Deck 19: Interactive Marketing: Internet and Database Marketing

Question 1

A good example of a channel of distribution is incentive houses.

Answer 1

True

Question 2

An incentive house is an agreement that is formed to make gains that would be beyond the resources of any one member.

Answer 2

False

Question 3

Airlines, collectively, are reported to change fares as many as 80,000 times a day.

Answer 3

True

Question 4

"Consortium" is a term that describes combining strengths of individual agencies to establish marketing and negotiating clout as a channel member.

Question 5

Surprisingly, the role of the travel agent has primarily remained the same, even with the advent of the internet.

Question 6

Tour operators and wholesalers do not form part of the Global distribution system.

Question 7

Incentive houses strictly handle incentive reward travel.

Question 8

Hotel products that are offered to travel agencies need to be uncomplicated to likely get the most bookings.

Question 9

Some travel agents can be reached by marketing to "agent only" websites.

Question 10

The central reservations system is only integrated with the Global Distribution system, not the Proper Management System.

Question 11

Consortia distribute hotel inventory at preferred rates to affiliated travel agencies.

Question 12

The central reservation system (CRS) function allows bookings from a 1-800 number.

Question 13

A familiarization trip, or "fam" trip, is a popular method used to expose the hotel product to intermediaries in the channel of distribution.

Question 14

Global distributions system is the same as GDS.

Question 15

In a typical conventional distribution system, the retailer carries few brands and never those of competing companies.

Question 16

Travel agencies can band together to form consortia, combining marketing and negotiating clout.

Question 17

Hotels have been known to get information to travel agents via the GDS system by advertising and text messaging.

Question 18

For upscale resorts and hotels, there is a stigma attached to being on an approved list of a major incentive house.

Question 19

An opaque hotel model allows a hotel to discount without letting its brand-loyal customers trade down to lower price points.

Question 20

The role of the travel agent is changing with the advent of the internet, but recent reports show that fewer agency locations were producing substantially more bookings than in prior years.

Question 21

GDS is a system that:

A) Connects the travel agent to the individual hotel
B) Is the same as a distribution service provider (DSP)
C) Stands for "Global download site"
D) Stands for "Global distribution system"
E) Both A & D

Question 22

Tour operators commonly do all of the following except:

A) Take possession of inventory in order to sell it to the public
B) Work through travel agent retailers
C) Do not need cooperation with channel members to be successful
D) Advertise in print media

Question 23

Good channel management:

A) Always flows "downstream"
B) Doesn't realistically exist most of the time
C) Always flows "upstream"
D) Requires flexibility and two-way communication

Question 24

When it comes to the selection of distribution channels, is better.

A) Longer
B) Shorter
C) Online
D) More profitable

Question 25

As the text example demonstrated, the hotel's estimated cost to book a room using different distribution channels:

A) Was low at the traditional travel agency
B) Was low at the branded website
C) Was low at the online travel agency
D) Was high at the branded website

Question 26

Galileo, Sabre, Amadeus and Woldspan are:

A) Large international travel agencies
B) Franchisor organizations
C) GDS systems
D) Elements of the same brand

Question 27

One of the challenges in online distribution is:

A) The rapid revolution of online systems
B) That the internet environment is very dynamic
C) The ability of customers to compare prices
D) Both B & C

Question 28

An incentive house is each of these except:

A) A company that specializes in strictly handling incentive reward travel
B) Desired because this type of travel is highly specialized and requires trip precision in order to meet the employees' expectations of a reward
C) An example of a channel of distribution
D) A concept that is becoming less popular among both large and small companies

Question 29

There are two major strategies for increasing usage of a product in a distribution channel: strategy and strategy.

