Test Number 891

KEY
Test Number 891
Travel and Tourism

Marketing
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Copyright © 2007 by Marketing Education Resource Center®, Columbus, Ohio

Test 891 TRAVEL AND TOURISM MARKETING — KEY 10
1. C
Highly competitive. Travel and tourism is a rapidly growing industry throughout the world. As a result,
marketing the industry is highly competitive because there are a wide range of companies that sell travel
and tourism services. All of these companies compete for the same customers who have only so much
money and time to spend on travel. Advances in technology affect the industry by making it easier for
both travel companies and customers to plan vacations and book travel. Travel and tourism is a
worldwide industry, although there are local attractions and facilities. Travel and tourism marketing is not
controlled by society, although it is affected by what society wants in the way of travel options.
SOURCE: BA:150
SOURCE: Morrison, A.M. (2002). Hospitality and travel marketing (3rd ed.) [pp. 21-22]. Albany, NY:
Delmar/Thomson Learning.
2. D
Many people are fearful of air travel following the events of September 11, 2001. Like many other
aspects of our lifestyle, September 11 changed our way of vacationing. Many people began vacationing
in locations within driving distance of their homes. This trend was strengthened by a weakening
economy. The result was that many people learned more about their home locations and often made new
discoveries of excellent vacation sites that were nearby. There is no evidence that vacation time is being
cut or that people are more curious.
SOURCE: BA:154
SOURCE: Randall, J.L., & Gustke, L. (n.d.). Top ten travel and tourism trends 2002. Retrieved July 12,
2006, from http://www.rtmnet.com/2002TravelTrends.pdf
3. A
Make a mental note of the robber's appearance. Although a robbery is a stressful situation, travel agency
employees should try to look at the robber and make a mental note of the robber's appearance. This
includes trying to determine height, weight, hair color, etc., as well as any unique features such as a scar
or a tattoo. Taking the time to get a good look at the robber will be helpful in giving the police an accurate
description. Employees should comply with the robber's demands as quickly as possible. Employees
should not volunteer information such as saying that the agency's safe is locked, because the robber
may not know there is a safe. Employees should attempt to set off the alarm system only if they are sure
it is silent and that the robber will not notice what they are doing.
SOURCE: BA:085
SOURCE: German-Grapes, J. (1997). The teller's handbook: Everything a teller needs to know to
succeed (pp. 180-181). New York: McGraw-Hill.
4. C
Regulation policies are always being instituted, revised, and repealed. For example, the deregulation of
the airline industry resulted in lower airfares and more commercial airline routes. There are many
regulations in place to protect our physical environment; cruise ships have regulations as to how garbage
and waste can be disposed. Automobiles, buses, airplanes, and other forms of transportation are limited
to the types of fuel that can be used. Transportation is not the only industry that is regulated by
governments. Restaurants, lodging facilities, and tourist attractions all have regulations pertinent to the
specific industry. Because each segment of the travel and tourism industry provides different services,
regulations vary among businesses. For example, an amusement park has different safety regulations
than airlines.
SOURCE: BA:205
SOURCE: Morrison, A.M. (2002). Hospitality and travel marketing (3rd ed.) [pp. 22, 39, 499]. Albany,
NY: Delmar/Thomson Learning.
5. D
Corporation. A corporation is owned by stockholders who have purchased stock. By investing in a
corporation, Mr. Brown will be one of the owners who will share in the profits of the business but will not
be responsible for the day-to-day operations. A general partnership is an agreement in which all partners
are liable for a business's losses. A sole proprietorship is a form of business ownership in which the
business is owned by one person. A franchise is a contractual agreement between a parent company
and a franchisee to distribute goods or services.
SOURCE: BL:003
SOURCE: BA LAP 7—Own It Your Way (Types of Business Ownership)
6. C
Their names. Answering a business phone requires a more formal procedure than answering a personal
phone. People who phone a travel agency expect to be greeted with the name of the company and the
name of the person who answered. Customers feel more comfortable dealing with individuals who have
identified themselves. It is not necessary for the employee answering the telephone to automatically
recite the address of the company, explain its purpose, or give the time of day to the caller unless
specifically asked.
SOURCE: CO:114
SOURCE: Miculka, J.H. (1999). Speaking for success (pp. 108-109). Cincinnati: South-Western
Educational.
7. C
To explain new policies. One of the main functions of an informational message is to provide information
to readers in such a way that they understand the message. A type of written information that tour
operators often provide to customers is an explanation of new policies and how those policies will affect
customers. For example, if a tour operator is changing its credit policy, it wants to inform customers about
the change and let them know that the change will benefit them. Research reports are an in-depth study
of a specific business problem or situation. Tour operators write informational messages to inform rather
than to obtain feedback. Analyzing sales proposals involves reviewing information.
SOURCE: CO:039
SOURCE: Locker, K.O. (2000). Business and administrative communication (5th ed.) [pp. 156-157].
Boston: Irwin/McGraw-Hill.
8. D
Horizontal. Communication between employees on the same level in a travel and tourism organization is
horizontal because the employees usually are coworkers and have about the same amount of authority.
Coworkers informally discuss work-related issues on a one-t o-one or group basis without the need for
written reports. Vertical communication flows down to employees from employers or up to employers
from employees. Personal communication involves sharing information of a personal nature. Professional
communication might involve information prepared by specialists.
SOURCE: CO:014
SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)
[p. 251]. Cincinnati: South-Western.
9. A
Provide a meeting agenda to review. An agenda is a list of topics that will be discussed in a meeting. By
having an agenda before the meeting takes place, employees can gather information and prepare notes
for the discussion. Unless the department's financial status is the reason for the meeting, participants are
unlikely to need a copy of the department budget. It is seldom appropriate to limit each participant's
speaking opportunities.
SOURCE: CO:063
SOURCE: Lussier, R.N. (2003). Management fundamentals: Concepts, applications, skill development
(2nd ed.) [pp. 326-328]. Mason, OH: South-Western.
10. A
Marketing. Distribution is all the activities involved in moving, storing, locating, and/or transferring the
ownership of goods or services. It is one part of the total marketing picture. Production involves the
transformation of resources into usable products for resale. Promotion is the marketing function that
communicates information about goods, services, images, and/or ideas to achieve a desired outcome.
Advertising is any paid form of nonpersonal presentation of ideas, images, goods, or services.
SOURCE: DS:001
SOURCE: DS LAP 1—Distribution
11. A
Integrated data between channel members. The technology of electronic billing, purchase-order
verification, bar coding, and image processing enable channel members to integrate data. Vertical and
horizontal channel integration are methods of organizing distribution channels. The finance department
may utilize the methods to share data, but the methods are not unique to that department.
SOURCE: DS:054
SOURCE: Pride, W.M., & Ferrell, O.C. (2000). Marketing: Concepts and strategies (2000e)
(pp. 355-356). Boston: Houghton Mifflin.
