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2008 DECA Ontario ProvincialsTest 958A HOSPITALITY MANAGEMENT TEAM DECISION 1

HMDM and HLM

1. A form of business ownership in which the owners own shares of stock is known as aA. corporation. B. consolidation. C. partnership. D. proprietorship.

2. The fastest, most expensive form of transportation for products is provided byA. rail carriers. B. air carriers. C. pipelines. D. motor carriers.

3. Using coercive power in distribution channel relationships is illegal in the United States if itA. creates exclusive territories. C. controls arbitration.B. restricts competition. D. establishes contracts.

4. A hotel supply business taking back its used products and recycling or properly disposing of those products is an example of the ethical practice of __________ distribution.

A. reverse B. internal C. joint D. closed

5. Which of the following is a situation that might cause horizontal conflict between several channel members:A. An intermediary returns defective hospitality products for credit on future purchases. B. An intermediary sells directly to consumers. C. A manufacturer begins to sell hospitality products online. D. A manufacturer sells the same hospitality product to many competing businesses.

6. Which of the following is an example of a selective distribution strategy:A. Requiring a hotel supply business to carry all lines of a product B. Choosing two hotel supply businesses in an area to handle a product C. Using one trucking company to deliver a product D. Asking many hotel supply businesses to advertise a product

7. In oral presentations, a closing method used specifically for getting the audience to do something isA. using humor. C. making an appeal for action. B. using a quotation. D. making a comparison.

8. What part of a complex written report contains the methods for collecting data and the research techniques used?A. Outline B. Foreward C. Appendix D. Summary

9. Which of the following is a benefit of providing hotel employees with clear and precise instructions for completing job tasks:

A. Saves time B. Reduces output C. Stops rumors D. Improves feedback

10. Automated wake-up services provide efficient levels of customer service andA. provide the opportunity for hotel and restaurant promotion.B. eliminate the need for hotels to purchase alarm clocks.C. reduce the need for unnecessary call logs and reports.D. increase customer satisfaction with the hotel's overall service.

11. What do golf resort employees often obtain by solving guests' problems quickly and satisfactorily?A. Personal service C. Repeat business B. Individual priority D. Pleasant experience

12. Hotel chains develop policies to help employees deal with guests the same way in similar situations so that employees will

A. treat guests fairly. C. give personal favors.B. treat guests differently. D. offer special privileges.

13. In selling, an honestly felt dissatisfaction by a hotel gift shop customer should be considered as a(n)A. sincere complaint. C. attack on the salesperson.B. reason customers keep unwanted items. D. positive response.


14. Michelle logs in shipments when they arrive at the ski resort by indicating the name of the person who accepted the delivery, the date, time of day, vendor, method of shipment, and shipping charges. Michelle is completing a

A. receiving record. C. dummy invoice.B. shipping contract. D. delivery form.

15. One reason a hospitality business schedules supply deliveries during restricted hours is toA. ensure that all employees follow the FIFO procedures.B. eliminate the risk of receiving broken or damaged goods.C. reduce the need to check and verify each order as it arrives.D. maintain necessary space and equipment needs in the receiving area.

16. Items that hotel buffet servers should monitor and refill at a banquet beverage table areA. coffee, tea, and forks. C. tea, knives, and lemons. B. sugar, plates, and coffee. D. cups, cream, and spoons.

17. Which of the following lodging facilities is most likely to use mechanical locking systems and require employees to maintain guest key inventories:

A. Resort complex C. Convention hotelB. Full-service hotel D. Bed and breakfast

18. Equilibrium price of a hospitality good or service is determined by trial and error and exists whenA. research shows what the market will tolerate.B. the amount supplied is equal to the amount demanded.C. hospitality businesses total their costs and markup. D. hospitality businesses compute the average selling price in the area.

19. The money spent to run a motel is calledA. net profit. B. cost of goods. C. operating expense. D. gross profit.

20. Which of the following is used in the calculation of the gross domestic product:A. Land titles C. Net exports B. Projected expenses D. Intermediate products

21. What usually results when interest rates continue to increase?A. Production increases. C. Purchasing power increases. B. Spending decreases. D. Unemployment decreases.

22. When negotiating, it is important to monitor body language, speak respectfully, andA. plan message responses. C. make concessions. B. actively listen. D. avoid eye contact.

23. Which of the following can lead to increased stress and decreased productivity at work:A. Problem solving B. Yielding C. Negotiating D. Ignoring

24. Which of the following is a reason why people often resist change:A. Compliance B. Confidence C. Compassion D. Contentment

25. If you want to have effective human relations with others, can you be self-centered or selfish?A. Yes, this is the only way you can get ahead. C. No, you have to meet other people's expectations.B. No, you need to be helpful and willing to share. D. Yes, you must put yourself first all of the time.

26. Which hotel report indicates that there has been an overflow of business?A. Refusal report C. Revenue forecast reportB. Reservations transactions report D. Commission agent report

27. One of the reasons that motels offer credit to customers is that it helps the motels toA. obtain loans. B. charge interest. C. compare prices. D. be competitive.


28. One of the basic risks in marketing is the possibility of __________ loss.A. political B. financial C. impersonal D. promotional

29. If a hotel gift shop spends $200,000 in cost of goods sold and earns $250,000 in net sales, what is its percent of gross profit?

