Hospitality and Tourism Cluster Exam
What type of letter should a business include when sending copies of a contract to a vendor?
Transmittal. A transmittal letter should always accompany important business papers, such as contracts, that are sent by mail. Th e purpose of the transmittal letter is to let the recipient know exactly what should be contained in the package and if the recipient needs to take any action. A transmittal letter accompanying contracts should indicate how many copies are included and if the recipient needs to sign and return a copy. An acknowledgment letter acknowledges the receipt of business papers. A claim letter requests a solution to a problem. A request letter asks for information.
Which of the following is often considered one of the safest types of investments:
Government bonds. These bonds are issued by various levels of government, from the local to the national level. Government bonds are considered one of the safest types of investments because they are backed by the government. Although government bonds do not pay high interest rates, they are safe and a good investment for individuals who cannot afford to risk losing their investment. Penny stocks are very inexpensive, but their value can go up or down quickly. Commodities and precious metals are considered high risk investments because of the fluctuations in price and value.
Identify the type of sales approach being used in the following communication: "Hello, Linda. How was your vacation at the beach?
Greeting. The greeting approach creates a friendly atmosphere so that the customer feels welcome. A combination uses any combination of service, merchandise, and/or greeting approaches. A service approach is a polite question that indicates willingness to be of service to the customer. A merchandise approach is a comment or question that helps direct the customer's attention to the merchandise.
Which of the following is an example of behaving with honesty and integrity:
Not taking things that don't belong to you. Honest people don't take anything that doesn't belong to them, no matter how small or inexpensive. If they use company property, they return it. Making personal long-distance calls on the company telephone, sharing your employee discount, and not taking responsibility for your own mistakes are examples of dishonesty.
Which of the following is an example of external secondary information that a hotel chain might use for marketing-research purposes:
Online industry reports. Secondary information is information collected by others. External secondary information is obtained from sources outside the hotel chain, such as competitors' web sites, government documents, or online industry reports. Guest-registration data or occupancy forecasts are internal sources of secondary information that are collected for one reason and may be used for other purposes, such as for marketing. Suggestion cards that the hotel collects from guests are an example of primary information, which is information collected for the purpose at hand-to obtain feedback about their experiences with the hotel's goods and services.
What do employees rely on to make decisions about situations that are not covered by a rule or an office policy?
Personal code of ethics. Sometimes, there are clearly stated rules to follow. Other times, situations may arise that are not covered by a rule or an office policy, and there may be more than one correct choice. At those times, employees must rely on their personal code of ethics to help them make the best decision. Employees should not rely on the opinions of coworkers, or do what everyone else does. Ethical behavior is not controlled by local and state laws.
Which type of hotel security standard involves employing armed security guards in high-crime areas?
Personnel -related. These standards involve hiring security personnel and/or training hotel staff members to report and deal with criminal activity. Physical-related and property-related security standards involve locking, lighting, and monitoring systems. Procedure -related standards involve monitoring criminal activity and establishing a system for making guests aware of dangerous areas around the hotel.
A motorcoach driving passengers from one destination to another is an example of __________ in the hospitality and tourism industry.
Place. The concept of place (distribution) in the hospitality and tourism industry involves delivering the hospitality and tourism product to the customer. In this example, the product is transportation that the motorcoach provides by driving passengers from one destination to another. For distribution to occur, the customer must participate in the experience such as go on the bus trip or visit an attraction. A motorcoach driving passengers from one destination to another is not an example of sales, demand, or supply in the hospitality and tourism industry.
An important step in proofing print advertising copy is to check the
Prices in the ad. Proofing an ad involves checking all the words and numbers in the ad to make sure that they are presented correctly. Product prices should be checked carefully as advertising incorrect prices can be damaging for the business. The amount of white space is determined when the ad is designed. The date of publication does not appear on the ad but is stated in the contract. The publisher is also responsible for the page number on which the ad will appear.
One of the reasons that teams are important to businesses is that they can increase
Productivity. Productivity is the amount and value of goods and services produced (outputs) from set amounts of resources (inputs). The overall output of all employees is often increased when businesses use teams because workers who feel they are an important part of a team often work harder and produce more. Other reasons that teams are important to businesses are that they reduce costs and workplace conflicts. Teams do not increase procrastination—putting off until tomorrow what should have been done today.
Which of the following industries has most impacted the development of the hospitality industry?
Transportation. The development of rail, automobile, and air travel in the past 150 years has had the most impact on the growth in the hospitality arena. Business and leisure travel has dramatically expanded because the time, comfort, and ease of travel has improved. This, in turn, creates a demand for facilities to house a wide variety of travelers. The retail, lumber, and banking industries would be impacted by growth or decline of the hospitality industry. The higher demand for hospitality services would naturally result in a higher demand for financial backing, building materials for the facilities, and retail establishments for travelers.
The promoters of the annual Shakespeare Festival include a statement on the back of the event ticket to the effect that they will not be responsible for harm or injury to the ticket holder. The attendees thereby agree to accept liability for their own possible risks by purchasing the ticket. What action is being taken with the risk?
. B Transferring it. The promoter is transferring the risk to the attendee, though this does not relieve the facility or manager of the event from providing a safe environment. Not offering the event would be avoidance. Elimination of risk is virtually impossible. Retention means the promoter would keep, or retain, the risk.
Employees need to have a thorough knowledge of business policies in order to
. D Explain policies to customers. Employees need complete information about policies in order to explain them to customers and to be able to answer customers' questions. Management is responsible for providing employees with thorough information about policies. Writing company operating manuals is the responsibility of management, not of employees who deal with customers. Employees do not need a thorough knowledge of business policies in order to schedule personal leave. A business's policies would not be discussed with competitors.
A person who stands up for his/her own rights and shows respect for the rights of others is described as
Assertive. Assertive people express themselves openly, make requests freely, and refuse others when necessary. Aggressive people readily stand up for their own rights but show little regard for the rights of others. Passive people have difficulty standing up for their own rights. Dictatorial people want to control other people's actions.
