Deck 18: Channels of Distribution: Bringing the Customer to the Product

Question 1

The philosophies of all hospitality franchising companies are typically the same.

Answer 1

False

Question 2

The channels available in the hospitality industry include, but are not limited to, hotel brands like Marriott International and Hilton Hotels and Resorts, franchises like Days Inn and Howard Johnson, reservations companies like Pegasus or Synexis or hotel representative companies like Utell and SRS.

Answer 2

True

Question 3

Representation firms work in sync with large hospitality firms under their marketing department.

Answer 3

False

Question 4

Distribution systems for hospitality products focus on bringing the customer to the product.

Question 5

A central reservation service is the same as GDS.

Question 6

Franchising is a commonly used method for a hospitality entity to increase its distribution network, both to create more revenue and to obtain geographic presence.

Question 7

Another term for representation firms is "soft brand."

Question 8

An example of disintermediation would be Southwest Airlines selling a seat on the internet.

Question 9

When it comes to manufactured goods, a retailer is an intermediary who buys or takes merchandise from the producer on consignment and sells it to the wholesaler.

Question 10

In today's world, companies that manufacture goods need to have either a wholesaler or broker to help distribute their product.

Question 11

Disintermediation is on a decline.

Question 12

There is a growing need in the hospitality industry to utilize distribution systems as never before.

Question 13

A representation firm would likely not be cost effective for a hotel company over establishing individual sales offices in feeder cities.

Question 14

Distribution advantages of a large brand or franchise might include an internationally recognized brand name and mass buying and bargaining power.

Question 15

One leading analyst group estimates that 30% of the Fortune 500 companies sell their products through distribution channels.

Question 16

The distribution system in the hospitality industry is similar to that of manufactured goods, in that the hospitality product is typically "moved" to the customer.

Question 17

Distribution channels are all channels available between the firm and end user that increase the probability of getting the end- user to purchase the product.

Question 18

A feeder city represents a geographic area from which business is derived, but where a company may or may not have a property of its own.

Question 19

Representation firms either operate on a retainer basis, are paid a fee when the group checks out, or some combination of the two.

Question 20

A strategic alliance is another form of distribution channel where hotel, restaurant and tourism companies form alliances with telephone, credit card or other companies that service distinctly different customers but with mutually beneficial objectives.

Question 21

Franchisees may elect to receive support from the franchisor, including:

A) Managerial techniques
B) Auditing
C) Technical knowledge
D) Both A & B
E) All of the above

Question 22

An example of a fully integrated hospitality firm is:

A) Starbucks
B) The tour company Noueles Frontieres of France
C) McDonald's
D) Friendly Ice Cream Corporation
E) All of the above

Question 23

In general, marketing integration is also known as:

A) Vertical marketing systems (VMS)
B) Circular marketing systems (CMS)
C) Diagonal marketing systems (DMS)
D) Horizontal marketing systems (HMS)

Question 24

The hospitality industry employs a different type of distribution system that is separated into two broad categories: distribution.

A) "Push" and "pull"
B) Geographic and virtual
C) Partial and full
D) Vertical and horizontal

Question 25

Territorial rights are:

A) What dogs claim to have in your backyard
B) What the franchisee might own in a 2- mile zone
C) Five- state area or an entire country, in which no other franchisee of the same product or service can operate.
D) Both B & C

Question 26

The table in the text pertaining to SAS International Hotels, a division of the Scandinavian Airline System (SAS), was an example of:

A) Franchise support
B) Strategic alliance
C) A distribution system
D) Re- flagging

Question 27

Nouvelles Frontieres (NF) of France is detailed in the text as a good example of:

A) A distribution failure
B) Countermediation
C) A fully integrated hospitality firm
D) None of the above

Question 28

Contracts between a franchisee and franchisor outline the terms of the relationship and should outline:

A) Marketing support
B) Ethics
C) Territorial rights
D) Both A & C
E) All of the above

Question 29

What is the purpose of the Hotel Asset Management Association (HAMA)?