A. 10% B. 15% C. 18% D. 20%

30. Given the following information from a profit-and-loss statement, determine the gross margin percentage:

Net sales $80,000Net profit $5,000Cost of goods sold $45,000

A. 56 ¼ % B. 37 ½% C. 43 ¾ % D. 62 ½ %

31. If monthly food sales at a motel snack shop are $350.00 and food costs for the month totaled $237.59, the monthly gross profit or loss is

A. $112.41 loss. B. $587.59 loss. C. $112.41 profit. D. $587.59 profit.

32. One reason why hotel chains screen job applications before conducting interviews is to determine if the applicantsA. earned adequate yearly incomes. C. attended well-known educational institutions. B. have the proper attitudes. D. meet the minimum requirements.

33. Which of the following is a reason why a beach resort might fire an employee for cause:A. Employee complains about an internal problem. B. Employee consistently performs poorly on the job. C. Employee seriously violates resort policy.D. Employee appears to be unqualified for the position.

34. One good way to orient a new hotel worker to his/her job duties is for the supervisor and the employee to jointly review the

A. job description. C. worker's résumé. B. union requirements. D. personnel records.

35. Which of the following has resulted because many workers have entered the country illegally:A. The number of skilled workers has grown.B. The Social Security system is short of funds.C. Competition for entry-level jobs has increased.D. More lawsuits have been filed against businesses.

36. An internal source of secondary marketing information is the hospitality business'sA. nearest competitors. C. trade association.B. reports from government agencies. D. sales and budget figures.

37. Which of the following is an advantage of collecting primary data for a marketing research project:A. Primary data are the data most closely related to the project.B. Collecting primary data is inexpensive.C. The market researcher may influence the consumer's response.D. Primary data can be gathered quickly.

38. Why do sales managers develop group profiles, or summaries, for each convention booking at the hotel?A. To identify the level of service satisfaction during the conventionB. Because each group or organization has different needs and wantsC. So the hotel sales staff can develop appropriate promotional materialsD. To determine the amount of property tax that the group must pay for hotel services


39. The major activities that make up the marketing process areA. planning, pricing, promotion, and distribution.B. research, production, promotion, and consumption.C. manufacturing, promotion, distribution, and pricing.D. identification, production, distribution, and consumption.

40. Hospitality businesses should keep promises to customers in both personal interactions with employees andA. coworker interactions. C. advertising. B. newspaper articles. D. future products.

41. A hotel gift shop that decides to offer a markdown on its goods is engaged in the marketing function ofA. financing. C. selling. B. pricing. D. product/service management.

42. One way that both large and small hotel supply companies can benefit when they divide up their markets is through an increase in their

A. opportunities for promotion. C. access to consumers. B. production capabilities. D. efficient use of resources.

43. Which of the following is an effective objective that a hotel supply business might develop before proceeding with the marketing planning process to achieve the objective:

A. Reduce prices on seasonal products B. Hire more salespeople C. Develop advertising to appeal to a broad audience D. Increase sales this year by 10% over last year

44. In which phase of the product life cycle is a hospitality business most likely to experience a negative profit?A. Growth C. Introduction B. Decline D. Maturity

45. Which of the following is a possible external threat that a hotel chain might identify as a result of conducting a situational analysis during the marketing-planning process:

A. Downturn in the economy C. Contract with a new supplier B. Change in pricing structure D. Decrease in operating expense

46. A new customer moving into your area is a(n)A. strength. C. threat. B. opportunity. D. weakness.

47. One of the things that a sales forecast can help a hotel supply business do is toA. evaluate employees. C. schedule production.B. select an appropriate brand name. D. buy the right capital goods.

48. Which of the following is a measure that hospitality businesses take in order to control the implementation of activities required by the marketing plan:

A. Forecasting C. TrainingB. Scheduling D. Positioning

49. When a hotel chain evaluates the performance of its marketing plan, it mustA. determine market trends. C. develop an operating budget. B. identify its competitors. D. know its marketing objectives.

50. Which of the following is a characteristic of a hotel's call accounting system:A. Operator-assisted person-to-person telephone calls B. Automated telephone call placement and posting C. Direct telephone connection using a calling card D. Operator-assisted collect telephone calls


51. When authorizing a guest's payment by check, hospitality businesses often require employees toA. have the guest pay for check processing fees in advance.B. verify that the guest has endorsed the check after it is written.C. ask the guest to postdate the check by no more than thirty days.D. compare the signature on the check with the one on a form of photo identification.

52. Sales supervisors for resort gift shops turn off lights, lock doors, and check storage areas as part ofA. placing advertising. C. closing the store. B. warehousing merchandise. D. gathering intelligence on competitors.

53. Which of the following lodging facilities is most likely to offer shuttle service to the airport:A. Rural bed and breakfast C. Economy motelB. Full-service metropolitan hotel D. Extended-stay motor lodge

54. When handling various waste and chemical products, hotel employees can reduce the risk of contamination byA. sanitizing the products before handling them.B. wearing disposable gloves when handling the items.C. storing recyclables inside the facility.D. washing their hands before contact with the product.

55. One reason why it is important for hotel restaurants to sanitize food preparation equipment is toA. loosen dirt particles. C. reduce bacteria levels.B. rinse away soap residue. D. remove lime deposits.