12. B
Ethical business practices. Studies have shown a strong relationship between customer satisfaction and
a company's ethical behavior. Building customer loyalty gives a business a competitive advantage and is
profitable. Taking care of employees tends to encourage employees to take care of business. Paying
higher wages is not the only requirement for employee commitment. Pricing strategies can ensure profit
but have little impact on employee commitment and customer loyalty. Customer satisfaction, employee
contentment, and profit are not directly linked to automated distribution centers.
SOURCE: DS:059
SOURCE: Ferrell, O.C., Fraedrich, J., & Ferrell, L. (2002). Business ethics: Ethical decision making and
cases (5th ed.) [pp. 246-251]. Boston: Houghton Mifflin.
13. D
Competitive advantage. A cruise line supply business that provides a service, or a better type of service,
often has an advantage over competitors that do not provide the same service. A business that provides
on-time delivery is also providing good customer service. If other businesses do not provide on-time
delivery, customers may prefer to buy from the business that does, which gives that business an
advantage. If all other factors are the same, on-time delivery may be what persuades customers to buy
from one business rather than from another business. On-time delivery should not result in a low
inventory level or a low return on investment. A channel arrangement is the way products move through
the distribution system.
SOURCE: DS:029
SOURCE: Evans, J.R., & Berman, B. (1997). Marketing (7th ed.) [pp. 430-431]. Upper Saddle River,
NJ: Prentice Hall.
14. A
The market is located close together. If customers are in one general area, a short channel of distribution
is effective. If the market is widely dispersed, the producer would need to use longer channels in order to
reduce the number of contacts that need to be made. Small order sizes, many potential customers, and
inexpensive products indicate the need to use longer channels.
SOURCE: DS:050
SOURCE: Lamb, C.W., Jr., Hair, J.F., Jr., & McDaniel, C. (2003). Essentials of marketing (3rd ed.)
[p. 325]. Mason, OH: South-Western.
15. C
Capital goods. Some examples of capital goods are equipment, machinery, and building supplies used to
produce goods and services. Consumer goods are goods that are bought by individuals for their personal
use. Natural resources are items found in nature and used to produce goods and services.
SOURCE: EC:003
SOURCE: EC LAP 14—Economic Resources
16. D
Balance in exercising influence. With its fiscal policy, a country's government primarily attempts to
achieve balance in exercising influence. The Keynesian economic theory states that governments can
influence macroeconomic productivity levels by raising or lowering tax levels and public spending.
Finding the right balance between the influences is important to the success of the policy. Fiscal policy
does not primarily attempt to achieve equality in extending credit, an increase in the gross domestic
product, or a decrease in economic recessions.
SOURCE: EC:074
SOURCE: Investopedia.com (2004, May 19). What is fiscal policy? Retrieved February 6, 2006, from
http://www.investopedia.com/printable.asp?a=/articles/04/051904.asp
17. A
Private enterprise. In a private enterprise economy, individuals are primarily motivated by the desire to
make a profit. They have the freedom to make their own choices about their businesses, such as the
goods or services offered, the hours of business operation, and the prices to charge the customer. A
socialist system restricts profit taking. In a communist system, all businesses and profits are controlled by
the government. In a traditional economy, profit is not a motive since people live on a subsistence level
and often use barter in order to obtain what they need.
SOURCE: EC:009
SOURCE: EC LAP 15—Pri vate Enterprise
18. A
Operating expenses. Total income minus cost of goods equals gross profit. To compute net profit,
operating expenses must be subtracted from gross profit. Total expenses would include both cost of
goods, which is used to compute gross profit, and operating expenses, which are used to compute net
profit.
SOURCE: EC:010
SOURCE: EC LAP 2—Risk Rewarded (Profit)
19. B
2,340. The labor force includes those who are working or those who are unemployed but actively looking
for work. The unemployment rate is the percentage of the unemployed people in the labor force. To
calculate the number of unemployed people based on the unemployment rate, multiply the number in the
workforce by the rate of unemployment (45,000 x 5.2% or .052 = 2,340). The rate of unemployment is
used to analyze the condition of the economy. A low unemployment rate indicates a healthy economy
because most of the people who want to work are working. On the other hand, a high unemployment rate
indicates a slowdown in the economy with fewer goods and services produced and many people out of
work.
SOURCE: EC:043
SOURCE: McEachern, W.A. (1997). Economics: A contemporary introduction: Annotated instructor's
edition (4th ed.) [pp. 131-133]. Cincinnati: South-Western College.
20. A
Remain stable. Inflation is a rapid rise in prices that may occur when demand exceeds supply or when
productivity declines and costs of labor go up. Generally, low inflation rates range between one percent
and four percent, which indicates a strong economy and stable prices. Although some products' prices
fluctuate on a daily basis (e.g., gasoline), not all prices do. High inflation causes a decrease in the value
of a nation's currency.
SOURCE: EC:080
SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 120-122). Tinley Park,
IL: Goodheart-Willcox.
21. B
Fear the unknown. A change leader is someone who has the ability to guide or direct others with the
intention to transform or alter something. Change leaders often run into problems when people resist
change. People resist change because they are afraid they won't be able to adapt to the change. People
also resist change when they are content with the way things are, trust the organization and like the
status quo. When people are content with the way things are, they often do not share their ideas because
by doing so, change may occur.
SOURCE: EI:005
SOURCE: QS LAP 23—20/20 Foresight
22. C
Acquire foreign language skills. The workplace is becoming more global and multinational. In order to be
successful, cruise line employees need to develop their sensitivity to other cultures and traditions. One
way that they can do this is to acquire foreign language skills. By learning something about the language
of their customers or coworkers, they will develop an understanding of the foreign culture and become
more sensitive to, and understanding of, the differences. Cruise line employees do not develop cultural
sensitivity by revising research techniques, maintaining current leadership styles, or preserving
communication methods. In fact, businesspeople may need to revise their style of leadership and change
the way they communicate in order to develop cultural sensitivity.
SOURCE: EI:033
SOURCE: Ball, D.A., McCulloch, W.H., Frantz, P.L., Geringer, J.M., & Minor, M.S. (2006). International
business: The challenge of global competition (10th ed.) [pp. 197-201]. Boston:
McGraw-Hill/Irwin.
23. B
Get along with coworkers. The most common reason that people lose their jobs is because they have
difficulties getting along with other workers. Not arriving on time, following directions, or performing job
skills are other reasons employees are not satisfactory. However, those are not the main reasons for
termination.
SOURCE: EI:037
SOURCE: HR LAP 1—Human Relations: What, Why, How
24. B
Returning travel products that have been used. There are circumstances in which returning used travel
products is legitimate, e.g., when a newly purchased product breaks down after being used for a short
time. However, dishonest customers will try to return products they have used and decided not to keep
for no acceptable reason. Most businesses have return policies in order to control their losses from these
returns. None of the other alternatives is indicative of a dishonest customer.
