HMGT 3300 Exam 1 Review

At the Ritz-Carlton, each employee can spend up to ________ to redress a guest grievance.

$2,000

The Forum Company found that the cost of retaining a loyal customer is just ________ percent of the cost of attracting a new one.

20

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

A hotel company acquiring a food distributor is an example of:

Backward integration

If a hotel chain buys one of its suppliers, it is engaging in what type of growth?

Backward integration

________ are highly loyal but not very profitable.

Barnacles

When hotel chains enter such markets as the retirement home industry, they are practicing which type of strategy?

Conglomerate diversification

Perhaps the best measure of service quality is:

Customer retention

Overbooking is another method that hotels, restaurants, trains, and airlines use to match:

Demand with capacity

When backed by buying power, wants become:

Demands

The "red" in Project RED, in addition to being a color that is almost universally associated with a sense of urgency, stands for Revenue growth, Expense management, and optimum:

Deployment of capital

________ growth makes sense when good opportunities can be found outside the present businesses.

Diversification

In a well-run hospitality organization, there are two customers, the paying customers and the ________.

Employees

________ is the act of obtaining a desired object from someone by offering something in return.

Exchange

Which of the following is NOT part of the service profit chain?

External service quality

A company starts the strategic planning process at the customer level by defining its values statement and mission.

False

A market is only the set of actual, not potential, buyers who have transacted with a seller.

False

Bill Marriott would say that the first set of people you need to satisfy are your customers.

False

During recessions or oil shortages people rarely travel.

False

It is no longer possible for one restaurant to sue another over the "trade dress" issue.

False

Market penetration refers to the strategy of creating new products to sell to small niche markets

False

Mission statements should be realistic and general in nature.

False

So long as a company sets high standards for service quality, it is not necessary to evaluate its actual performance.

False

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

The two main industries that comprise what we call tourism are the hospitality and restaurant industries.

False

There is no current evidence to suggest long-term customers are more profitable than new customers.

False

Within the realm of Customer Relationship Management (CRM) switching costs are only monetary in nature.

False

Disneyland's version of the ride reservation is called:

Fast Pass

A hotel company acquiring a tour operator is an example of:

Forward integration

Studies have shown the best way to deal with service failure is to:

Give the unhappy customer timely information regarding the failure

A hotel company acquiring one or more of its competitors is an example of:

Horizontal integration

Under the product concept, marketing strategy focuses on making continuous product ________.

Improvements

Instead of simply being defined as "freedom from defects," QUALITY should be defined:

In terms of customer satisfaction

Which of the following is NOT a link in the service-product chain?

Increasingly intangible services

We as customers cannot take service on a "test drive," meaning we cannot evaluate them before we use them. This is a problem with the ________ of the service.

Inseparability

The fact that services cannot be seen, tasted, felt, or smelled relates to which service characteristic?

Intangibility

Service marketing requires both internal marketing and ________ marketing.

Interactive

Marketing by a service firm to train effectively 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

Price is ________ related to demand for most products.

Inversely

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

It is wise to assess the customer's ________ value and take appropriate actions to ensure a customer's long-term support.

Long-term

Companies that diversify too broadly into unfamiliar products or industries can ________ their market focus.

Lose

The process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior who might require separate products or marketing programs is called ________.

Market segmentation

Selecting one or more market segments to enter is part of:

Market targeting

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

Marketing mix elements include all of the following except:

Marketing Information Systems

________ is the marketing logic by which the company hopes to create customer value and achieve profitable relationships.

Marketing strategy

A well worked-out ________ provides company employees with a shared sense of purpose, direction, and opportunity.

Mission statement

It is better to tell the customer ________ the anticipated wait time.

More than

A ________ is a state of felt deprivation

Need

The most basic concept underlying marketing is that of:

Needs

Developing a good ________ policy minimizes the chance of walking a guest.

Overbooking

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.

Perish-ability

Which of the following is one of the four Ps of the marketing mix?

Place

Which of the following is NOT part of the four-p framework of marketing?

Placement

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

A ________ is anything that can be offered to a market to satisfy a want or need.

Product

Most large companies consist of four organizational levels: corporate, division, business unit and:

Product

Which of the following is NOT part of the four Ps of the marketing mix?

Profits

Studies have shown that a well-crafted mission statement aids a firm's performance as the mission statement serves as a statement of:

Purpose

________ form(s) when capacity exceeds demand and guests are willing to wait.

Queues

"Project RED" was the name given to the long term strategy of which restaurant chain?

Red Robin

Red Royalty™, a loyalty program designed to not only increase frequency of guest visits, but also to establish true customer loyalty by understanding guest purchase behavior and preferences to tailor incentives for repeat visits, was implanted by:

Red Robin

Building strong economic and social ties with customers by delivering high-quality products and services is the foundation of:

Relationship marketing

"We are Ladies and Gentlemen serving Ladies and Gentlemen," is a motto for:

Ritz-Carlton

A company may discover additional sources of ________, by investigating possible integration moves.

Sales volume

The principle objective of a market-oriented mission statement is to:

Satisfy basic customer needs

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

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

Hospitality companies face the task of increasing three major marketing areas:

Service differentiation, service quality, and service productivity

When hotel management establishes no-smoking floors, bar managers no longer allow happy hours with free drink specials, and resort managers eliminate pollution from their properties, the ________ concept is being employed.

Societal marketing

Market definitions of a business are ________ to product definitions.

Superior

Relationship marketing is a process where marketers work at building relationships with customers, distributors, dealers and:

Suppliers

The ________ describes a channel that stretches from raw materials to components to final products that are carried to final buyers.

Supply chain

A casino employee's uniform or a restaurant's fancy front lobby are a means of:

Tangibilizing the service

A product can be:

Tangible or intangible

The two main industries that comprise the activities we call tourism are:

The hospitality and travel industries

Which of the following statements is FALSE?

The use of CRM in the hospitality industry appears to be strong.

One of the biggest non-monetary costs for hospitality customers is ________.

Time

Which is NOT a purpose of marketing in a customer-centered firm?

To maximize customer satisfaction

Because services are characterized by the issue of inseparability, service providers will often have to:

Train the customers

"Quality" could be defined as the features and characteristics of a product that bear on its ability to satisfy customer needs.

True

A business portfolio is the collection of businesses and products that make up the company.

True

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

Empowering employees in part means giving them the authority to tend to customer needs.

True

In choosing among products, the guiding principle of most consumers is customer value — the most benefit for the price.

True

In general, government-run tourism promotion organizations have not assumed responsibility for the quality of the services they promote.

True

Most restaurant kitchens would be considered examples of invisible organizations.

True

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.

True

The hospitality industry is the second largest employer in the United States.

True

The perishability of a service is especially a problem when demand fluctuates.

True

The product concept holds that customers prefer existing products, and the job of management is to development good versions of these existing products.

True

The simplest definition of marketing is delivering customer satisfaction at a profit.

True

The three services marketing are: internal, external and interactive.

True

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 company's ________ is the set of benefits or values it promises to deliver to consumers to satisfy their needs.

Value Proposition

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 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

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.

Vertical

Revenue management grew out of ________ management, which was introduced in the 1980s.

Yield