HFT 2500 Final Exam Review

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