SOURCE: EI:013
SOURCE: EI LAP 1—Making Mad Glad (Handling Difficult Customers)
25. B
Listen to the customer. The customer should be allowed to explain the entire complaint before anything
else is done. In some cases, it is helpful to restate the complaint to ensure understanding. The customer
may ask for a specific resolution to the problem, or the airline employee might ask the customer what
s/he would like to have done. Determining the appropriate action to take cannot be done until the
complaint has been clarified.
SOURCE: EI:043
SOURCE: HR LAP 23—Handling Customer Complaints
26. D
Verify the ability of the client to pay for the trip. Tour companies check credit to make sure customers are
able to pay. Tour companies do not add references to a client's credit report at this point. The client's
income is not disclosed on the credit report. Motels are not interested in the client's credit history as the
tour company will make reservations and pay the bill.
SOURCE: FI:044
SOURCE: Dun & Bradstreet Small Business Solutions. (n.d.). Good credit risk? Bad credit risk?
Retrieved July 12, 2006, from http://sbs.dnb.com/credServ.asp
27. B
Unsecured loan. To obtain an unsecured loan, the borrower does not pledge anything s/he owns as
security to guarantee that the loan will be repaid. Instead, the borrower signs a written promise to repay
the loan. Secured loans require borrowers to guarantee repayment by pledging collateral. Regular credit
accounts and travel and entertainment cards are used to purchase goods and services rather than to
borrow money. In addition, these credit users agree to the terms for payment, credit limits, and interest as
specified by the credit provider.
SOURCE: FI:002
SOURCE: FI LAP 2—Credit and Its Importance
28. A
Repayment schedule. Individuals and businesses usually borrow money from financial institutions for
large purchases, such as business equipment. A borrower must apply for the loan with the lender and
provide the lender with necessary financial status information. The lender reviews this information to
determine if the potential borrower is a good risk and is likely to pay back the loan. If the lender
determines that the borrower meets the necessary criteria, the application is accepted and the loan
process begins. The lender develops a formal document (contract) that the borrower must sign. The
document contains information regarding the loan repayment terms and schedules. The contract does
not include a tax code list, a proposal (request) for disbursement, or a guarantee of eminent domain.
SOURCE: FI:063
SOURCE: DuBoff, L.D. (2004). The law (in plain English) for small business (pp. 46-47).
Naperville, IL: Sphinx Publishing.
29. D
Bookkeeping records business transactions. Bookkeeping is the step in the accounting process that
records the financial information from such business activities as sales, purchases, or returns. Much of
bookkeeping today is done on computers.
SOURCE: FI:085
SOURCE: FI LAP 5—Show Me the Money (Nature of Accounting)
30. B
$82.75. The gross amount due on an invoice is the total due before shipping charges are added or
discounts are deducted. In this case, $82.75 is the gross amount due. Shipping charges are added to the
gross amount due to arrive at the total net amount of $88.25 ($82.75 + $5.50 = $88.25). Then, the
discount is deducted from the total net amount to arrive at the total of $85.05 ($88.25 - $3.20 = $85.05).
SOURCE: FI:087
SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 71-73).
Cincinnati: South-Western Educational.
31. C
Consumer spending levels. The level of current consumer spending, as well as forecasts of future levels,
is important economic information useful in preparing a car-rental agency's sales forecast. Operational
changes such as staff adjustments are those made within the business. Product revisions involve
marketing information, not economic information.
SOURCE: FI:096
SOURCE: IM LAP 4—Forecasting Sales
32. C
$87,000. When charter bus companies develop budgets, they usually prepare a capital budget which
allows a certain amount of money for the purchase of new or replacement equipment. In many cases, the
amount they budget is based on a percentage of profit. In this example, to calculate the amount a
business can budget for new equipment, first determine the amount of profit by subtracting expenses
from sales ($850,000 - $415,000 = $435,000). Then calculate 20% of profit ($435,000 x 20% or .20 =
$87,000).
SOURCE: FI:099
[pp. 396-398]. Cincinnati: South-Western.
33. B
Obtaining a loan. Theme parks often use a positive profit-and-loss statement as the basis for obtaining a
loan or other types of credit. Creditors and investors are more likely to lend money for expansion if the
profit-and-loss statement indicates that the theme park is financially stable and prospering. The
information on the profit-and-loss statement tells creditors and investors if the park will be able to repay
the loan. Theme parks planning to expand do not use their profit-and-loss statements as the basis for
increasing salaries, paying dividends, or offering discounts.
SOURCE: FI:102
[pp. 410-415]. Cincinnati: South-Western.
34. A
Preliminary screening. This is usually a short interview that acquaints the business with the applicant and
serves to eliminate applicants that are not qualified for the particular job. Eligible applicants would then
be asked to complete a job application and take any necessary employment tests. The results would
determine whether applicants' references would be checked and whether they would be interviewed
further and asked to take a physical examination.
SOURCE: HR:356
SOURCE: MN LAP 51—Selecting New Employees
35. D
To make sure that facilities, equipment, and supplies are ready. This should be your last-minute check to
be sure that all of your planning is going to pay off. The other alternatives should have been completed
as aspects of planning prior to the day of the orientation. In the time before the orientation begins, you
should review the agenda with others you've involved in the orientation.
SOURCE: HR:361
SOURCE: MN LAP 44—Orienting New Employees
36. D
Decreased personnel costs. Well-trained managers/supervisors are better able to improve and maintain
employee morale and to have good working relationships with employees. This reduces turnover which,
in turn, reduces personnel costs by saving the company money on recruitment, selection, and orientation
of new employees. Training and development should decrease managerial obsolescence and increase
performance levels.
SOURCE: HR:363
SOURCE: MN LAP 50—Manager/Supervisor Training
37. A
Physical surroundings. Complaints about work environments deal with physical surroundings. Complaints
about coworkers may be job related, non-work related, or about the habits of other employees.
Complaints about supervision/management relate to such factors as the quality of work output, the
quantity of work delegated to employees, disciplinary actions taken by supervisors/managers, problems
related to work assignments, and work or job evaluations. Complaints about company policies relate to
such factors as how policies affect employees in terms of job promotion, seniority listing, layoff
procedure, etc.
SOURCE: HR:366
SOURCE: MN LAP 45—Handling Employee Complaints
38. B
Making decisions. Making decisions is one of the primary responsibilities of marketing managers. To be
able to make good decisions, managers need marketing information, which is all of the marketing-related
data available from inside and outside the car-rental agency. This includes information about customers,
competitors, economic conditions, sales, etc. Managers use this information on a regular basis to make
decisions about developing new products, opening new locations, changing prices, etc. Marketing
information is the basis of good decision making. Managers use marketing information to develop
appropriate advertising rather than to schedule advertising. Managers usually do not use marketing
information in selling situations, or to monitor distribution.
SOURCE: IM:012
SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an
e-commerce world (7th ed.) [pp. 124-125]. Mason, OH: South-Western.
