London Central DECA Team - Home



TMDM1.One travel business promising to do something for another travel business in return for receiving compensation is an example of a(n)A.partnership. B. benefit.C.contract. D.guarantee. 2.What is one of the main functions of the Federal Aviation Administration?A.To establish ticket prices C.To license commercial pilotsB.To assign routes to airlinesD.To regulate travel agencies 3.Which of the following forms of transportation offers flexibility and quick delivery of travel products at a reasonable cost:A.Air carriers B. Water carriersC.RailroadsD.Motor carriers 4.Tying agreements between producers and distributors might be considered illegal if they substantially limitA.profitability. B. competition.C.management.D.technology. 5.A cruise line supply business taking back its used products and recycling or properly disposing of those products is an example of the ethical practice of __________ distribution.A.joint B. internalC.reverse D.closed 6.A channel of distribution that has strong leadership is often able to avoidA.publicity. B. competition.C.regulation. D.conflict. 7.A producer would want to use a direct channel of distribution for a travel and tourism good that isA.a standard part. C.lightweight.B.inexpensive. D.perishable. 8.Which of the following is an example of a barrier to effective listening:A.Manager is explaining technical data. C.Employee is taking a few notes.B.Manager is using audiovisuals.D.Employee is thinking of an answer. 9.In oral presentations, a closing method used specifically for getting the audience to do something isA.using a quotation. C.using humor. B.making an appeal for action. D.making a comparison. 10.When confirming a hotel reservation for a client, a travel agent must be sure toA.ask the room number the client will be staying in. C.find out how large the parking lot is.B.ask how large the hotel is. D.get a confirmation number. 11.Many travel agencies establish guidelines to direct the interactions of employees with customers for the purpose ofA.motivating the sales force. C.promoting good customer relations.B.attracting new credit customers. D.increasing the level of gross margin.12.Which of the following would be the most likely cause of customer complaints:A.Price reductions C.Extended hoursB.Institutional ads D.Product quality 13.When preparing rooming lists for large tour accommodations, the travel agency manager must have information about the people who will be traveling andA.the number of motels located in destination cities.B.directions to the selected motels.C.the policies and regulations of the selected motels.D.managers of the selected motels.14.What forms of utility are being created by a car rental agency that extends its hours of operation and offers credit to customers?A.Price and possession C.Possession and placeB.Place and time D.Time and possession 15.Which producers are the foundation on which all other businesses depend?A.Raw goods C.BuildersB.Manufacturers D.Retailers16.An insurance company will insure your travel and tourism business to protect it from __________ risk.A.speculative B. pureC.petitive17.Colleen will vote next week on the new contract that her union has negotiated with airline management. Union and management are in the __________ stage of the collective-bargaining process.A.contract settlement C.preparation and research B.ratification of contract D.tentative agreement 18.When reviewing your life experiences to help assess strengths and weaknesses, look for behavioralA.patterns. C.talents. B.choices. D.mistakes. 19.If a responsible railroad employee has finished his/her job assignment ahead of schedule, s/he can demonstrate initiative byA.looking for something interesting to read. C.helping a coworker. B.taking a short break. D.waiting to be told what needs to be done.20.A charter bus company employee who consistently arrives at work late is actingA.responsibly. C.irresponsibly. B.rationally. D.irrationally.21.Which of the following individuals has developed empathy:A.Armando always says exactly what he thinks.B.Victoria listens carefully to what others say.C.Bret prefers not to share his experiences.D.Mikki is a very quiet person who keeps to herself.22.April is upset because there is a rumor about her circulating among her coworkers at the travel agency. This is a negative effect ofA.bad timing. C.the grapevine. B.concrete communication. D.concise communication. 23.Pedro wants to negotiate with his supervisor on the cruise ship to gain more responsibilities at work. Before approaching his supervisor, Pedro needs to determine the supervisor's position andA.standards. C.interests. B.skills. D.procedures. 24.What is the “Plan B” for a group trying to reach a consensus?A.The second option of the list of alternatives C.The second principle of the ground rules B.The second method of decision making D.The second point on the list of agenda items 25.Tour guides who promptly assist customers, are pleasant, and are well informed about the various sites and attractions usuallyA.sell destinations. C.receive gratuities. B.receive promotions. D.motivate travelers. 26.What is often one of the final steps an airline supply business will take to collect a past-due account before beginning legal action?A.Contact an attorney. C.Write a letter.B.Call the customer.D.Send a reminder. 27.For which of the following types of credit would you need to ask a travel agency customer to make a down payment:A.Installment loan C.Open account B.Option account D.Revolving credit account28.Loss to an airport gift shop due to shoplifting is an example of a(n) __________ business risk.A.natural C.human B.economic D.internal29.What approach to sales forecasting is being used by a sightseeing business that starts the process by preparing a sales forecast for the company as a whole?A.Working capital C.Build-upB.Delphi technique -down 30.When making an economic decision in the travel and tourism industry, comparing the costs of an action to the benefits received is calledA.critical thinking. C.rational choice. B.upside/downside decision making. D.cost/benefit analysis. 31.Why do travel agents pay deposits to cruise lines when booking a client's trip?A.To increase revenue C.To obtain a cabin number B.To hold the reservation D.To negotiate a discount 32.What would be the most effective way to terminate a travel agency employee who is consistently tardy, frequently in conflict with other employees, and does not always follow company rules and regulations?A.Do not schedule the employee to work until the behavior improvesB.Document all infractions and personally explain the reasons for dismissalC.Ask the employee if there is some particular reason for the behaviorD.Threaten the employee with dismissal in the near future33.Coaching could best be described as job training that isA.focused on acting out roles. C.often called show and tell.B.conducted by the supervisor. D.away from the work site. 34.Employee dissatisfaction expressed through an identified, formal procedure is known as a(n)plaint. C.grievance. B.contract. D.open-door policy.35.A tour operator that is conducting a survey to determine its customers' travel and destination preferences is gathering __________ information.A.operating C.internal B.marketingD.secondary36.Why does a travel agency's computer place a "cookie" on a visitor's hard drive when the visitor accesses the travel agency's web site?A.To eliminate theft C.To protect data B.To ensure privacy D.To track usage 37.How does marketing research help a travel and tourism business to implement the marketing concept?A.By solving the business's problems C.By identifying consumers' wants and needsB.By setting goals for the businessD.By preventing financial losses38.What do travel agents consider when forecasting travel markets?A.Geographic information C.Personal opinionsB.Previous demand dataD.Distribution channels 39.Selecting the best method of transporting products often helps cruise line supply businesses toA.locate warehouses. C.eliminate storage. B.control expenses. D.monitor inventory. 40.One way that both large and small car-rental companies can benefit when they divide up their markets is through an increase in theirA.efficient use of resources. C.access to consumers. B.production capabilities. D.opportunities for promotion.41.Which of the following is a psychographic characteristic that travel and tourism businesses often use to identify market segments:A.Number of family members C.Quality of health B.Style of living D.Type of dining habits 42.One of the first steps in the marketing planning process involves developing the __________ of the travel/tourism business.A.promotional methods C.basic objectives B.pricing strategy D.distribution systems 43.Which of the following do airlines use to identify developing changes so that they can make adjustments to remain competitive:A.Psychological profiling C.Demographic segmentingB.Geographic monitoring D.Environmental scanning 44.What is the first step in the SWOT-analysis process?A.Filling in the SWOT matrix C.Investigating weaknesses B.Determining goals and objectives D.Conducting interviews 45.Which of the following is a marketing activity that cruise lines consider when conducting a competitive analysis:A.Promotion C.Purchasing B.Risk management D.Management research 46.Which of the following is a factor that a guided-tour business should consider in choosing a method of preparing its sales forecasts:A.Versatility of use C.Marketability of dataB.Accuracy of predictionD.Quantity of copies 47.Which of the following is an example of an objective that a travel agency might develop as part of its marketing plan:A.Expand advertising to increase sales by 10% in one year. B.Eliminate 15% of part-time workforce within six years. C.Revise pay structure to increase commission rate by 2%. D.Control expenses to reduce next year's costs by 5%. 48.Which of the following is a measure that charter bus businesses take in order to control the implementation of activities required by the marketing plan:A.Positioning C.TrainingB.Forecasting D.Scheduling 49.What type of guidelines do travel and tourism businesses need to develop before they can evaluate the effectiveness of their marketing plans?A.Ethical principles C.Sales proceduresB.Performance standards D.Research techniques50.Many tour operators use database software programs to computerize their customer mailing lists in order to instantlyA.calculate monthly profit. C.write e-mail messages.B.prepare sales letters. D.sort by zip code. 51.When a travel agency customer's check was put into the check-authorization system, the response code indicated that there was a data-entry error. How should this dilemma be handled?A.Ask the customer for another form of payment. B.Report the check as lost or stolen. C.Request another check authorization. D.Ask the check-authorization system's call center for assistance. 