Deck 10: Marketing Intelligence and Research

Question 1

Markets rarely appear on their own out of nowhere; most of the time they are taken from competitors.

Answer 1

True

Question 2

When new products or services are created to better meet customer needs, the competitive environment changes.

Answer 2

True

Question 3

The two broad forms of competition are macro industry competition and micro product class competition.

Answer 3

True

Question 4

Some consider REVPAC to be a major measurement tool of the future.

Question 5

Competition has become more oriented to value in relation to cost and service as knowledgeable buyers expect similar price and product and service features.

Question 6

Firms that concentrate on the concept rather than the customer and the competition when designing their product or service have "conceptitis."

Question 7

When the needs of the market are similar, the intensity of competition is much greater as many entries in the market are competing for the same customer.

Question 8

A firm's product/service concept development should precede analysis and choice of product/service competition.

Question 9

There are almost no changes in the competitive environment as an industry reaches the maturity stage of its life cycle.

Question 10

Opportunity solutions, to be effective, are multi-faceted and complex.

Question 11

Competitive intelligence is knowing the enemy and what they are doing as well as their intentions, strengths and weaknesses.

Question 12

Homogeneity of the market is one factor that can contribute to competitive intensity.

Question 13

Services that can be easily duplicated offer only short-term advantage when you have aggressive competitors.

Question 14

Michael Porter designed a framework of seven forces that shape competition within an industry.

Question 15

Market share is not useful in telling a firm how it is doing in relationship to the competition.

Question 16

In general, competitive intensity is somewhat low in the hospitality industry.

Question 17

Any business that competes for the same customers in the same product class at the same point in time is known as macro competition.

Question 18

.It is a marketing truism that all opportunities are competitive advantages.

Question 19

The competitive intensity in a marketplace is the fierceness with which competing companies do battle with each other

Question 20

"Scale economies" is one of many factors that can contribute to competitive intensity.

Question 21

What are Porter's Five Forces?

A) Risk of entry, bargaining power of suppliers, rivalry among established firms, threat of substitute products, bargaining power of buyers
B) Passive, Offensive, Defensive, Simple and Complex
C) Social Environment, Political Environment, Regulatory Environment, Technological Environment, Economic Environment
D) None of the above

Question 22

The "amenity wars" between hotels in the early 1980s was a clear example of:

A) Microcompetition
B) The threat of substitute products
C) A competitive advantage
D) Competitive intensity

Question 23

REVPAC is:

A) Revenue Per Available Competitor
B) Measuring total yield per available customer
C) Revenue Per Available Customer
D) B and C
E) None of the above

Question 24

The bargaining powers of suppliers and buyers are:

A) Able to force prices up or down
B) A threat to the economy
C) A force with little effect
D) All of the above
E) Both A & B

Question 25

Which changes have impacted the hospitality industry?

A) New products, new services, new applications are harder to come by
B) Substitute products become more prevalent
C) Firms are selling experiences; repeat buyers are making choices from known alternatives
D) All of the above
E) None of the above

Question 26

A sustainable competitive advantage happens only when:

A) Both the difference in important attributes and the capability gap can endure over time.
B) Customers perceive a constant difference in important attributes between one firm or property and its competition.
C) The difference is the result of a capability gap between the firm and its competitors
D) All of the above

Question 27

Smith Travel Research, Travel Click and The Daily Bench are all internet websites that provide:

A) Software that can be purchased by individual companies in order to track their daily figures such as market share
B) Ways for organizations to anonymously post questions to discussion boards about competitive intelligence
C) The only current available resources for calculating the yield index
D) Daily reports that track competitive information such as market share

Question 28

Environmental scanning means looking for new threats, which are the other side of:

A) Forces
B) Opportunities
C) Rivalry
D) Potential competitors

Question 29

Porter suggests three strategies for beating the competition, which are:

A) Defense, counter attack, offense
B) Positioning, influencing, and exploiting
C) Defense, offense, passive resistance
D) All of the above
E) None of the above

Question 30

To gain competitive intelligence, a firm could:

A) Talk directly to the competition
B) Explore public information, such as trade press and annual reports
C) Visit or use the competitor's product
D) All of the above

Question 31

When does a sustainable competitive advantage occur?

