Test 939 TRAVEL AND TOURISM MARKETING 9
1. Which of the following is one of the responsibilities of government in the travel and tourism industry:
A. To regulate and control transportation C. To hire and train tour operators
B. To develop regional destinations D. To interpret emergency procedures
2. One of the characteristics of the form of business ownership known as an LLC is that
A. it is required to have at least three owners (members).
B. the owners' personal property cannot be taken to pay the business's debts.
C. the IRS collects taxes based on the LLC's gross income.
D. this kind of business can last indefinitely.
3. Which of the following is an activity covered by environmental regulations that affects travel and tourism businesses:
A. Counseling substance abusers C. Adapting to worker safety
B. Identifying natural resources D. Disposing of hazardous waste
4. Which of the following businesses would be most likely to have its own distribution center:
A. Local travel agency C. Specialty shop
B. Museum restaurant D. Chain store
5. In the travel and tourism industry, one aspect of coordinating distribution with the marketing function of pricing involves
A. developing pricing rules. C. earning high profits.
B. achieving publicity goals. D. setting appropriate prices.
6. A producer may choose to use multiple distribution channels rather than a single distribution channel for all of the following reasons except to
A. market unrelated products. C. reach multiple target markets.
B. avoid dependence on a single channel. D. create channel conflict.
7. Which of the following is an intermediary factor to consider when selecting an intermediary in the travel and tourism industry:
A. Services provided C. Location of the product's market
B. Size of the product D. Number of potential customers
8. Why is it important for tour wholesalers to include logical evidence in a persuasive letter?
A. To explain the idea in strong language C. To make the message more convincing
B. To present interesting information D. To force the recipient to respond
9. What type of information should a travel agent include when writing a sales proposal to send to a client?
A. Shipping and receiving C. Pricing and accounting
B. Features and benefits D. Laws and regulations
10. What should a travel agent advise a client to do when applying for a first passport?
A. Allow less than 48 hours to process the passport
B. Obtain two duplicate photos in the specified size
C. Advise that the agency can issue the passport
D. Provide a driver's license for proof of citizenship
11. "The customer is ALWAYS right" is a philosophy many travel and tourism businesses try to follow in order to
A. help employees handle selling objections. C. make employees' jobs easier.
B. prevent any conflict with customers/clients. D. create positive customer/client relations.
12. Why should travel agents possess adequate product knowledge in order to handle clients' inquiries?
A. To organize supplies C. To plan effectively
B. To sell successfully D. To develop promotions
13. The first step in handling customer complaints is to
A. call the manager for assistance. C. ask the customer to be brief.
B. let the customer explain the problem. D. make a record of all the facts.
14. Economic goods differ from economic services in that economic goods are
A. scarce. C. tangible.
B. wanted. D. valuable.
15. Financial analysis occurs when a tour company
A. keeps accurate expense records. C. plans for long-term success.
B. communicates with potential customers. D. effectively retrieves data.
16. Travel and tourism businesses often are able to recover any losses caused by pure risks by purchasing
A. insurance. C. warranties.
B. security systems. D. safety devices.
17. A characteristic of an oligopoly is that travel and tourism businesses operating in this type of a market are greatly influenced by the
A. controls of government. C. actions of competitors.
B. availability of resources. D. lack of technology.
18. Unemployment hurts the economy because unemployed people are unable to contribute to the
A. balance of payments. C. annual federal deficit.
B. gross domestic product. D. standard of living.
19. The U.S. produces widgets faster and cheaper than Switzerland. In this example, the U.S. has a(n) ______advantage.
A. predictable C. constructive
B. comparative D. absolute
20. If Megan, an employee of the Star Cruise Lines, wants to lead change in her work environment, she must have the ability to