52.A cruise ship security specialist may advise a tourist who is going ashore at a port of call toA.wear valuable jewelry while on shore.C.use any of the transportation services available.B.travel alone instead of in an organized group.D.limit shore tours to ones approved by the cruise line.53.Which of the following is an emergency procedure that a theme park might develop in the event of a natural disaster:A.Control violent behavior C.Install silent alarms B.Locate medical assistance D.Designate escape routes54.When scheduling tours, one reason why tour operators often book their groups into larger hotels is because these hotelsA.are located in suburbia. C.are inexpensive. B.provide limited services. D.offer many advantages.55.Which of the following situations is least likely to cause a safety hazard:A.Carmen wears gloves when handling wooden display fixtures.B.Marly is upset because her parents are divorcing.C.Warren saves time by running through aisles and hallways.D.Tim has a few beers on his lunch hour.56.Why is it important for airline-supply businesses to have efficient production?A.To remain flexible C.To pay employeesB.To be competitiveD.To buy resources 57.Which of the following should an airport gift shop calculate before deciding what price to charge for its goods:A.Prime-interest rate C.Trade-in allowance B.Sales-volume quota D.Break-even point58.A travel agency negotiates a service contract on a copier that is based on the total number of copies made per year. The agency pays $.02 per copy for the first 10,000 copies, $.03 per copy for the next 15,000 copies, and $.04 per copy for the next 20,000 copies. Calculate the total cost for the contract if the agency makes 36,000 copies.A.$1,090 C.$1,360B.$1,080 D.$1,44059.One of the ways that being organized helps you to maintain good relations with coworkers is byA.preventing you from feeling overwhelmed. C.keeping you from delaying group efforts.B.helping you to work at a relaxed pace.D.helping you to earn raises and promotions.60.An example of effective time management on the job isA.taking work home at the end of the day. C.scheduling work to fill every minute. B.making a to-do list for the next day.D.asking for help when you feel pressured.61.Which of the following is a guideline for successfully completing an employment application:A.Write in pencil C.Answer all questions plete quickly D.Make several copies62.Why do job applicants use headings on their résumés?A.To show the employer that the résumé provides complete information B.To ensure that the information is accurate and conciseC.To follow the standard practices for résumé preparation D.To organize the information so that it is easy to read63.What is the main geographic factor that draws visitors who enjoy skiing to a certain region?A.Accommodations C.HighwaysB.MountainsD.Forests 64.A theme park reduced its ticket prices after demonstrations by consumer activists had a negative effect on consumer demand. This is an example of __________ pricing.A.negative C.prestigeB.flexible puters have given tourism marketers the ability to calculate pricing functions such as break-even points and elasticity of demand by using __________ programs.A.presentation C.spreadsheetB.word-processing munication66.Which of the following is a factor that may have an effect on the prices of travel and tourism products:A.Hidden costs C.Unique valuesB.Personal preferences D.Past experiences67.In which step of the new-product planning process do planners estimate the cost of production and make plans for packaging, labeling, brand name, promotion, and distribution of the travel product?A.Product development C.Idea mercialization D.Test marketing 68.During which stage of new-product development does a business determine if it is practical to market a travel and tourism good or service? A.Consumption C.Production B.Brainstorming D.Screening 69.Which of the following is an internal method that a tour wholesaler uses to facilitate ongoing service and market-opportunity recognition:A.Task force meetings C.Vendor surveys B.Customer interviews D.Association membership 70.Before J&J, Inc., an international firm, designs a new commercial airliner, the engineers must become familiar with ISO 9000, which areA.international grades for safety. C.U.S. government standards.B.international standards for quality.D.engineering associations' standards.71.How do labels on travel and tourism products serve as consumer-protection devices?A.By including the name of the product's producerB.By helping consumers to make complaintsC.By describing the product-development processD.By providing product-use information72.When planning a cruise line supply business's product mix, the business must make decisions about components such as the product line, packaging, andA.tag line. C.publicity goals. B.brand development. D.credit terms. 73.When choosing the services it will offer its customers, a travel and tourism business should evaluate its potentialA.distractions. C.quotas. B.sacrifices. D.ratings. 74.A drawback of brands as compared to unbranded travel products is that they usuallyA.differentiate products. C.create brand loyalty. B.must be sold at higher prices.D.require trademark registration.75.What do many travel agencies use to find out if clients were satisfied with the service they received from the agency as well as with the vacation package they purchased?A.Tour reports ment cards B.Booking slips D.Sales records76.When evaluating the effectiveness of a tour, a tour operator might ask customers ifA.the weather was pleasant at all destinations. C.they budgeted enough funds to buy souvenirs. B.the tour was competitive with other tours. D.they would recommend the tour to others. 77.The name "Coca-Cola" is an example of aA.symbol. C.slogan.B.trade name. D.trademark.78.For most travel and tourism businesses, the ultimate goal of using promotion is toA.introduce new products. C.control consumer demand.B.sell goods or services. D.get people into the business.79.An ad for Samsonite luggage in Ladies Home Journal is an example of what type of advertising?A.Institutional C.TradeB.Product D.Business80.Technological advancements have made it possible for a travel business to use promotional activities to target specific markets so the business canA.maintain a competitive edge in the global marketplace. B.gain mass advertising exposure for less money. C.build close and ongoing customer relationships. D.decrease the use of customer loyalty programs. 81.Advertising copy that states "Only 3 days left to book the cruise" is trying toA.describe features. C.identify benefits.B.encourage action.D.make a claim. 82.What is an advantage to a travel agency of using direct-mail advertising?A.Agency can pinpoint the target audience. C.The receiver cannot ignore the advertising message.B.It requires less work than other advertising.D.It is less expensive than other forms of advertising.83.A theme park gift shop putting out seasonal merchandise and creating festive displays are activities that are part of aA.customer appreciation day. C.staff party.B.liquidation sale. D.holiday open house. 84.Which of the following is a way that water parks can evaluate the effectiveness of a promotional plan:A.Check expenses C.Count customersB.Review advertising D.Ask vendors 85.Which of the following is one of the least expensive ways for a travel agency to promote tourism:anize seminars C.Plan excursionsB.Purchase advertising D.Display literature86.The Internet service at Bill's Travel Agency isn't working, and it's the middle of the night. Bill knows he can call the toll-free help-line, though, because it's open 24 hours a day. What aspect of customer service does this situation illustrate?A.Credit/Financing C.Technical assistance and support B.Shipping and delivery D.Customer training 87.Which of the following is an activity that would help a salesperson for a travel and tourism business to build a clientele:A.Developing a prospect list C.Preparing an activity reportB.Writing a sales report D.Buying a disbursement journal88.A travel agent reviews the features of a cruise, prices, conditions of the contract, and cancellation penalties with a customer. The travel agent is providing the customer withA.truth in advertising. C.human relations.B.maximum value. D.full disclosure. 89.Salespeople often find selling information in their company's promotional brochures that compare the company's travel products to travel productsA.under development. C.no longer in use.B.in the research stage. D.of the competition.90.Ski areas, water parks, and golf resorts are examples of what type of destination?A.Interesting C.ScenicB.RecreationalD.Natural 91.Follow-up calls or letters are a part of the step in the selling process known asA.reaffirming the buyer-seller relationship. C.discovering needs.B.establishing a positive tone. D.reaching closure. 92.A travel agency owner plans to leave town to negotiate a merger for her/his company. What is the purpose of the trip?A.Family B. LeisureC.Business D.Education93.When customers try to conceal the real reason for not buying a vacation package, they are using a(n)A.objection. B. inquiry.C.excuse. D.testimonial.94.What type of service might a travel agent recommend to clients who want to tour the Pacific Northwest on their own at a leisurely pace?A.High-speed train C.Regional airlineB.Motorcoach D.Car rental 95.Lee is a front desk clerk at a property that is so large it provides maps for guests. When Lee checks in tour group guests and gives them their room keys, she should also give the guests a map andA.draw a circle around any areas the guest might like to visit.B.write in the telephone number for the front desk on the map.C.circle the guest's room location or write in the room number.D.tell the guest the room number and show where it is on the map.96.What type of trip might a travel agency arrange and sell to a university alumni association?A.Affinity group package C.Incentive packageB.Special interest package D.Convention package 97.Which of the following do tour operators do to prepare for a five-day motorcoach trip:A.Assign seats C.Interview drivers B.Revise itineraries D.Purchase fuel98.Which of the following is a reason why it is important for a salesperson for an airline supply business to accurately complete sales forms:A.To provide delivery instructions C.To maintain customer confidence B.To calculate shipping charges D.To identify seasonal merchandise99.Which of the following is information that a travel agent should obtain from a client in order to process a client's cruise tickets:A.Confirmation number C.Cabin category mission rate D.Credit history 100.A manager for a chain of theme parks who helps an employee decide when and where products should be delivered performs which management function?A.Directing B. Controlling C.ontract. Contracts are agreements between two or more parties stating that one party is to do something in return for something provided by another party. If one travel business promises to do something for another travel business in return for receiving compensation, the two businesses have a contract. Then, the businesses are obligated to fulfill their part of the contract. In most cases, contracts benefit both parties, although promising to do something in return for receiving compensation is not necessarily a benefit. A partnership is a form of business ownership in which the business is owned by two or more persons. A guarantee is a promise to the consumer that a product's purchase price will be refunded if the product is not satisfactory.SOURCE:BL:002SOURCE:Jennings, M.M. (2000). Business: Its legal, ethical and global environment (5th ed.) [p. 386]. Cincinnati: West Legal Studies in Business, South-Western College Publishing. 