wsu hbm 235 exam 2

three categories of economic impacts

1) increasing foreign earning 2) increase income 3) increase employment

foreign investment paradox

1.) locals will resent investors 2.) foreign investors take all the money and there may be trade deficit 3.) all the money leaks out of the country

Uneven distribution tourism

Distribution of tourism resources -tourism friendly activities -changing seasons/weather -political issues -economic changes in country of origin -exchanges rates -tourist service prices -special events -awareness -transportation -travel flows & climate change -Distance Decay -Demand & Origin Factors

Which continent or country accounts for most international tourist arrival?

Europe: France, USA, Spain

why should tourism be boosted in developing countries?

In order to bring in profit and visitors to the country

tourism is unique because?

Intangibility experience, consumption and production happen at the same time

what is marketing

Right Place Right People Right time Right price

What is SOP?

Standard operating procedure

what is the marketing planning procedure?

Where are we know Where do we want to be? How do we get there? How do we make sure we get there? How do we know we got there?

what is Elasticity?

a small increase in price will result in a decrease in demand

what is income?

any money left over after paying taxes.

Why is market segmentation important?

because people are different and have different desires and will respond to different messages.

opportunity cost

cost of an alternative that must be forgone in order to pursue a certain action

What is position?

creates image, our product, our service in demand of consumers

Three levels of income

direct income- visitor spends money at a hotel Indirect Income- hotel has a lot of employees and purchases raw materials (buisness recievs) Induced

what is Tourist Geography

distribution of international tourist activity

what are invisible exports?

experiences

heterogeneous

experiences being made

what is production orientation?

focuses on the product and services that the destination can provide

societal orientation

focuses on what the customer needs or wants

tourism marketing ?

has a lot of business involved

positioning strategy ( change or reinforce)

if there is no image establish one, if consumers think its ugly then you use change.

trade deficit

imports greater then exports, this is a bad thing we do not want this cause by demonstration effect

intangibility

intangible vs tangibility (experience something that is not able to be touched)

what is Market orientation?

is that same as service and customer orientation aka needs or wants

travel frequency?

is the number of trips taken

travel propensity ?

is the percentage of visitors that travel

what is demonstration effect?

is when a local sees and whats what a visitor has, residents will learn through visitors

what is tourist market segmentation important?

it is about communicating the appealing message of a producer or product service efficiency

is marketing the same as advertising?

no because advertising is only one component of marketing

simultaneous

operating at the same time

what is forward segmentation?

pre determines who is coming. pre determines the target audience Advantage: we have control over the target audience Disadvantage: its possible that our target market is not realistic

comparative advantage

situation in which a country can produce a good at a lower opportunity cost than a competitor

what is an external shock?

someone can not afford to come to a destination

income multiplier

the amount of local income generated per unit of a visitor (the amount of money spent by a visitor)

what is backward segmentation

we do not determine our target, we look at who is coming and hand out surveys to determine the travel Advantage: we know who is coming Disadvantage: we do not have pro active control over the target audience

what are key considerations of segmentation?

we have to think about what is the target beneficial in the long run The cost to attract the target market The ability to serve the target market

what is effective demand?

we want to turn differed and suppressed into effective demand

what is leakage ?

when money does not stay in the country economy. money made is beneficial to the destination generated by tourism. It may leak through foreign investment

what is suppressed demand

when the visitor has constraints or visitation limits

what is differed demand?

when there are know group tours of any kind offered