Determine the percentage of international visitors for a tourist destination's peak season if the total market is 750,500, and the number of domestic tourists who visit the destination during peak season is 562,875.
25%. It is important for hospitality and tourism businesses and organizations to measure and analyze the composition of various markets to determine how to best market their services to different market segments. The businesses or organizations' objectives, the market segment's demographics, and the size of the market segment affect how much money they will allocate to various marketing activities for a particular market segment. To determine the percentage size of the international market during peak season, first divide the number of domestic tourists during peak season by the total market to obtain the percentage of domestic visitors during peak season (562,875 ÷ 750,500 = .75 or 75%). Then, subtract the percentage of domestic visitors during peak season by the total market to obtain the percentage of international visitors during peak season (100 % - 75% = 25%).
If the gross domestic product (GDP) is increasing, the amount of money financial institutions make available for consumer loans will probably A. unimportant
A Increase. With an increasing gross domestic product (GDP), more income, capital, and jobs will be generated. This will increase the need for loans. Stabilizing the amount of money available for loans at the same level would not be wise in an expanding economy
A business advertised new-product financing with a 10 percent down payment and a low interest rate with monthly payments spread over four years. What type of loan was the business offering?
A Installment loan. Loans that must be paid back in regular installments over a certain amount of time at a specified rate of interest are installment loans. They are frequently used to purchase costly items, such as automobiles, furniture, and appliances. Single payment loans are loans that must be paid off in a lump sum at a designated time in the future, possibly three months. Revolving credit loans are loans that are repaid on a regular basis in at least the minimum required amount. Cash payments are made for the full amount at the time of purchase.
Which of the following statements is true regarding the concept of product in the hospitality and tourism industry:
A hospitality and tourism product includes all goods and experiences that guests encounter. In the hospitality and tourism industry, product encompasses a wide variety of things. Product includes tangible items, such as a meal in a hotel restaurant and the bed pillows in sleeping rooms. Product also includes service. Service might include facility cleanliness and the timeliness and courtesy of room service attendants. The level of amenities is also part of the guest's overall experience. Heated swimming pools, saunas, and athletic facilities often influence the level of guest satisfaction with the hotel stay. Although service is a very important part of the hospitality product, it is not necessarily true that it is the most important. For example, a restaurant might have an attentive wait staff, but without tasty food with an attractive presentation, the guest's overall experience might not be positive. Members of the hospitality and tourism industry should identify the needs and wants of the intended target market before developing a product.
The Elm Creek Bed and Breakfast, located in rural southern Indiana, is interested in generating more customer traffic at its website. Its target market is honeymooners and married couples aged 25 to 65 who live in southern Indiana or northern Kentucky. Which of the following online marketing options is most likely to attract the right target audience to the hotel's website:
A link on the Midwest Lodging Directory website. A directory is an online index of websites that share a common theme, such as lodging in the Midwestern United States. Since the bed and breakfast's target market lives in Indiana and Kentucky, the hotel needs to market itself in publications and on websites such as the Midwest Lodging Directory that reach honeymooners and married couples in both states. While e-zines are another option for marketing online, an article about the hotel in an e-zine for teenagers is unlikely to reach the right audience. An advertisement in the Indiana Adventures e-newsletter would probably reach a portion of the bed and breakfast's target market. However, it is not as likely to attract as much of the target market as the link on the Midwest Lodging Directory would. The U.S. Hotel and Lodging portal might be a popular starting point for searching the Web when someone wants to research lodging throughout the U.S., but its target audience is not likely to be as similar as the Elm Creek Bed and Breakfast's as the Midwest Lodging Directory would be.
A database containing customer names, street addresses, home telephone numbers, and birthdates could be used to generate which of the following lists
A list of customer names and street addresses sorted by area code. Whether simple or complex, a database is a virtual storage unit for information. While some businesses' databases contain vast amounts of data, other businesses' databases (especially small businesses' databases) house only basic customer data, such as customer names, street addresses, home telephone numbers, and birthdates. Nevertheless, even a small customer database can be used to generate a wide variety of lists and reports. For example, a customer database that contains only customer names, street addresses, home telephone numbers, and birthdates can be used to generate a list of customer names and street addresses sorted by area code. However, when performing queries on such a database, marketers are limited to only the information that the database contains. So, although it might be nice to develop a list of customer names and e-mail addresses sorted by last name, a list of customer names and cell phone numbers sorted by age, or a list of customer names and annual income sorted by zip code, the database cannot do so because it does not have customer e-mail addresses, cell phone numbers, or annual incomes on record.
Which of the following is a guideline for employees to use in communicating with coworkers:
D Think about what they want to say before they say it. Employees should be able to express themselves to their coworkers. However, they should always think about what they want to say before saying it so that they do not cause problems or misunderstandings. Legitimate complaints or problems about the job should be discussed with the supervisor, not coworkers. Rumors and gossip should not be passed on to coworkers as they may not be true and could cause harm. A nondirective approach is best in communicating with angry coworkers as it helps to defuse their anger.
At the Clara's Pizza Parlor web site, customers are encouraged to send electronic postcards advertising the restaurant to friends and families. This is an example of __________ word-of-mouth marketing.
Amplified. Word -of-mouth marketing occurs when custome rs tell others of their satisfaction with a particular business. Amplified word -of-mouth marketing takes place when marketers purposely encourage their customers to share information about a business with others in their community. Clara's Pizza Parlor, fo r example, deliberately asks visitors to its web site to send information about the restaurant—in the guise of a postcard—to their families and friends. Organic word-of-mouth marketing is another word-of-mouth strategy. Organic word-of-mouth marketing occurs when satisfied customers voluntarily tell people around them about a business that they like, without the business prompting them to do so. Celebrities are sometimes used as a word -of-mouth strategy, but that is not true of this example. Inconspicuous word-of-mouth marketing is a fictitious term.
