Hospitality & Tourism Marketing: Test 2

Product Concept

A detailed version of a product idea stated in meaningful consumer terms.

D. All of the above

A difference is worth establishing to the extent that it satisfies the following criteria: A. preemptive B. affordable C. profitable D. All of the above

Aspirational Group

A group to which a person wishes to belong.

True

A lifestyle is a person's pattern of living as expressed in his or her activities, interests, and opinions. True False

*Product Life Cycle Challenges

All products eventually decline. The firm must understand...

Core Product

Answers the question of what the buyer is really buying. Every product is a package of problem-solving services.

Product

Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

True

Atmosphere is considered to be the augmented product. True False

False

Maslow's "Hierarchy of Needs," in order of importance, are safety needs, esteem needs, and social needs. True False

D. Product-variety marketing

McDonald's offering regular hamburgers, Big Macs, and Quarter Pounders is an example of what type of marketing? A. Mass marketing B. Target marketing C. Micro marketing D. Product-variety marketing

False

Measurability is not a requirement for effective segmentation. True False

Psychological Factors Affecting Consumer Behavior

Motivation Perception Learning Beliefs & Attitudes

D. product-variety marketing

Sandals (www.sandals.com), an all-inclusive powerhouse in the Caribbean, is a leading resort operator for "mixed-gender couples only." Sandals is an example of: A. mass marketing B. target marketing C. micro marketing D. product-variety marketing

True

Segmentation based upon buyer knowledge, attitudes, use, or response to the product are forms of behavioral segmentation. True False

Benefit Segmentation

Segmenting on the basis of the most important benefit sought by consumers when purchasing the product or services.

Substantial

Segments are large or profitable enough to serve.

Accessible

Segments can be effectively reached and served.

Self-Concept

Self-image, the complex mental pictures people have of themselves.

Attention Creation

Sending a message.

Phase-Out

The ideal method of removing an unpopular or unprofitable product; it enables a product to be removed in an orderly fashion.

Product Image

The way that consumers picture an actual potential product.

False

55% of all new-product ideas come from outside the company. True False

B. product image

A ________ is the way that consumers picture an actual or potential product. A. product idea B. product image C. product concept D. product class

C. trademark

A __________ is a brand or part of a brand that is given legal protection; it protects the seller's exclusive rights to use the brand name or brand mark. A. brand equity B. brand name C. trademark D. brand image

A. consumer perceptions

A brand name derives its value from ___________. A. consumer perceptions B. manager perceptions C. competitor perceptions D. stockholder perceptions

True

A brand name should suggest something about the product's benefits and qualities True False

Belief

A descriptive thought that a person holds about something.

C. differentiated marketing

A firm using a ________ strategy targets several market segments and designs separate offers for each segment. A. concentrated marketing B. mass marketing C. differentiated marketing D. undifferentiated marketing

Consideration Set

A group of brands that the buyer views as alternatives for possible purchase.

Subculture

A group of people with shared value systems based on common life experiences and situations.

False

A logo is a name, term, sign, symbol, or design that identifies the goods and services of one seller and helps differentiate them from those of the competition. True False

Brand

A name, term sign, symbol, design or a combination of these elements that is intended to identify the goods or services of a seller and differentiate them from those competitors.

Motive

A need that is sufficiently pressing to direct a person to seek satisfaction of that need.

True

A person's behavior tends to be consistent with his or her self-concept. True False

Personality

A person's distinguishing psychological characteristics that lead to relatively consistent and lasting responses to his or her environment

Attitude

A person's enduring favorable or unfavorable cognitive evaluations, emotional feelings, and action tendencies toward some object or idea.

Lifestyle

A person's pattern of living as expressed in his or her activities, interests, and opinions.

False

A product's position is the way the product is defined by the company relative to its competition on relevant attributes. True False

True

A set of beliefs about a particular brand is known as brand image. True False

Geodemographic Segmentation

ACORN ClusterPLUS 2000 MicroVision 50 PRIZM

Augmented Products

Additional consumer services and benefits built around the core and actual products.