2.CTo license commercial pilots. The Federal Aviation Administration (FAA) is part of the U.S. Department of Transportation and is mainly responsible for airline safety. One of its functions is to license commercial pilots to make sure they are qualified. The FAA has the authority to take away licenses if pilots disregard the rules or endanger the safety of passengers. The FAA does not assign routes to airlines, establish ticket prices, or regulate travel agencies.SOURCE:BL:060SOURCE:Todd, G., & Rice, S. (2002). Travel perspectives: A guide to becoming a travel professional (3rd ed.) [p. 35]. Albany, NY: Delmar/Thomson Learning. 3.DMotor carriers. Trucks and other motorized vehicles are used to haul a wide variety of travel products. Air provides quick delivery but is very expensive. Water carriers are comparatively less expensive, but they are slow, and selection of routes is limited. Railroads are limited as to destination.SOURCE:CM:001SOURCE:DS LAP 1—Distribution 4.BCompetition. Competition is rivalry between two or more businesses to attract customer dollars. It should not be prevented through specific business actions, such as tying agreements, which require a customer to buy other products in order to obtain desired goods and services. Tying agreements are considered illegal if they substantially limit competition by preventing other distributors from obtaining and selling the same product to customers. Tying agreements are not considered illegal if they limit profitability, management, or technology.SOURCE:CM:005SOURCE:Armstrong, G., & Kotler, P. (2000). Marketing: An introduction (5th ed.) [p. 377]. Upper Saddle River, NJ: Prentice Hall. 5.CReverse. Reverse distribution involves customers returning used products to the manufacturer. This process allows cruise line supply businesses to retrieve products such as computers, refrigerators, and glass bottles in order to reuse them, recycle them, or properly dispose of them. Reverse distribution is considered ethical because it helps to save natural resources and protect the environment. Taking back used products and recycling or disposing of them is not an example of internal, joint, or closed distribution.SOURCE:CM:006SOURCE:Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 439-440]. Mason, OH: Thomson/South-Western. 6.DConflict. A channel of distribution that has strong leadership is often able to manage or avoid conflict because the leadership has the power to assign specific responsibilities to each channel member. Strong leadership has the authority to set goals for the entire channel and demand cooperation, which reduces the possibility of conflict. In this situation, channel members work for the good of the channel rather than for their individual goals. A certain amount of competition is healthy for a channel of distribution. Depending on the type of goods and services being distributed, it may not be possible to avoid some regulation or publicity regardless of the strength of the leadership.SOURCE:CM:008SOURCE:Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [pp. 357-358]. Upper Saddle River, NJ: Prentice Hall. 7.DPerishable. Direct channels are short, and they are used for fashionable or perishable items in order to prevent them from becoming obsolete or spoiled. Inexpensive items use longer channels than expensive items. Large, heavy items usually use short channels. Lightweight items can use longer channels. Goods that are specially designed, rather than standard parts, use short channels.SOURCE:CM:010SOURCE:Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd ed.) [pp. 376-379]. Boston: Irwin/McGraw-Hill. 8.DEmployee is thinking of an answer. To listen effectively, employees should concentrate on what is being said rather than think about a possible answer. Many times employees become distracted and think about what they should say, especially if a manager is evaluating their performance. The temptation is to develop a response rather than focus on understanding the evaluation. Employees need to make a conscious effort to concentrate in order to listen effectively. The use of audiovisuals often helps employees to understand directions, especially if the information is technical. Taking a few notes also increases understanding.SOURCE:CO:017SOURCE:Daft, R. (2002). The leadership experience (2nd ed.) [pp. 322-325]. Orlando, FL: Harcourt. 9.BMaking an appeal for action. If a speaker is trying to get an audience to do something, challenging them with an appeal for action is a good closing. Using a quotation, using humor, or making a comparison are also closing methods, but they do not ask the audience to do anything. SOURCE:CO:025SOURCE:QS LAP 9—Well Said!10.DGet a confirmation number. This number is necessary if any changes need to be made in accommodations. You or the client will also use this number to call for confirmation of accommodations a few days before arrival. The hotel will assign the room number and give it to the guest upon arrival. The size of the hotel or the parking lot is irrelevant to the confirmation.SOURCE:CO:079SOURCE:Todd, G., & Rice, S. (2002). Travel perspectives: A guide to becoming a travel professional (3rd ed.) [p. 161]. Albany, NY: Delmar/Thomson Learning.11.CPromoting good customer relations. Customer-relations guidelines provide strategies for travel agency employees to use in their dealings with customers. An example would be a guideline that the customer is always right. An effective customer-relations program aids in building repeat business. It may also attract new credit customers, but that is not its purpose. Bonuses, quotas, and commissions are used to motivate the sales force. Whether these techniques help to increase the level of gross margin would depend upon a number of other factors.SOURCE:CR:003SOURCE:Eggland, S.A., & Williams, J.W. (1998). Human relations for career success (pp. 29-32). Cincinnati: South-Western Educational.12.DProduct quality. Poor quality products that do not perform properly or break are a common cause for complaint. Other causes include the business itself, its policies, and its personnel. Price reductions are usually pleasing to customers. Extended hours give customers more time to shop. Institutional ads promote the image of the business and are not likely to be the subject of complaints.SOURCE:CR:010SOURCE:HR LAP 23—Handling Customer Complaints13.CThe policies and regulations of the selected motels. Many motels require rooming lists several months before arrival or have regulations on the number of people in a room or the types of tours they can accept. The travel agency manager needs this information in order to make problem-free accommodations. At the time of preparing rooming lists, information about the managers and specific directions to the motels are unnecessary. The number of motels in a destination city is irrelevant as long as there are enough beds for tour members.SOURCE:DS:080SOURCE:Penticton & Wine Country Tourism Development Services. (n.d.). Sports Team Accommodations. Retrieved November 13, 2007, from and possession. Time utility is the usefulness created when products are available at the time consumers need them. Time utility may be created by extending hours so the car rental agency is open when the customer wants to buy. Possession utility is the usefulness created when ownership of a product is transferred from seller to user. Credit will often help to create possession utility by making it easier for customers to buy. Place utility is not affected by increasing hours or offering credit. Price is not a form of utility but a marketing function.SOURCE:EC:004SOURCE:EC LAP 13—Use It15.ARaw goods. Raw-goods producers provide goods in their natural, or raw, state. These producers are the foundation on which all other businesses depend. They include such businesses as farming, mining, fisheries, and lumber companies. A manufacturer is a type of producer that changes the shapes, or forms, of materials so that they will be useful to consumers. A builder is a type of producer that constructs roads, bridges, buildings, or houses. A retailer is a business that buys consumer goods or services and sells them to the ultimate consumer.SOURCE:EC:070SOURCE:MB LAP 6—Business and Society16.BPure. Pure risk is the chance of loss that carries the possibility of loss or no loss. Examples of pure risk are property damage, robbery and personal injury. None of the other alternatives is insurable. Speculative risks are chances of loss that result in no change, a loss, or a gain. Economic risks are changes in the market that force a lowering of prices, a change of product, or failure of a business. Competitive risks result from the rivalry between businesses.SOURCE:EC:011SOURCE:EC LAP 3—Lose, Win, or Draw (Business Risk)17.DTentative agreement. Tentative agreement is the stage at which union and airline management have agreed on the terms of a contract but still need union members to approve or reject the contract. Preparation and research occur before labor negotiations begin. A ratified contract is one that union members have approved. Contract settlement occurs when a ratified contract has been signed by union and management.SOURCE:EC:015SOURCE:EC LAP 5—Organized Labor18.APatterns. When reviewing your life experiences to help assess strengths and weaknesses, look for behavioral patterns. What skills or talents get used repeatedly? What situations do you ignore or avoid? Although the situations may seem unrelated, you may notice similar reactions or behaviors. You are not looking for choices, talents, or mistakes.SOURCE:EI:002SOURCE:QS LAP 16—Got Potential? 