39. B
Define the problem. Before they can begin to decide what type of information they need to obtain, scenic
railroads first need to accurately define the problem. If railroads are not completely sure of the problem,
they will not be able to find information that will help them to solve it. The process of clearly defining the
problem enables railroads to pinpoint the exact type of marketing information that will provide the
answers they need. Once railroads have defined the problem, they might decide to conduct research that
could include sampling the population. Railroads analyze the data after they collect it.
SOURCE: IM:182
SOURCE: Zikmund, W.G., & d'Amico, M. (1999). Marketing (6th ed.) [pp. 135-136].
Cincinnati: South-Western College.
40. A
The data are not always timely. Sometimes, a business cannot get the information it needs at the time it
is needed. When this happens, the data are useless to the business. The fact that some data are not
hard to gather is an advantage, especially to small businesses. Data are not considered foolproof, even
when they are gathered and analyzed very carefully. Marketing-research data are available to
competitors, if they wish to gather the data, but that is not a shortcoming.
SOURCE: IM:010
SOURCE: IM LAP 5—Nature of Marketing Research
41. B
Each answer has a specific numeric value. Cruise lines often develop surveys to obtain marketing
information. To process and analyze that information, cruise lines often develop a code for the answers
to survey questions. Coding is the process of assigning a numeric value to the various responses on a
marketing questionnaire or survey. For example, there are five possible answers to a question and the
first answer has a numeric value of one. The second answer has a numeric value of two, the third answer
has a numeric value of three, and so on. By using a code, cruise lines can quickly process the results to
determine which response is selected the most or the least. Coding does not involve numbering
questions in chronological order, or tabulating results according to date received. Although each survey
may contain a unique identification number, that is not an example of coding.
SOURCE: IM:062
SOURCE: Hair, J.F., Jr., Bush, R.P., & Ortinau, D.J. (2000). Marketing research: A practical approach
for the new millennium (pp. 482-491). Boston: Irwin/McGraw-Hill.
42. A
Descriptive statistics. Researchers often use descriptive statistics to summarize and interpret the vast
amounts of numeric information they collect. Descriptive statistics include measurements such as mean,
mode, median, range, and standard deviation. These types of measurements help researchers to
summarize numeric information in terms of number of responses, frequency of use, average distribution,
and various other relationships. Researchers often use questionnaires to obtain numeric information.
Researchers do not use hypothetical samples or independent variables to summarize and interpret
numeric information.
SOURCE: IM:191
SOURCE: Hair, J.F., Jr., Bush, R.P., & Ortinau, D.J. (2000). Marketing research: A practical approach
for the new millennium (pp. 525-527). Boston: Irwin/McGraw-Hill.
43. D
Product. Considerations in selecting products are packaging, branding, warranties, services to support
the product, positioning, research and development, etc. The place element is concerned with having the
selected product in the right place at the right time. The promotion element refers to the various types of
communications that marketers use to inform, persuade, or remind customers of their products. The price
element requires marketers to determine the amount of money they will ask in exchange for their
products.
SOURCE: IM:194
SOURCE: IM LAP 7—Pick the Mix (Marketing Strategies)
44. C
Focus marketing decisions on a specific group of people. The purpose of identifying a target market is to
narrow the market down to only those consumers who are the most likely to buy a travel agency's
product. This information is helpful in making many marketing decisions—from product development to
pricing strategies. Selecting a target market will not eliminate ethical dilemmas. Selecting a target market
might help a business increase profits but would not necessarily help it control expenses. Changing the
variable-cost margin is an operational decision unrelated to the selection of a target market.
SOURCE: IM:160
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 23].
Woodland Hills, CA: Glencoe/McGraw-Hill.
45. D
Action-oriented. Objectives are goals or desired results. A specific course of action must be taken to
meet the goals or achieve the desired result. Vague is a term that means unclear. A characteristic of a
good marketing plan is that it contains specific (comprehensive) information. Because marketing plans
can be developed to address short- and long-term objectives, not every marketing plan may consist of
short-term objectives. Because environmental factors (e.g., economy) can change, marketing objectives
might need to be revised. Therefore, objectives should be flexible rather than inflexible.
SOURCE: IM:197
e-commerce world (7th ed.) [pp. 45, 633]. Mason, OH: South-Western.
46. B
Total possible demand for a travel product. There are several factors that travel businesses consider
when conducting a market analysis. One factor is market potential, which is the total possible demand for
a travel product during a certain period of time. Market potential indicates the best-case scenario for
sales of a certain product throughout the market. For example, if 100 consumers want a product, the total
demand for that product is 100. If several businesses sell that product, they will share the market and no
one business will sell to all 100 consumers. Businesses need to determine the market potential because
they need to decide if the demand is large enough to generate a profit for all the businesses that sell a
certain product. Market potential does not indicate the expected annual sales volume, the number of
consumers in an area, or the competitors selling the same item.
SOURCE: IM:240
e-commerce world (7th ed.) [p. 144]. Mason, OH: South-Western.
47. C
$3,800. When setting a marketing budget, it is important to calculate the wage portion because salaries
are often the largest part of the budget. If airlines neglect to factor in wages, they will drastically
underestimate the cost of carrying out the marketing activity. In this example, five employees who are
paid $11 an hour will each spend 40 hours on the activity. Calculate this amount by multiplying the 40
hours by the hourly rate and then by the five employees ($11 x 40 = $440; $440 x 5 = $2,200). Then,
calculate the managers' salaries for one week by dividing the yearly salary by the number of weeks in a
year, and multiplying that amount by two ($41,600 ÷ 52 = $800; $800 x 2 = $1,600). Add the two figures
to calculate the total wage portion ($2,200 + $1,600 = $3,800).
SOURCE: IM:243
SOURCE: Burrow, J.L. (2002). Marketing (p. 542). Mason, OH: South-Western.
48. A
Marketing plan. Analyzing sales is one way to control marketing planning. By conducting a sales analysis
to compare actual sales with the sales goals, a theme park is able to determine if it is achieving its goals.
If it finds that actual sales are less than sales goals, the park can make adjustments in the marketing
plan, which is a set of procedures or strategies for attracting the target customer to a water park. For
example, a park might decide to offer special discounts for a limited time to generate more sales and
increase the customer base. Publicity is any nonpersonal presentation of ideas, goods, or services that is
not paid for by the company or individual that benefits from or is harmed by it. A park does not conduct a
sales analysis to make adjustments in the billing department or in the inventory level.
SOURCE: IM:145
SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [p. 697]. Upper Saddle River, NJ:
Prentice Hall.
49. A
Standards. Standards are specifications or statements that are used as a basis for comparing or judging
goods or services. A SWOT analysis is a summary of a business's situation in terms of strengths,
weaknesses, opportunities, and threats. An appraisal is an estimated value of an item (e.g., building,
property, jewelry). Classification audit is not a term commonly used to describe a method of measuring
the performance of marketing activities.
SOURCE: IM:199
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk C.A. (2006). Marketing essentials (4th ed.) [p. 36].
Woodland Hills, CA: Glencoe/McGraw-Hill.