Personal Factors Affecting Consumer Behavior

Age & Life-Cycle Stage Occupation Economic Circumstances Lifestyle Personality & Self-Concept

False

Age, gender, family life cycle, income, occupation, education, religion, race, and nationality are geographic segmentation variables. True False

Income Segmentation

Dividing a market into different income groups.

Market Segmentation

Dividing a market into direct groups of buyers who might require separate products or marketing mixes. Identify bases for segmenting the market. Develop segment profiles.

Behavioral Segmentation

Dividing a market into groups based on consumers knowledge, attitude, use, or response to a product.

Gender Segmentation

Dividing a market on the basis of gender.

Demographic Segmentation

Dividing the market into groups based on demographic variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, and nationality.

Perception

Subjunctive ways of interpreting and assigning meaning to stimuli.

False

Supporting products are those services or goods that must be present for the guest to use the core product. True False

Consumption Phase

Takes place when the customer consumes the service.

False

The VALS framework is a demographic segmentation system. True False

B. 80/20

The _______ rule states that in many businesses, a high percent of the business is generated by a low percent of the clientele. A. 90/10 B. 80/20 C. 70/30 D. 60/40

Drop

The action taken toward a product that may cause harm or customer dissatisfaction.

Role

The activities that a person is expected to perform according to the persons around him or her.

Supporting Products

Extra products offered to add value to the core product and to help differentiate it from the competition.

Elements of Physical Evidence

Facility Exterior. Facility Interior. Other Tangibles.

Underpositioning

Failing ever to position the company at all.

False

Family life-cycle stages have no impact on consumers' buying behaviors. True False

*Key to Branding

For branding strategies to be successful, consumers must be convinced that there are...

C. values and lifestyles program

For what does the acronym VALS stand? A. validity and likeability scale B. vision and landscaping system C. values and lifestyles program D. values loading scales

Market Positioning

Formulating competitive positioning for a product and a detailed marketing mix. Develop positioning for target segments. Develop a marketing mix for each segment.

Overpositioning

Giving buyers a too-narrow picture of the company.

Reference Groups

Groups that have a direct (face-to-face) or indirect influence on a person's attitude or behavior.

Membership Groups

Groups that have a direct influence on a person's behavior and to which a person belongs.

Central Question for Marketers

How do consumers respond to various marketing efforts the company might use?

Choosing and Implementing a Positioning Strategy

Identifying a set of possible competitive advantages upon which to build a position. Selecting the right competitive advantages. Effectively communicating and delivering the chosen position to a carefully selected target market.

Market Homogeneity

If buyers have the same tastes, buy a product in the same amounts, and react the same way to marketing efforts, undifferentiated marketing is appropriate.

D. All of the above

In the maturity stage, managers should not simply defend the product, but also consider__________. A. market modification B. product modification C. marketing-mix modification D. All of the above

Facility Interior

Interior design. Equipment. Signage. Layout. Air quality/temperature.

True

Learning describes changes in an individual's behavior arising from experience. True False

Confused Positioning

Leaving buyers with a confused image of a company.

Tactile

Luxury linen napkins and table cloths are a hallmark of fine dining restaurants. Extra-thick bath towels and deep-pile carpets support the sense of luxury in elegant hotels. The dimension of atmosphere relating to softness, smoothness, and temperature.

D. behavior variables

Many marketers believe that ______ are the best starting point for building market segments. A. age and life-cycle stage variables B. income variables C. social class variables D. behavior variables

False

Market positioning involves dividing the market into a distinct group of buyers based upon their different needs. True False

True

Market segmentation by whether a customer is informed or is interested in a product is an example of segmentation by buyer-readiness stage. True False

True

Market targeting involves evaluating each market segment's attractiveness and selecting one or more of the market segments to enter. True False

Buyer Decision Process

Need Recognition > Information Search> Evaluation of Alternatives > Purchase Decision >Post-Purchase Behavior

Olfactory

Nonsmoking rooms offer an odor-free environment to the hotel guests. Some restaurants arrange to pipe the odor of baking bread into guest area. The dimension of atmosphere relating to scent and freshness.

Evaluation Criteria

Objective and subjective characteristics that are important to a buyer.

Need Recognition

Occurs when a buyer becomes aware of a difference between a desired stack and an actual condition.

