Hospitality and Tourism Marketing Chapter 1
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Questions and Answers

What is the concept of profit through service?

The service-profit chain establishes relationships between profitability, customer loyalty, and employee satisfaction, loyalty, and productivity.

Which model identifies five dimensions of service quality?

  • Lean model
  • SERVQUAL model (correct)
  • Quality Assurance model
  • Six Sigma model

    • What does service productivity refer to?

    Service productivity refers to the efficiency and effectiveness with which a service provider utilizes resources to deliver services to customers.

    What is the main purpose of partnership in the hospitality industry?

    <p>To enhance sales of products through cooperative promotions and marketing efforts with other companies.</p> Signup and view all the answers

    What are the key operational marketing strategies used during the implementation stage?

    <p>Market strategy</p> Signup and view all the answers

    Service products differ from goods products mainly in their intangibility.

    <p>True</p> Signup and view all the answers

    In the hospitality industry, services are produced and consumed _________ .

    <p>simultaneously</p> Signup and view all the answers

    What is the primary goal of marketing according to the text?

    <p>To satisfy customer needs</p> Signup and view all the answers

    True or False: Customer satisfaction is based on exceeding customer expectations.

    <p>False</p> Signup and view all the answers

    ______ is the difference between the benefits that the customer gains from owning and/or using a product and the costs of obtaining the product.

    <p>Customer value</p> Signup and view all the answers

    Match the elements of the marketing mix with their descriptions:

    <p>Price = Monetary value charged for the product People = Employees and customers in the hospitality industry Packaging = Overall presentation including tangible items Programming = Special function activities to stimulate customer spending</p> Signup and view all the answers

    What is one way service companies can differentiate themselves from competitors?

    <p>Managing quality</p> Signup and view all the answers

    Which of the following are common virtues of well-managed service companies regarding service quality?

    <p>All of the above</p> Signup and view all the answers

    What is the term used for the type of marketing where service quality depends heavily on the quality of the buyer-seller interaction during the service encounter? _Marketing

    <p>Interactive</p> Signup and view all the answers

    Service companies must make special efforts to be fair and demonstrate fairness to customers and employees.

    <p>True</p> Signup and view all the answers

    Match the following factors with their role in service differentiation:

    <p>Quality management = Delivering consistently higher quality Innovation = Introducing unique features to set apart from competitors Customer service = Building enduring customer loyalty Brand image = Creating a distinguishable identity</p> Signup and view all the answers

    What are the external environment elements for tourism, travel, and hospitality?

    <p>Technological Developments</p> Signup and view all the answers

    Research done by scientists at universities or government authorities is considered applied research.

    <p>False</p> Signup and view all the answers

    What are the eight categories into which applied research in tourism and hospitality can be grouped?

    <p>research on consumers; research on products and services; research on pricing; research on place and distribution; research on promotion; research on competition; research on the operating environment; research on a destination</p> Signup and view all the answers

    Market segmentation is an effort to increase the organization's precision in ______.

    <p>marketing</p> Signup and view all the answers

    Match the market segmentation procedure steps:

    <ol> <li>Identifying and defining the problem = Needs for segmentation</li> <li>Investigating available sources = Market segmentation procedure</li> <li>Developing the research plan = Market segmentation is a three-step procedure</li> </ol> Signup and view all the answers

    What are some of the functional areas into which tourism legislation has been classified?

    <p>Protection of tourists</p> Signup and view all the answers

    Why do governments intervene in markets according to the text?

    <p>To influence market patterns</p> Signup and view all the answers

    What are the three levels of product offering according to marketing theory?

    <p>Basic product, Expected product, Augmented product</p> Signup and view all the answers

    What is the study of why people buy products they do and how they make decisions called?

    <p>Consumer behavior analysis</p> Signup and view all the answers

    Product planning involves defining and developing a product that meets the needs of a ______ market.

    <p>target</p> Signup and view all the answers

    Match the following new product development strategies with their descriptions:

    <p>Market penetration = Modifying an existing product for the current market Market development = Identifying and developing new markets for current products Product development = Developing a genuinely new product to be sold to existing customers Diversification = Expanding into new products or services that are related to the existing core business</p> Signup and view all the answers

    What is seen as a major determinant of consumer behavior?

    <p>Motivation</p> Signup and view all the answers

    Which factors influence motivation and purchase, including gaining experience through taking holidays and listening to others?

    <p>Learning</p> Signup and view all the answers

    Culture can influence consumer behavior regarding how they live, communicate, and perceive things.

    <p>True</p> Signup and view all the answers

    Consumer behavior analysis is the study of why people buy the products they do and how they make decisions. Most tourism and hospitality organizations have an imperfect picture of their customer, and few monitor patterns of consumer behavior at a level of detail necessary to remain ____________.