50. A
Seat assignments. Travel agents often book airline reservations for customers. During the process of
inquiring about fares and confirming the reservations, agents usually obtain seat assignments for
customers. Many customers prefer to sit in certain areas on an airplane, such as over the wing, near
exits, or on the aisle. Travel agents try to obtain the seats that customers prefer while booking the flight.
When confirming airline reservations for customers, travel agents do not obtain free upgrades, baggage
stickers, or instant discounts.
SOURCE: IS:049
SOURCE: Semer-Purzycki, J. (2001). A practical guide to fares and ticketing (3rd ed.) [p. 22].
Albany, NY: Delmar.
51. D
Correct. Cruise line employees should only give directions to passengers if they are sure that the
information they are providing is correct. Passengers often become annoyed if they are given inaccurate
directions and sent from one area of the ship to another in search of a location. If employees do not know
the requested location, they should never give directions to passengers but should ask other cruise line
employees for assistance. Employees should give correct directions to passengers who ask for them,
and not be concerned if the directions are absolut ely necessary or will be appreciated. It is always
justified for employees to give directions to passengers.
SOURCE: IS:025
SOURCE: Hyden, J.S., Jordan, A.K., Steinauer, M.H., & Jones, M.J. (1999). Communicating for
success (2nd ed.) [pp. 109-114]. Cincinnati: South-Western Educational.
52. A
Acknowledge the seriousness of the situation. Often, a simple "I understand your frustration about..." is
enough to settle a dispute, especially when an authority figure is the one giving attention to the situation.
Although time tends to heal all wounds, ignoring a problem is not the best approach to dispute-resolution
because there is always a chance of being slapped with an unexpected lawsuit. Blaming airline
passengers is likely to result in even more hostility about the situation. The action that management takes
toward employees involved in a dispute is really no business of passengers; however, passengers do
have the right to know how their dispute will be resolved.
SOURCE: IS:052
SOURCE: Helitzer, M. (1999). The dream job: Sports publicity, promotion and marketing (3rd ed.)
[p. 399]. Athens, OH: University Sports Press.
53. D
Quality. Quality and price are often considered the same by many customers. Comfort is more often
associated with the brand name or quality of the product. Discounts are often offered on slow-moving
products, and location affects the number of sales.
SOURCE: PI:001
SOURCE: PI LAP 2—Pricing
54. C
Driving too fast. Driving too fast is an example of employee behavior or actions that may risk safety.
Unsafe conditions are those physical or environmental hazards which are present in the workplace, such
as having greasy rags. Replacing inadequate lighting and reporting a frayed electric cord are examples of
actions that will correct safety hazards.
SOURCE: OP:007
SOURCE: RM LAP 2—Following Safety Precautions
55. A
Pilferage. Airport gift shop employees who steal inexpensive items are participating in pilfering activities.
Pilferage is theft of small sums of money or inexpensive items—petty theft. Fraud is deceiving or
cheating an individual or a business out of money or property. Embezzlement is theft of valuables that
have been entrusted to one's care. Shoplifting is theft of goods by customers.
SOURCE: OP:013
SOURCE: RM LAP 4—Security Precautions
56. A
Scheduling. Karen is deciding when to actually perform her activities during the day. The scheduling
function takes place after you identify your activities, estimate how much time it will take to complete
them, and prioritize them according to their importance. Delegating involves assigning activities to others
to perform.
SOURCE: OP:034
SOURCE: OP LAP 1—About Time
57. C
Potential problems. An effective project plan helps to control costs by considering potential problems that
may arise. By addressing problems in the planning stage, a car-rental agency is able to develop a
method of dealing with potential problems, which often eliminates the need to make costly changes while
completing the project. Agencies establish the objectives before developing the plan to carry out the
project. Publicity is free, although many projects are internal and do not involve publicity. Furthermore,
not all projects are intended to be advertised, so advertising expense is not involved.
SOURCE: OP:001
SOURCE: DuBrin, A.J. (2003). Essentials of management (6th ed.) [pp. 114-115].
Mason, OH: South-Western.
58. B
$160,300. Net profit is calculated by subtracting operating expenses and cost of goods sold from income.
To determine net profit, first calculate gross profit by subtracting cost of goods sold from income
($675,500 - $305,200 = $370,300). Then, subtract operating expenses from the gross profit figure to
calculate net profit ($370,300 - $210,000 = $160,300).
SOURCE: OP:024
SOURCE: MN LAP 57—Nature of Operating Expenses
59. D
Contract B. When considering service contracts, travel agencies need to calculate the total amount
including the flat rate and the cost per copy. In many cases, the cost per copy makes a significant
difference in the total cost of the contract. If a travel agency wants the least expensive contract, it needs
to calculate the total price of each contract. In this example, Contract B is the least expensive. To
determine the price of that contract, first multiply the number of copies made each year by the cost per
copy (12,000 x 1¢ or $.01 = $120). Then, add that amount to the flat rate ($700 + $120 = $820). This is
the least expensive contract. Contract A is $840, Contract C is $860, and Contract D is $880.
SOURCE: OP:027
SOURCE: CCH Inc. (n.d.). Service contracts. Business owner's toolkit. Retrieved July 13, 2006, from
http://www.toolkit.cch.com/text/P06_4488.asp
60. C
Brainstorming. Brainstorming can be done by one person or a group and is used most often in
connection with problem solvi ng. The process of acting out a situation that might occur is called role-
playing. Experimentation involves testing or trying out a proposed idea or procedure. Observation is
watching, or observing, what is going on, which does not require creativity.
SOURCE: PD:012
SOURCE: PD LAP 2—Creativity
61. B
Aptitude test. An aptitude test measures what a person is capable of doing and what s/he might be
capable of doing with additional training or education. Interest surveys measure interest in various
occupations. Intelligence tests measure current knowledge. Personality tests measure personality traits.
SOURCE: PD:023
SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp.174-175].
62. D
He should list his family job and volunteer work. Listing the work he has done for his father and his
volunteer work will show the interviewer that Manuel is accustomed to carrying out certain
responsibilities. This is a better choice than leaving out a section on work experience. The kind of job the
individual would like to have would be included in the objectives section of the resume. It would not be
necessary, or appropriate, to explain that he hasn't had a real job, as the interviewer will see that at a
glance.
SOURCE: PD:031
SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp. 49-51].
63. A
Pricing. Pricing determines and adjusts what customers pay for products to maximize returns and meet
customers' perceptions of value. Prices must be set so that both buyers and sellers feel that they are
getting the most value. Purchasing is the planning and procedures necessary to obtain goods and
services for use in the operation of a business. Promotion is the communication of information about
goods, services, images, and/or ideas to achieve a desired outcome. Financing is not a marketing
function but a business function that involves understanding the financial concepts used in making
business decisions.