A) Simple; complex
B) Vertical; horizontal
C) Traditional; internet
D) "Push"; "pull"

Question 30

Promotional tie-in strategies:

A) Might include couponing, for example
B) Might include marketing packages with airlines, for example
C) Are a way for the industry to expand its market base through intermediaries
D) Might include dining clubs, for example
E) All of the above

Question 31

According to the Hotwire private policy:

A) They can get information from the guest only when the guest shows up at the hotel
B) They do not need permission from the customer directly
C) They are allowed to get as much information about each customer online
D) All of the above
E) None of the above

Question 32

The rapid evolution of online distribution systems has led to a phenomenon never faced before in the hospitality industry: .

A) Complete transparency in pricing
B) Disproportionate lack of inventory
C) "Ad hoc" pricing
D) An increase in consumer frustration with the increase of technology

Question 33

Travel agencies now:

A) Create a direct link between the agency, hotels and airlines
B) Have more sophisticated database equipment
C) Like to advertise complicated hotel products which yield higher levels of booking
D) Both A & B
E) A, B & C

Question 34

In channel management, the entity with the control depends on:

A) The investment of the retailers
B) The quality of the producer of the product
C) The strength of the product being sold
D) The length of time invested in the channel

Question 35

It is clear from the figures in the text that both online agencies and websites will in importance.

A) Sharply increase and then level off
B) Decrease
C) Increase
D) Sharply increase and then significantly decrease

Question 36

Which of the following is not a part of the Hospitality Channel of Distribution?

A) Discount Brokers
B) Consortia
C) Incentive Houses
D) The internet
E) None of the above

Question 37

The two types of tour operators are:

A) "Ad hoc" and series tour operators
B) Wholesalers and tour brokers
C) Wholesalers and "ad hoc"
D) Tour brokers and show brokers

Question 38

The use of internet channels has caused traditional travel agency bookings to:

A) Increase drastically
B) Decrease slightly
C) Increase slightly
D) Decrease drastically

Question 39

Central reservation systems allow booking from .

A) A 1-800 number
B) A 1-900 number
C) An internet toll site
D) a toll-free telephone call
E) A or D

Question 40

Successful relationships among channels may depend on all of the following except:

A) Some "give and take" on the part of all channel members
B) Selecting channel partners and sticking with them regardless to avoid "channel jumping"
C) Parties involved gaining some value from the relationship
D) All agreements are put in writing and updated as market conditions change

Question 41

What are some of the important elements to keep in mind with channel management? Discuss these elements.

Question 42

The rapid evolution of online systems has led to an increase in the theory of buyer behavior,

A) "Let the buyer beware"
B) "Brand loyalty"
C) "Price loyalty"
D) "What comes around goes around"

Question 43

A 20 percent commission on all bookings made during a low-demand time is an example of:

A) Push strategy
B) Vertical strategy
C) Pull strategy
D) Horizontal strategy

Question 44

The hotel consolidator might follow:

A) An agency model strategy
B) The merchant model strategy
C) Both of the above
D) Neither of the above

Question 45

When it comes to the selection of distribution channels, is better.

A) Narrower
B) Wider
C) Shorter
D) Longer

Question 46

Evaluation of a channel:

A) Might include an assessment of customer satisfaction
B) Is usually cost prohibitive
C) Is critical to the continued success of any program
D) Both A & C

Question 47

Good channel management includes:

A) Good relationships from the start
B) Amended agreements as market conditions change
C) Agreements in writing
D) All of the above

Question 48

The rapid evolution of online systems has led to complete transparency in:

A) Management's practices
B) Distribution channels
C) Pricing
D) Employee morale

Question 49

The opaque approach to selling inventory:

A) Is a form of an agency model strategy
B) Is utilized by Hotwire.com and Priceline.com
C) Allows the hotel to discount without letting brand-loyal customers trade down in price
D) Both A & B
E) Both B & C

Question 50

International companies on distribution channels in foreign lands to help market their products.

A) Do not depend
B) Depend heavily
C) Depend completely
D) Depend lightly

Question 51

List and define four of the seven channels of distribution used in the hospitality industry that were discussed in the textbook.

Question 52

Each channel member must:

A) Serve only their best interest
B) Always seek the maximum profit
C) Be flexible at times
D) Derive value from the relationship
E) Both C & D