A. perform all types of tasks. C. make friends with managers.
B. ask a variety of questions. D. guide or direct others.
21. Which of the following is a factor that might prevent travel agents from developing cultural sensitivity:
A. Ethics C. Stereotypes
B. Demographics D. Principles
22. A characteristic of authoritarian managers is that they
A. provide only general guidance. C. tend to share authority.
B. ask employees for feedback. D. make all significant decisions.
23. Which of the following is a basic form of recognition that can be used often by a tour wholesaler:
A. Having a banquet C. Awarding prizes
B. Saying thank you D. Conducting a contest
24. Why is it important for tour operators to assess customers' special needs?
A. To prevent unexpected illness C. To make the tour accessible
B. To be prepared for accidents D. To schedule airline departures
25. Traci is going to apply for a loan at a local bank so that she can purchase business equipment for her travel agency. For which of the following credit accounts will Traci be applying:
A. Budget C. Installment
B. Revolving D. Unsecured
26. Developing a personal budget is an effective way to
A. pay bills. C. calculate assets.
B. manage money. D. increase debt.
27. What type of security measures are often unique to cruise ships?
A. Surveillance cameras C. Fireproof safes
B. High-quality locks D. Sprinkler systems
28. A tour operator preparing to apply for an increased line of credit with a local bank probably would ask the accounting department to compile a
A. marketing-information report. C. truth-in-lending plan.
B. profit-and-loss statement. D. capital-goods analysis.
29. What type of ratio is used to measure the ability of a travel agency to turn assets into cash?
A. Liability C. Activity
B. Profitability D. Liquidity
30. The tour wholesaler's revenue and expense figures from the previous year are used in developing a new
A. operating budget. C. accounting system.
B. marketing plan. D. loan application form.
31. Which of the following is an example of a convention center hotel balancing daily posting transactions:
A. Preparing bank account deposit slips
B. Calculating value of guests' advance payments
C. Verifying guests' purchases of refreshments
D. Maintaining records of taxable purchases
32. When booking airline tickets, hotel accommodations, and car rentals for clients, travel agents usually ______before travel begins.
A. run credit-check reports C. identify possible refunds
B. transfer payments to the suppliers D. determine the amount of profit
33. Airlines often verify the information provided on job applications and résumés by
A. conducting background checks. C. interviewing former coworkers.
B. questioning the applicants. D. hiring private investigators.
34. Calculate an airline's employee turnover rate if the average number of employees last year was 500, and the business hired 60 new employees to replace those that left during the year.
A. 15% C. 12%
B. 10% D. 16%
35. Why do cruise lines maintain information about their employees' deductions for health coverage, pension plan, and stock options?
A. To keep track of income from interest C. To borrow funds to cover costs
B. To calculate employees' financial status D. To verify employees' contributions
36. One of the ways in which managing diversity contributes to a cruise line's success is that the cruise line will be able to
A. reduce its productivity levels. C. create a homogeneous workforce.
B. attract and to retain talented workers. D. make managers' jobs easier for them.
37. One of the reasons why travel agencies assess employee performance on a regular basis is to provide the employee with
A. health and safety training. C. outplacement services.
B. information about new benefits. D. constructive ideas for improvement.
38. Which of the following is a type of external marketing information that helps tour wholesalers make decisions:
A. Purchasing records C. Customer databases
B. Demographic trends D. Sales predictions
39. A marketing-information management system can help tour companies to
A. practice good business ethics. C. motivate employees.
B. discover employee potential. D. discover new markets.
40. So a travel agency can retrieve current customer and internal marketing information from a central location, it may use which of the following technological tools:
A. A database C. Opt-in e-mail
B. Presentation software D. A CAD program
41. How might a travel or tourism business use the information in salespeople's lost-business reports that indicates that customers are dissatisfied with the business's credit policies and service?
A. To revise its marketing strategy C. To identify its target market
B. To change its operating goals D. To update its promotional techniques
42. A travel agency manager wanting to forecast markets for his/her company for the coming year will take into account last year's travel volume and travel expenditures, as well as
A. places last year's clients visited.
B. current social and economic factors.
C. places friends say they want to visit.
D. sites the manager will be visiting during the coming year.
43. A tourist destination that sends discount coupons to potential customers is using the ______function of marketing.
A. selling C. promotion
B. financing D. product/service management
44. What do travel agencies develop in order to set aside the funds needed to cover the cost of performing marketing activities?