C. believers

One of the eight American lifestyles is A. workers B. achievers C. believers D. motivator

Online Social Networks

Online social communities - blogs, social networking, web sites, or even virtual worlds - where people socialize or exchange information and opinions.

Opinion Leaders

People within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert influence on others.

Examples of Products

Physical Objects. Services. Events. Persons. Places. Organizations. Ideas. Combinations of the above.

Specific Product Attributes

Price and product features can be used to position a product.

3 Types of Reference Groups

Primary Reference Group Secondary Reference Group Aspiration Group

Amount of Search

Prior knowledge/experience. Situational factors. Perceived risk. Personal factors.

B. geodemographic

Prizm is a _________ system that allows researchers to know the mix or density of lifestyle groups in each of the nation's 36,000 zip code areas. A. demographic B. geodemographic C. psychographic D. geographic

Conditions that Support Branding

Product is easy to identify. Product is perceived to be the best value for the price. Quality and standards are easy to maintain. Demand is enough to support branding effort. For branding strategies to be successful, consumers must be convinced that there are meaningful differences among brands in the product or service category. There are economies of scale.

False

Psychographic segmentation often divides the market on the basis of variables such as age, gender, income, and occupation. True False

Social Factors Affecting Consumer Behavior

Reference Groups Family Roles & Status

Consumer Buying Behavior

Refers to the buying behavior of final consumers - individuals and households who buy goods and services for personal consumption.

Social Classes

Relatively permanent and order divisions in a society whose members share similar values, interests, and behaviors.

Run-Out

Removing a product after existing stock has been depleted; used when sales for an item are low and costs exceed revenues, such as the case of a restaurant serving a crabmeat cocktail with sales of only one or two items per week.

D. need recognition

The buying process starts from ________. A. information search B. evaluation of alternatives C. purchase decision D. need recognition

Lasting Impression: Interior

The conscious design of a space to create certain impression.

Product Life Cycle

The firm must understand how its products age and change marketing strategies as product pass through life cycle-changes.

Brand Promise

The marketers vision of what the brand must be and do consumers.

The Buyer Decision Automatic Response Loop

The model appears to imply that consumers pass through all 5 stages with every purchase they make.

True

The most basic level of a product is called the core product. True False

Families

The most important consumer-buying organization in American society.

Decline

The period when sales fall off quickly and profits drop.

D. target marketing

The philosophy of ______ is to identify market segments, select one or more, and develop products and marketing mixes tailored to each selected segment. A. mass marketing B. product variety marketing C. macromarketing D. target marketing

Branding

The process of endowing products and services with the power of a brand. Its all about creating differences between products.

False

The product life cycle is marked by four distinct stages: introduction, growth, maturity, and decline. True False

Introduction

The product life-cycle stage when a new product is first distributed and made available for purchase.

Growth

The product life-cycle stage when a new products sales stat climbing quickly.

Joining Stage

The product life-cycle stage when the customer makes the initial inquiry.

True

The purpose of idea screening is to spot good ideas and drop poor ones as quickly as possible. True False

Target Market

The seller identifies market segments, select one or more, and develops products and services tailored to each selected segment. Markets in industrialized nations are increasingly fragmented.

Mass Market

The seller mass produces, mass distributes, and mass promotes one product to all buyers. It should lead to the lowest costs and prices and create the largest potential market.

Product Variety Market

The seller produces two or more products/services that have different features, style, quality and size. Consumers have different tastes that vary over time.

Culture

The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions.

Brand Image

The set of beliefs consumers hold about a particular brand.

C. brand image

The set of beliefs held about a particular brand is known as the _______. A. brand recognition B. brand selection C. brand image D. brand preference

Aural

The sound of water in a fountain or of soft music says a great deal to the guest about where they are and how they are supposed to feel. The dimension of atmosphere relating to volume and pitch.

Maturity

The stage in a product life-cycle when sales growth slows or levels off.

Family Life Cycle

The stages through which families might pass as they mature.

Products Position

The way the product is defined by consumers on important attributes. The place the product occupies in consumers minds relative to competing products.

Competitors Strategies

When competitors use segmentation, undifferentiated marketing can be suicidal. Conversely, when competitors use undifferentiated marketing, a firm can gain an advantage by using differentiated or concentrated marketing.