56. What might a health inspector recommend to a resort restaurant that is establishing a pest control program?A. Store all food in tightly sealed containers C. Cover dirty dishes in the sink with towelsB. Use newspapers to store food leftovers D. Put food scraps in paper bags

57. Which of the following situations is an example of a hazard that affects safety in a hotel supply business:A. Secure locks on the building's exterior doors C. Wide aisles to accommodate foot traffic B. Proper lighting throughout the building D. Boxes stacked in front of a fire exit

58. The owner of the Bahama Resort Gift Shop noticed one of her customers switching price tickets on a lead crystal vase. This customer is carrying out

A. robbery. B. pilferage. C. fraud. D. shoplifting.

59. One reason why hotel supply businesses often evaluate their operating systems and procedures is to decide if they need to

A. eliminate competitors. C. fix prices. B. make adjustments. D. count inventory.

60. If a motel chain considers possible future problems during the process of developing a project plan, the chain might be able to

A. schedule employees. C. negotiate contracts. B. control costs. D. eliminate resources.

61. What amount is a hotel gift shop losing in a year if two employees give their friends the 20% employee discount on goods that sell for a total of $6,700?

A. $1,700 B. $2,680 C. $1,340 D. $2,250

62. With which of the following statements should you, as a salesperson for a ski resort gift shop, agree:A. My job includes keeping the sales area clean. C. My job is to sell and not to be a housekeeper.B. Displays will do the selling for me. D. Sorting merchandise into sizes is not my responsibility.

63. A problem can be described as aA. factor that affects your decision. C. feature that you do not desire. B. situation that you want to change. D. selection that fits your objective.


64. Hotel employees who are unable to manage their time effectively often experienceA. decreased tension. C. increased self-esteem.B. decreased pressure. D. increased stress.

65. Matt just received a letter telling him that someone else had been hired for a job for which Matt had been interviewed. Since Matt didn't get the job, does he need to write an interview follow-up letter to the company?

A. Yes, he should already have sent a follow-up letter.B. No, it's too late to send a follow-up letter.C. Yes, the company will be expecting to hear from him.D. No, since Matt wasn't hired, he doesn't need to write.

66. Hotel employees who work in back-of-house operations usually are responsible for providingA. support services. C. room service. B. food service. D. guest services.

67. Can a resort gift shop's prices be set too low?A. Yes, customers may be offended by prices that are too low.B. No, the lower the price, the greater the bargain.C. Yes, customers may feel product quality is also low.D. No, the lower the price, the greater the product's appeal.

68. The Robinson-Patman Act is a legal provision that protects buyers for hotel chains from the selling practice of A. market-penetration pricing. C. price discrimination. B. price segmentation. D. product-line pricing.

69. In which kind of market does more competition exist than in any other kind of market:A. Monopoly B. Oligopoly C. Pure competition D. Monopolistic competition

70. Which stage in the product life cycle uses advertising to persuade customers to try the hospitality product?A. Growth B. introduction C. DeclineD. Maturity

71. Which of the following is an example of a marketing objective that a hospitality business might include in its marketing plan:

A. Hire five new salespeople next month C. Achieve $2 million in sales next yearB. Increase advertising by 10 percent D. Maintain prices at a competitive level

72. During which stage of new-product development does a hotel supply business determine if it is practical to market a good or service?

A. Production B. Brainstorming C. Screening D. Consumption

73. Interviewing guests and conducting surveys to find out what guests might want in the future are processes that hotels create in order to

A. recognize opportunities. C. develop questionnaires. B. collect information. D. generate advertising.

74. Sorting goods into categories according to specifications is the process ofA. counting. B. grading. C. marketing. D. purchasing.

75. One of the customer benefits of warranties and guarantees is the right toA. free training. B. lower prices. C. legal recourse. D. personalized service.

76. A law office that sells legal services to the owners of a hotel chain might provide which of the following extra services to those clients:

A. Advocacy B. Counsel C. Advice D. Credit


77. What do large hotels or resorts often do to enhance their guests' experience during their stay at the facility?A. Offer discounted packages C. Sell related products B. Plan various activities D. Make dining reservations

78. When a golf resort pro shop charges high prices for luxury items, it is using a positioning strategy that emphasizesA. customer value. B. place utility. C. seasonal intensity. D. product quality.

79. Why do ski resort gift shops that sell high-technology ski equipment need to create pleasurable atmospheres in their stores?

A. Consumers are drawn into stores by the look and feel, but this does not have a clear impact on their buying behavior.

B. Stores want to win sought-after awards for their store atmospheres, which will also give them publicity. C. When consumers have a pleasurable experience, they will spend extra time and will often spend more money

than intended. D. Consumers are primarily thinking, not feeling, when they are shopping, so the atmosphere of the store should

reflect "thinking" themes.

80. Can any brand name be selected and used by a hotel chain?A. Yes, brand names cannot be owned by a chain. C. Yes, a chain can use any name it wants to use. B. No, the name must be legally available for use. D. No, the name must be registered before it can be used.

81. Which of the following is the right time for a hospitality business to make promotional decisions in relation to product, price, and distribution decisions:

A. Along with product, price, and distribution C. After product, price, and distribution B. Before product, price, and distribution D. Without considering product, price, and distribution

82. A local hotel supply business is informing customers about the company. This type of promotion is calledA. institutional. B. product. C. frequency. D. incentive.

83. Camari & David is a company that sells high-ticketed industrial goods such as technical equipment for large convention hotels. Which method of promotion would be most appropriate?

A. Publicity B. Sales promotion C. Personal selling D. Advertising

84. What is often one of the first steps in the process of dismantling displays in resort gift shops?A. Relocating background scenes C. Returning fixtures to storageB. Removing merchandise carefully D. Replacing burned out lights

85. When preparing a promotional plan, which of the following types of analysis would a motel chain use to obtain information about the competition:

A. Regional B. Internal C. Personal D. External

86. Which of the following is an example of coordinating promotional activities:A. A bed and breakfast places the same advertisement in magazines and newspapers. B. A manufacturer and a retailer share advertising costs.C. Charge customers are invited to a special sale.D. Hospitality products advertised on television are featured in a display.

