wsu hbm 235 exam 2
three categories of economic impacts
1) increasing foreign earning 2) increase income 3) increase employment
foreign investment paradox
1.) locals will resent investors 2.) foreign investors take all the money and there may be trade deficit 3.) all the money leaks out of the country
Uneven distribution tourism
Distribution of tourism resources -tourism friendly activities -changing seasons/weather -political issues -economic changes in country of origin -exchanges rates -tourist service prices -special events -awareness -transportation -travel flows & climate change -Distance Decay -Demand & Origin Factors
Which continent or country accounts for most international tourist arrival?
Europe: France, USA, Spain
why should tourism be boosted in developing countries?
In order to bring in profit and visitors to the country
tourism is unique because?
Intangibility experience, consumption and production happen at the same time
what is marketing
Right Place Right People Right time Right price
What is SOP?
Standard operating procedure
what is the marketing planning procedure?
Where are we know Where do we want to be? How do we get there? How do we make sure we get there? How do we know we got there?
what is Elasticity?
a small increase in price will result in a decrease in demand
what is income?
any money left over after paying taxes.
Why is market segmentation important?
because people are different and have different desires and will respond to different messages.
opportunity cost
cost of an alternative that must be forgone in order to pursue a certain action
What is position?
creates image, our product, our service in demand of consumers
Three levels of income
direct income- visitor spends money at a hotel Indirect Income- hotel has a lot of employees and purchases raw materials (buisness recievs) Induced
what is Tourist Geography
distribution of international tourist activity
what are invisible exports?
experiences
heterogeneous
experiences being made
what is production orientation?
focuses on the product and services that the destination can provide
societal orientation
focuses on what the customer needs or wants
tourism marketing ?
has a lot of business involved
positioning strategy ( change or reinforce)
if there is no image establish one, if consumers think its ugly then you use change.
trade deficit
imports greater then exports, this is a bad thing we do not want this cause by demonstration effect
intangibility
intangible vs tangibility (experience something that is not able to be touched)
what is Market orientation?
is that same as service and customer orientation aka needs or wants
travel frequency?
is the number of trips taken
travel propensity ?
is the percentage of visitors that travel
what is demonstration effect?
is when a local sees and whats what a visitor has, residents will learn through visitors
what is tourist market segmentation important?
it is about communicating the appealing message of a producer or product service efficiency
is marketing the same as advertising?
no because advertising is only one component of marketing
simultaneous
operating at the same time
what is forward segmentation?
pre determines who is coming. pre determines the target audience Advantage: we have control over the target audience Disadvantage: its possible that our target market is not realistic
comparative advantage
situation in which a country can produce a good at a lower opportunity cost than a competitor
what is an external shock?
someone can not afford to come to a destination
income multiplier
the amount of local income generated per unit of a visitor (the amount of money spent by a visitor)
what is backward segmentation
we do not determine our target, we look at who is coming and hand out surveys to determine the travel Advantage: we know who is coming Disadvantage: we do not have pro active control over the target audience
what are key considerations of segmentation?
we have to think about what is the target beneficial in the long run The cost to attract the target market The ability to serve the target market
what is effective demand?
we want to turn differed and suppressed into effective demand
what is leakage ?
when money does not stay in the country economy. money made is beneficial to the destination generated by tourism. It may leak through foreign investment
what is suppressed demand
when the visitor has constraints or visitation limits
what is differed demand?
when there are know group tours of any kind offered