19.CHelping a coworker. Initiative is the willingness to act without having to be told to do so. Responsible railroad employees are always looking for jobs to do. If theirs are finished, they help coworkers. Waiting to be told what needs to be done, taking a break, or looking for something to read demonstrates a lack of initiative.SOURCE:EI:024SOURCE:EI LAP 2—Hustle! (Taking Initiative at Work)20.CIrresponsibly. Irresponsible means not to be accountable for one's actions. A person who has a habit of reporting to work late is irresponsible. Acting responsibly means to be accountable for one's behavior. Acting rationally means to act sensibly. Acting irrationally means acting senselessly.SOURCE:EI:021SOURCE:PD LAP 7—Make the Honor Role (Acting Responsibly)21.BVictoria listens carefully to what others say. Listening to others without interrupting is a sign of respect. It is a way of showing empathy by letting others know that you are interested in them. None of the other individuals are showing empathy. Saying what you think without regard to the feelings of others, avoiding contact with others, and refusing to share your experiences with others are traits that are opposite to empathy.SOURCE:EI:030SOURCE:HR LAP 17—Empathy22.CThe grapevine. The rumors about April are a negative result of the grapevine. The grapevine is a communication channel in which information gets passed from person to person and, along the way, the message is often changed and becomes unreliable. Concise communication, concrete communication, and bad timing do not cause rumors to be spread.SOURCE:EI:007SOURCE:QS LAP 25—More Than Just Talk23.CInterests. The key to successful negotiation is to focus on interests. Interests are the things that you and the other person want or need. You must consider the other person's interests as well as your own. Skill is the ability to perform a task through knowledge, training, and practice. When negotiating, one person may not necessarily know the other person's skills. Standards are specifications or statements that are used as a basis for comparing or judging goods or services. A procedure is the step-by-step process someone follows when performing a specific task.SOURCE:EI:062SOURCE:EI LAP 8—Make It a Win-Win (Negotiation in Business)24.BThe second method of decision making. For a group trying to reach a consensus, the “Plan B” is the second method of decision making. The list of alternatives, the ground rules, and the agenda items have nothing to do with “Plan B.” “Plan B” is a completely different method of making the decision—in the event that reaching a consensus is impossible.SOURCE:EI:011SOURCE:QS LAP 17—All Aboard25.CReceive gratuities. Gratuities are tips that tour guides receive from customers for providing quality service. Satisfied customers often tip tour guides who provide prompt assistance, are pleasant, and are well informed about the various sites and attractions. Giving a tip is a way for customers to thank tour guides for providing a quality experience. Tour guides who promptly assist customers, are pleasant, and are well-informed about the various sites and attractions do not necessarily receive promotions, sell destinations, or motivate travelers.SOURCE:EI:052SOURCE:Kirkham, M., Weiss, P., & Crawford, B. (2000). The waiting game: The ultimate guide to waiting tables (p. 23). Austin, TX: Twenty Per Cent.26.BCall the customer. Placing a telephone call to a customer is often the last step an airline supply business will take to collect a past-due account before beginning legal action. Businesses call delinquent customers after trying other methods of collection in the hope of arranging payment agreements that will be satisfactory to both the customer and the business. If a phone call is not successful, businesses usually begin legal action in order to collect past-due accounts. Sending a reminder and writing a letter are usually the first steps in collecting past-due accounts. Legal action often begins when a business contacts an attorney.SOURCE:FI:014SOURCE:Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [p. 490]. Cincinnati: South-Western.27.AInstallment loan. Under this plan, the travel agency customer is usually required to make a down payment and a series of continuing payments for a specified period of time. With an open account, a customer is billed each month for all purchases made during the preceding month. The option account gives the customer the choice, or option, of paying the entire amount due without a finance charge or paying a minimum amount due (or more) with a finance charge added. With a revolving credit account, the customer pays a small amount each month, usually with a service charge.SOURCE:FI:002SOURCE:FI LAP 2—Credit and Its Importance28.CHuman. The possibility of financial loss in marketing is called risk. Human risks are those risks that result from human weakness and unpredictability. Economic risks are those risks related to changes in the market that force a lowering of prices, a change of product, or even failure of businesses. Natural risks are those that result from natural causes such as fires, floods, etc. Since shoplifting is theft by persons who are not employees of the airport gift shop, it is not considered an internal risk.SOURCE:FI:084SOURCE:BA LAP 2—Risk Management29.DTop-down. The top-down approach to sales forecasting involves starting the sales forecasting process by preparing an overall forecast for the entire sightseeing company. It is also called the breakdown approach. The build-up, or bottom-up, approach involves starting the sales forecasting process by gathering individual forecasts that may be combined, or built up, into a forecast for the entire company. The Delphi technique is a sales forecasting method, rather than an approach, and it combines internal and external expert opinion. Working capital is cash available for the business to use, or put to work, in its day-to-day operations.SOURCE:FI:096SOURCE:IM LAP 4—Forecasting Sales30.DCost/benefit analysis. Cost/benefit analysis is a systematic, decision-making process that compares the costs of an action to the benefits received. A cost/benefit analysis helps businesspeople make rational, well-informed choices. Upside/downside decision making and critical thinking are not methods of economic decision making.SOURCE:FI:357SOURCE:Clayton, G. (2005). Economics: Principles and practices (p. 25). Columbus, OH: Glencoe/McGraw-Hill.31.BTo hold the reservation. When travel agents book a cruise for clients, they collect a deposit from the clients and pay that deposit to the cruise line. The deposit amount, which varies by cruise, holds the reservation for the client for a certain amount of time. Travel agents usually forward the deposit to the cruise line within seven to ten days of making the reservation. Travel agents do not pay deposits to cruise lines to increase revenue, obtain a cabin number, or negotiate a discount. SOURCE:FI:311SOURCE:Todd, G., & Rice, S. (2002). Travel perspectives: A guide to becoming a travel professional (3rd ed.) [p. 263]. Albany, NY: Delmar/Thomson Learning.32.BDocument all infractions and personally explain the reasons for dismissal. Travel agencies need to carefully document inappropriate behaviors in order to have legal grounds for dismissal. Also, employees have the right to know why they are being dismissed, and this information should be explained privately and in person. Threatening an employee with dismissal, asking the reason for the behavior, or not scheduling the employee until the behavior improves are not ways of terminating employees.SOURCE:HR:358SOURCE:Littrell, J.J., Lorenz, J.H., & Smith, H.T. (2000). From school to work (pp. 355-356). Chicago: Goodheart-Willcox Co.33.BConducted by the supervisor. Coaching is a job training technique in which the supervisor monitors the new employee's job performance and gives advice or makes suggestions "from the sidelines." A demonstration of the job would be considered show and tell. Training away from the work site is classroom or laboratory training. Acting out various roles in order to understand a given situation is role playing.SOURCE:HR:363SOURCE:MN LAP 50—Manager/Supervisor Training34.CGrievance. Management must show a sincere desire to resolve employee dissatisfaction because unresolved complaints may result in grievances. Complaints are not usually expressed through formal procedures. An open-door policy is a business practice which encourages communication between employees and their supervisors. A contract is an agreement between two or more parties that is legally binding.SOURCE:HR:366SOURCE:MN LAP 45—Handling Employee Complaints35.BMarketing. Marketing information is all the marketing-related data available from inside and outside the business. Surveying customers to determine their travel and destination preferences is one way of gathering primary external information about the market that the tour operator is trying to serve. Internal information is obtained from sources found within the business and includes operating information (e.g., production reports, budgets). Secondary information is data that has been collected for purposes other than the project at hand.SOURCE:IM:001SOURCE:IM LAP 2—Marketing-Information Management36.DTo track usage. Some travel agencies' computers place information, a "cookie," on a visitor's hard drive when the visitor accesses a travel agency's web site. The next time a user visits that site, the site's computer recognizes the user because of the cookie. Travel agencies use cookies to maintain visitor information and track how many times a user visits a specific web site or buys a travel product. This type of data allows travel agencies to customize web sites in order to appeal to the preferences and habits of the consumers who are visiting their sites. The use of cookies does not ensure privacy, protect data, or eliminate theft.SOURCE:IM:183SOURCE:Broadbent, B. (1998). Using the Internet smarter and faster at home, on the road, or at the office (pp. 125-126). Menlo Park, CA: Crisp Publications.37.CBy identifying consumers' wants and needs. The marketing concept is a philosophy of conducting business that is based on the belief that all business activities should be aimed toward satisfying consumer wants and needs while achieving company goals. Marketing research helps the travel and tourism business to implement the marketing concept by providing it with information about what consumers want, need, and are likely to buy. Marketing research cannot solve a business's problems or prevent financial losses. The business sets its own goals which may or may not be based on marketing-research information.SOURCE:IM:010SOURCE:IM LAP 5—Nature of Marketing Research38.BPrevious demand data. One way to forecast travel markets is to consider previous demand data that indicate the historical levels of travel. For example, previous demand data might include the number of people who visited a site, the length of time they stayed at the site, the amount of money they spent, and their method of transportation. This information tells travel agents if a site is growing in popularity or if demand is decreasing. Travel agents use this information to forecast future demand and plan tours accordingly. Travel agents do not consider distribution channels, geographic information, or personal opinions when forecasting travel markets.SOURCE:IM:227SOURCE:Goeldner, C.R., & Ritchie, J.R. (2003). Tourism: Principles, practices, philosophies (9th ed.) [pp. 364-371]. New York: John Wiley & Sons.39.BControl expenses. The distribution function includes selecting methods of transporting products. Some methods