87. Stimulating demand for hospitality products is one of the responsibilities of which of the following marketing functions:A. Financing B. Selling C. Distribution D. Risk management

88. The Motel One coffee shop ordered a new dishwasher, and it arrived damaged. The shop immediately called the salesperson and was reassured that a new dishwasher would be sent right away. What aspect of customer service does this situation illustrate?

A. Technical assistance and support C. Shipping and delivery B. Customer training D. Credit/Financing


89. Studies have shown that the main reason people do not become repeat customers of a hospitality business isA. merchandise overstocks. C. lack of courtesy from salespeople.B. complicated business policies. D. inappropriate operating hours.

90. Which of the following can cause a hotel gift shop's profits to decrease:A. The gift shop avoids incurring legal costs. B. A competitor speaks highly of the shop's goods. C. Customer purchases increase. D. A salesperson offers a discount to a friend.

91. If a hotel supply salesperson does not disclose important information about a product during the selling process, s/he may be violating

A. exclusive-dealing statutes. C. false-labeling policies. B. customer-service regulations. D. consumer-protection laws.

92. An effective way for a hotel supply salesperson to obtain product information to use in selling is byA. studying company stockholder reports. C. visiting the local library.B. reading company promotional materials. D. recording speeches by company executives.

93. What might an employee evaluate when preparing to provide a client with a tour of a lodging facility?A. Types of services needed and the cleanliness of high-traffic areasB. Transportation services and checkout policiesC. The average occupancy rate of the facility and size of meeting roomsD. Size of the sleeping rooms and the diversity of the restaurant menu

94. The resort gift shop salesperson who is of the most benefit to the customer and to the shop is the one who knows how to use

A. advertising. B. suggestion selling. C. the "gift of gab." D. high-pressure tactics.

95. During a group presentation, a salesperson says, "When you are using our product, it will help you to analyze problems in your convention hotel and create real solutions that you can use every day." The use of the words "you" and "your" indicate

A. introversion. B. hesitancy. C. ownership. D. incompetence.

96. When a large amount of cash has been collected at the motel coffee shop, it is smart to maintain an appropriate cash level by

A. exchanging the smaller bills for larger ones. C. being especially alert of strangers. B. looking for dropped cash on the floor. D. putting some of it away somewhere safe.

97. In what order are the property's expected arrivals reported?A. Numerically according to guests' estimated arrival timesB. Alphabetically according to reservation codesC. Numerically according to confirmation numbersD. Alphabetically according to guests' last names

98. Why is it important for hotel front desk staff to coordinate their selling efforts with housekeeping?A. So that the executive housekeeper can order appropriate levels of cleaning supplies for the dayB. So that the shift supervisor can determine which out-of-service rooms need maintenanceC. To help housekeeping to establish appropriate cleaning standards and policiesD. To prioritize rooms that need service so that early arrivals or walk-in guests are accommodated

99. Which of the following groups is responsible for overseeing all of a hotel chain's activities:A. Employees B. Stockholders C. Managers D. Creditors

100. Since Alana's hotel supply company will build a new facility next year, she wants to write a business plan toA. place a value on the business. C. prepare for an expansion. B. assess a new product or promotion. D. obtain a specific contract or agreement.

2008 DECA Ontario ProvincialsTest 958A HOSPITALITY MANAGEMENT TEAM DECISION

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101. A

Corporation. A corporation is owned by the people who have purchased shares of stock in the business. A partnership is a form of business ownership in which the business is owned by two or more people. A proprietorship is a business owned by one person. A consolidation is the joining of two or more companies to form a new company.

SOURCE: BL:003SOURCE: BA LAP 7—Own It Your Way

2. BAir carriers. Airlines provide the fastest, but most expensive, form of transportation for products. They are used for fragile, perishable, or emergency shipments. Pipelines are an inexpensive method of transporting liquids or gases. Rail carriers carry heavy, bulky goods for relatively low fees. Motor carriers are used for a wide variety of products. They are faster and more expensive than rail but slower and less expensive than air carriers.SOURCE: CM:001SOURCE: DS LAP 1—Distribution

3. BRestricts competition. The Sherman Act of 1890 and the Clayton Act of 1914 were drafted to prohibit monopolistic practices that encouraged anticompetitive activities. If coercive power is used to substantially reduce competition, it is in violation of federal or state antitrust laws. Exclusive territories are legal under certain circumstances. Arbitration and contracts are legal.SOURCE: CM:005SOURCE: Bearden, W.O., Ingram, T.N., LaForge, R.W. (2001). Marketing: Principles and

perspectives (3rd ed.) [pp. 38-39, 310-312]. New York: Irwin/McGraw-Hill.

4. AReverse. Reverse distribution involves customers returning used products to the manufacturer. This process allows businesses to retrieve products such as automobiles, refrigerators, and glass bottles in order to reuse them, recycle them, or properly dispose of them. Reverse distribution is considered ethical because it helps to save natural resources and protect the environment. Taking back used products and recycling or disposing of them is not an example of internal, joint, or closed distribution.SOURCE: CM:006SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 439-440].

Mason, OH: Thomson/South-Western.