False

When customers participate in the delivery, there are four phases: searching, joining, consumption, and detachment. True False

Detachment Phase

When the customer is through using the product and departs.

Group

Two or more people who interact to accomplish individual or mutual goals.

Selecting Market Segments

Undifferentiated Marketing. Bifurcated Marketing. Differentiated Marketing. Concentrated Marketing.

Degree of Product Homogeneity

Undifferentiated marketing is more suited for homogenous products. Products that can vary in design, such as restaurants and hotels, are more suited to differentiation or concentration.

True

Undifferentiated, differentiated, and concentrated marketing are three types of market-coverage strategy. True False

First Impression: Exterior

Visual appearance of the operation. Communicate the types of services and product it offers.

D. All of the above

When choosing a market-coverage strategy, companies need to consider all of the following factors, except: A. company's resources. B. degree of product homogeneity and market homogeneity. C. competitors' strategies. D. All of the above

C. A buyer's characteristics have no impact on how he or she reacts to the stimuli.

All of the following statements are true, except: A. Consumer buying behavior refers to the buying behavior of final customers. B. Marketers must understand how the stimuli are changed into responses inside the consumer's black box. C. A buyer's characteristics have no impact on how he or she reacts to the stimuli. D. A buyer's decision process affects outcomes.

Competitive Advantage

An advantage over competitors gained by offering consumers greater value either through lower prices or by providing more benefits that justify higher prices.

False

An attitude is a descriptive thought that a person holds about something. True False

Crowdsourcing

An open-innovation new-product idea program.

True

Because of consumers' selective attention, marketers have to work hard to attract consumers' notice. True False

True

Brand equity can be leveraged through co-branding and partnerships True False

Other Tangibles

Business cards. Stationary. Billing statements. Reports. Employee dress. Uniforms. Brochures. Web pages. Virtual servicescape.

Cognitive Dissonance

Buyer discomfort caused by post-purchase conflict.

Internal Search

Buyers search their memories for information about products that might solve their problem.

External Search

Buyers seek information from outside sources.

False

Buying behavior is not shaped by stages in the family life-cycle. True False

CHAPTER 8

CHAPTER 8

CHAPTER NINE

CHAPTER NINE

CHAPTER SIX

CHAPTER SIX

Learning

Changes in a person's behavior arising from experience.

Purchase

Choosing the product or brand to be bought based on the outcomes of the evaluation stage. The choice of seller may affect the final product selection. Factors such as terms of sale, price, delivery and warranties may affect the sale.

Attitudinal Components

Cognitive Affective Behavioral

C. post-purchase

Cognitive dissonance is caused by ______ conflict. A. pre-purchase B. during purchase C. post-purchase D. information research

Brand Equity

Concept that stresses the importance of the brand in marketing strategies. Defined in terms of the marketing effects uniquely attributable to the brand. The value that gradually builds up in a brand. The value endowed on products and services. It may be reflected in the way consumers think, feel, and act with respect to the brand, a well as in the prices, market share, and profitability the brand commands for the firm.

5 Premises of Consumer Behavior

Consumer behavior is purposeful and goal oriented. The consumer has free choice. Consumer behavior is a process. Consumer behavior can be influenced. There is a need for consumer education.

True

Consumer purchases are strongly influenced by cultural, social, personal, and psychological characteristics. True False

Brand Loyalty Levels

Consumer recognition. Consumer preference. Consumer demand.

Buzz Marketing

Cultivating opinion leaders and getting them to spread information about a product to others in their community.

Factors Affecting Consumer Behavior

Cultural Social Personal Psychological Buyer

Cultural Factors Affecting Consumer Behavior

Culture Subculture Social Class

False

Customization has several cost-reducing benefits. True False

False

Deciding to ignore market segment differences and go after the whole market with one offer is considered a differentiated marketing strategy. True False

Visual

Designers create a visual effect with color, brightness or dimness, size, and shape. The dimension of atmosphere relating to color, brightness, size, and shape.

Product Development

Developing the product concept into a physical product to ensure that the product idea can be turned into a workable product.