are less expensive than others so making the right decision helps to control expenses. Distribution includes warehousing, storing, and inventory control. However, they are not aspects of selecting the best transportation method.SOURCE:MK:002SOURCE:MK LAP 1—Work the Big Six (Marketing Functions)40.AEfficient use of resources. The division of a total market into smaller, more specific groups is market segmentation. Segmentation enables marketers to meet the needs of customers more effectively by focusing on the needs of a specific market. Segmenting the market does not increase production capabilities, opportunities for promotion, or access to consumers.SOURCE:MP:003SOURCE:IM LAP 9—Have We Met? (Market Identification)41.BStyle of living. Psychographic segmentation is the division of a market on the basis of consumers' lifestyles and personalities. Many travel and tourism businesses identify market segments based on psychographics in order to understand the way in which people lead their daily lives, which often is determined by their income, interests, and activities. By identifying these various market segments, businesses will be able to understand their different wants and needs. The number of family members, quality of health, and type of dining habits are demographic characteristics.SOURCE:MP:004SOURCE:Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [p. 235]. Mason, OH: Thomson/South-Western.42.CBasic objectives. Objectives are the goals that a travel/tourism business wants to achieve. Before a travel/tourism business can proceed with the marketing planning process, it must first develop its basic objectives, such as to increase profits by a certain percent or increase market share by a certain amount. The most effective objectives clearly state what the travel/tourism business hopes to accomplish and within what time period. For example, an effective objective is to increase sales this year by 10% over last year. That is a clear goal to try to achieve. Once the objectives have been developed, businesses continue with the marketing planning process to design and implement strategies to achieve the goals. Elements of a marketing strategy might include pricing methods, promotional methods, and distribution systems.SOURCE:MP:006SOURCE:Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 41-42]. Mason, OH: Thomson/South-Western.43.DEnvironmental scanning. Airlines need to understand changes in their environment in order to adapt and remain competitive. They often use a procedure known as environmental scanning to gather information about changes or trends that are beginning to develop in the marketplace. This procedure allows airlines to identify changes at an early stage and decide if they present a threat to the way the airline is currently operating. Airlines do not use geographic monitoring, demographic segmenting, or psychological profiling to identify changes that are developing.SOURCE:MP:008SOURCE:Zikmund, W.G., & d'Amico, M. (1999). Marketing (6th ed.) [pp. 43-44]. Cincinnati: South-Western College.44.BDetermining goals and objectives. The first step in the SWOT analysis process is determining goals and objectives. Conducting interviews, investigating weaknesses, and filling in the SWOT matrix all come later in the SWOT analysis process.SOURCE:MP:010SOURCE:IM LAP 8—Analyze This! (SWOT Analysis)45.APromotion. Promotion is a marketing activity that refers to the various types of communications that marketers use to inform, persuade, or remind customers of their products. When cruise lines conduct a competitive analysis, they consider their competitors' promotional activities because promotional activities have an impact on a cruise line's success in attracting customers and selling products. As a result of analyzing competitors' promotional activities, a cruise line might decide to use similar activities because they have proven to be effective. Risk management and purchasing are business activities rather than marketing activities. Management research is not a marketing activity.SOURCE:MP:012SOURCE:Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 64-68]. Mason, OH: Thomson/South-Western.46.BAccuracy of prediction. There are many factors for a guided-tour business to consider in choosing a method of preparing its sales forecasts. One of the main considerations is how accurate it will be. The method chosen must provide a sales forecast that is as accurate as possible in order for it to be of the most use to the business. Businesses do not consider quantity of copies or versatility of use when choosing sales forecast methods. They also do not market the data presented.SOURCE:MP:013SOURCE:IM LAP 3—Nature of Sales Forecasts47.AExpand advertising to increase sales by 10% in one year. The objectives in a marketing plan are intended to lead to sales. When preparing its marketing plan, a travel agency develops specific objectives to follow that should be clear and measurable and that should be achieved in a certain amount of time. For example, a travel agency will be able to monitor its expanded advertising program in order to determine if sales are increasing by the desired amount. If sales do not increase by 10% in one year, the agency will be able to revise its marketing plan and establish new objectives. Reducing costs, increasing commission rates, and eliminating workers are not marketing objectives.SOURCE:MP:018SOURCE:Burrow, J.L. (2002). Marketing (pp. 238-243). Mason, OH: South-Western.48.DScheduling. Scheduling involves setting a timetable for implementing the various activities that need to be completed in order to achieve the objectives of a marketing plan. Once the activities are identified, a charter bus business needs to decide who will perform each activity, how long each activity will take to complete, and in what order each activity should be performed. Scheduling helps a business to control the implementation of marketing activities in order to make sure they are completed effectively and on time. Positioning is a product-mix strategy in which a business creates a certain image or impression of a product in the minds of consumers. Forecasting involves predicting what will happen in the future. Training is teaching or developing a specific skill.SOURCE:MP:019SOURCE:Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd ed.) [pp. 538-539]. Boston: Irwin/McGraw-Hill.49.BPerformance standards. Performance standards are specifications or statements that are used as a basis for determining if the objectives of a marketing plan have been met. Travel and tourism businesses develop performance standards in order to evaluate the effectiveness of their marketing plans. For example, if a marketing objective is to attract 100 new customers, a performance standard should measure if that objective was successfully achieved. Without these standards, a business would not be able to determine if the marketing plan needs to be adjusted or if it is performing as expected. Ethics are the basic principles that govern your behavior. Sales procedures are the steps salespeople follow to close a sale. Research techniques are the methods used to gather information.SOURCE:MP:022SOURCE:Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an e-commerce world (7th ed.) [p. 48]. Mason, OH: South-Western.50.DSort by zip code. Database software programs allow tour operators to arrange customer information according to various criteria. Once the names, addresses, and other information are entered in the computer, the tour operator can sort the data alphabetically, or by zip code, or by any other criteria. A tour operator might use a spreadsheet program to calculate monthly profit, a word-processing program to prepare sales letters, and a communications program to write e-mail messages.SOURCE:NF:009SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [pp. 163-165]. Woodland Hills, CA: Glencoe/McGraw-Hill.51.CRequest another check authorization. A data-entry error indicates that there was some type of problem with the information that was put into the check authorization system. For example, the check number may have been entered with too many digits. When this happens, it is best to request another check authorization by inserting the check into the system again. There is a completely different response code (e.g., lost/stolen) to indicate that a card has been reported as lost or stolen. There is also a separate response code (e.g., call center) to advise the employee to contact the check authorization system's call center. At this point, the travel agency customer should not provide another form of payment because the data-entry error can probably be fixed by running the check back through the system. Besides, the customer might not have cash or a credit card.SOURCE:NF:075SOURCE:TeleCheck. (n.d.). Frequently Asked Questions. Retrieved November 14, 2007, from shore tours to ones approved by the cruise line. Cruise lines conduct extensive research and planning to determine the best route and destination points. The companies are familiar with many of the local tour and transportation services at the ports of call, and not all of them meet the standards of service and ethical responsibility that the cruise line or traveler expects. Therefore, tourists should use tour companies that are approved or recommended by the cruise line. This recommendation also applies to any transportation service (e.g., bus or taxi). Valuables, such as jewelry, should be locked in a safe on the ship to reduce the chance of theft onboard the ship or while on shore. For safety measures, a tourist should travel in organized groups instead of alone while on shore.SOURCE:OP:115SOURCE:About, Inc. (n.d.). What Cruise Lines Do to Make Your Cruise Safer-Interview with Cruise Security Specialist. Retrieved November 14, 2007, from escape routes. Tourism facilities, such as theme parks, need to prepare for possible natural disasters in order to respond quickly and safeguard employees and guests. To be ready to handle disasters such as tornadoes, earthquakes, and hurricanes, a theme park should designate escape routes and clearly mark the routes throughout the park. Also, the park should make the routes known to employees and train them to quickly move guests to safety. Silent alarms are often installed in offices in the event of a robbery. Parks should have available a list of nearby medical services rather than try to locate assistance during a natural disaster. Emergency procedures during a natural disaster usually do not involve controlling violent behavior.SOURCE:OP:096SOURCE:Educational Institute of the American Hotel & Motel Association. (1999). Lodging management program: Year one (pp. 94-95). Lansing, MI: Author.54.DOffer many advantages. Tour operators often book groups into larger hotels because larger hotels are better equipped to handle groups of guests that arrive at the same time. Frequently, tour groups are large and only larger properties have sufficient rooms and services. For