A) To serve as a network
B) Improve asset management through education of members
C) Communicate to the hotel industry the concerns of ownership
D) All of the above

Question 30

Most customers differentiate between the corporate- owned and managed hotel or restaurant and that of a franchisee.

A) Can
B) Cannot

Question 31

Distribution channel systems include all of the following except:

A) Representation firms or "soft brands"
B) Brands
C) Franchises
D) Prospecting
E) Reservation services

Question 32

is the process where a major firm creates intermediaries as a way to compete with current intermediaries.

A) Clockwise mediation
B) Competitive mediation
C) Countermediation
D) Counter intermediary

Question 33

An example of code sharing and strategic alliance is:

A) University of Nevada as a Pepsi school
B) Duke University and Nike
C) When companies seek faster growth, geographical distribution and economies of scope
D) Both A & B
E) All of the above

Question 34

The distribution system for hospitality products from that of manufactured goods.

A) Does not differ
B) Differs significantly
C) Differs slightly

Question 35

In terms of geographic distribution systems, restaurants have one system that hotels cannot duplicate:

A) Sending the product to the customer
B) Using multiple franchises to increase brand awareness
C) Bringing the customer to the product
D) Inclusion in membership organizations

Question 36

Some advantages of the franchisee are:

A) Oversight of the quality control standards
B) The availability of assistance in training and managerial guidelines
C) Forming a specific image so that customers will recognize a company's name
D) All the above
E) None of the above

Question 37

Franchisees are used in the hospitality industry to:

A) Create more revenue
B) Obtain geographic presence
C) Increase the distribution network
D) Both A & C
E) All of the above

Question 38

Reservation services in the hospitality industry may include:

A) Hotel and brand representation services
B) A property management system
C) A central reservation system
D) Both A & B
E) All of the above

Question 39

The four types of business models that bring the hospitality product to the customer include:

A) A franchisee
B) A franchisor
C) Both A & B
D) Neither A nor B

Question 40

are usually former hoteliers that are hired by the owner of the facility to oversee the management company that runs the property.

A) "Management managers"
B) "Procurement managers"
C) "Asset managers"
D) "Process managers"

Question 41

Safeguards in the franchise industry are support services, which may include all of the following except:

A) Safety regulations
B) Insurance issues
C) Ethics
D) Legal matters

Question 42

"Reflagging" is changing the of a hotel.

A) Brand
B) Front door
C) Lobby entrance
D) Front décor

Question 43

Hamburger University was included in the text as an example of:

A) Management training as a part of franchise support
B) A creative marketing slogan
C) Technical knowledge as a part of franchise support
D) The vast network of franchisees at McDonald's

Question 44

For hotels, one of the most important reasons for franchising has become:

A) Employee stability
B) Management stability
C) Access to reservations networks
D) Financial stability

Question 45

Discuss the main differences between distribution channels in the hospitality industry versus the
goods- producing industry. List and define the main distribution channel attributes as discussed in the text.

Question 46

The future of franchising includes:

A) Providing franchisees with greater financial backing
B) Providing franchisees with more services
C) Providing franchisees with fewer services
D) Providing franchisees with less financial backing

Question 47

is more difficult when a firm manages and owns all of its facilities.

A) A common set of beliefs
B) A core culture
C) Consolidation
D) Expansion

Question 48

You are trying to decide if you should purchase another franchise restaurant. What questions would you ask yourself? What questions would you ask the franchisor?

Question 49

provides the brand name with the best integrity from a product delivery point of view.

A) Management and ownership
B) Franchising
C) Management without ownership
D) Ownership without management

Question 50

Across the industry, hospitality companies have philosophies of franchising.

A) Negative
B) Different
C) Indifferent
D) Similar

Question 51

Territorial rights negotiated at the time of a franchisee/franchisor contract.

A) Are not
B) Are

Question 52

The text example about SAS International Hotels entering into a marketing relationship with Swissotels is an example of:

A) A tactical alliance
B) A strategic pledge
C) A tactical pledge
D) A strategic alliance