SOURCE: MK:002
SOURCE: MK LAP 1—Work the Big Six (Marketing Functions)
64. C
Price. Price is the marketing element requiring marketers to determine the amount of money they will ask
in exchange for their products. In the travel and tourism industry, price is closely associated with
customers' perceptions of value and worth. If customers think the travel product has value and worth,
they are often willing to pay for it. Also, value and worth differ from customer to customer, so what is
value to one customer might not be value to another. For example, some people prefer economy hotels
because saving money is a value to them. To other people, receiving many services is a value that they
are willing to pay for. Profit is the monetary reward a business owner receives for taking the risk involved
in investing in a business. Place is the marketing element focusing on considerations in getting a
selected product in the right place at the right time. Promotion is a marketing function needed to
communicate information about goods, services, images, and/or ideas to achieve a desired outcome.
SOURCE: PI:031
SOURCE: Morrison, A.M. (2002). Hospitality and travel marketing (3rd ed.) [p. 518]. Albany, NY:
65. D
To encourage comparison shopping. Many airlines post price information on their web sites. One reason
for doing this is to encourage comparison shopping. Customers are able to use the Internet to access an
airline's prices and obtain more information about the flights and services. As a result, customers can
easily locate the airline that has the flights they want at the prices they want to pay. Airlines that have
reasonable or low prices benefit from posting price information online because customers are able to
quickly compare the prices of competitors. The airlines with the best prices often attract the most
customers. Airlines do not post price information on a web site to promote targeted advertising, conduct
marketing research, or monitor buying behavior.
SOURCE: PI:016
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)
[pp. 169-171]. Woodland Hills, CA: Glencoe/McGraw-Hill.
66. B
Obsolescence. During the obsolescence phase of a product's life cycle, the product is in a state of being
outmoded or unfashionable. For example, apparel items experience obsolescence when clothing styles
and seasons change. Therefore, airport gift shops often slash prices in an attempt to get rid of old stock.
Prices are usually set higher during the introduction stage to enable the gift shop to recover its
investment in the new product. During the maturity stage, shops generally focus their efforts on stabilizing
prices. Initiation is not a common term used to describe a phase of a product's life cycle.
SOURCE: PI:002
SOURCE: PI LAP 3—Factors Affecting Selling Price
67. D
Company's goals. An internal factor which affects product/service management is the marketing goals
that the travel and tourism company is trying to reach. The role that the product is expected to fill for the
company will influence the selection of products to offer. For example, if a business wants to develop an
image as a trendsetter, it might focus on developing new products. Government's standards, consumers'
needs, and competitors' actions are external factors that often affect product/service management.
SOURCE: PM:001
SOURCE: PP LAP 5—Product/Service Planning
68. C
Computer. Computer technology makes it possible for travel agencies that have web sites to obtain
valuable information about customers and potential customers. Today, many travel agencies have web
sites that visitors access on a regular basis. When visitors access a site, computer technology enables
travel agencies to track and record the visit. Technology also allows travel agencies to ask visitors to
register before accessing a site. This process often involves answering a variety of questions such as
name, address, e-mail address, etc. The travel agencies compile this information into customer
databases that they can use to send additional information to those visitors who fit the criteria of their
target markets. Travel agencies do not use e-mail, database, or satellite technology to obtain information
about customers who access their web sites.
SOURCE: PM:039
69. A
Brainstorming. Brainstorming is a creative-thinking technique involving the identification of as many
different ideas as possible during a certain time frame. Tour operators often have groups of employees
meet to review information in an attempt to identify new travel opportunities. Sales records are a valuable
source of information to review because they contain information about the types of tours that most
customers prefer. Employees can analyze the existing tours and brainstorm new travel opportunities that
will appeal to customers. Reviewing a tour operator's sales records for the purpose of identifying new
travel opportunities is not an example of experimenting, negotiating, or questioning.
SOURCE: PM:134
SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 279-280). Tinley Park,
IL: Goodheart-Willcox.
70. C
Research and development. Many large travel and tourism businesses have research and development
departments that are responsible for generating ideas for new travel products. These departments
conduct research, analyze information, and review new technology to generate ideas. They often begin
with a problem or an issue, and generate ideas to solve the problem or address the issue. The sole
function of these departments is to develop new products or update existing products. Information
technology deals with the sharing of information. Executive management is responsible for the overall
operation of the business. Sales and marketing is responsible for selling the product.
SOURCE: PM:128
71. D
To compete successfully in the marketplace. To remain successful, cruise lines need to continually look
for opportunities. As the marketplace changes and people have new wants and needs, cruise lines need
to be able to stay current in order to compete. They must create processes that allow them to identify
trends and conduct ongoing research. Otherwise, cruise lines run the risk of missing out on new
opportunities and losing sales to competitors. Cruise lines do not look for opportunities to identify ways to
lower production costs, evaluate the feasibility of new ideas, or develop an effective design system.
SOURCE: PM:136
72. C
Federal Trade Commission. The FTC is a government regulatory agency that administers and enforces
antitrust laws to prevent price fixing and to prohibit unfair competitive practices. These practices include
false or misleading advertising. The Food and Drug Administration regulates foods, drugs, cosmetics,
and medical devices. The Consumer Product Safety Commission is a federal regulatory agency that sets
and enforces safety standards for various kinds of consumer products. The Federal Communications
Commission grants licenses to radio and television stations and regulates interstate telephone and
telegraph rates and service.
SOURCE: PM:017
SOURCE: PP LAP 7—Consumer Protection in Product Planning
73. B
Symbols. Symbols are designs, logos, characters, objects, colors, etc., that create recognition and
differentiate one travel and tourism business from another. Businesses often develop unique symbols
that, over time, become associated with the specific business. Customers only need to see the symbols
to recognize the business. A copyright is legal protection of books and other artistic works granted by
government, giving their creators sole rights to them for 28 years. A patent is legal protection of an
invention or a process granted by government to its owners for a certain number of years. Licenses are
permits to import or export goods and services.
SOURCE: PM:042
SOURCE: Kotler, P., & Armstrong, G. (1997). Marketing: An introduction (4th ed.) [p. 230]. Upper
Saddle River, NJ: Prentice Hall.
74. B
Encourage sales. Brand names or slogans often become familiar and stay in the minds of consumers.
People are more likely to purchase brands they remember, and the airport gift shop hopes they will
remember its brands and buy them. Brands and slogans do create awareness, but that is not the final
objective. They do not identify the retailer, as many retailers carry the same brand names. Gift shops do
not use brand names to obtain a sponsor.
SOURCE: PM:021
SOURCE: PM LAP 6—It's a Brand, Brand, Brand World!
75. B
Closed-end questions should be specific and performance oriented. Most people do not like to take the
time to complete surveys. When using this evaluation method, closed-end questions can be formatted to
obtain specific information in regards to service and performance levels. A good example is, "Did the
representative answer the telephone in three rings and in a courteous manner?" An example of a less
desirable question is, "How did the representative answer the telephone?" There are no data to indicate
that it is better to use an equal number of open-ended and closed-end questions, that true/false
questions are best, and that 15 or fewer questions should be included.
SOURCE: PM:104
SOURCE: Rokes, B. (2000). Customer service: Business 2000 (pp. 35, 56).
