Pricing Concepts and Components
48 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which function is NOT performed by travel agents?

  • Reservation and ticketing
  • Providing travel insurance (correct)
  • Information provision and travel counseling
  • Designing individual itineraries

Which group of organizations primarily offers packaged vacation tours?

  • Travel specialists
  • Tour operators/wholesalers (correct)
  • Hotel sales representatives
  • Travel agents

What services do hotel sales representatives primarily focus on selling?

  • Hotel rooms and function rooms (correct)
  • Tour packages
  • Transportation and accommodation
  • Online booking systems

Which of the following best describes global distribution systems (GDS)?

<p>Computerized reservation systems for travel agents (D)</p> Signup and view all the answers

What is the primary role of travel specialists within the distribution system?

<p>To focus on one or more specific functions of the distribution system (D)</p> Signup and view all the answers

How do online travel agencies differ from traditional travel agents?

<p>They operate primarily in the virtual realm (A)</p> Signup and view all the answers

What function do concierges typically perform in hotels?

<p>Providing recommendations for local attractions (C)</p> Signup and view all the answers

Which of these businesses is associated with the sharing economy in the travel industry?

<p>AirBNB (A)</p> Signup and view all the answers

What is the primary focus of SEO in digital marketing?

<p>Enhancing organic search rankings through content optimization (C)</p> Signup and view all the answers

Which of the following describes a direct distribution channel?

<p>Supplier directly communicating with the customer (B)</p> Signup and view all the answers

What role do distribution channels play in promotions?

<p>They assist in creating and spreading persuasive communications. (A)</p> Signup and view all the answers

Which of the following is NOT a function of distribution channels?

<p>Conducting customer service feedback (A)</p> Signup and view all the answers

What is a characteristic of marketing intermediaries?

<p>They act as independent organizations aiding in distribution. (C)</p> Signup and view all the answers

What is the key activity conducted during the matching function of distribution channels?

<p>Shaping products to fit buyer needs. (C)</p> Signup and view all the answers

Which platform is NOT typically considered part of social media marketing?

<p>Google Ads (C)</p> Signup and view all the answers

What distinguishes indirect distribution channels from direct ones?

<p>Indirect channels require the help of independent intermediaries. (D)</p> Signup and view all the answers

What is the primary aim of persuasive advertising?

<p>To maintain market share in competitive conditions (D)</p> Signup and view all the answers

Which element is NOT part of a direct marketing campaign?

<p>The advertisement (D)</p> Signup and view all the answers

What is a key advantage of direct marketing?

<p>Immediate results from marketing efforts (B)</p> Signup and view all the answers

Which of the following best describes informative advertising?

<p>Advertising focused on introducing new products (B)</p> Signup and view all the answers

What is the purpose of public relations activities?

<p>To ensure credibility through third-party endorsements (C)</p> Signup and view all the answers

Which measure of success is NOT relevant for evaluating direct marketing campaigns?

<p>Percentage of follow-up ads run (A)</p> Signup and view all the answers

In the context of personal selling, which of the following is one of the key elements?

<p>Targeting (A)</p> Signup and view all the answers

Which advantage is associated with precision targeting in direct marketing?

<p>Increased relevance of marketing messages (D)</p> Signup and view all the answers

What is a characteristic of Channel 1 in restaurant distribution channels?

<p>It involves direct sales from manufacturer to consumer. (C)</p> Signup and view all the answers

What is a common disadvantage faced by franchisees?

<p>Required fees and royalties to the franchisor. (A)</p> Signup and view all the answers

Which channel involves the product passing through a wholesaler and retailer before reaching the consumer?

<p>Channel 3 (D)</p> Signup and view all the answers

What advantage does a franchisor receive from franchising?

<p>Expansion of brand with minimal capital investment. (D)</p> Signup and view all the answers

Which of the following is NOT an advantage of being a franchisee?

<p>Complete control over operating procedures. (D)</p> Signup and view all the answers

What is the primary disadvantage for a franchisor in a franchise agreement?

<p>Need for close monitoring of franchisees. (D)</p> Signup and view all the answers

What describes Channel 4 in the context of restaurant distribution?

<p>Involves wholesalers, jobbers, and retailers. (C)</p> Signup and view all the answers

Which of the following limits the franchisee's creativity?

<p>Operational guidelines established by the franchisor. (D)</p> Signup and view all the answers

What is one of the contributions of public relations to marketing?

<p>Influencing specific target groups (B)</p> Signup and view all the answers

Which step is NOT part of the public relations process?

<p>Conducting market research (A)</p> Signup and view all the answers

Which of the following is an essential aspect of web and design optimization for hospitality?

