Podcast
Questions and Answers
Which of the following best describes the relationship between a business and its environment?
Which of the following best describes the relationship between a business and its environment?
- Businesses are surrounded by various interconnected factors. (correct)
- The environment has no effect on a business's strategy.
- Businesses operate independently of their environment.
- A business environment only includes resource availability.
How do legal and regulatory factors primarily impact business operations?
How do legal and regulatory factors primarily impact business operations?
- By determining exchange rates and disposable income.
- By influencing consumer spending patterns.
- By changing demographic trends in the population.
- By influencing and limiting organizational activities. (correct)
How does tourism contribute to the national economy, as stated in R.A. 9593 (Tourism Act of 2009)?
How does tourism contribute to the national economy, as stated in R.A. 9593 (Tourism Act of 2009)?
- Makes tourism a dispensable element.
- It has no effect.
- Makes tourism an indispensable element of national economy. (correct)
- Limits national interest and importance.
What impact does wage inflation have on income distribution?
What impact does wage inflation have on income distribution?
How do socio-cultural factors primarily influence business, according to the content?
How do socio-cultural factors primarily influence business, according to the content?
In the context of technological adaptation in the tourism and hospitality industry, which aspect is most emphasized?
In the context of technological adaptation in the tourism and hospitality industry, which aspect is most emphasized?
Which of Porter's Five Forces considers the impact of new businesses entering the industry?
Which of Porter's Five Forces considers the impact of new businesses entering the industry?
How do marketing intermediaries primarily contribute to the hospitality business?
How do marketing intermediaries primarily contribute to the hospitality business?
Which aspect of 'Consumer's Perception' involves consumers twisting information that fits with their personal meanings?
Which aspect of 'Consumer's Perception' involves consumers twisting information that fits with their personal meanings?
According to Stanley Plog's model, which type of tourist seeks new experiences and adventure?
According to Stanley Plog's model, which type of tourist seeks new experiences and adventure?
What characterizes Phase I travelers according to the division of tourists?
What characterizes Phase I travelers according to the division of tourists?
How do social factors influence a person's decision regarding travel and tourism?
How do social factors influence a person's decision regarding travel and tourism?
What is the function of 'Gatekeepers' in the context of organizational buying?
What is the function of 'Gatekeepers' in the context of organizational buying?
How can a 'defector' in customer loyalty be potentially brought back to a brand?
How can a 'defector' in customer loyalty be potentially brought back to a brand?
In 'Positioning', which element ensures the message is easily understood?
In 'Positioning', which element ensures the message is easily understood?
What does 'Credibility' refer to in the context of positioning?
What does 'Credibility' refer to in the context of positioning?
When an organization serves an entire marketplace with a single marketing mix, which targeting strategy are they using?
When an organization serves an entire marketplace with a single marketing mix, which targeting strategy are they using?
Which macro environment factor greatly impacts the hospitality industry through climate change and green policies?
Which macro environment factor greatly impacts the hospitality industry through climate change and green policies?
What is the main distinction between the micro and macro environments of a business?
What is the main distinction between the micro and macro environments of a business?
How is differentiated marketing structured in the tourism and hospitality industry?
How is differentiated marketing structured in the tourism and hospitality industry?
Flashcards
Macro Environment
Macro Environment
The general environment within the economy influencing business operations.
Micro Environment
Micro Environment
Factors of resource availability and usage impacting individuals and businesses.
Political Factors
Political Factors
Laws, government agencies, and pressure groups influencing organizational activities.
Economic Factors
Economic Factors
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Socio-Cultural Factors
Socio-Cultural Factors
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Technological Factors
Technological Factors
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Ecological Factors
Ecological Factors
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New Entrants
New Entrants
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Suppliers
Suppliers
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Buyers
Buyers
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Direct Competitors
Direct Competitors
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Employees
Employees
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Marketing Intermediaries
Marketing Intermediaries
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Selective Attention
Selective Attention
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Selective Distortion
Selective Distortion
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Allocentric
Allocentric
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Psychocentric
Psychocentric
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Defectors
Defectors
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Clarity
Clarity
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Focused targeting strategies
Focused targeting strategies
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Study Notes
- No entity can operate in isolation due to surrounding factors.