76. B
Professional looking. Many small travel agencies make the mistake of using an off-the-shelf graphics
program to design their own logo, and it shows! A much better option is to hire a graphic designer who
has the experience and artistic flair necessary to produce a professional-looking logo. A travel agency
name should be short and easy to pronounce so that it is memorable. However, brand logos typically
consist of designs and/or a group of letters that cannot be spoken. Anyone can protect a brand by
registering a trademark or service mark. Sometimes, a small travel agency will pay extra for the graphic
designer to take care of this process once the overall design has been completed and approved.
Complex, abstract logo designs can be confusing because customers often have trouble relating them
back to the small travel agency. Therefore, they are generally not a good idea.
SOURCE: PM:126
SOURCE: PM LAP 10—Building Your Business's Brand
77. B
Marketing. Marketing is the an organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing customer relationships in ways that
benefit the organization and its stakeholders. Promotion is the part of marketing which allows sellers to
communicate the benefits of their products to buyers; therefore, promotion is often thought to be at the
heart of marketing. Advertising is a promotional tool. Selling and pricing are marketing functions.
SOURCE: PR:001
SOURCE: PR LAP 2—Promotion
78. A
New products and services. The overall goal of promotion is to inform, persuade, and remind. In the
travel and tourism industry, promotion is often intended to inform customers about new travel products
and services. By informing potential customers, the industry is building awareness during the early
stages of the buying process. If customers have been adequately informed, future promotions might
persuade them to buy or remind them of positive experiences that will encourage them to buy again. The
travel and tourism industry often uses contests, sweepstakes, advertising campaigns, publicity, and
public relations as promotional tools.
SOURCE: PR:121
SOURCE: Morrison, A.M. (2002). Hospitality and travel marketing (3rd ed.) [pp. 373-374]. Albany, NY:
79. A
Publicity, sales promotion, and personal selling. The successful marketer carefully blends all of these
elements to achieve the best possible results. Public relations includes all of a company's efforts to
create a favorable public image. Distribution involves moving, storing, locating, and/or transferring
ownership of goods and services. Pricing is determining and adjusting prices to maximize return and
meet customers' perceptions of value.
SOURCE: PR:003
SOURCE: PR LAP 1—Promotional Mix
80. B
Interactive. One of the advantages of using the new communication technology to promote products is
that it is interactive, thereby, allowing airlines to deal directly with consumers. Many airlines use the
technology to create web sites that contain features that allow users to provide comments or ask
questions. Other businesses use advertising kiosks that provide information or print coupons for
customers at the touch of a finger. Other types of interactive communication include CD-ROMs and
online magazines. Disadvantages of the new communication technology are that it is not standardized, is
unregulated, and is expensive.
SOURCE: PR:100
SOURCE: Arens, W.F. (1999). Contemporary advertising (7th ed.) [pp. 518-525]. Boston:
Irwin/McGraw-Hill.
81. C
Interactive screen. Kiosks that employ the latest technology feature interactive screens in which the user
touches words or graphics to access the information they seek. Short messaging service (SMS) allows
people to send text messages over their cell phones. Because kiosks are located in noisy, public places,
a voice-response feature in which the user talks into the system to access information is not practical.
Cutting-edge kiosks are computerized, thereby eliminating the need to hire a customer-service
representative to answer questions and to give out information.
SOURCE: PR:007
SOURCE: PR LAP 3—Ad-quipping Your Business
82. B
Personalized. Advanced computer technology and state-of-the-art printing systems enable travel and
tourism businesses to produce direct-response advertising that is personalized and addresses a
customer by name. Many direct-response pieces, such as catalogs and coupons, are printed with the
customer's name and specifically address that customer. The advantage of using the customer's name is
that each customer feels that s/he is important to the business, which may encourage customers to
respond favorably. Advances in technology do not necessarily make it possible for businesses to produce
direct-response advertising that is competitive, understandable, or guaranteed.
SOURCE: PR:089
SOURCE: Russell, J.T., & Lane, W.R. (1999). Kleppner's advertising procedure (14th ed.)
[pp. 354-355]. Upper Saddle River, NJ: Prentice Hall.
83. C
Securely fastened in place. Making sure that decorations are securely fastened in place is necessary so
that the decorations will remain effective and to prevent any part of them from falling or creating a safety
problem. The effectiveness of the decorations cannot be judged until they have been in place for a period
of time. The way in which the decorations are to be arranged should be decided in advance so that time
is not wasted in trying out different arrangements to get the best effect. It is not necessary to get the
approval of the sales staff.
SOURCE: PR:068
SOURCE: Diamond, J., & Diamond, E. (1999). Contemporary visual merchandising (pp. 12-13).
Upper Saddle River, NJ: Prentice Hall.
84. B
Analyzing the theme park's situation. Before the theme park can determine what its promotional needs
are, it must conduct a situation analysis that determines the park's current status. When the analysis is
complete, the park can determine its future goals and promotional objectives based on the firm's
marketing objectives and choose a promotional mix that will achieve those goals and objectives.
Evaluating promotions cannot be done until the promotions have been used.
SOURCE: PR:073
SOURCE: Semenik, R.J. (2002). Promotion and integrated marketing communications (pp. 67-76).
85. C
Help customers determine needs. Car-rental agencies that provide opportunities for two-way
communication between customers and salespeople are enabling customers to receive help with their
buying decisions. The company wants to help the customer to find the product that best fits his/her
needs. Car-rental agencies affect employment levels by increasing or decreasing their hiring. Companies
can conduct market research or offer credit without a toll-free telephone line.
SOURCE: SE:017
SOURCE: SE LAP 117—Selling
86. D
From customers. Satisfied customers are usually quite willing to share their product information and
experiences. Manufacturers, sales training courses, sales manuals, bulletins, sales meetings,
promotional materials, the product itself, company contacts, and publications are also sources of product
information. Competitors do not usually share information with one another.
SOURCE: SE:062
SOURCE: Manning, G.L., & Reece, B.L. (1998). Selling today: Building quality partnerships (p. 108).
87. A
Miami. Miami is a major embarkation point for cruise ships, particularly to the Bahamas. Norfolk is a
major naval port. Chicago is a major industrial port on the Great Lakes. San Juan is also a major port city
but is not located in the U.S.
SOURCE: SE:207
SOURCE: Todd, G., & Rice, S. (2002). Travel perspectives: A guide to becoming a travel professional
(3rd ed.) [pp. 244-247]. Albany, NY: Delmar/Thomson Learning.
88. A
So that the salesperson will have the ability to tailor sales presentations to individual customers. In order
for salespeople to be effective, they must be able to determine the needs and wants of their customers
and match the features and benefits of the travel product to those needs and wants. Salespeople would
be unable to do this if they were uninformed about the travel product. Although travel product information
is available to consumers, they often count on salespeople to act as their experts. Jargon usually should
not be used in sales presentations, especially if the customer is not very familiar with the product.
Product information is not used in place of a sales presentation, but rather as an aid to make the
presentation better.
