cycle
marketing planning – marketing execution – marketing evaluation
What is the first step in the marketing planning process?
Conduct a situation analysis (p. 92)
reasons why some marketing plans fail?
Strategic planning is not integrated into a firm’s day-to-day activities.

Those responsible for planning do not understand the planning process.

No procedures are established to monitor and control the planning process.

Financial projections are treated as marketing plans.

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.
False
Which time series analysis technique is the simplest method for forecasting sales?
trend extrapolation
Which of the following is not considered a disadvantage of marketing planning
Marketing planning does not help firms cope well with change. (p. 87)
Quantitative sales forecasting techniques tend to be used when data is not readily available and rely on judgment or intuition
True (p. 101)
Increasing or maximizing market share is an example of a _____ objective
sales customer (p. 96)
Which of the following is NOT a characteristic of a good objective?
Objectives should not be constrained to a specific time frame (p. 94)
Marketing planning forces managers to carefully examine the firm’s operations
True
A position statement is created before a mission statement to describe a firm’s purpose to its external stakeholders
False (p. 91)
A study used to measure the same population over an extended period of time is referred to as a
Longitudinal study (P. 118)
Which of the following is NOT one of the basic criteria for a well-designed marketing information system?
Information should only be gathered from outside the organization
One of the advantages of collecting secondary data is _____.
cost
timeless
The use of a marketing information system helps an organization to shorten the reaction time to changing market conditions
true
Test marketing is a common form of
experimentation
Marketing research is a broader and more encompassing term than marketing information systems.
False (P. 110 and P. 112)
The best survey method for complicated or complex questions would be
Personal interview
Within the components of a marketing information system, the statement “Nearly 20 percent of the population moves each year,” represents which component?
Macroenvironment (p. 111)
Measuring the relationship between price and quality for hospitality services would be an example of causal research
True
When considering marketing research ethics, the respondent, the researcher, and the client all have rights and obligations
True
The basic level of investigation in a research design is referred to as a
Sample unit
The survey method with the best response time would be
Telephone
When a closed-ended question is designed so that respondents will belong to at least one category, the available responses are said to be
collectively exhaustive (p. 135)
Which of the following types of information would not be important for a restaurant manager to assess?
The characteristics of the current customers.

The characteristics of potential new customers.

The media habits of current customers and potential new customers.

The profile of the consumers of all available media.

The first step in the marketing research process is to
Define the problem
The best survey method for sensitive questions would be
Direct mail
One of the advantages of collecting primary data is _____
specificity
Sampling error increases at a diminishing rate as sample size increases.
False (P. 123)
Nonprobability samples cannot be representative of the population
False (p. 123)
A hospitality manager who measures consumer reaction to new menu items offered by the restaurant is obtaining which of the following
Primary data