example, large hotels have various types of rooms to accommodate most needs, as well as several restaurants in different price ranges. Large properties also have enough front desk clerks to help guests and concierges to answer questions. The hotels usually have gift shops, exercise facilities, swimming pools, and other amenities that appeal to groups. Larger hotels are not necessarily inexpensive. They usually provide many services and are located in downtown areas or near airports rather than in suburbia.SOURCE:OP:143SOURCE:Stutts, A. T., & Wortman, J. F. (2006). Hotel and lodging management: An introduction (2nd ed.) [pp. 15-17]. Hoboken, NJ: John Wiley & Sons. 55.ACarmen wears gloves when handling wooden display fixtures. By wearing gloves when handling wooden fixtures, Carmen avoids getting splinters in her hands. Tim's lunchtime beers may affect his memory, concentration, and coordination during the afternoon. A reaction to stress such as Marly's may cause her to become careless on the job. Warren's running could cause a collision, with injury to himself and/or others.SOURCE:OP:007SOURCE:RM LAP 2—Following Safety Precautions56.BTo be competitive. Airline supply businesses must have efficient production in order to be competitive. Efficient production turns out the maximum number of products at the lowest cost. If the business's costs of production are higher than its competitors' costs, the business will have to set its prices higher than competitors' prices. This is likely to reduce sales. Businesses do not have efficient production in order to buy resources or pay employees, although efficient production generates the profit that makes it possible for businesses to buy additional resources and pay employees. A business's production may, or may not, be flexible depending on the type of business.SOURCE:OP:017SOURCE:BA LAP 1—Nature of Production57.DBreak-even point. The break-even point is the level of sales at which revenues equal total costs. Airport gift shops calculate the break-even point in order to select the most appropriate price at which to sell their goods. A gift shop needs to make sure that the price is sufficient to cover all expenses and make a profit. Trade-in allowance is a price reduction offered for selling back an old model of the product being purchased. A sales-volume quota is a quota based on sales or some aspect of sales volume. Prime-interest rate is the rate of interest banks charge their best customers.SOURCE:OP:024SOURCE:MN LAP 57—Operating Expenses58.A$1,090. Travel agencies often negotiate the price of service contracts based on the amount of usage. If equipment is not used frequently, it usually lasts longer and requires less maintenance; therefore, the cost is less than for equipment that receives a lot of use. In this example, the cost increases steadily based on an increase in use. To determine the total cost for the contract if the agency makes 36,000 copies, calculate the price for the various categories. The first 10,000 copies cost $200 (10,000 x $.02 = $200), and the next 15,000 cost $450 (15,000 x $.03 = $450). The agency makes an additional 11,000 copies that are priced at $.04 per copy for a total of $440 ($11,000 x $.04 = $440). To calculate the total price, add the totals for the three categories ($200 + $450 + $440 = $1,090).SOURCE:OP:027SOURCE:CCH Inc. (n.d.). Service contracts. Business owner's toolkit. Retrieved November 14, 2007, from you from delaying group efforts. Getting your own work done in a timely fashion keeps you from causing coworkers frustration by not delaying any group efforts. Being organized can help to prevent you from feeling overwhelmed, help you to earn raises and promotions, and help you to work at a relaxed pace; but none of these benefits would help maintain good relations with coworkers.SOURCE:PD:009SOURCE:HR LAP 4—Orderly and Systematic Behavior60.BMaking a to-do list for the next day. Planning activities for the following day helps to prioritize the activities and to enable workers to get the most important jobs done. The list should not, however, try to pack the day full of activities without leaving time for interruptions, unexpected events, or emergencies. Effective planning and time management will help to prevent pressured feelings or having to take work home.SOURCE:PD:019SOURCE:OP LAP 1—About Time (Time Management in Business)61.CAnswer all questions. When completing an employment application, it is important to answer all questions as accurately and truthfully as possible. Prospective employers use the application as a way of judging potential employees. On occasion, there may be a question that does not pertain to a certain applicant. In that case, it is appropriate for the applicant to mark N/A for "not applicable." This lets the employer know that the applicant did not intentionally refuse to give an answer. Applicants should not hurry to complete an application but should take enough time to answer fully. Employers usually prefer applications to be filled out in pen or typed. The employer makes copies of the application, if necessary.SOURCE:PD:027SOURCE:Daggett, W.R., & Miles, J.E. (1998). The dynamics of work: Introduction to occupations(2nd ed.) [pp. 66-67]. Cincinnati: South-Western Educational.62.DTo organize the information so that it is easy to read. The use of headings on résumés saves readers time in reviewing résumés because it enables them to focus immediately on the specific areas of interest. They need not take unnecessary time digging through information to determine whether an applicant is qualified for a position. The use of headings does not ensure that the information in the résumé is complete, accurate, or concise. Although most applicants use headings on their résumés, they do so to organize the information rather than to follow standard practices.SOURCE:PD:031SOURCE:Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp. 49-51]. Mason, OH: South-Western.63.BMountains. The geography of an area includes its physical characteristics such as mountains, beaches, lakes, etc. The geography of an area is a factor that impacts travel and tourism for the area. Mountainous areas in colder climates are often suitable locations for ski resorts and facilities. Visitors are drawn to those areas because the mountains offer challenging and interesting ski trails. Forests are a geographic factor but are not the main factor because an abundance of trees is a potential hazard for skiers. Accommodations and highways are man-made factors rather than geographic factors that draw visitors to certain regions.SOURCE:PD:103SOURCE:Goeldner, C.R., & Ritchie, J.R. (2003). Tourism: Principles, practices, philosophies (9th ed.) [pp. 270-273]. New York: John Wiley & Sons.64.BFlexible. Travel and tourism businesses must be willing to adjust prices when external circumstances, such as demonstrations by consumer groups, affect product demand. Negative is not a type of pricing. Competitive pricing occurs when a business sets or adjusts prices in response to a competitor's prices. Prestige pricing is deliberately putting an artificially high price on a product to suggest high quality and status.SOURCE:PI:001SOURCE:PI LAP 2—Pricing65.CSpreadsheet. Spreadsheet software programs are designed to calculate and analyze numerical data. Spreadsheets are very useful for tourism businesses as they evaluate numerical data that relates to pricing issues. Presentation software is used to create visual aids that are commonly used in sales or other types of presentations. Word-processing programs are used to create written documents. Communication software programs (e.g., e-mail) are used to facilitate the distribution of messages.SOURCE:PI:016SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [pp. 162-167]. Woodland Hills, CA: Glencoe/McGraw-Hill.66.AHidden costs. In many cases, there are hidden costs associated with travel and tourism products that have an effect on the total price. For example, a resort package might include meals and some activities but charge for beverages and certain specialties. The price of renting a car might not include the cost of gasoline or excess mileage. These additional costs need to be considered because they have an effect on the final price and may even make the final price extremely expensive. Personal preferences, unique values, and past experiences are not factors that have an effect on the prices of travel and tourism products.SOURCE:PI:039SOURCE:Todd, G., & Rice, S. (2002). Travel perspectives: A guide to becoming a travel professional (3rd ed.) [pp. 188-189]. Albany, NY: Delmar/Thomson Learning.67.AProduct development. Product development may be a lengthy stage during which a working model of the product is tested, perhaps modified, and retested a number of times. The cost of production is estimated, and plans for packaging, labeling, brand name, promotion, and distribution are made. Federal regulations require safety tests to be completed during the development stage of some products to prevent unsafe products from entering the market. Test marketing involves introducing the product to a limited market to see what its acceptance will be. Commercialization is the point at which the product goes into full-scale production, a marketing plan is put in place, service and sales training are done, and the product's life cycle begins. Idea generation is the initial step in new-product development and involves soliciting new-product ideas from sources such as employees, consumers, sales representatives, and retailers.SOURCE:PM:001SOURCE:PP LAP 5—Product/Service Planning68.DScreening. The screening process involves reviewing product ideas and making a decision about which ideas should be kept and which ones should be discarded. During the screening process, a business determines if there is a need or want for the travel and tourism product. The business also decides if it has the resources to make and distribute the product. If there is not enough desire for the product or the business does not have the appropriate resources, it is not practical for the business to produce the product. Brainstorming is a creative-thinking technique that is used during the idea-generation stage of new-product development. Production and consumption occur after the screening stage.SOURCE:PM:129SOURCE:Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an e-commerce world (7th ed.) [pp. 287-288]. Mason, OH: South-Western.69.ATask force meetings. A task force is a group of employees who work in different company departments (e.g., sales, finance) that meet on a regular basis. During the meetings, the task force generates ideas and discusses new product and market opportunities. Because each member represents a different aspect of the tour-wholesaling business, a task force is often an effective way to facilitate product and market development. Interviewing customers, distributing vendor surveys, and belonging to a trade association are external methods of recognizing product