    <p>competitive</p> Signup and view all the answers

    What is the purpose of product bundle pricing?

    <p>To combine several products and offer them at a reduced price.</p> Signup and view all the answers

    Which of the following are adjustment strategies for pricing?

    <p>Psychological pricing</p> Signup and view all the answers

    Value pricing is most appropriate for companies that can increase long-term market share through low prices.

    <p>True</p> Signup and view all the answers

    ______ nature of the product is one of the characteristics that affect pricing in tourism and hospitality industries.

    <p>Perishable</p> Signup and view all the answers

    Match the following distribution channels with their descriptions:

    <p>Direct distribution channel = Company delivers its product to the consumer without independent intermediaries Indirect channel = Service provider uses independent intermediaries to deliver the product</p> Signup and view all the answers

    What is the purpose of channel conflict in distribution systems?

    <p>To resolve conflicts between members of the distribution channel.</p> Signup and view all the answers

    What are some functions of the distribution system?

    <p>Physical distribution</p> Signup and view all the answers

    Public Relations in the tourism industry aims to maintain or improve relationships with other organizations only.

    <p>False</p> Signup and view all the answers

    What is the purpose of sales promotion and merchandising in marketing communications?

    <p>To stimulate consumer purchasing and dealer effectiveness through incentives and displays.</p> Signup and view all the answers

    ______ selling involves direct person-to-person communication to persuade buyers to purchase products.

    <p>Personal</p> Signup and view all the answers

    Study Notes

    Introduction to Hospitality and Tourism Marketing

    • Marketing is about satisfying customer needs and creating value for customers and society
    • The marketing process involves understanding consumers, creating customer value, and building strong customer relationships

    Understanding the Marketplace and Customer Needs

    • Needs are the fundamental human necessities, such as food, clothing, and safety
    • Wants are shaped by culture and individual personality
    • Demands are wants backed by buying power and willingness
    • Market offerings include tangible products, services, and experiences

    Customer Value and Satisfaction

    • Customer value is the difference between the benefits and costs of a product
    • Customer expectations are based on past experiences and market information
    • Meeting customer expectations leads to customer satisfaction

    Exchanges and Relationships

    • Marketing involves exchange, where people obtain desired objects by offering something in return
    • The goal is to build desirable exchange relationships with target markets

    Markets

    • A market is a set of actual and potential buyers of a product
    • The tourism market reflects the demands of consumers for travel and hospitality products

    Hospitality Marketing

    • Hospitality marketing deals with tangible products, like hotel rooms, and intangible aspects, like customer experiences
    • It is critical to the success of hospitality and tourism products, organizations, and tourist destinations

    Hospitality Marketing Mix

    • The traditional 4Ps (Product, Price, Place, and Promotion) are expanded to 8Ps in hospitality marketing
    • The additional Ps are People, Packaging, Programming, and Partnership

    The 8Ps of Hospitality Marketing Mix

    • First P: Product - the tangible and intangible offerings that fill customer needs
    • Second P: Place - the distribution channel and location of the product
    • Third P: Promotion - the communication and sales strategy
    • Fourth P: Price - the monetary value of the product
    • Fifth P: People - the employees who provide good service
    • Sixth P: Packaging - the combination of related and complementary hospitality services into a single-price offering
    • Seventh P: Programming - the development of special function activities, events, or programs that stimulate customer spending
    • Eighth P: Partnership - cooperative promotions and marketing efforts with other hospitality companies

    Implementing the Marketing Approach

    • Operational marketing strategies include target market, product, competitive, market, and positioning strategies
    • These strategies are used to implement marketing actions that move an organization from its current position to where it wants to be

    Tourism Marketing

    • Tourism marketing involves stimulating travel demand, creating tourism products, and promoting destination images
    • It requires understanding consumer behavior, market trends, and competitor analysis

    Service Systems

    • Services are intangible commodities that create value for customers
    • Service culture is an environment where employees are obsessed with providing superior customer service
    • Developing a strong service culture is crucial for hospitality businesses### Characteristics of Service Marketing
    • Service products are intangible, making it difficult for customers to evaluate before purchase
    • Four unique characteristics of services:
      • Intangibility: Cannot be seen, tasted, felt, heard, or smelled before purchase
      • Inseparability: Produced and consumed simultaneously, requiring customer and service provider presence
      • Service variability: Quality depends on who provides the service and when/where it is provided
      • Perishability: Services cannot be stored or inventoried

    Intangibility

    • Service products are experiential, and quality is unknown until after experience
    • Example: Restaurant customer doesn't know how good the meal is until after consumption
    • Service marketers should provide tangible evidence to help customers evaluate the service (e.g., promotional materials, employee appearance, physical environment)