A business traveler may consult a travel agency to
Arrange hotel accommodations and transportation. A travel agency has many resources to aid the client in making travel arrangements and in answering questions. The agency can make reservations for lodging facilities, airfare, or rental car. If traveling internationally, the travel agency can answer questions regarding visas, passports, and customs requirements. The travel agency does not negotiate airfare and hotel rates on behalf of the client. A business traveler already knows the arrival and departure dates as well as the travel destination; the travel agency does not make these decisions.
One reason a designer uses color when developing advertisements is to
Attract the reader's attention and create a mood. Color generally creates more visual stimulation than black and white. For example, an advertisement with a color photograph depicting a tropical vacation spot with white sand and crystal-blue water most likely creates a stronger desire to go to the beach than it would if it was presented in only black and white. The balance in the advertisement refers to the size and position of elements. Color does not necessarily mean that balance will be achieved with the illustration and headline. White space is considered an element of an advertisement and is not distracting. Using color in an advertisement does not necessarily eliminate the need for text or copy. An ad without text does not indicate who sponsored the ad. The sponsor tells you how to get the good or service being advertised.
Keeping reliable accounting records helps hospitality and tourism businesses to
Avoid developing credit problems. Keeping reliable account ing records helps hospitality and tourism businesses to avoid developing credit problems. It does not help businesses bring in more cash, although it may tell businesses how they are doing with specific details of monetary transactions. No record can prevent depreciation from occurring. Accounting records do not facilitate records retrieval in a disaster, but they are some of the important records that will need to be preserved.
The primary goal of most purchasing agents in negotiating a contract is to
Buy the products they need at the best price. The basic purpose of negotiation from the purchasing agent's point of view is to buy the products his/her company needs at the best possible price. This means negotiating not only price but shipping terms, discounts, and other appropriate concessions. Not all products have accompanying services. Most purchasing agents do not know what price has been offered competitors. Obtaining a contract is the salesperson's goal. Both oral and written contracts are legally binding
One advantage to businesses of using electronic funds transfer technology to collect accounts receivable is that it eliminates
Check processing. The technology of electronic funds transfer makes it possible for customers to pay invoices electronically so the cash is transferred from their bank account to the business's bank account. This eliminates the need for the business to handle checks, fill out deposit slips, and send the checks to the bank for processing. The cash is available immediately, and the business does not need to wait for a check to be processed before it can access the funds. The use of electronic funds transfer to collect accounts receivables does not eliminate liquidity reporting, sales discounting, or payee outsourcing.
Watching the customer for buying signals is part of the sales process known as
Closing the sale. Buying signals are any indications that customers give that they are ready to buy. These may include facial expression, body language, or positive responses to the salesperson's remarks. Salespersons should watch for these so that they know when to ask for the sale. Approaching the customer is the first step in the selling process. Suggestion selling is a sales technique in which the salesperson attempts to increase the customer's purchase by suggesting additional items after the original decision to buy has been made. A product demonstration shows the customer a product's features
One way that hospitality and tourism businesses might build customer loyalty is by participating in
Community outreach activities. When hospitality and tourism businesses participate in community outreach activities, local residents learn of their participation often because of media coverage. As a result of the media exposure, local residents may become loyal customers because they appreciate what the businesses are doing for the community. For example, if businesses donate a percentage of sales to local charities, residents are encouraged to buy from those businesses because the money is going back to the community. Businesses do not build customer loyalty by participating in service-quality programs, marketing research studies, or industry -related meetings.
What should a business employee do when a robbery is in progress?
Cooperate quickly. Robbers are interested in obtaining money and leaving the business; therefore, business employees should cooperate with robbers and quickly obey their orders. In most cases, robbers will not harm employees or customers if their instructions are followed. It is wise not to alarm or excite a robber because the safety of employees and customers is more important than the money that the business might lose. Employees should not do anything to surprise or upset robbers such as try to slow them down or lock the register. Once the robbery is over, employees should notify the police.
Renaissance is a prestigious cruise line that offers luxury accommodations and charges premium prices. What factor affecting price of travel products does this illustrate?
Corporate image and positioning. This factor involves setting prices that are consistent with overall company image and position. The cruise line chooses to communicate a deluxe image and set prices well above average. Discriminatory pricing involves setting two or more prices to appeal to select target markets. The corporate objectives factor strives to set prices to meet objectives of profit levels, market share, or sales volume. Competitive pricing involves setting prices based on the good/service's of competition.
Which of the following is one of the components of a business's cash payments:
Cost of goods sold. Cash payments are the specific sources of money flowing out of a business. Cash payments include cost of goods sold, variable expenses, and fixed expenses. Cost of goods sold is the amount of money a business pays for the products it will sell and often is a sizeable expense. Previous month's balance is the amount of cash a business has left at the end of the previous month. Total credit sales equal the amount of purchases that customers make on credit and will pay later. Interest from loans is income, often from credit sales.
The main goal of promoting a hospitality and tourism product is to ___________ the product.
Create demand for. Promotion, which is one function of marketing, includes advertising, selling, publicity, and events, such as giveaways and trade shows. Promoting a hospitality and tourism product through these methods stimulates interest, helping create demand. Distribution channels are outlets through which a product is available to customers, such as wholesale tour operators or retail travel agents. Determining a price is an important marketing decision that should take place before promoting a product. Branding is the aspect of marketing that deals with developing a recognizable name or image for a product or company.
Carrying out housekeeping responsibilities in a restaurant's dining room on a regular basis is important because
Customers get an impression of the restaurant from its dining room. Customers judge a restaurant not only for the food it serves but also on the basis of the cleanliness of the dining room. No matter how good the food may be, if the dining room is obviously not being kept clean, most customers will not return. They believe if the dining room is not being kept clean, the kitchen isn't either, and the food may be contaminated. There is no federal law covering restaurant maintenance and operation. It is easier for servers to move around in a clean and orderly room, but that is not an important reason to do regular housekeeping.
Colleen, a mid-level manager, has the kind of personality and communication skills that can motivate others to work toward the company's goals. Colleen can make the best use of these skills in which management function?
Directing. Directing is the management function of providing guidance to wo rkers and work projects. Controlling is the management function that monitors the work effort. Staffing is the management function of finding workers for the business. Organizing is the management function of setting up the way the business's work will be done.