A) Both the difference in important attributes and the capability gap can endure over time
B) Customers perceive a consistent difference in important attributes between one firm or property and its competition
C) The difference is the result of a capability gap between the firm and its competitors
D) All of the above

Question 32

Competitive intelligence means:

A) CIA (Competitive Intelligence Analysis)
B) Know your firm's "enemies" and their weaknesses, which may become your opportunities
C) Thinking about the competition with only the "smart" managers
D) Nothing; it does not exist

Question 33

How does a firm compete?

A) Ask customers what business they would choose if they had not chosen your business
B) Find the products you would like to duplicate
C) Deliberately choose with whom you want, and can, compete
D) Both A & C

Question 34

As many entries into a market are competing for the same customer, competitive advantages can become ones if sustained.

A) Small; large
B) Outside; inside
C) Large; small
D) Inside; outside

Question 35

Where is REVPAC primarily used?

A) Casinos
B) Resorts
C) Country clubs
D) Small B&B inns
E) Both A & B

Question 36

What are the three main barriers to entry?

A) Fear of competition, brand loyalty, demand conditions
B) Brand loyalty, absolute cost advantages, economies of scale
C) Lack of opportunity, cost advantages, economies of scale
D) None of the above

Question 37

What does REVPOR stand for?

A) Revenue per Outstanding Room
B) Revenue per Occupied Room
C) Revenue per Optional Reason
D) None of the above

Question 38

Market share, including actual and fair, are examples of:

A) Measurable differences of the competitive set outside of your firm
B) Measurable differences when comparing products within your firm
C) Measurable differences when comparing your business to that of a competitor
D) None of the above

Question 39

What are the three different types of Competitive Intelligence?

A) Simple, Complex, and Offensive
B) Offensive, Defensive, Passive
C) Defensive, Offensive, Complex
D) Simple, Complex, Passive

Question 40

One drawback in an effort to gain competitive advantage in an industry with high competitive intensity is that it may lead to:

A) Counter-strategies to protect the firm's own interest
B) Less than wise decisions
C) An edgy new tactic with superior results
D) Both A & B

Question 41

What are the five forces that impact marketing strategy? Provide an example of three of the five forces.

Question 42

All marketing opportunities begin with:

A) Identification and quantification of customers' problems
B) Knowledge of the competition
C) Knowledge of the competitive set
D) Closing the gap for the customer between expectation and reality
E) Both A & D

Question 43

CSI stands for:

A) Customer Satisfaction Initiative
B) Customer Service Initiative
C) Customer Satisfaction Index
D) Customer Service Industry

Question 44

What is market share, fair share, actual market share, occupancy, REVPAR and yield index?

Question 45

and are two new market share calculations for restaurants.

A) RSQCM, REVPAS
B) RSQIN, REVPAS
C) RSQFT, REVPAS
D) None of the above

Question 46

REVPAR is calculated by dividing by .

A) Number of rooms available for sale; room revenue
B) Number of total rooms; room revenue
C) Room revenue; number of total rooms
D) Room revenue; number of rooms available for sale

Question 47

Competitive intelligence has the following major objective:

A) To help you develop our own strategies and tactics that may create a competitive advantage
B) To understand competitors' strategies and tactics used
C) To understand your position of comparative advantage and disadvantage
D) All of the above

Question 48

The main advantage of perceptual mapping is:

A) The conversion of customers' perceptions into scales
B) The use of competitive intelligence
C) The visual display to management of where to focus their attention to better serve the customer
D) To perceive the management issues as seen through management's eyes

Question 49

is the market share calculation most widely used in the hotel industry today.

A) REVPAC
B) REVPAR
C) REVPOR
D) Internet REVPAR

Question 50

The purpose of competitive analysis is to:

A) Overcome barriers to move ahead
B) Seek and increase competitive advantage if the firm is behind
C) Erect barriers to stay ahead
D) To sustain and increase competitive advantage if the firm is ahead
E) All of the above