and market opportunities.SOURCE:PM:136SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 637). New York: Glencoe/McGraw-Hill.70.BInternational standards for quality. ISO 9000 are international standards for quality for manufacturers who trade internationally. Grades for safety indicate how well a product meets the safety standards. U.S. government standards would apply to products sold in the United States. Engineering associations' standards could incorporate the ISO 9000 standards but might not meet all of the international standards.SOURCE:PM:019SOURCE:PM LAP 8—Grades and Standards71.DBy providing product-use information. Labels on travel and tourism products protect consumers by telling them what they need to know in order to use the product safely. Labels of hazardous products warn consumers of the dangers involved in using the product and tell them what precautions to take. Labels on nonhazardous products should list all ingredients, additives or preservatives, fiber content, acceptable and unacceptable uses, and proper circumstances for use. Including the name of the product's producer would help consumers to make complaints to the appropriate company if a problem arises but does not protect consumers. Labels do not describe the product-development process.SOURCE:PM:017SOURCE:PP LAP 7—Consumer Protection in Product Planning72.BBrand development. Product mix is the particular assortment of goods and services that a business offers. A cruise line supply business must consider many things about the product mix including the product line, which is a group of related items in the product mix. The business must also consider how to package the products and how to develop the product brand. Brand refers to the combined impressions and experiences associated with a particular company or its products. A tag line is a slogan a business uses in an advertisement. Publicity is any non-personal presentation of ideas or products that is not paid for by the company or individual that benefits from or is harmed by it. Credit terms are policies regarding the arrangement by which businesses or individuals can purchase now and pay later.SOURCE:PM:006SOURCE:Burrow, J. (2006). Marketing (2nd ed.) [p. 269]. Mason, OH: South-Western.73.BSacrifices. Sacrifices are resources that a business gives up. When a travel and tourism business analyzes how to implement and maintain service options, it considers how much it will cost the company in terms of money, time, and personnel. Distractions are objects or thoughts that turn a person's attention away from other objects or thoughts. Since distractions are generally unanticipated thoughts, they are not usually part of the service selection process. Quota is a general term that refers to goals to be met. A rating is a general term that refers to an estimation or evaluation of something. Distractions, quotas, and ratings are not always considerations when a business evaluates a service. SOURCE:PM:036SOURCE:Gronroos, C. (2000). Service management and marketing: A customer relationship management approach (p. 141). New York: John Wiley & Sons.74.BMust be sold at higher prices. Since brands are expensive to develop, package, and promote, these costs are passed on by the producer to the consumer in the form of higher prices. This can be a drawback to both producer and consumer since the consumer may not want to pay a high price and the producer may lose sales. The benefits of brands include the fact that they create brand loyalty in consumers and they differentiate, or separate, products so that they are easily recognized by consumers. There is no requirement that a trademark must be registered, but many businesses do protect their trademarks through registration with the federal government.SOURCE:PM:021SOURCE:PM LAP 6—It's a Brand, Brand, Brand World! (The Nature of Branding)omment cards. Comment cards allow travel agencies to obtain the answers to a wide variety of questions relating to the level of client satisfaction, including how clients feel about the service they received from the agency and the vacation package they purchased. Often, travel agencies will include comment cards in the packet of travel documents that they provide to clients. The cards usually are preaddressed with postage paid to make it easy for clients to answer a few simple questions and mail the cards to the agency. Travel agencies evaluate the comments in order to improve their service and to make changes to vacation packages to better satisfy future clients. Booking slips indicate the number of clients who have booked travel. Tour reports are summaries of a tour and may not indicate clients' satisfaction. Sales records indicate a travel agency's level of sales.SOURCE:PM:104SOURCE:Vallen, G.K., & Vallen, J.J. (2000). Check-in: Check-out (6th ed.) [pp. 225-227]. Upper Saddle River, NJ: Prentice Hall.76.DThey would recommend the tour to others. It is important to evaluate the effectiveness of a tour to find out if it lived up to promises and expectations, or if changes need to be made. One way to evaluate a tour is to ask customers if they would recommend the tour to others. If they would, then they were satisfied with the tour. If customers would not recommend the tour, it is necessary to find out why and what was not satisfactory. Many customers will have no way of knowing if the tour was competitive with other tours. The effectiveness of a tour does not depend on whether customers budgeted enough funds to buy souvenirs. The weather is beyond the control of tour operators.SOURCE:PM:110SOURCE:Burke, J., & Resnick, B. (2000). Marketing & selling the travel product (2nd ed.) [pp. 126-127]. Albany, NY: Delmar/Thomson Learning.77.DTrademark. A trademark is a brand that is owned by a business. The name "Coca-Cola" is a trademark that has been registered with the U.S. Patent Office by the Coca-Cola Company. A symbol is a drawing, emblem, or picture used to identify a good or service. A slogan is a brief, catchy, easy-to-remember phrase about a good or service. A trade name is the name that is used to identify a company or an organization.SOURCE:PM:126SOURCE:PM LAP 10—Building Your Business's Brand78.BSell goods or services. The major purpose of using promotion for most travel and tourism businesses is to increase their sales. Promotion helps to do this by informing, reminding, and persuading customers. Promotion is also used to introduce new products and to attract customers to a business. Consumer demand can be created but not controlled.SOURCE:PR:001SOURCE:PR LAP 2—Promotion79.BProduct. Product advertising is used to promote goods and services. Institutional advertising promotes a company's image, mission, or philosophy. Wholesalers, dealers, and retailers use trade advertising to obtain greater distribution of their products. Business advertising tends to appear in specialized business publications or journals and is directed to people who buy goods and services for business use.SOURCE:PR:002SOURCE:PR LAP 4—Know Your Options (Types of Promotion)80.CBuild close and ongoing customer relationships. Technological advancements, such as the Internet and computer software programs, allow a travel business to efficiently track its customers' purchasing behavior and preferences. By understanding the customer's purchasing behavior and preferences, the travel business can develop plans and take action to accommodate the customer in an appropriate manner. By providing appropriate products, the travel business is more likely to build close and ongoing relationships with customers. Depending on the medium, mass advertising is often more expensive than advertising to targeted markets. Many travel businesses do not compete with other businesses on a global (international) level. Generally, travel businesses are increasing their use of customer loyalty programs rather than decreasing them.SOURCE:PR:100SOURCE:Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [pp. 437, 511-512]. Upper Saddle River, NJ: Prentice Hall.81.BEncourage action. Advertisers use statements such as "Only 3 days left to book the cruise" in their copy to encourage readers to take action. Copy that makes a general or specific statement about the product is making a claim. Copy that identifies benefits focuses on benefits of the product to the consumer, and copy that describes features gives factual information about the product.SOURCE:PR:014SOURCE:PR LAP 7—Parts of Print Ads82.AAgency can pinpoint the target audience. The advantage of using direct mail is that a travel agency can send promotional information to only those customers who are likely to buy. On a per piece basis, direct mail is often expensive; but, because the agency has control over who receives the message, cost per customer contact is often low. Any message can be ignored. Direct mail is often labor intensive and requires more work than other advertising.SOURCE:PR:089SOURCE:U.S. Postal Service. (n.d.). Benefits of direct mail. Retrieved November 14, 2007, from open house. Preparing for a special event, but especially a holiday open house, includes providing seasonal merchandise to customers and also creating festive displays. This kind of event is fun for customers and retailers alike but also involves a lot of work. It is important to start early and thoroughly plan all the details. A liquidation sale does not involve seasonal merchandise or festive displays, nor does a staff party. A customer appreciation day might involve special merchandise and/or special displays, but these would generally not be seasonal in nature but would reflect customer-focused themes.SOURCE:PR:068SOURCE:Diamond, J., & Diamond, E. (1999). Contemporary visual merchandising (pp. 167-175). Upper Saddle River, NJ: Prentice Hall.ount customers. Counting the number of customers who visit a water park while promotional activities are taking place is a way of evaluating the effectiveness of a promotional plan. If the planned activities attracted a significant number of customers and increased sales, a water park probably would decide that the promotional plan was effective. Counting customers is a simple method of finding out whether traffic increased, remained the same, or decreased. Water parks do not evaluate the effectiveness of a promotional plan by reviewing advertising, asking vendors, or checking expenses.SOURCE:PR:073SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 363-367, 616). New York: Glencoe/McGraw-Hill.85.DDisplay literature. Travel agencies receive large quantities of promotional materials and literature at no cost from hotels, airlines, cruise lines, etc. One of the least expensive ways for a travel agency to use these materials to promote tourism is to display them. An agency could display posters and brochures in a window to attract customers or display the literature inside to encourage customers to buy. Because the literature is free, a travel agency has no costs involved in displaying it. Organizing seminars, purchasing advertising, and