<p>Mobile responsiveness (A)</p> Signup and view all the answers

What is a key benefit of high-quality visuals in digital marketing?

<p>Captivating potential guests (B)</p> Signup and view all the answers

Which audience can public relations address?

<p>Employees and community groups (D)</p> Signup and view all the answers

What does strategic planning in digital marketing involve?

<p>Integrating SEO, SEM, social media, and reputation management (A)</p> Signup and view all the answers

What is one of the steps in launching a successful public relations campaign for a new product?

<p>Defining the target market (B)</p> Signup and view all the answers

Which of the following is NOT an advantage of intuitive website navigation?

<p>Increases bounce rates (B)</p> Signup and view all the answers

What does the term 'profit margin' signify in a business context?

<p>The desired income expressed as a percentage over costs (B)</p> Signup and view all the answers

Which pricing method involves offering lower rates to fill last-minute vacancies?

<p>Last minute pricing (C)</p> Signup and view all the answers

What does the break-even point signify for a business?

<p>When total costs are equal to total revenue (B)</p> Signup and view all the answers

What do fixed costs refer to in a business?

<p>Recurring expenses that do not change with sales levels (D)</p> Signup and view all the answers

How is revenue calculated for a company?

<p>Total sales minus expenses (C)</p> Signup and view all the answers

Which pricing strategy uses a varying approach based on the season?

<p>Seasonal pricing (D)</p> Signup and view all the answers

What does 'economies of scale' refer to in a business context?

<p>A cost-saving method where production costs decrease as volume increases (B)</p> Signup and view all the answers

What are pack rates in the context of tourism businesses?

<p>The base rates before any discounts are applied (B)</p> Signup and view all the answers

Flashcards

Sales

The total amount of money a company receives from selling its products or services.

Price

The amount of money a customer pays for a product or service.

Fixed Costs

Costs that remain constant regardless of the number of units produced or sold.

Variable Costs

Costs that change in direct proportion to the volume of production or sales.

Signup and view all the flashcards

Break-even Point

The point at which total revenue equals total costs.

Signup and view all the flashcards

Profit Margin

The desired level of profit for a company, usually expressed as a percentage.

Signup and view all the flashcards

Revenue

The total income a company keeps after paying all expenses.

Signup and view all the flashcards

Seasonal Pricing

A pricing strategy that uses different prices throughout the year to match seasonal demand.

Signup and view all the flashcards

What is advertising?

Any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor.

Signup and view all the flashcards

What is an advertising objective?

A specific communication task to be accomplished with a specific target audience during a specific period of time.

Signup and view all the flashcards

What is informative advertising?

Used when introducing a new product or building primary demand for it. Focuses on creating excitement and demand within the target market.

Signup and view all the flashcards

What is persuasive advertising?

Used when competition is stiff. It aims to maintain market share and persuade consumers to choose your product.

Signup and view all the flashcards

What is reminder advertising?

Used for products that have reached maturity to maintain market position and remind consumers about the product.

Signup and view all the flashcards

What is direct marketing?

An interactive system of marketing that uses one or more advertising media to affect a measurable response and aims to build relationships with regular customers.

Signup and view all the flashcards

What is personal selling?

A person-to-person communication between a salesperson and a prospective customer, focusing on meeting needs in exchange for money or resources.

Signup and view all the flashcards

What is public relations?

Leverages the idea that positive word-of-mouth from credible sources, not related to the business, can increase consumer trust in a product or service.

Signup and view all the flashcards

Public Relations Audiences

Public relations can be used to address various audiences, such as employees, guests, community groups, other stakeholders, and special audiences.

Signup and view all the flashcards

Public Relations

It's the process of establishing and maintaining a positive relationship between an organization and its various publics.

Signup and view all the flashcards

Understanding the Firm's Mission

This involves understanding the company's mission, culture, and target market.

Signup and view all the flashcards

Setting PR Objectives

Setting clear and measurable objectives that align with the company's overall goals.

Signup and view all the flashcards

Defining the Target Market

Identifying and understanding the specific groups of people that the PR campaign will target.

Signup and view all the flashcards

Designing the PR Message

Crafting a compelling message that resonates with the target audience and effectively communicates the organization's key messages.

Signup and view all the flashcards

Implementing the PR Plan

This involves putting the PR plan into action, executing activities such as press releases, media outreach, events, and social media campaigns.

Signup and view all the flashcards

Evaluating PR Results

It involves evaluating the effectiveness of the PR plan and measuring its impact on the organization's objectives.