False

Differentiated marketing is a market-coverage strategy in which a firm goes after a large share of one or a few submarkets. True False

Geographic Segmentation

Dividing a market into different geographic units such as nations, states, regions, countries, cities, or neighborhoods. ACORN ClusterPLUS 2000 MicroVision 50 PRIZM

Psychographic Segmentation

Dividing a market into different groups based on social class, lifestyle, or personality characteristics.

True

Economies of scale contribute to brand decision. True False

Actionable

Effective programs can be designed to attract and serve the segments.

Product Idea

Envisioning a possible product that company managers might offer to the market.

Types of Families

Equal shared decision making. Husband dominant. Wife dominant. Decision made jointly. Children dominant.

Market Targeting

Evaluating each market segments attractiveness and selecting one or more segments to enter. Develop measures of segment attractiveness. Select target segments.

Facility Exterior

Exterior design. Signage. Parking. Landscape. Surrounding environment.

Measurable

Size, purchasing power, profiles of segments can be measured.

False

Social classes have no impact on product and brand preferences. True False

Positioning Strategies

Specific product attributes (price, product feature). Needs products fill or benefits product offer. Certain classes of users. Against an existing competitors. Repositioning.

False

Strong buyers and suppliers make a segment more attractive. True False

Facilitation Products

Those services or goods that must be present for the guest to use the core product.

Why Segment?

Ties the operation and all its marketing activities to some recognizable group(s) of consumers. Aimed at specific consumer groups. Allows selection of consumer groups that offer the best profit potential. May reveal an unused or undeserved segment.

C. The product is perceived as the prestige pricing.

Which of the following is not one of the conditions that support branding? A. The product is easy to identify by brand or trademark. B. The product is perceived as the best value for the price. C. The product is perceived as the prestige pricing. D. The demand is large enough to support the companies.

B. Product Class

______ has the longest life cycle. A. Product form B. Product class C. Brand D. Product style

D. Mature

______ is a period of slowdown in sales growth. A. Product development B. Introduction C. Growth D. Mature

B. Market targeting

______ is to evaluate each segment's attractiveness and select one or more of the market segments. A. Market segmentation B. Market targeting C. Market positioning D. Market evaluation

C. Personality

______ refers to distinguishing psychological characteristics that lead to relatively consistent and enduring responses to the environment. A. Self-image B. Self-concept C. Personality D. Self-esteem

C. Brand equity

_______ can be leveraged through co-branding and partnership. A. Brand decision B. Brand extension C. Brand equity D. Brand image

C. Psychographic segmentation

_______ divides buyers into different groups based on social class, lifestyle, and personality characteristics. A. Demographic segmentation B. Behavior segmentation C. Psychographic segmentation D. Geographic segmentation

C. Business analysis

_______ involves a review of the sales, costs, and profit projections to determine whether they satisfy the company's objectives. A. Idea screening B. Concept development and testing C. Business analysis D. Test marketing

B. Culture

_______ is the most basic determinant of a person's wants and behavior. A. Social class B. Culture C. Subculture D. Occupation

C. Aspirational groups

_______ refer to the groups to which people do not belong but would like to. A. Membership groups B. Reference groups C. Aspirational groups D. All of the above

D. Phase-out

________ is the ideal method to delete products; it enables a product to be removed in an orderly fashion. A. Return to line B. Immediate drop C. Run-out D. Phase-out

B. Substantiality

_________ examines the degree to which segments are large or profitable enough to serve as markets. A. Measurability B. Substantiality C. Actionability D. Accessibility

B. Overpositioning

_________ gives buyers a too narrow picture of the company. A. Underpositioning B. Overpositioning C. Confused positioning D. Narrowed positioning

C. Selective distortion

_________ is the tendency to twist information into personal meanings and interpret information in a way that will fit our preconceptions. A. Selective hearing B. Selective attention C. Selective distortion D. Selective retention

A. Perception

__________ is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world. A. Perception B. Motivation C. Learning D. Beliefs

C. Tactile

_________________ is the dimension of atmosphere relating to softness, smoothness, and temperature. A. Visual B. Aural C. Tactile D. Olfactory

C. Phase-out

_________________ is the ideal product deletion method. A. Run-out B. Immediate-drop C. Phase-out D. All of the above