NHM 464 Marketing Test #1

the features and characteristics of a product that bear on its ability to satisfy customer needs
a state of felt deprivation
anything that can be offered to a market to satisfy a want or need
value proposition
A company’s ___________ is the set of benefits or values it promises to deliver to consumers to satisfy their needs.
*A market is only the set of actual, not potential, buyers who have transacted with a seller. T or F?
A product can be:
tangible or intangible
*Building strong economic and social ties with customers by delivering high-quality products and services is the foundation of:
relationship marketing
*In choosing among products, the guiding principle of most consumers is customer value-the most benefit for the price. T or F?
Instead of simply being defined as “freedom from defects,” QUALITY should be defined:
in terms of customer satisfaction
*It is wise to assess the customer’s __________ value and take appropriate actions to ensure a customer’s long-term support.
*Marketing mix elements, 4 P’s:
Placement (distribution)
Relationship marketing is a process where marketers work at building relationships with customers, distributors, dealers, and:
The ________________ describes a channel that stretches from raw materials, to components, to final products that are carried to final buyers.
supply chain
*The most basic concept underlying marketing is that of:
*The product concept holds that customers prefer existing products, and the job of management is to develop good versions of these existing products. T or F?
*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
*The selling concept holds that consumers will not buy enough of the organization’s products unless the organization undertakes a large _________ and __________ effort.
selling; promotion
The simplest definition of marketing is delivering customer satisfaction at a profit. T or F?
*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:
*The two main industries that comprise the activities we call tourism are:
the hospitality and travel industries
*Under the product concept, marketing strategy focuses on making continuous product ___________.
*When backed by buying power, wants become:
Which is not a purpose of marketing in a customer-centered firm?
to maximize customer satisfaction
____________ are highly loyal but not very profitable.
____________ is the act of obtaining a desired object from someone by offering something in return.
customer touch point
any occasion on which a customer encounters the brand and product—from actual experience to personal or mass communications to casual observation
customer expectations
based on past buying experiences, the opinions of friends, and market information
customer value
the difference between the benefits that the customer gains from owning and/or using a product and the costs of obtaining the product.
A set of actual and potential buyers of a product
*A casino employee’s uniform and a restaurant’s fancy front lobby are a means of:
tangibilizing the service
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
*Because services are characterized by the issue of inseparability, service providers often will have to:
train the customers
*Customers cannot take services on a “test drive,” which means that they cannot evaluate them before they use them. This is a problem with the ________ of the service.
Additions besides 4 P’s to service marketing:
Internal marketing, external marketing, interactive marketing
Marketing Strategies:
– Managing service differentiation, service quality, and service productivity
– Resolving customer complaints
– Employees as part of the product, managing perceived risk, managing capacity and demand
Developing a good ______________ policy minimizes the chance of walking a guest.
Hospitality companies face the task of increasing three major marketing areas:
Service differentiation, service quality, and service productivity
*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.
In a well-run hospitality organization, there are two customers-the paying customers and the ___________.
It is better to give the customer a time ____________ the anticipated wait time.
more than
*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.
Most restaurant kitchens would be considered examples of invisible organizations. T or F?
Overbooking is another method that hotels, restaurants, trains, and airlines use to match:
demand with capacity
*Perhaps the best measure of service quality is:
customer retention
Price is ____________ related to demand for most products.
Revenue management grew out of ___________ management, which was introduced in the 1980s.
*Service marketing requires both internal marketing and ______________ marketing.
Studies have shown the best way to deal with service failure is to:
Give the unhappy customer timely information regarding the failure
*The perishability of a service is especially a problem when demand fluctuates. 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. T or F?
Which of the following is NOT a link in the service-product chain?
increasingly intangible services
Which of the following is not part of the service profit chain?
external service quality
____________ form(s) when capacity exceeds demand and guests are willing to wait.
A business portfolio is the collection of businesses and products that make up the company.
A company may discover additional sources of ________________ by investigating possible integration moves.
sales volume
Steps in corporate strategic planing:
1. Define the company mission
2. Set company objectives and goals
3. Design business portfolio
4. Plan marketing and other business strategies
A critical and sometimes overlooked stakeholder group is that of owners of hotels managed by a hotel management company. T or F?