If a salesperson is positive that the customer tendered a ten-dollar bill, then the customer's statement "I gave you a twenty-dollar bill" indicates a __________ customer.
Dishonest. These customers try to take advantage of salespeople. One tactic used by dishonest customers is to try to confuse the salesperson into returning more change than they are entitled to receive. Disagreeable customers are unpleasant and hard to help. Slow/Methodical customers require a lot of time to make a purchase because of shyness or difficulty in making a choice or buying decision. Domineering/Superior customers are overly confident and feel they know more and are better than the average person.
Which of the following is a housekeeping duty needed for the regular upkeep of displays:
Dusting props. Displays must be maintained on a regular basis to keep them clean and attractive to customers. One of the housekeeping duties needed for the upkeep of displays is dusting props. Many displays contain props, such as furniture or racks, that may accumulate dust over a period of time. Regular dusting of the props will keep them clean and help maintain the overall appearance of the display. Sweeping aisles, removing trash, and washing floors are housekeeping duties associated with the entire store rather than with a display.
Luxury goods and services usually have __________ demand
Elastic. Elastic demand is a form of demand for products in which changes in price correspond to changes in demand. Inelastic demand is a form of demand in which changes in price do not affect demand. Demand for nonessential items fluctuates and is not predictable.
Another employee is upset because of a reprimand from the manager. You listen quietly and then share how you handled a reprimand. You are demonstrating __________ behavior.
Empathetic. Empathy is the ability to put yourself in another person's place. By showing compassion and sharing a similar experience, you are demonstrating empathetic behavior. To be indifferent means that you don't care or wouldn't respond. To be critical means to find fault with your fellow employee's actions. To be impatient means not taking the time to listen or sympathize.
What should a quick-serve restaurant employee check when accepting a "buy one sandwich, get one free" coupon from a customer?
Expiration date. Most quick-serve restaurants distribute coupons as a promotional technique to attract customers. These coupons generally contain an expiration date because the promotion will be in effect for only a certain length of time. When quick-serve restaurant employees accept coupons from customers, they should check the expiration date to make sure the discount is still valid. Honoring "buy one, get one free" coupons after they expire will be costly to restaurants because they will be giving away products for free longer than expected. Information about handling fees does not appear on coupons. Most coupons do not include a signature line. The payment type usually does not affect coupons.
One of the reasons why an income statement should be as accurate as possible is that businesses use it to develop additional
Financial documents. Because income statements are used to develop other financial documents, they must be as accurate as possible. For example, a business uses its income statement as the basis for preparing the cash-flow statement and the balance sheet. Businesses need many of these financial documents to obtain credit, borrow money for expansion, or sell stock to the public. The success of a company can depend on the accuracy of its income statement. Businesses do not use income statements to develop operating policies, research reports, or marketing activities.
Employees can help to prevent customers from cheating the business out of cash by
Following the business's point -of-sale procedures. To prevent point -of-sale fraud, employees should be familiar with the types of fraud associated with credit cards, checks, and cash. Employees should follow these procedures in a consistent, step-by-step manner. Us ing the count -back method assures customers don't get too much or too little change. A customer's signature on a charge slip allows the business to collect the money from the credit-card company. Counting the cash in the cash drawer before shifts begin verifies the cash on hand.
Elinor is using a word-processing program to prepare a business letter to send to the company's suppliers. She has selected a ready-to-use letter template. If she wants to change the size of the text, she should access the __________ menu.
Format. The format menu includes the font command that is used to change the size and typeface of text. The tools, edit, and view menus do not include this command
One reason the United States provides assistance to underdeveloped nations is because it
Hopes they will become trading partners. Trading partners are nations that sell their goods and services to each other. There are many emerging nations that lack the skilled workers, advanced technology, and capital resources needed in order to become strong nations. The United States has the ability to help these countries in many different ways, and it does so in the hopes that they will eventually become trading partners. Because the United States is already an important world power, it is expected to provide all kinds of assistance to less-fortunate countries; but that is not the basic reason it offers aid.
Making employment information available to job seekers in many locations at the same time is one way that computer technology impacts
Human resources management. This is the process of planning, staffing, leading, and organizing the employees of a business. One way that computer technology impacts this process is by making it possible for businesses to post employment information online so it is available to job seekers in many locations at the same time. As a result, potential job applicants throughout the world have an opportunity to access the Internet and view information about job openings and, in many cases, complete online applications. Business development usually involves attracting more customers to increase sales. Corporate communications usually involves communication within the business. Organizational decision making involves making decisions about the structure of the business.
Before writing informational messages, it is important for business employees to
Identify the audience. Before writing informational messages, business employees need to know who the audience is so they can present the message in a way that is relevant to that audience. For example, one audience might be the business's customers while another audience might be the business's investors. The message a business employee sends to customers is very different from the message that will be sent to investors. Before writing informational messages, employees do not need to plan a response or wait for feedback. In most cases, the message will generate a response or feedback from those who read it. The medium is the written message.
To become more organized, one must first __________ activities.
Identify. The first step on your way to becoming more organized is to identify or make a written list of all things that need to be done. After the needs list is generated, one may classify, prioritize, and schedule how the activities will be done.
Which of the following is a way that using product substitution can benefit a hospitality and tourism business:
Improved reputation. The use of product substitution can benefit a hospitality and tourism business by improving its reputation. When customers are provided the most satisfactory products, they have good feelings about that business and tell others about the service. By using product substitution, a business serves its customers well and enhances its reputation. Increased satisfaction and additional savings are ways that product substitution can benefit customers. Advanced ordering is not a benefit of product substitution.
What are the main components of a budget?
Income and expense. The main components of a budget are income and expense. Income is all the money received by a business from outside sources, such as from sales or investments. Expense is all the money that a business spends and includes items such as salaries, rent, insurance, and utilities. Profit and loss indicate the amount of money a business actually received or lost for a specified period. Assets are anything of value that the business owns, and liabilities are debts that the business owes. Cash flow is the movement of money into and out of a business. Net worth is the total value of the business.