5. DA manufacturer sells the same hospitality product to many competing businesses. Horizontal conflict occurs between businesses at the same level in the distribution channel. Competing businesses that sell the same hospitality product are on the same level. Conflict may occur between the competing businesses if a manufacturer sells the same product to all of them, and they are all trying to sell the product to customers. For example, hosiery is sold by drugstores, department stores, discount stores, mail-order businesses, etc. Some of these businesses might complain to the manufacturer that the others are using unfair sales tactics or offering more discounts. If this happens, these businesses are involved in horizontal conflict. An intermediary selling directly to consumers, or a manufacturer beginning to sell products online, might result in vertical conflict. An intermediary returning defective products for credit does not cause horizontal conflict.SOURCE: CM:008SOURCE: Boone, L.E., & Kurtz, D.L. (2002). Contemporary marketing (p. 402). Mason, OH:

South-Western.


11 6. B

Choosing two hotel supply businesses in an area to handle a product. A selective distribution strategy involves limiting the number of businesses that handle, or sell, a product. This type of strategy usually builds strong relationships between the manufacturer and the businesses that are chosen to sell a product. This strategy is often used to make a product stand out because it is only available from certain businesses. For example, an expensive product may be sold only by one or two high-end businesses in a certain area. Requiring a business to carry all lines of a product is an example of a tying agreement. A selective distribution strategy does not involve using one trucking company to deliver a product or asking many businesses to advertise a product. SOURCE: CM:009SOURCE: Boone, L.E., & Kurtz, D.L. (2002). Contemporary marketing (pp. 398-400). Mason, OH:

South-Western.

7. CMaking an appeal for action. If a speaker is trying to get an audience to do something, challenging them with an appeal for action is a good closing. Using a quotation, using humor, or making a comparison are also closing methods, but they do not ask the audience to do anything. SOURCE: CO:025SOURCE: QS LAP 9—Well Said!

8. DSummary. The summary of a complex report is intended to provide managers with a synopsis of the report's purpose, conclusions, and recommendations. The summary often includes information about how the research was conducted in order to support and validate the report's findings. The appendix contains supplementary material. The foreword is the preface. An outline is a preliminary draft.SOURCE: CO:009SOURCE: Leskiar, R.V., & Flatley, M.E. (2005). Basic business communication: Skills for

empowering the Internet generation (10th ed.) [pp. 351-356]. Boston: McGraw-Hill/Irwin.

9. ASaves time. An important benefit of providing hotel employees with clear and precise instructions is that they are able to save time doing the job. Employees who understand what they are expected to do are able to spend less time performing the job tasks. They do not waste time asking questions, trying to decide what to do, or redoing tasks. Giving clear instructions tends to increase output. The process of giving directions is unrelated to rumors and feedback.SOURCE: CO:139SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 184-

187). New York: Glencoe/McGraw-Hill.


1210. A

Provide the opportunity for hotel and restaurant promotion. Many large hotels have installed automated guest wake-up systems. By using an automated system, hotels often save money in terms of staffing the phones to make the calls. Many automated systems allow guests to program the call themselves. The system also prints out detailed reports of wake-up call activities (e.g., unanswered calls). Hotels can put promotional information on their wake-up call messages. For example, the hotel might record a message about the restaurant's breakfast buffet to encourage guests to eat in the hotel restaurant. Many deep-sleeping guests like to have a wake-up call in case they sleep through the alarm clock. Therefore, installing an automated wake-up service often reduces the need for alarm clocks but does not necessarily eliminate the need for them. In addition, some hotels do not have alarm clocks in each guest room. Reports are a very important part of the automated wake-up system. Reports can indicate which guests did not pick up when the wake-up call was transmitted, the times the calls were transmitted, and any follow-up calls that were placed when the original call was not answered. The reports are handy if an angry guest approaches a manager claiming that the wake-up call did not occur. The reports can indicate if there are problems with the service. Although automated wake-up services are usually reliable supplemental services, it is only one aspect of the guest's stay at the hotel. Therefore, overall satisfaction includes not only supplementary services but cleanliness, amenities, personal service, and other factors.SOURCE: CO:048SOURCE: Vallen, G.K., & Vallen, J.J. (2000). Check-in: Check-out (6th ed.) [pp. 480-481]. Upper

Saddle River, NJ: Prentice Hall.

11. CRepeat business. Golf resort employees who solve guests' problems quickly and satisfactorily often are able to obtain repeat business from those guests. Guests who are well treated will likely return to the resort, in spite of previous problems, because they know the employees will resolve whatever problems arise. Guests, not employees, obtain individual priority, personal service, and a pleasant experience when employees quickly handle problems and complaints.SOURCE: CR:004SOURCE: HR LAP 32—Customer-Service Mindset

12. ATreat guests fairly. Management establishes policies that help hotel chain employees to deal with guests in the same way for the same situation in order to be fair. Guests who are not treated fairly may take their business elsewhere. Hotel chains do not develop policies to treat guests differently, to offer special privileges, or to give personal favors.SOURCE: CR:007SOURCE: HR LAP 25—Interpreting Business Policies

13. ASincere complaint. A sincere complaint is the hotel gift shop customer's way of saying that something is wrong with a good or service s/he purchased. A complaint should not be viewed as a personal attack on the salesperson. Customers are entitled to express complaints since they cannot return items without stating their reasons. Clients can respond to a good/service in positive as well as negative ways; a complaint is a negative response.SOURCE: CR:010SOURCE: HR LAP 23—Handling Customer Complaints


1314. A

Receiving record. A receiving record is used to record, or log, all data about a shipment of goods. Michelle uses the receiving record to record the name of the individual receiving the shipment, number of containers received, the date of receipt, the time of day, the vendor from whom the shipment was received, the method of shipment, and shipping charges. A dummy invoice is a blank form on which the contents of a shipment are listed by receiving workers. A shipping contract is a bill of lading. A delivery form is a receipt that the carrier delivered the shipment.SOURCE: DS:004SOURCE: DS LAP 5—The Receiving Process