Business Environment Categories
- Macro environment influences all businesses within the economy.
- Micro environment involves resources impacting individuals/businesses.
Macro Environment Factors Affecting Business
- Political factors include laws, government agencies, and pressure groups influencing organizations.
- Legal/Regulatory factors consist of public security and labor laws.
- R.A 9593, or the Tourism Act of 2009, made tourism vital to the national economy.
- Economic factors influence consumer spending/purchasing power.
- Wage Inflation is where managers pay more attention to income distribution and laborer income.
- Price Inflation occurs when the commodity price increases during economic decline.
- GDP per Capita indicates customer purchasing power and spending patterns.
- Exchange rates are the exchange rate of peso to the dollar, decreasing.
- Disposable Income is income after taxes and deductions.
- Discretionary Income is the amount left after necessities.
- Spending Patterns adjust based on the country's culture.
- Socio-cultural changes are trends in demographics and cultural norms.
- Technological changes affect consumer lives and product/service delivery.
- Ecological factors affect the hospitality industry, including climate change/green policies/natural resource management.
Competition in Tourism/Hospitality (2 Aspects)
- Technological adaptation elevates business via mobile approach/connectivity/machine learning/big data/analytics.
- Changing customer profiles witnessed shifts in traveler psychographics/demographics.
Porter Five Forces
- New Entrants are businesses entering the industry.
- Threats of New Entrants include contrary government policies/enormous fixed costs/difficulty accessing credit/irrecoverable investments.
- Suppliers have bargaining power
- Furniture/fittings and foods/cigarettes.
- Bargaining power depends on hotel size/distinctive technology/resources.
- Switching cost exists
Buyers (Customers)
- Customers as Individuals are business travelers/tourists with long-term contracts, with little price negotiation.
- Customers as Groups book rooms through travel agencies in large numbers.
- Direct competitors offer similar products/services.
- Indirect competitors share location and target markets.
- Substitutes offer alternative products.
The Market
- The most important is the customer.
- Micro environment factors are resource availability and usage impacting individuals/businesses.
- Customers are individuals/households/organizations purchasing for production or resale.
5 Types of Customers
- Consumer markets involve individuals/households buying hospitality for leisure/medical/gatherings.
- Business Markets purchase hospitality services for their businesses.
- Resellers buy and resell products.
- Government markets are government entities buying for travel/meetings.
- International Markets involve buyers from other countries.
Tourism Typologies as Consumers (Stanley Plog)
- Allocentric (The wanderers) tourists seek new experiences and adventures
- Psychocentric (The Repeaters) tourists are not usually adventurous
- Mid-centric (Combination) travelers swing between allocentric and psychocentric tendencies
Tourist Division in Four Phases
- Phase I: Bubble traveler with less financial resources.
- Phase II: Idealized experienced seeker.
- Phase III: Seasoned traveler.
- Phase IV: Tourist immersing in foreign culture/heritage/culinary experience/language.
- Social factors provide initial information that influences a person's decision to visit
- Social Class, Family, Internet, and Social Media all influence people's decisions to visit
Self-Concept
- Is also known as self-image, influences purchasing decisions; outgoing individuals may prefer cruises.
Buying Process Participants
- Users require products/services for smooth operation.
- Influencers affect buying decisions.
- Deciders select product/service requirements.
- Approvers approve proposed actions.
- Buyers select suppliers and arrange terms.
User Status
- Non-users lack willingness/desire/ability.
- Prospects have willingness, but need marketing influence.
- First-time buyers need to form travelling habit.
- Regular users consistently use tourist services.
- Defectors are former customers who may return if issues are resolved.
Loyalty
- Heavy users spend the most time/money on products/services.
- Medium users are semi-regular customers.
- Light users use/purchase much less than others.
Positioning
- Must have clarity, credibility, and consistency
Strategy
- Competitiveness leads to better customer benefits.
- Undifferentiated targeting strategies serve entire marketplace with single marketing mix.
- Differentiated targeting uses varied marketing mixes for different segments.
- Focused targeting strategies concentrate on a small market segment with suitable marketing mix.
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