One of the ways that a business can increase its profits is by
Increasing worker efficiency. Efficiency is the ability to use minimum amounts of resources to the best advantage. Increasing worker efficiency results in greater production and a lower cost for each unit sold. This leads to more profit. Hiring more workers and extending working hours could reduce profits by causing higher unit costs. Higher prices might lower demand for the product and result in an even lower
What differences in marketing situations may indicate the use of an informative style of advertising copy versus copy that is intended to persuade?
Informative copy can provide a detailed explanation of product features and benefits, while persuasive copy is used to change customers' minds or entice them to buy now. To use the right copy approach, first concentrate on the objective of the ad. What is it trying to accomplish? What is it trying to motivate customers to do? An informative style of copy can convey information effectively, while persuasive copy intends to move customers from one place to another—either by taking action or changing opinions or beliefs. Informative copy is effective in introducing something new, but that is by far not its only use. Both persuasive and informative copy can generate excitement when used in appropriate situations. Long discussions or issues are best addressed by informative copy, but this style has many other uses, too. Persuasive copy, on the other hand, can be hard hitting but can be equally effective when applied with a subtle touch. Informative copy can be either simple or complex, as can persuasive copy. However, in the most commonly occurring advertising situations, most forms of copy are usually more effective when simple rather than complicated.
A national fast-food restaurant is gearing up to promote the release of a movie about a Dalmation puppy. What should the restaurant do to prepare the store for this special promotional event?
Install in-store decor about the Dalmatian promotion. When fast-food restaurants select a promotional tie- in, they should focus all their sales -promotion efforts on delivering a unified, coordinated message about the promotion. Painting the fast-food restaurant would be too costly. Using another animated character to greet customers would reduce the impact of the Dalmatian tie-in and confuse customers. Alternative toys to the Dalmatians should not be available during the promotion.
Raul has been promoted to a management position at work. So he can effectively communicate with the employees that report to him, Raul needs to have excellent __________ skills.
Interpersonal. A skill is the ability to perform a task that is developed through knowledge, training, and practice. Interpersonal skills are the abilities to communicate with others. As a manager, Raul must be able to communicate with different people with unique needs and personalities, so interpersonal skills are an important part of his job. Manual skills are tasks that a person does with his/her hands, such as typing or carpentry. Creative skills deal with the ability to generate unique ideas or products. People with mathematical skills can effectively manipulate and work with numerical data.
Which of the following words best describes the relationship of the purchasing department to other departments in a company
Interrelated. When purchasing does its job well, other departments can function properly. Purchasing, in turn, depends on other departments for information and expertise so it can do its job well. Therefore, the firm's departments can be viewed as interdependent, or interrelated.
People who rely on their instincts will probably choose the __________ method for problem solving.
Intuitive. There's more than one way to solve any problem. The approach you choose depends on your comfort level and experience with a particular approach. It may also depend on how you think best. People who rely on their intuition or instincts will probably choose the intuitive approach to problem solving. The seven -step method, mind mapping, and finding the root of the problem are all problem- solving approaches that require more structure and logical thought than an intuitive person would probably prefer.
An applicant for an entry-level position with a company known for its casual environment should not wear__________ to the interview.
Jeans. Certain types of clothing, such as jeans and T-shirts, are not appropriate attire to wear to interviews even though they may be acceptable on the job. Applicants are expected to wear clean, neat clothing that is not too casual or too unusual. A coat and dress shoes are examples of clothing that are always appropriate to wear to interviews. Jewelry in moderation is also acceptable.
Which of the following statements is true regarding joint ventures
Joint venture arrangements are usually short -term relationships. A joint venture is an arrangement that involves two or more businesses entering into a relationship by combining complementary resources, such as technology, skills, capital, or distribution channels, for the benefit of all parties. The relationship is usually short -term and involves the execution of a single project or transaction. A joint venture arrangement can be used by virtually any type and size of business. Although it is a good idea to have an attorney draw up or review a contractual agreement between both parties, it is not usually required in the United States.
A major reason travel professionals might join industry organizations is to
Keep up with industry issues, trends, statistics, and research. Professional organizations typically offer current industry data as part of their service to members and the public. Professional organizations may offer continuing -education programs, but they are not college-degree-granting institutions. Travel professionals would not likely become members of an industry organization to get vacation advice, since they have such information available through their work. Indus try organizations are generally made up of people who work inside an industry, not people in unrelated industries.
A restaurant employee telling a customer that "The 16-inch pepperoni pizza special is a better value because it provides 10 slices for $6.00 instead of three slices for $1.00 each" is an example of suggestion selling
Larger quantities. Customers can often save by purchasing in a larger quantity. The employee is not suggesting new uses or special occasions. The restaurant employee would not be concerned with related products, e.g., salad, until the original purchase is made.
When discussing the number of intermediaries in a channel of distribution, we are talking about channel
Length. The more intermediaries between producer and consumer, the longer the channel. The factors that affect channel length are the product, producer, market, and intermediaries. The other alternatives do not apply to channel measurement.
A circumstance that often motivates people to select one lodging facility over another is the
Location of the property. People travel for many reasons, including business and leisure. The purpose of the trip, as well as the site location, often influences the selection process. For example, a businessperson traveling to meet with a customer might select a property close to the customer's office. A leisure traveler might select a beachfront resort hotel over a nearby roadside motel because it might offer more amenities geared to vacationers. A trucker, on the other hand, might select the roadside motel because of its easy access to the highway. Positioning strategies are methods that members of the hospitality industry use to create a particular image or standing in the marketplace. Although hotels use positioning strategies to appeal to customers, customers do not generally consider the specific techniques that businesses use to position products. A traveler selects a lodging facility based on his/her personal preferences, not the seller's (hotel). Although some travelers might consider tax rates when selecting a lodging facility, it is usually not a primary factor in the selection process. In addition, lodging facilities in the same general area most likely have the same tax rates.
. What should businesses include in a persuasive message?