15. DMaintain necessary space and equipment needs in the receiving area. Schedules are established by hospitality businesses because they often order from many suppliers and have limited space to facilitate receiving procedures. Large crates and skids of goods are often moved into place by special equipment. Handlers often need space to maneuver equipment and organize incoming goods. Receiving schedules help keep the receiving area from becoming too congested with equipment, personnel, and products. Scheduled deliveries allow workers to have sufficient time and space to check orders carefully, which can reduce mistakes. FIFO (first-in, first-out) is an inventory control policy. Established receiving schedules may reduce broken or damaged goods but do not eliminate the risk. Since all orders should be checked for accuracy, receiving schedules do not reduce the need for verification.SOURCE: DS:038SOURCE: Mill, R.C. (1998). Restaurant management: Customers, operations, and employees

(pp. 198-199). Upper Saddle River, NJ: Prentice Hall.

16. DCups, cream, and spoons. To provide good service and to make sure items are available for guests, banquet servers must constantly monitor and refill buffet food and beverage units. Beverage tables are often in a different location of the banquet facility than the food tables. Buffet servers must monitor and replenish items such as cups, cup saucers, cream, spoons, sugar, coffee, tea, and lemon slices for the tea. Food buffet tables have knives, plates, and forks.SOURCE: DS:063SOURCE: Educational Institute of the American Hotel & Motel Association (2000). Lodging

management program: Year two (pp. 347-349). Lansing, MI: Author.

17. DBed and breakfast. A bed and breakfast is a private home environment that hosts or rents rooms to a few guests at a time. Many bed and breakfasts are operated by families, sole proprietors, or partnerships. Since bed and breakfasts are generally much smaller than resorts, full-service hotels, and convention facilities, they are more likely to have traditional locking systems like those found in personal residences. Therefore, it is necessary to maintain an inventory of these keys in the event one is lost or misplaced. Large resorts and hotels are more likely to use disposable key cards for room security systems. Since the cards are disposable, there is no need to maintain key inventories.SOURCE: DS:079SOURCE: Vallen, G.K., & Vallen, J.J. (2000). Check-in: Check-out (6th ed.) [pp. 488-489]. Upper



1418. B

The amount supplied is equal to the amount demanded. In reality, equilibrium price is seldom, if ever, the price that actually exists in the marketplace because supply and demand fluctuate. Hospitality businesses total their costs and markup, do market research, and compute average selling prices in order to establish selling prices acceptable to consumers.SOURCE: EC:006SOURCE: EC LAP 12—Price

19. COperating expense. An operating expense is the money spent to run a motel. The cost of goods is the amount of money paid for raw materials and products sold. Net profit and gross profit are received, not spent.SOURCE: EC:010SOURCE: EC LAP 2—Risk Rewarded

20. CNet exports. Gross domestic product is the final total value of all goods and services produced within a country's geographic boundaries during a year's time. The components which are used to calculate GDP are net exports, gross private domestic investment, personal consumption, and government purchases. Projected expenses are estimates of future costs. Intermediate products are items that are part of other finished products. Land titles are documents showing the right of ownership.SOURCE: EC:017SOURCE: EC LAP 1—Gross Domestic Product

21. BSpending decreases. The interest is money payments for the use of borrowed money. When the interest rate increases, such as from 6% to 10%, the cost of borrowing money increases. Therefore, a lot of businesses and consumers decrease spending, especially for expensive items that they pay for with credit. High interest rates have a negative impact on the economy because decreased spending leads to a decrease in production, a decrease in purchasing power, and an increase in unemployment.SOURCE: EC:084SOURCE: O'Sullivan, A., & Sheffrin, S.M. (2003). Economics: Principles in action (pp. 312-313).

Upper Saddle River, NJ: Prentice Hall.

22. BActively listen. Active listening occurs when the message recipient is completely focusing on the sender's message during the message transmission. If one person prepares his/her response while the other person is speaking, s/he is likely to miss an important point. When a person gives up something s/he wants during a negotiation, s/he is making a concession. Eye contact is a non-verbal cue or part of one's body language. Negotiators should maintain eye contact with the other party.SOURCE: EI:062SOURCE: EI LAP 8—Make It a Win-Win (Negotiation in Business)


1523. D

Ignoring. Ignoring (withdrawal) is a conflict response mode in which a person pretends that a conflict doesn't exist. Both parties exhibit passive behavior and express a low level of cooperation. Sometimes a person goes out of his/her way to avoid the person with whom s/he is having a conflict, which can increase stress levels and lower productivity. The yielding response mode involves giving the other person what s/he wants and the negotiating response mode involves a compromise. The problem solving response mode involves considering all sides of the disagreement to resolve the conflict.SOURCE: EI:015SOURCE: EI LAP 7—Stop the Madness (Conflict Resolution in Business)

24. DContentment. Contentment means that people are comfortable and think that things are "just fine the way they are." They have no motivation to change. They feel that change is unnecessary, so they resist it. People often resist change because of a lack of confidence rather than because they are confident. Compassion is a deep awareness of someone else's needs and a desire to help meet those needs. Compliance is fulfilling the requirements of the law.SOURCE: EI:005SOURCE: QS LAP 23—20/20 Foresight

25. BNo, you need to be helpful and willing to share. There is no room for self-centeredness or selfishness in effective human relations. In fact, these traits may keep you from getting ahead. Helpfulness and the willingness to share are important ingredients of effective human relations skills. This does not mean that you never put yourself first, but that should not be a way of life. You should try to meet your own expectations, not those of other people.SOURCE: EI:037SOURCE: EI LAP 5—Can You Relate?