planning excursions are expensive ways of promoting tourism because they require a travel agency to spend money.SOURCE:PR:158SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 385-387). New York: Glencoe/McGraw-Hill.86.CTechnical assistance and support. Bill's ability to call the help-line is an example of technical assistance and support. It is not an example of shipping and delivery (he already has possession of the product), credit/financing (problem is not with payment), or customer training (he already knows how to use the product, but the product is not working properly).SOURCE:SE:076SOURCE:SE LAP 130—Go Beyond the Sale (Customer Service in Selling)87.ADeveloping a prospect list. Locating potential clients is often referred to as prospecting. It is an important activity that helps travel and tourism salespeople to build a clientele. Salespeople often develop prospect lists by obtaining leads from current customers, company sources, family, and friends. A sales report is a record of sales made during a given period. An activity report describes time usage. A disbursement journal is an accounting record for recording daily expenditures.SOURCE:SE:828SOURCE:SE LAP 115—Keep Them Loyal (Building Clientele)88.DFull disclosure. Customers have the right to know what they are purchasing. Full disclosure means the travel agent is informing customers about all features, aspects, conditions, and prices of a product, including cancellation penalties. Maximum value is obtaining the best possible product at the lowest possible price. Truth in advertising means that ads promoting special rates should indicate clearly whether restrictions apply. Human relations refers to the relationships people have with others.SOURCE:SE:186SOURCE:Blackburn, J., & Klayman, E. (2005). The legal environment of business (7th ed.) [pp. 452, 590]. Boston: Pearson Custom Publishing.89.DOf the competition. Companies often prepare promotional brochures containing information that compares their travel products to those of the competition. These brochures may contain information comparing price, quality standards, and operating procedures, and include testimonials from satisfied customers. Salespeople can use this information to point out the advantages of their products over those of the competition. Companies do not develop promotional brochures to compare their products with products under development, in the research stage, or no longer in use.SOURCE:SE:062SOURCE:Burrow, J.L. (2006). Marketing: Instructor's wraparound edition (2nd ed.) [pp. 465-466]. Mason, OH: Thomson/South-Western.90.BRecreational. Destinations are categorized on the basis of a variety of characteristics. One type of destination is categorized as recreational because the purpose of visiting the destination is to participate in a certain type of recreation. Ski areas, water parks, and golf resorts are examples of recreational destinations because travelers go there to ski, participate in water sports, or play golf. Natural destinations were created by nature, rather than by man, such as beaches or deserts. Interesting and scenic are not types of destinations, although the destinations may be interesting and scenic.SOURCE:SE:200SOURCE:Goeldner, C.R., & Ritchie, J.R. (2003). Tourism: Principles, practices, philosophies (9th ed.) [p. 272]. New York: John Wiley & Sons.91.AReaffirming the buyer-seller relationship. Follow-up helps to reassure customers about their purchase decision and confirm the seller's interest in them. Establishing a positive tone is part of the initial step of establishing a relationship with the customer. Discovering the customer's needs is the next step in the selling process. Reaching closure is the step in which customers can be asked to buy the good or service.SOURCE:SE:048SOURCE:SE LAP 126—The Selling Process92.CBusiness. The travel agency owner is paid to travel to a set destination as a requirement for her/his job. Although the trip may be a learning experience for the traveler, the primary purpose is related to business. A leisure traveler determines the travel destination, is responsible for payment of the trip, and plans the trip according to her/his personal needs and desires. Many factors motivate family travel including vacation, illness, and death.SOURCE:SE:229SOURCE:Goeldner, C.R., & Ritchie, J.R. (2003). Tourism: Principles, practices, philosophies (9th ed.) [p. 262]. New York: John Wiley & Sons.93.CExcuse. An excuse is an insincere and invalid statement used to cover up a real reason for not buying a vacation package. An objection is a point of difference between a customer and a salesperson that may prevent a sale. A testimonial is a method of handling objections in which the salesperson uses a neutral third party who has tried the product as an example. The inquiry is another method of handling objections in which the salesperson asks questions of customers to enable customers to answer their own objections.SOURCE:SE:874SOURCE:SE LAP 100—Converting Objections94.DCar rental. When recommending services to clients, it is important for a travel agent to understand what the client wants. For example, if clients want to tour the Pacific Northwest on their own at a leisurely pace, a travel agent should recommend a package that includes a car. Travel agents often put together fly/drive packages for clients that allow the clients to fly to a departure point, pick up a car, and tour an area on their own. The clients are able to drive at a leisurely pace and spend as much time as they want enjoying the attractions. Traveling by motorcoach is an organized tour that does not allow people to be on their own. A regional airline services smaller cities in a specific area but would only give people the option of touring the cities if they also rented a car. High-speed trains move quickly and do not allow people to tour on their own at a leisurely pace.SOURCE:SE:236SOURCE:Morrison, A.M. (2002). Hospitality and travel marketing (3rd ed.) [pp. 264-265]. Albany, NY: Delmar/Thomson Learning.ircle the guest's room location or write in the room number. The front desk clerk should never say the tour group guest's room number out loud for security reasons. Instead, s/he should write the number down and say to the guest, "This is your room number." This protects the guest from unwanted callers or other unpleasant experiences and allows the guest to give the number to those s/he would like to have it. The number of the front desk is on the telephone in the guest's room. It would be too time-consuming to circle any areas the guest might like to visit.SOURCE:SE:226SOURCE:Vallen, G.K., & Vallen, J.J. (2005). Check-in: Check-out (7th ed.) [pp. 322, 485]. Upper Saddle River, NJ: Prentice Hall.96.AAffinity group package. Affinity group packages are arranged for people who have something in common, such as having the same interests or belonging to the same organization. In this example, the common bond is belonging to the university alumni association. Travel agencies often arrange group packages for alumni associations to attend events that are of interest to them, such as football games. These trips appeal to the group because of the bond they share. Convention packages are intended for businesspeople attending meetings. Special interest packages are designed for people who share the same interest, such as skiing, rather than for people who belong to the same organization. Incentive packages are often developed to reward employees for their performance on the job.SOURCE:SE:243SOURCE:Morrison, A.M. (2002). Hospitality and travel marketing (3rd ed.) [p. 329]. Albany, NY: Delmar/Thomson Learning.97.AAssign seats. It is common on multiday motorcoach trips for the tour operator or director to develop a seating chart and assign seats. Having a prepared seating chart simplifies the process of boarding passengers on the first day of the tour. Also, by assigning seats, a tour director is able to make sure that families sit together or that people with special needs have the seating they need, such as on an aisle or near the rest room. Also, on some longer motorcoach trips, the seating assignments might rotate so everyone has an opportunity to have a window seat. The drivers are provided by the motorcoach company; therefore, a tour director does not interview drivers. The itineraries are established before promoting the tour and are not revised unless there is a significant reason, such as a hurricane that would make it impossible to drive through a coastal area. The motorcoach operator is responsible for purchasing fuel, and the cost is included in the price of renting the motorcoach.SOURCE:SE:270SOURCE:Semer-Purzycki, J. (2001). A practical guide to fares and ticketing (3rd ed.) [pp. 20-23]. Albany, NY: Delmar.98.CTo maintain customer confidence. It is absolutely essential for salespeople for airline supply businesses to accurately complete sales forms because those are important documents to most businesses engaged in selling. The information on sales forms needs to be accurate in order to charge the customer the correct amount. Customer confidence and goodwill can be harmed severely if a salesperson overcharges customers or charges customers for items they don't receive. Not all sales forms contain information about delivery instructions or shipping charges although, if needed, this information should be accurate. It is not important for a salesperson to accurately complete sales forms in order to identify seasonal merchandise.SOURCE:SE:117SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 335-341). New York: Glencoe/McGraw-Hill.abin category. The price of cruise tickets is based on the cabin category. The higher the category, the higher the price. For example, a cabin on a high deck that has a balcony is more expensive than an inside cabin on a lower deck. When processing a client's cruise tickets, a travel agent needs to know the type of cabin category that the client prefers. In some cases, the travel agent will be able to select an actual cabin while, in other cases, the agent will allow the cruise line to assign the cabin based on the client's preference. The travel agent receives a commission from the cruise line. The cruise line, rather than the client, provides the confirmation number. A travel agent needs to know the client's method of payment rather than the client's credit history.SOURCE:SE:271SOURCE:Todd, G., & Rice, S. (2002). Travel perspectives: A guide to becoming a travel professional (3rd ed.) [pp. 262-263]. Albany, NY: Delmar/Thomson Learning.100.ADirecting. Directing is providing guidance to workers and work projects. An example of directing would include a manager assisting employees with product deliveries. Controlling involves monitoring the work effort. Staffing involves finding workers for the business. Organizing is setting up the way the business's work will be done.SOURCE:SM:001SOURCE:BA LAP 6—Manage This! ................
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