Logical evidence. Messages usually are more persuasive if they are supported by logical evidence. Logical evidence is based on fact rather than on opinion. If businesses are writing persuasive messages to encourage customers to do something, such as buy a product, they should include logical evidence to make the message more convincing. Businesses should avoid using strong language because it may offend readers. Typeface and graphic design are visual elements of the message rather than part of the content.
In visual merchandising, mass displays create an image of
Low prices. The purpose of creating mass displays is to give an image of low prices and to create an immediate sales response. High prices and expensive, quality merchandise are suggested when a display consists of only one or very few items.
Which of the following target markets is most likely to respond favorably to a viral marketing campaign that includes an interactive game:
Male professionals aged 22 to 29. Viral marketing typically involves creating an entertaining or informative image, video, or interactive game that can be shared electronically. Research indicates that students and young professionals are most receptive to viral marketing. While both young males and females respond well to viral ads in the form of images or video, young men tend to be more responsive to interactive games than young women are.
What is the mode in the following example: 5 people eat pizza 1 time a week; 7 people eat pizza 2 times a week; 10 people eat pizza 3 times a week; 8 people eat pizza 4 times a week; and 2 people eat pizza 5 times a week.
Mode is the value or number that appears the most often. It is the response given by the most people. In this example, the most people (10) said that they ate pizza 3 times a week. Therefore, 3 is the number or value that appears the most often. The average, or mean, is 2.2, and the range is 4.
Why should businesses coordinate distribution with pricing to successfully sell products to customers?
Most customers are only willing to pay a certain price. Businesses not only need to make their products available, but they also must sell them at a price that customers are willing to pay. If a product is not priced appropriately, customers usually will not buy even if the product is widely distributed. Therefore, it is important for businesses to coordinate the marketing activity of price with distribution. Businesses must set appropriate prices that customers are willing to pay, and have the products in stock when customers want them in order to successfully sell to customers. Selecting a mode of transportation and obtaining warehouse space are not reasons why businesses coordinate distribution with pricing. Not all customers expect to receive significant discounts.
One way that competition benefits business is by encouraging the creation of
New companies. Competition encourages new businesses to enter the marketplace. When a product is popular and successful, others recognize the demand and develop similar products in order to compete. The ongoing competition leads to the creation of new products and new companies. Businesses do not benefit from more regulations. Competition usually encourages the creation of businesses that are similar or related to successful, existing firms. Many resources are limited, which means that more cannot be created.
What is the marketing function that provides information to consumers that will assist them in making a decision to purchase a good or service?
Promotion. This function involves communicating information about goods, services, images, and/or ideas to achieve a desired outcome. The major elements of promotion are advertising, personal selling, publicity, and sales promotion. Pricing is determining and adjusting prices to maximize return and meet customers' perceptions of value. Production is the process or activity of producing goods or services. Distribution is moving, storing, locating, and/or transferring ownership of goods or services.
A resort is conducting telephone interviews with former guests to determine how it can improve it services. How can the resort minimize interviewer bias and procedural errors during the interview process?
Provide the interviewers with training. It is important for hospitality businesses (e.g., resorts) to train interviewers to ask the appropriate questions in the appropriate manner. Training helps to reduce the risks associated with interviewer bias and error, which can affect the interviewees' answers. Asking only close-ended questions will not provide in-depth, qualitative feedback. Limiting the length of the interview and allowing the interviewers to develop and ask their own questions can negatively affect the integrity of the information the interviewers collect.
How does a business benefit when its expense-control efforts have enabled it to offer good wages and benefits?
Qualified workers are retained. To compete with other businesses for competent workers, a business needs to be able to provide good wages and benefits to its workers. Businesses that save money by controlling expenses can use that money to offer good wages and benefits that attract qualified workers and help to retain them over time. Businesses that can't afford to offer these advantages may lose qualified workers to competitors. Controlling operating assets and increasing spending are not benefits to a business of offering good wages and benefits to workers. The impact of expense control on insurance payments cannot be determined.
Many quick-serve restaurants determine the quantity of food items to buy based on
Recipe information. Quick-serve restaurants often use recipe information to determine the quantity of food items to buy. For example, a recipe for cole slaw that serves 50 people calls for five heads of cabbage. If the restaurant expects to sell 150 orders of cole slaw, it will need to purchase 15 heads of cabbage to make the proper amount of cole slaw. Restaurants consider seasonal availability when determining when to buy food items because some foods will not be available during certain times of the year. Delivery methods and competitive bids are not factors that determine the quantity of food items to buy
Which of the following is a characteristic of product extensions in the hospitality and tourism industry:
Related to the original product. A product extension is an additional product, related to but different than, the main hospitality and tourism product. For example, the main product might be a cruise, while the product extension is a tour of the port city before departure. The product extension adds value to the original product and often meets the needs of customers. Product extensions are extras rather than necessary parts of the hospitality and tourism experience. Extensions are not necessarily expensive, such as a sightseeing tour of a city. Staff often suggest product extensions to meet customers' needs, not simply to generate income.
Which aspect of a business benefits the most when a company implements a customer loyalty program that asks its participants to complete a customer questionnaire
Sales. Many businesses are implementing customer loyalty programs. The purpose of the program is to encourage customers to buy from the business by offering incentives or rewards. By asking the customers to complete questionnaires, the business collects information about the customers' purchasing preferences and habits. This information can help the business understand what it needs to do to satisfy customers, which often results in sales increases. Although the overall business benefits when sales increase, it is sales that receive the direct benefits by obtaining and monitoring customer profile information.
Effective corporate blogs are typically
Search-engine friendly. Corporate blogs are typically used to draw attention to particular products and/or businesses. To attract readers to the blogs so that they learn about these products and businesses, the blogs must be search-engine friendly. Blog posts must contain key words and phrases that customers typically search for, and the links to these posts must appear early in search results. Rather than being updated once per month, effective corporate blogs are typically updated at least once per week. To appeal to a broad audience, corporate blogs should avoid jargon and technical language. Instead, effective blog posts tend to be easy to read and understand. A corporate blog does not have to be written exclusively by one author. Some of the most effective corporate blogs are written by multiple individuals with varying points of view and positions with their companies. Involving more than one author can prevent a blog from becoming bland and boring.