Signup and view all the flashcards

Social Media Marketing for Hospitality

Uses platforms like Facebook, Instagram, Twitter, and LinkedIn to connect with potential customers, share content, and promote offerings.

Signup and view all the flashcards

Search Engine Marketing (SEM) in Hospitality

Paid advertising on search engines like Google, targeting potential customers looking for accommodations.

Signup and view all the flashcards

Search Engine Optimization (SEO) in Hospitality

Improving a website's ranking in organic search results by optimizing content, meta tags, and coding.

Signup and view all the flashcards

Direct Distribution Channel

A distribution channel where the company directly interacts with customers without intermediaries.

Signup and view all the flashcards

Indirect Distribution Channel

A distribution channel that uses independent organizations to distribute products and services.

Signup and view all the flashcards

Marketing Intermediaries

Independent organizations that assist in distributing products and services, often used by hospitality businesses.

Signup and view all the flashcards

Information Function of Distribution Channels

Gathering information about market needs and wants to create and distribute relevant products or services.

Signup and view all the flashcards

Promotion Function of Distribution Channels

Developing and promoting persuasive communication to attract and engage potential customers.

Signup and view all the flashcards

What are Travel Agents?

Travel agents are intermediaries who connect travelers with various travel products and services like transportation, accommodations, and tour packages.

Signup and view all the flashcards

What are Tour Operators?

These organizations offer packaged vacations to the public, focusing on the leisure market. They bundle together transportation, accommodation, meals, ground transportation, entertainment, and activities.

Signup and view all the flashcards

What are Travel Specialists?

These specialists focus on specific areas of the travel industry, like transportation or accommodations, offering specialized knowledge and services.

Signup and view all the flashcards

What do Hotel Sales Representatives do?

Hotel sales representatives are responsible for selling rooms, conference spaces, and other services to clients within a specific geographical area.

Signup and view all the flashcards

What are Government Tourist Associations?

These associations work to promote tourism and attract visitors to a specific location, often showcasing attractions, accommodation options, and local experiences.

Signup and view all the flashcards

What is a Consortium in travel?

A consortium is a group of hospitality organizations that collaborate for mutual benefit. They pool resources and work together to enhance their offerings.

Signup and view all the flashcards

What are Reservation Systems?

These systems act as central reservation platforms for hotels, particularly for smaller chains, offering booking services through a single point of access.

Signup and view all the flashcards

What are GDS in travel?

Global distribution systems (GDS) are powerful, computerized reservation systems that serve as online catalogs for travel agents and distributors. They provide access to a wide range of travel products and services.

Signup and view all the flashcards

Channel 1 (Direct Marketing Channel)

A channel level where the manufacturer directly sells their products or services to consumers without any intermediaries.

Signup and view all the flashcards

Channel 2 (Manufacturer to Retailer)

A channel level where the manufacturer sells products or services to a retailer, who in turn sells them to consumers.

Signup and view all the flashcards

Channel 3 (Manufacturer to Wholesaler to Retailer)

A channel level where the manufacturer sells to a wholesaler, who then sells to a retailer, who finally sells to the consumer.

Signup and view all the flashcards

Channel 4 (Manufacturer to Wholesaler to Jobber to Retailer)

A channel level with a wholesaler selling to a jobber who then sells to small, independent retailers, who finally sell to consumers.

Signup and view all the flashcards

Franchise

The right to use a brand name, logo, and operating procedures of an established business.

Signup and view all the flashcards

Royalties

Fees paid to the franchisor for using their brand and system, usually a percentage of sales or a fixed amount.

Signup and view all the flashcards

Franchise Fee

The initial payment made to the franchisor for the right to use the franchise.

Signup and view all the flashcards

Rapid Growth

The ability to rapidly expand a business by allowing others to operate under the brand name and system.

Signup and view all the flashcards

Study Notes

Pricing Concepts

  • Price: The amount a customer pays for a product, representing the value exchanged.
  • Sales: The total revenue generated by multiplying the quantity sold by the selling price.
  • Revenue: Total income after all expenses are accounted for (sales minus expenses).
  • Fixed Costs: Costs associated with operations that do not change with the volume of sales.
  • Profit Margin: The desired level of income, typically expressed as a percentage of the product's cost.
  • Variable Costs: Costs that change based on the volume or quantity produced; often decrease per unit with increased volume.
  • Economies of Scale: The concept that variable costs per unit decrease with increased production volume.