26. ARefusal report. This report, also called the turnaway or overflow report, lists the number of guests turned away because there were no available rooms. Keeping a record of the number of turnaways is part of handling overflow business. Tracking these numbers may help a business expand and/or better serve its customers. A revenue forecast report projects future sales. A reservations transactions report summarizes reservation activities. A commission agent report records the commissions travel agents should receive according to the amount of business they have booked.SOURCE: EI:058SOURCE: Vallen, G.K., & Vallen, J.J. (2005). Check-in: Check-out (7th ed.) [pp. 529-530]. Upper


27. DBe competitive. Motels must compete with each other for customers. If two motels offer similar accommodations and services, one of those motels may decide to offer credit as an added attraction. Being able to rent accommodations on credit may be the deciding factor in the customer's choice of a motel with which to do business. Motels do not offer credit in order to charge interest, obtain loans, or compare prices.SOURCE: FI:002SOURCE: FI LAP 2—Credit and Its Importance


1628. B

Financial. Financial loss, or the loss of money, is the basic risk in marketing. While it is impossible to eliminate all risk in marketing, there are several ways to reduce risk including developing effective marketing plans, information systems, financial plans, and loss-prevention plans. To the owner of a marketing business, any risk is personal rather than impersonal. Promotional expenditures could cause financial loss in some cases. Most marketing businesses are not involved in political activities.SOURCE: FI:084SOURCE: BA LAP 2—Risk Management

29. D20%. One of the most important profitability ratios that hotel gift shops calculate is the percentage of gross profit on net sales. In order to calculate the percentage of gross profit, subtract cost of goods sold from net sales and divide that amount by net sales ($250,000 - $200,000 = $50,000 ÷ $250,000 = .20 or 20%). One reason why gift shops track their gross profit margin is to make sure that they are marking up the price of goods enough to earn the desired amount of profit.SOURCE: FI:097SOURCE: Edward Lowe Foundation. (n.d.). How to analyze profitability. Retrieved November 7,

2007, from http://edwardlowe.org/index.peer?page=main&storyid=6334

30. C43 3/4%. The gross margin percentage is the comparison of gross margin to net sales. To determine gross margin percentage, subtract cost of goods from net sales to determine gross margin ($80,000 - $45,000 = $35,000). The gross margin percentage is then determined by dividing gross margin by net sales ($35,000 ÷ $80,000 = .4375 or 43 3/4%).SOURCE: FI:102SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 235-240).

Cincinnati: South-Western Educational.

31. C$112.41 profit. Gross profit or loss is calculated by subtracting food costs from food sales ($350.00 - $237.59 = $112.41). If sales are higher than costs, a profit will be realized. A loss will occur if costs are greater than sales.SOURCE: FI:300SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 767).

New York: Glencoe/McGraw-Hill.

32. DMeet the minimum requirements. Hotel chains often require job applicants to complete employment applications. The application provides the company with a snapshot of an applicant's education, skills, training, and employment history. Then, the chain screens the information to determine if the applicant meets the minimal requirements for a specific position. Chains do not want to spend time interviewing applicants who do not have the background or experience to do the job. Screening job applications will not help chains determine if applicants have the proper attitudes. Chains need to know if applicants have the necessary educational background rather than if they attended well-known educational institutions. Chains do not screen applications to determine if the applicants earned adequate yearly incomes.SOURCE: HR:354SOURCE: Gatewood, R.D., & Field, H.S. (2001). Human resource selection (5th ed.) [pp. 426-

437]. Orlando, FL: Harcourt, Inc.


1733. C

Employee seriously violates resort policy. Termination for cause occurs when an employee's conduct seriously violates beach resort policies or jeopardizes the resort or other employees. A termination for performance is used when an employee consistently exhibits poor performance compared to established performance criteria, or is incompetent. Complaining about an internal problem is not a reason why a resort might fire an employee. SOURCE: HR:358SOURCE: Hilgert, R.R., & Leonard, E.C. (2001). Supervision: Concepts and practices of

management (8th ed.) [pp. 666-668]. Cincinnati: South-Western College Publishing.

34. AJob description. A job description identifies the duties and responsibilities that comprise a job. Going over these duties and responsibilities will give the hotel worker an overall view of the job. Personnel records are kept in the human resources department, and a new employee's file would contain very little information. Union requirements do not apply to all jobs. The worker's résumé is used in making the selection process for hiring employees.SOURCE: HR:361SOURCE: MN LAP 44—Orienting New Employees

35. CCompetition for entry-level jobs has increased. Workers who are willing to take the risks involved in entering the country illegally are so much in need of work that they are willing to accept any available job. Since they often have language problems or are lacking in job skills, they accept entry-level jobs, which leaves fewer jobs for U.S. citizens. Illegal immigrants are not eligible to participate in the Social Security program. They would not file lawsuits against businesses because that would call attention to their unauthorized presence in the country.SOURCE: HR:367SOURCE: MN LAP 55—Managing Diversity in the Workplace

36. DSales and budget figures. The hospitality business's own records keep track of all of the business's activities. They provide an excellent internal source of secondary information-information that has been collected for purposes other than the project at hand. Competitors, trade associations, and government reports are external sources of information.SOURCE: IM:001SOURCE: IM LAP 2—Marketing-Information Management

