HFT 4502 Exam 2

Buyers remorse is more appropriately referred to as…

cognitive dissonance

What are the 5 steps of the buyer decision process?

need recognition, information search, evaluation of alternatives, purchase decision, post purchase behavior

What does the buyers decision process begin with?

Need

What is the final step of the buyer decision process?

post-purchase behavior (did the purchase lead to satisfaction and exceed expectations?)

What is a source of dissatisfaction for post-purchase behavior (buyer decision process)?

cognitive dissonance

What is MICE?

meetings, incentives, conventions, exhibitions

What is SMERF?

social, military. educational, religious, & faternal

MICE are better for peak times, while SMERF is better during non-peak times (True/False)?

True

What is the difference between MICE and SMERF?

MICE- big money, host organization pays for people to be there, less price conscious and more likely to book during peak times.

SMERF- travelers pay out of pocket, much more price conscious, more likely to go to a destination during non-peak times. Willing to be more flexible and typically need to meet on weekends.

Corporate Meetings

Planned on short notice by “mega agencies” such as American Express, Carlson Wagonlit and Consortia

What are the different types of corporate meetings?

Training, Management, Planning, & Incentive

What does association mean?

a group of people with similar professional interests

What are the different types of association meetings?

Regional, Special-Interest, Educational, Board Meetings

What are Important attributes for association meetings?

Destination & Hotel attributes

What does AMC stand for?

association management company

What are conventions?

Conventions are annual meetings of an association. They are a specific type of meeting and require large spaces and complex amenities, and book as many as 10 years in advance. Conventions must be fun.

What are some important factors in choosing a destination for a convention?

availability of hotels/facilities, ease of transportation, transportation costs, distance from attendees, climate, recreation, and sights and cultural activities

What does CVB stand for?

convention visitors bureau

What is incentive travel?

A reward participants recieve for achieving a goal. The reward is planned by either the company, a travel agency, a consultant, or “an incentive house.” Because this is a reward, hotel/destination attributes must be perceived as “something special.”

What is business travel?

A form of non-group organizational buying.

What is a market?

The set of all actual and potential buyers of a product.

What are the 3 steps to target marketing?

1. segmentation, 2. targeting, 3. positioning

What are the different variables of market segmentation?

demographic, geographic, psychographic, behavioral

What is demographic segmentation?

anything that is easily measurable or readily apparent (age, household composition, wealth, gender, ethnicity, income)

What is psychographic segmentation?

anything that is not readily apparent or easily measures (Price conscious, boujee)

What is geographic segmentation?

point of origin (snowbirds)

What is behavioral segmentation?

use of or response to a product, how people behave in response to products

Which of the following is not psychographic?

age

What are the criteria for effective segmentation?

Measurability, Sustainability, Accessibility, Actionability

Not all segmentation variables are effective (True/False)?

True

What is the difference between demographic and pshycographic variables?

Demographic variables are much easier to accurately measure

What is a product?

anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or a need (a product is a solution to a problem)

What are the different product levels?

core products, facilitating products, supporting products, augmented products

All core products require facilitating products; they do not require supporting products (True/False)?

true

What are core products?

Answers the question, “what is the buyer really buying?” Identify core value rather than selling features.

What is a core product offered by a vast majority of hospitality companies?

experience

What are facilitating products?

services or goods that must be present for th guest to use the core product (all core products require facilitating products)

Supporting Products

Extra products offered to add value to the core product and or aide in differentiation (not a requirement, helps in positioning)

Augmented Products

elements of the augmented product combine with the previous products to provide the overall product

Is a spa a facilitating or supporting product?

facilitating & supporting

Supporting vs. facilitating products

What are the 5 stages of a products life cycle?

1. development (company finds and develops new product idea; during product development sales are 0 and investment costs add up)

2. introduction (slow sales growth as product is introduced to market & high promotional spending; profits & competition is low)

3. growth ( period of rapid market acceptance & increasing profits & competitors)

4. maturity (sales growth slows or levels off)

5. decline (sales fall off quickly and profit margins drop)

What is inseparability?

employees are part of the product

What is internal marketing?

Marketing by a service firm to train and motivate its employees to work as a team that provides customer satisfaction.

What is the moment of truth?

when internal marketing drives external marketing

What is the class definition of internal marketing?

use of marketing principles to motivate employees to provide good service

Why is internal marketing important?

because of the inseparability services; employees are part of the product

What is the objective of the internal marketing process?

to enable employees to deliver satisfying products to the guests

The 3 step process that uses marketing principles to manage employees…

establish a service culture, develop a marketing approach to human resource management, disseminate marketing information to employees

What are some examples of strong service culture companies?

Disney, chick-fil-a, breakers, Drury, Publix, Costco, ace hardware

What are some examples of weak service culture companies?

home depot, Walmart, McDonalds

Why are strong culture companies typically more expensive?

because their customers prefer quality service of price

What is organizational culture?

the pattern of shared values and beliefs that gives member of an organization meaning, providing them with rules of behavior

What is service culture?

a culture that supports customer service through policies, reward systems, and actions

What are some characteristics of weak service culture?

has no common values, insecure employees, slow response to problems, unsatisfied guests (weak culture always comes from management)

Who is at the top of the conventional organizational structure?

management (satisfy those above you)

What are non routine transactions?

a unique guest transaction experience by an employee for the first time

A strong service culture allows employees to handle nonroutine transactions (true/false)?

true

Service culture provides employees with the proper…

attitude, knowledge, communication skills, authority

What is the purpose of a nonroutine transaction?

to empower employees to respond and encourage innovation

Who at the top of the upside down structure?

customers

Trip Tunner website

What kind of business is Neilson

marketing executive firm