A new restaurant has written a news release that it would like the local newspaper to use as soon as possible. This goal is more likely to be achieved if the restaurant
Sends the release to a specific person at the newspaper. One of the guidelines to follow in preparing and disseminating news releases is to address them to the attention of a specific person. This helps to prevent the release from being shuffled from desk to desk and perhaps getting lost. The release should contain hard news if the restaurant wants it presented in the near future. Soft news is information that does not need to be announced immediately. Including a picture often helps to get information presented. Businesses should never suggest that the media should use their news releases as a payback for their purchase of advertising.
A small, local restaurant has decided to advertise its elegant atmosphere and qualified wait staff. This approach is an example of __________ marketing.
Service. Service marketing involves the marketing of service-oriented businesses and activities, such as food service. The restaurant is promoting its atmosphere and qualified staff who provide the service. Product marketing is the marketing of goods, such as the food entrees that the restaurant sells. Mass marketing involves appealing to the whole market. Target marketing is selecting specific markets and advertising to them.
When managing a project, the first activity is for the project leader to
Set goals. It is important to develop a clear understanding of the project's objectives or goals. Without a clear understanding of the desired outcome, a project manager cannot effectively develop a schedule, negotiate terms, or monitor project progress.
Which of the following is a way that you can use nonverbal communication to express your approval of an idea
Smiling broadly. Nonverbal communication uses body language to express feelings or opinions without words. A broad smile is an indicator of approval and/or agreement with what is happening or being said. All of the other alternatives are forms of body language that have a negative context.
When businesses continue to send unsolicited e-mail and do not allow customers to take their names off the subscriber list, the businesses are sending
Spam. Spam is junk e-mail that the recipient did not request and does not allow the recipient to request removal from the subscriber list. Spam is also known as Unsolicited Commercial E-mail. Many web sites, organizations, and newsgroups are currently working to make spam illegal. Viruses are programs designed to disrupt computer operations. Static text is a fixed, motionless body of information. Filters are computer programs that block out unwanted information, such as junk e-mail.
Which of the following is an example of online advertising:
Sponsoring a web site. Advertising online is very similar to traditional advertising and is intended to serve the same purpose. The most common forms of online advertising are banner ads, button, and pop-ups; however, sponsorships are gaining in popularity. When a business sponsors a web site, it pays for its name, and often a message, to appear on the site. Every time someone visits the site, they see the name and are reminded of the business. Giving away gifts is a type of sales promotion. Providing information is one of the functions of advertising. Hosting chat rooms is not an example of online advertising.
The purpose of using presentation software to prepare multimedia presentations often is to use those presentations to
Support report findings. Presentation software is used to produce multimedia presentations that often include slides, video, graphics, sound, color, etc. Because the information contained in reports is often technical or complex, businesses often prepare multimedia presentations to explain and support the report findings. The visual presentation often makes complicated information easier to understand as well as more interesting. The purpose of using presentation software to prepare multimedia presentations is not to use the presentation to maintain customer files, develop web sites, or access online resources.
Which of the following is research information that might be included in a written report that will help business managers make decisions:
Survey results. The research process often involves surveying customers or vendors to find out how they feel about the company and its products. The survey results are often included in a written report to support the report findings and the recommendations. The survey results are research information that will help business managers make decisions because the surveys ask questions that usually pertain to a specific problem or issue that the managers are considering. Product announcements, brand names, and committee notes are not types of research information that would be included in a written report to help business managers make decisions.
Which of the following is a current employee safety issue in hospitality and tourism that may be difficult to control:
Terrorism. The current rise in terrorist activity is an employee safety issue in the hospitality and tourism industry. The industry is aware of the threat, but terrorism is difficult to control. Most hospitality and tourism businesses explain the issue to employees, and take measures to keep employees away from potentially unsafe areas. However, it is virtually impossible for the industry to prevent the threat of terrorism because it is beyond the industry's control. Accidents and robberies are safety issues; however, the hospitality and tourism industry has procedures to follow to reduce the risk and keep employees safe. Liability is the industry's responsibility for the safety of its employees.
Which of the following statements regarding direct-mail marketing campaigns is true:
They should include a call to action. Effective direct-mail marketing campaigns typically include a call to action, which is essentially an incentive that encourages customers to respond and take some action. Unless the direct-mail marketing campaign is extremely well planned and targeted at exactly the right customers, it is likely not to be highly cost-efficient. Direct mail is difficult to track unless customers are required to bring the ad or coupon to the business to take advantage of a special offer or discount. Even then, it is often difficult to determine all pertinent demographics regarding the respondents. To be successful, direct mail should be brief, not detailed. Customers should not have to spend a lot of time reading or studying the mail. Instead, the mailer should get its message across to customers as simply and quickly as possible.
Why is it important for businesses to manage employee information in a way that keeps it secure?
To be ethical. Businesses gather and maintain a wide range of information, and some of this information may be private or confidential. For example, businesses may have personal information about customers and employees. Making sure that this information is secure is a matter of ethics. Businesses have an ethical obligation to protect certain information so it does not become public and cause harm to individuals. Businesses do not keep information secure to be secretive, beat the competition, or avoid publicity.
Why is it important for businesses to maintain records about the quantities and types of products that customers are purchasing?
To forecas t future sales. Businesses maintain a variety of records about the quantities and types of products that customers are purchasing. These records are usually known as sales records. By analyzing past sales records, businesses can determine what customers are buying, when they are buying, and how much they are buying. This helps a business forecast future sales so it can be prepared to offer the products that customers want. Businesses do not maintain records about what customers are purchasing to develop new displays, plan credit programs, or organize special events.
How are guest history records used by the marketing division of hotels/motels?