*A hotel company acquiring a food distributor is an example of:
backward integration
3 types of diversification growth:
1. Concentric diversification – seek new products that expand the company’s market
2. Horizontal diversification – new products that appeal to current customers
3. Conglomerate diversification – company seeks new business that has nothing to do with their current situation
3 types of integrative growth:
1. Backward integration – company acquires one of its suppliers or distributors
2. Forward integration – company acquires wholesalers or travel agencies
3. Horizontal integration – company acquires one of its competitors
*A hotel company acquiring a tour operator is an example of:
forward integration
A hotel company acquiring one or more of its competitors is an example of:
horizontal integration
A well worked-out ________ provides company employees with a shared sense of purpose, direction, and opportunity.
mission statement
*According to the Ansoff product-market expansion grid, management should first consider whether:
It should gain more market share with its current products in their current market
An internal environmental analysis is essentially a strengths and weaknesses analysis. T or F?
Companies that diversify too broadly into unfamiliar products or industries can ______ their market focus.
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. T or F?
*If a hotel chain buys one of its suppliers, it is engaging in what type of growth?
Backward integration
Market definitions of a business are ___________ to product definitions.
Mission statements should be realistic and general in nature. T or F?
Most large companies consist of four organizational levels: corporate, division, business unit, and:
One of the major effects of the marketing plan process is that it forces marketing managers to objectively review all steps in the marketing process. T or F?
*Selecting one or more market segments to enter is part of:
market targeting
Studies have shown that a well-crafted mission statement aids a firm’s performance, as the mission statement serves as a statement of:
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.
The ideal target market for a firm is the one in which it can profitably generate the greatest customer ________ and ________ it over time.
value; sustain and grow
The number of channel levels from raw materials to final product and the distribution in which the company will engage is an example of ________ scope.
The principal objective of a market-oriented mission statement is to:
satisfy basic customer needs
*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
*When hotel chains enter such markets as the retirement home industry they are practicing which type of strategy?
conglomerate diversification
____________ growth makes sense when good opportunities can be found outside the present businesses.
_________________ is the marketing logic by which the company hopes to create customer value and achieve profitable relationships.
Marketing strategy
share of market
the competitor’s share of the target market
share of mind
The percentage of customers who named the competitor in responding to the statement, “Name the first company that comes to mind in this industry.”
– who do you first think of?
share of heart
The percentage of customers who named the competitor in responding to the statement, “Name the company from whom you would prefer to buy their product.
Product form competition (1)
Companies that offer similar services to the same customers at a similar price
Product category competition (2)
Companies that make the same products or class of products
General competition (3)
companies that supply the same service
Budget competition (4)
companies that compete for the same consumer dollars
types of hospitality intermediaries
travel agents, wholesale tour operators, hotel representatives, and online travel agencies (OTAs)
A ____________ is any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives.
The Internet has created both __________________________________ transparency.
disintermediation and pricing
Target Marketing
1. Dividing a market into groups (market segmentation)
2. Selecting one or more (market targeting)
3. Developing competitive position and a marketing mix (market positioning)
“Unaware,” “Aware,” and “Informed” are three examples of which behavioristic segmentation variable?
buyer readiness stage
*A product’s ________ is the way the product is defined by consumers on important attributes.
*A segment may have desirable size and growth and still not offer attractive profits. T or F?
*Dividing a market into groups based on consumers’ knowledge, attitude, use, or response to a product is called:
behavioral segmentation
*Evaluating each market segment’s attractiveness and selecting one or more of the market segments to enter is called:
market targeting
*Formulating competitive positioning for a product and a detailed marketing mix is called:
market positioning
*In using a(n) ________ marketing strategy, a company ignores market segmentation and goes after the entire market with one market offer.
*Instead of going for a small share of a large market, the firm pursues a large share of one or a few small markets. This marketing strategy is called:
concentrated marketing
Loyal customers are price _____________ compared to brand-shifting patrons.
Offering consumers greater value either through lower prices or by providing more benefits that justify higher prices is called:
competitive advantage
Overpositioning is defined as:
giving buyers too narrow a picture of the company
The degree to which effective programs can be designed for attracting and serving segments is the ____________ of the market segment.
The degree to which segments can be assessed and served is the ____________ of the market segment.
3 factors for evaluating and selecting market segments
1. Size & growth
2. Structural attractiveness
3. Company objectives and resources
5 ways to differentiate position:
-physical attributes