A. Financial statement C. Marketing budget
B. Accounting system D. Cash-flow report
45. In the travel and tourism industry, market segmentation is about dividing the market into ______groups.
A. general C. specific
B. identical D. diverse
46. Marketing planning for the overall business for a period of several years usually provides ______for the airline.
A. departmental budgets C. policies and procedures
B. long-term direction D. regional management
47. Which of the following is one of the main components of a tour wholesaler's marketing plan:
A. Regulations C. Strategy
B. Technology D. Competitors
48. One reason it is important for airlines to consider market potential when conducting a market analysis is because market potential indicates the
A. number of consumers in an area. C. total possible demand for a product.
B. expected annual sales volume. D. competitors selling the same product.
49. As a result of reviewing competitors' promotional activities while conducting a competitive analysis, a tour business might decide to
A. implement similar activities. C. revise pricing strategies.
B. eliminate all advertising. D. provide additional sales training.
50. What might a cruise line decide to do if the information in its sales forecast predicts a drop in demand for the cruise line's services?
A. Reduce prices by 4% C. Increase output
B. Decrease advertising budget D. Recruit 50 new employees
51. To reach their goal, travel and tourism marketers plan the route they believe to be
A. easy. C. straight.
B. reasonable. D. efficient.
52. Analyzing whether the tour wholesaler is making an acceptable profit on the sale of its tour packages is one way to evaluate its
A. capital resources. C. marketing plan.
B. inventory level. D. accounting department.
53. A current issue in the travel and tourism industry concerns developing facilities that are
A. sensitive to the environment. C. located in populated areas.
B. supported by government funding. D. appealing to all market segments.
54. Which of the following is an economic factor that travel and tourism businesses might identify as a result of conducting an environmental scan:
A. Population shift C. Unemployment rate
B. Increased regulation D. Lifestyle adjustment
55. Which of the following is a procedure that a tour operator might use when handling emergency situations such as natural disasters:
A. Protect private property C. Assist with evacuation
B. Provide medical advice D. Activate alarm system
56. When reordering supplies, travel agencies must compare the financial impact of storing the items against the
A. interest rates. C. fixed expenses.
B. selling price. D. ordering costs.
57. A project manager persuading group members to reach an agreement about how to carry out a project is an example of
A. negotiation. C. organization.
B. leadership. D. communication.
58. Cruise-line employees who are courteous, exhibit good human-relations skills, and communicate clearly may be able to reduce expenses in the ______area of the business.
A. planning C. bookkeeping
B. customer-service D. payroll
59. A small tour business has developed an expense-control plan specifying that payroll can be no more than 15% of sales. If sales are $60,000, how much can the business spend on payroll?
A. $9,000 C. $12,000
B. $6,000 D. $15,000
60. The most effective way to dust a travel agency that has 7-foot shelves, waist-high counters, and floor-level displays would be to dust
A. from the top shelf down toward the floor.
B. after rearranging everything on the shelves.
C. with a stiff, untreated cloth.
D. from the floor up toward the top shelf.
61. Logical thinkers will probably choose the ______method for problem solving.
A. appreciative inquiry C. intuitive
B. seven-step D. brainstorming
62. To allow your ideas to flow freely when trying to be creative, you should avoid being
A. curious. C. determined.
B. independent. D. self-critical.
63. Kevin is interested in a career in the travel and tourism industry. He visited three local businesses to obtain industry information and make important contacts. What career search tool did Kevin use?
A. Informational interview C. Industry analysis
B. Occupational review D. Employment interview
64. Which of the following professional organizations would a business in the travel and tourism industry be most likely to join:
A. National Tour Association
B. International Trade Administration
C. Information Technology Association of America
D. International Aircraft Mechanics Organization