    Inseparability

    • Service providers and customers are part of the product
    • Both must be present for the transaction to occur
    • Implications:
      • Customers and employees must understand the service delivery system
      • Employees are part of the product, and customer-contact employees are critical

    Service Variability

    • Causes of service variability:
      • Produced and consumed simultaneously, limiting quality control
      • High degree of contact between service provider and customer
      • Fluctuating demand
      • Dependence on service provider's skills and experience
    • Three steps to reduce variability and create consistency:
      • Invest in good hiring and training procedures
      • Use service blueprints to map out the service process
      • Use suggestion and complaint systems, customer surveys, and comparison shopping

    Perishability

    • Services cannot be stored or inventoried
    • Example: Unsold hotel rooms or airline seats cannot be resold
    • Implications:
      • Revenue lost from unsold services is gone forever
      • Service providers may charge for guaranteed reservations or no-shows

    Management Strategies for Service Businesses

    • Good service firms use marketing to position themselves strongly in target markets
    • Service marketing requires additional marketing approaches to manage profitability and quality
    • Strategies:
      • Service differentiation: Distinguishing a service offering from others
      • Internal marketing: Effectively training and motivating customer-contact employees
      • Interactive marketing: Quality of the buyer-seller interaction during the service encounter
      • Service quality: Focus on employee satisfaction, customer satisfaction, and loyalty
      • Service productivity: Efficient use of resources to deliver services

    Service Differentiation

    • Strategies to differentiate a service offering:
      • Unique features
      • Customization options
      • Superior customer service
      • Brand image and reputation
      • Convenience and accessibility
      • Price-performance ratio
      • Segmentation and targeting
      • Partnerships and collaborations

    Service Quality

    • Dimensions of service quality:
      • Reliability
      • Responsiveness
      • Assurance
      • Empathy
      • Tangibles
    • Importance of service quality:
      • Customer satisfaction and loyalty
      • Positive word-of-mouth
      • Competitive advantage

    Service Productivity

    • Importance of service productivity:
      • Efficient use of resources
      • Control costs
      • Meet customer demands
    • Factors influencing service productivity:
      • Utilization of resources
      • Process efficiency
      • Capacity management
      • Technology adoption
      • Employee training and development
      • Quality improvement
      • Customer involvement### Quality Goals and Customer Expectations
    • A manufacturer's quality goal might be zero defects, but a service provider's goal is zero customer defections
    • Service providers need to identify and understand customer expectations to deliver quality service
    • Customer expectations need to be clearly defined and communicated to employees and customers

    Virtues of Well-Managed Service Companies

    • Customer obsession: satisfying customer needs to win enduring loyalty
    • Top management commitment to quality
    • Setting high service-quality standards
    • Continuously monitoring service performance, including comparison shopping and customer surveys
    • Communicating service quality concerns to employees and providing performance feedback

    Managing Employees

    • Employees are a critical part of the product and marketing mix in the hospitality industry
    • Human resources and marketing departments must work together to hire friendly and capable employees
    • Personnel policies should support positive relations between employees and guests
    • Even minor details related to personnel policy can have a significant effect on product quality

    Recommendations for Improving Service Quality

    • Listening: understand customer expectations and perceptions through continuous learning
    • Reliability: deliver on promises and maintain high service quality
    • Basic service: keep promises, use common sense, and provide value to customers
    • Service design: develop a holistic view of the service
    • Recovery: respond quickly and personally to customer complaints
    • Surprising customers: exceed customer expectations with uncommon swiftness and courtesy
    • Fair play: demonstrate fairness to customers and employees
    • Teamwork: improve employee motivation and capabilities
    • Employee research: conduct research with employees to identify and solve problems
    • Servant leadership: inspire leadership throughout the organization

    Managing Perceived Risk

    • Risk management in hospitality involves identifying, evaluating, prioritizing, and controlling risks
    • Types of risk include operational risk, project risk, and other types of risk

    Managing Capacity and Demand

    • Demand management: identifying potential demand variations
    • Capacity management: ensuring resources are available to meet demand
    • Managing capacity and demand is crucial for business success

    The Services Marketing Triangle

    • The services marketing triangle consists of the company, customers, and providers
    • Three types of marketing: internal marketing (orienting and motivating employees), interactive marketing (buyer-seller interaction), and external marketing (making promises to customers)

    Service Marketing Mix

    • The services marketing mix includes the traditional four Ps (product, price, promotion, and place) plus three additional Ps: people, physical evidence, and process

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    Description

    This quiz covers the basics of marketing in the hospitality and tourism industry, including understanding customer needs and providing superior customer value.

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