SOURCE: SE:109
SOURCE: SE LAP 113—Feature-Benefit Selling
89. C
Opening. The opening of the sales process is also called the approach—it is the point when the customer
and the travel agent first communicate. The presentation occurs when the travel agent shows the
customer the benefits of the travel product's features. The close is the point in the selling process that the
customer makes a favorable buying decision. Overcoming objections is the travel agent's attempts to
reverse a customer's reason(s) not to buy.
SOURCE: SE:110
SOURCE: SE LAP 124—Opening the Industrial Sale
90. D
Ask questions. An important part of a tour operator's job is to determine a customer's needs by
questioning and listening to the customer. By doing this, the tour operator may learn that a travel product
of greater or lesser value might meet the customer's needs better than the item originally requested.
Describing products and explaining discounts may help to close the sale. Reading brochures will help
tour operators to obtain product information.
SOURCE: SE:114
SOURCE: SE LAP 111—Using Substitute Selling
91. C
Hidden objection. For a number of different reasons, some customers prefer not to discuss some specific
objections with the salesperson. These hidden objections may be embarrassing. The salesperson, using
appropriate discretion, must determine the nature of the hidden objection and then answer it as s/he
would in dealing with any other objection. Excuses may be used to disguise a hidden objection, but
excuses are not legitimate objections themselves. A conflict of needs is not considered either an
objection or an excuse, although such a conflict may be the cause of an objection. A complaint is a
customer's expression of dissatisfaction.
SOURCE: SE:874
SOURCE: SE LAP 100—Converting Objections
92. B
After the customer has made the original buying decision. Suggestion selling in a luggage shop is usually
done after the customer has made the original buying decision so that the customer will not be confused
by being presented too many products at one time. Customers might reject suggested items if the
suggestion is made after the original purchase is paid for because they do not want to spend the time
completing a new transaction. Suggestion selling should not occur before the salesperson has
determined what the customer is interested in buying.
SOURCE: SE:875
SOURCE: SE LAP 110—Using Suggestion Selling
93. D
Applications for an IDP are available at the American Automobile Association. AAA, however, is only one
of the institutions that issues international driver permits. Most countries do not require that a foreign
traveler have an IDP. An IDP translates the legal driver's license and is a form of security and courtesy if
an accident should occur in the foreign country. A written driving test is not required if the client has a
valid driver's license. The IDP does not replace or substitute for a valid driver's license; the client needs
to have a valid driver's license when driving in a foreign land.
SOURCE: SE:237
SOURCE: GroupSource Travel. (n.d.). International driver's license. Retrieved July 14, 2006, from
http://www.groupsource.com/idlp.htm
94. D
Make sure adequate front desk staff is scheduled during busy check-in times. Hotels generally have
established check-in times so that housekeeping can clean the rooms. Most hotels request that guests
check in and register mid-to-late afternoon. Especially when large convention groups are checking in,
guests may have to wait in long lines to register. By having more staff members to process registrations,
guest waiting time goes down. Staffing requirements are determined by anticipated registrations and
group size, not by limiting group size. Setting up video screens for guests may entertain the guests while
waiting but does not necessarily reduce waiting time. Many hotels now have self-check-in kiosks so the
guest does not have to register with a front desk clerk. To eliminate the kiosks, the guest needs to
register with the front desk clerk, which can increase waiting time rather than decrease it.
SOURCE: SE:227
SOURCE: Vallen, G.K., & Vallen, J.J. (2000). Check-in: Check-out (6th ed.) [pp. 240-242].
95. C
Make appropriate recommendations. Clients often rely on travel agents to recommend the type of trip or
vacation that will satisfy their needs. To do this, travel agents need to spend time with clients, ask
questions that will help identify what clients really want, and then recommend a few options that will
satisfy those wants. For example, a travel agent might recommend a cruise to a client who wants to visit
several locations but does not like to move from hotel to hotel. Making an appropriate recommendation
often leads to a successful sale. A travel agent should not ask specific questions about a client's financial
resources. Presenting many vacation options may confuse a client and make a sale more difficult. Travel
agents should never pressure clients to make decisions.
SOURCE: SE:242
SOURCE: Burke, J., & Resnick, B. (2000). Marketing & selling the travel product (2nd ed.)
[pp. 227-229]. Albany, NY: Delmar/Thomson Learning.
96. C
Safeguard cash. This method is a thorough and accurate way to make change and reduce errors in
handling cash payments. The opening cash fund consists of the coins and currency designated for the
register for a given day's business. A typical cash drawer arrangement has bills in the back and change
in the front. Tallying sales involves accounting for the day's sales and money.
SOURCE: SE:150
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)
[pp. 276-277]. Woodland Hills, CA: Glencoe/McGraw-Hill.
97. D
Master. A master account is often established by a travel, tourism, or hospitality business when the client
is a group of people or an organization. Entertainment and facility rental fees are examples of charges
that might be billed to a master account. The tour organization pays all charges on the master account,
while group members pay for individual charges such as the cost of souvenirs. Exclusive, internal, and
remote are not terms widely used to describe the account billing process for groups in the travel and
tourism industry.
SOURCE: SE:275
SOURCE: Vallen, G.K., & Vallen, J.J. (2000). Check-in: Check-out (6th ed.) [pp. 404-405].
98. A
Evaluating salespeople. Sales managers for airline supply businesses are primarily responsible for
directing the efforts of salespeople. One aspect of directing involves evaluating the performance of
salespeople. Sales managers routinely monitor what salespeople do in order to assist them in selling. If
they observe unsatisfactory performance, they often provide additional training or other help. Sales
managers also evaluate salespeople in order to reward them for excellent performance. These
evaluations are often used as a basis for monetary compensation. Salespeople are responsible for
making sales calls, prospecting for customers, and scheduling appointments, although they may receive
assistance in these areas from their sales manager.
SOURCE: SE:079
SOURCE: Churchill, G.A., Ford, N.M., Walker, O.C., Johnston, M.W., & Tanner, J.F. (2000). Sales force
management (6th ed.) [pp. 10-11]. Boston: Irwin/McGraw-Hill.
99. A
Strategic planning. Strategic planning is long-range planning (three to five years) for the company as a
whole. Strategic planning is one of the major responsibilities for top-level managers. Tactical planning is
short-range planning (one year) and is usually the responsibility of middle management. Day-t o-day
planning is the responsibility of first-line, or supervisory, management.
SOURCE: SM:001
SOURCE: BA LAP 6—Manage This!
100. B
Business plan. A business plan is the written document that is developed before starting a travel agency.
It explains the goals and objectives of the company and how the company intends to achieve those
goals. Developing a business plan helps the travel agency to be organized, understand the risks it might
face, and develop strategies to overcome possible problems. A corporate report and an annual report are
documents prepared to explain how a travel agency is doing. They are often prepared for investors. A
management plan explains the organization of a travel agency.
SOURCE: SM:007
[p. 115]. Cincinnati: South-Western.

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Travel and Tourism

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