Pricing Components

  • Pack Rates: The standard price, usually the highest.
  • Seasonal Pricing: Adjusting prices based on demand fluctuations throughout the year.
  • Last Minute Pricing: Discounted pricing to fill remaining inventory availability before a booking closes.
  • Single/Double Occupancy: Different rates for single versus double occupancy bookings. Note that the double rate isn't typically double the single rate.
  • Discounting: Offering reduced prices with promotional conditions, such as minimum stay requirements or specific traveller quantities.
  • Break-even Point: The point where total costs equal total revenue.

Advertising and Promotion

  • Informative Advertising: Used to introduce new products or increase initial demand, employing tools to create excitement and demand.
  • Persuasive Advertising: Used during periods of high competition, aiming to maintain market share.
  • Reminder Advertising: Used for products in the mature phase to maintain existing market share.

Direct Marketing

  • Advantages: Precision targeting, personalized messages, faster sales, variety of packaging options, less competition, and immediate results.
  • Importance: Interactive marketing systems facilitate a measurable customer response and business relationships.

Other Marketing Concepts

  • Personal Selling: Direct communication between a salesperson and a prospect, addressing their specific needs, and exchanging value for money.
  • Relationship Building in Public Relations: Building and maintaining relationships, gaining market credibility, leading to more guaranteed sales.
  • Public Relations Activities: Examples include press/media relations, product publicity, corporate communications, and lobbying.
  • Public Relations (PR) in Relation to Marketing: Public relations are vital in launching new products, positioning mature products, gaining public interest (building interest in a product category), and defending products.

Web and Design Optimization

  • Digital Marketing Fundamentals: Understanding the essential role of digital marketing for competitiveness and guest attraction is crucial in hospitality.
  • Channel Proficiency: Mastering digital channels like websites, social media, SEO and SEM.
  • Optimization Skills: Acquiring website optimization skills to enhance user experience and drive conversions.
  • Strategic Planning: Developing and implementing SEO, SEM, social media and reputation management plans that achieve business goals and guest satisfaction.
  • Mobile responsiveness, High-quality visuals, Intuitive navigation and Booking integrations are also crucial to modern hospitality website development.
  • Search Engine Marketing (SEM): Paid advertising on search engines (like Google) to reach potential guests actively searching for accommodation.
  • Search Engine Optimization (SEO): Improving a website's organic search rankings to attract relevant traffic.

Distribution Channels

  • Direct Distribution: The company handles all aspects of the distribution process, such as transportation, communication, and contact with customers, without intermediaries.
  • Indirect Distribution: The company uses intermediaries (e.g., travel agents) to help distribute products and services.
  • Travel Agents/Retailers: Widely used intermediaries handling transportation, accommodation, and various services to the market.
  • Travel Specialists: Organizations that focus on one or more functions of the distribution system.
  • Hotel Sales Representatives: Sell hotel rooms and services within a designated area.
  • Government Associations: Agencies that spread information about local facilities to potential tourists.
  • Consortia: Groups of related hospitality organizations that benefit all members.
  • Reservation Systems: Central entities that handle booking tasks, often integrated with GDSs (global distribution systems).
  • Global Distribution Systems (GDSs): Software systems used by intermediaries to manage extensive reservation data within a hospitality enterprise.

Franchising

  • Advantages for franchisee: Brand recognition, minimized financial risk, faster business growth.
  • Disadvantages for franchisee: Restrictions on creativity, required fees and royalties, limitations on distribution options, monitoring of operations.
  • Advantages for franchisor: Brand expansion with minimal capital expenditure; leverage expertise of individual operators.
  • Disadvantages for franchisor: Risk of quality inconsistencies across locations; difficulty in controlling operations of independent franchisees.

Delivery Systems

  • Importance: Increased demand for delivery solutions during lockdowns.
  • Functions: Delivery services handling products and goods to designated locations.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

BSHM 75 Reviewer Chapter 6 PDF

Description

Explore the essential concepts and components of pricing in this quiz. Understand the nuances of price, sales, revenue, and various costs affecting profitability. Test your knowledge on pricing strategies like seasonal and last-minute pricing.

More Like This

Pricing Concepts and Strategies Quiz
30 questions

Pricing Concepts and Strategies Quiz

EnoughFoil avatar
EnoughFoil
Strategic Pricing Concepts
32 questions

Strategic Pricing Concepts

TimelyBarbizonSchool avatar
TimelyBarbizonSchool
Pricing Concepts and Strategies
32 questions

Pricing Concepts and Strategies

ReasonableCommonsense1482 avatar
ReasonableCommonsense1482
Adventure Novel Pricing Quiz
45 questions

Adventure Novel Pricing Quiz

JovialChromium5268 avatar
JovialChromium5268
Use Quizgecko on...
Browser
Open
Browser
Browser