To prompt guests to return. Guest history records contain addresses from which the marketing division can prepare mailing lists. Promotional mailings can be sent to guests encouraging them to return to the hotel or motel. The personal information on the cards is also valuable in developing other promotional activities that will encourage return visits. The accounting division handles overdue accounts or turns them over to a collection agency. The other alternatives are uses of guest history records that are not part of marketing.
Why should employees be concerned about safety in the workplace?
To protect themselves and the business. Maintaining safety in the workplace is a way employees can help manage risk for the business and for themselves. A safe workplace reduces the possibility of financial loss to the business and bodily injury to workers. Maintaining safety can help to increase productivity and reduce absenteeism because fewer workers are likely to be off the job due to injuries. Workers who are safety conscious should receive the approval of management, but that is not the main purpose of being concerned about safety.
Which of the following is one of the main goals of law in the United States
To provide justice. One of the main goals of law in the United States is to provide justice to all by enforcing rules that have been established by government. Law in the United States is not intended to limit freedom, control society, or monitor power. The law helps to guarantee freedom in a society that is fair to all.
Why is it important for hospitality and tourism businesses to be aware of, and react to, trends and changes in the marketplace?
To remain competitive. The business world is constantly changing, and new trends come and go on a regular basis. Businesses need to pay attention to trends and adjust accordingly in order to remain competitive. Business as usual is not effective in today's fast-paced and changing environment. The businesses that adapt and keep up with new trends are the ones that remain successful. Experimenting with new types of advertising is usually more effective than merely increasing the amount of advertising. Businesses do not need to be aware of new trends in order to hire personnel or identify resources.
Which of the following is an important reason for a travel agency to display tourism literature:
To sell travel arrangements to prospective clients. Individuals who see an interesting brochure in a rack of tourism literature may not only pick it up for further examination but decide to purchase tickets for a trip, a tour, or on a cruise. In many cases, the clients might not have thought of visiting a particular destination on their own. Travel brochures are colorful and attractive, but their ultimate purpose is to sell trips. Most tourism literature provides an overview of an area rather than in-depth information. The business should not use literature to avoid answering questions but to stimulate them.
One of the reasons that human resources might be limited in some parts of the world is because of a lack of
Training. There are a number of reasons that human resources might be limited even though the population of the world continues to grow steadily. One reason is a lack of training that prevents potential workers from filling certain jobs. Although jobs are available, there may be a shortage of trained workers to fill them. A lack of equipment, technology, and research often prevent countries from tapping their natural resources even if there are unlimited human resources to do the work.
Emergency procedures that involve escape and evacuation because of fire or natural disasters usually include plans for identifying
Travelers with disabilities. Being able to respond to emergency situations is an important consideration in the travel and tourism industry. Many people travel throughout the world, which means that natural disasters and fires are potential dangers. Handling these situations effectively will save lives. Therefore, most emergency procedures include a plan for identifying travelers with disabilities who may need special help in escaping a dangerous situation. Emergency escape and evacuation procedures do not include plans for identifying relatives of passengers. Local authorities are usually responsible for identifying hazardous materials. Identifying suspicious activities is a security consideration.
Setting suitable goals for yourself helps you to achieve self-
Understanding. To set goals for yourself, you must have a clear understanding of what your skills and abilities are. Your goals will not be appropriate unless you know who you are, what you want to achieve, and what you are capable of doing. Self-centeredness is a form of selfishness. Self-consciousness is excessive focus on yourself. Self-importance is pride.
Several new employees are attending their first company picnic and will be meeting the families of their coworkers. What topic should they avoid discussing?
Upcoming election. Employees should avoid discussing controversial topics with coworkers even during business-sponsored social functions. Controversial topics are subjects about which people have strong feelings, such as politics and elections. Discussing controversial topics may cause disagreement among coworkers that could carry over to the job and make it difficult for them to treat each other fairly. Sports, weather, and school activities are noncontroversial subjects that most people do not have strong feelings about and that can be easily discussed.
When your self-concept is high, you usually believe that you are a(n) __________ person.
Valuable. Individuals with a high self-concept typically believe that they can make significant contributions in their endeavors. You may see yourself as aggressive or witty on such occasions, but not necessarily. Feeling unimportant is indicative of low self-concept.
What is one of the qualities of a good telephone voice?
Varying tone. Employees who answer the telephone for a business should not speak in a monotone but vary the tone of voice to reflect their interest and enthusiasm. Their voices should project sincerity, be easy to understand, and have a friendly tone. Decisiveness and stern control might give a negative impression.
Which of the following is an external source of information that will help a hospitality and tourism's buyer to decide what to buy:
Vendors. Vendors have a wealth of information about what competitors are buying and what is being reordered because it is selling well. They are generally happy to share their knowledge because they want to sell more goods. Want slips that record customers' requests, records of what has sold well in the past, and sales staff's experience with customers are all good internal sources of information that help in deciding what to buy.
What might a travel agency include in a display to graphically show people enjoying a destination or participating in a tour of exotic places?
Videos. Many travel agencies are developing displays that include videos to be able to graphically show people enjoying a destination or participating in a tour. The benefit of using videos is that it enables potential customers to see what they would see on a tour and to see what they might do at a destination. The videos are able to show action and excitement and create an atmosphere that attracts customers and increases sales. For example, a video of people white-water rafting or touring a castle is more interesting than a simple photograph. A display might include facts, testimonials from satisfied customers, and sample souvenirs; but these are static parts of a display and do not graphically show people participating in activities.
When preparing the property's marketing plan, Samantha researched the current, popular travel destinations; the ways in which visitors spend their money; the duration of their vacations; and their demographics. These are examples of __________ trends
Visitor. Visitor trends are studied so that the property can predict the number of upcoming reservations and bookings it is likely to receive based on such things as people's ages, incomes, marital status, and travel habits. Competitive trends identify the directions that other properties are moving, including their price adjustments, renovation plans, levels of service, and so forth. Trends in technology provide information about how computers, the Internet, and new equipment are likely to change the way in which properties operate. Industry trends give an idea as to the impact that other businesses are likely to have on the property, especially those (e.g., airlines, convention centers, and highway departments) in which the property depends upon for their success.