37. APrimary data are the data most closely related to the project. Primary data are collected for the specific research project. Because of this, primary data should be of more help than any other data in solving the problem behind the market research effort. Some disadvantages of collecting primary data are that they are expensive and time consuming to gather, and the data may be biased because of the influence of the researcher.SOURCE: IM:010SOURCE: IM LAP 5—Nature of Marketing Research


1838. B

Because each group or organization has different needs and wants. By developing group profiles, the hotel personnel have a detailed summary of what the group needs and desires to have a successful event. For example, large groups may need more exhibit space and sleeping rooms than smaller groups. Some groups require assistance with transportation if the attendees are flying into the area airport from distant locations. Hotels often share information regarding associations or groups that hold meetings annually and in different locations to other hotels (e.g., no-show rates) to aid in planning. Hotels do not generally develop promotional materials for conventions, nor are the groups charged property tax for hotel services. Profiles are not used to determine the level of service satisfaction; tools such as surveys are used to measure customer service.SOURCE: IM:207SOURCE: Morrison, A.M. (2002). Hospitality and travel marketing (3rd ed.) [p. 462]. Albany, NY:

Delmar/Thomson Learning.

39. APlanning, pricing, promotion, and distribution. These are activities that must be performed in order to get goods and services from the producer to the consumer. Planning is the process of making decisions as to what items will be produced and sold. Pricing involves establishing retail prices for items so that they are affordable to consumers and competitive with similar products on the market. Distribution is the process of moving, handling, and storing items on the way from the producer to the consumer. Promotion refers to all of the business activities which are designed to influence consumers to purchase a good or service.SOURCE: MK:001SOURCE: BA LAP 11—Have It Your Way

40. CAdvertising. Keeping promises to customers involves both personal interactions and advertising. Hospitality companies must make good on their promises, no matter what method they use to make them to their customers. These promises don't usually come from newspaper articles, coworker interactions, or future products.SOURCE: MK:015SOURCE: MK LAP 2—Act Now (Employee Actions and Company Goals)

41. BPricing. Pricing is the marketing function that involves determining and adjusting prices to maximize return and meet customers' perceptions of value. Certain factors affect the prices that a hotel gift shop will set, and these factors may cause a shop to adjust or mark down prices in order to encourage customers to buy. Selling is a marketing function which involves determining client needs and wants and responding through planned, personalized communication that influences purchase decisions and enhances future business opportunities. Financing is a marketing function which involves understanding the financial concepts used in making business decisions. Product/Service management involves obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities.SOURCE: MP:001SOURCE: IM LAP 7—Pick the Mix

42. DEfficient use of resources. The division of a total market into smaller, more specific groups is market segmentation. Segmentation enables marketers to meet the needs of customers more effectively by focusing on the needs of a specific market. Segmenting the market does not increase production capabilities, opportunities for promotion, or access to consumers.SOURCE: MP:003SOURCE: IM LAP 9—Have We Met? (Market Identification)


1943. D

Increase sales this year by 10% over last year. Objectives are the goals a hotel supply business wants to achieve. Before a business can proceed with the marketing planning process, it must first develop its basic objectives, such as to increase profits by a certain percentage or increase market share by a certain amount. The most effective objectives clearly state what the business hopes to accomplish and within what time period. For example, an effective objective is to increase sales this year by 10% over last year. That is a clear goal to try to achieve. Once the objectives have been developed, businesses continue with the marketing planning process to design and implement strategies to achieve the goals. Hiring more salespeople, developing advertising, and reducing prices are strategies, or plans of action, that the business might use for achieving the objective.SOURCE: MP:006SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 41-42].


44. CIntroduction. During the introduction phase of a product, a hospitality business is more likely to lose money than to make it. This is because the business tends to aggressively promote the product in order to generate product awareness and to get consumers to try the product. Sometimes, businesses use pricing strategies that generate low profit margins to encourage product trial and create product awareness. During the growth and maturity phases, a business tends to see increases in sales, which increases profits. During the decline phase, the product's sales are often very low and businesses tend to phase out the product before it starts to negatively impact profits.SOURCE: PM:024SOURCE: Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [p. 293]. Upper


45. ADownturn in the economy. A situational analysis involves examining and interpreting the environmental factors that affect a hotel chain. As a result of considering external environmental factors, a chain often is able to identify potential threats in the marketplace such as increasing competition or a downturn in the economy. Once a chain identifies the specific threats, it takes steps to turn them into opportunities. For example, if the economy is beginning to slow down, a chain might revise its products or offer additional credit plans to appeal to a wider market. A change in pricing structure, a contract with a new supplier, and a decrease in operating expense are internal factors.SOURCE: MP:008SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an

e-commerce world (7th ed.) [pp. 41-42]. Mason, OH: South-Western.

46. BOpportunity. A new customer moving into your area is an opportunity. An opportunity is any favorable situation in the environment surrounding your business. A strength is any resource or capability your business has that can help you gain a competitive advantage in your industry. A weakness is any limitation or shortcoming your business has that can keep you from achieving your objectives. A threat is any unfavorable situation in the environment surrounding your business. A new customer moving into your area is not a strength, a weakness, or a threat.SOURCE: MP:010SOURCE: IM LAP 8—Analyze This! (SWOT Analysis)


2047. C

Schedule production. A sales forecast is an estimate of sales for a specific future time period. Most hotel supply businesses need to know what their level of sales will be in order to determine how many employees will be needed, to schedule production efficiently, and to plan appropriate inventory levels. A sales forecast will not help a business to evaluate its employees, select appropriate brands names for its products, or buy the right capital goods in order to produce efficiently.SOURCE: MP:013SOURCE: IM LAP 3—Nature of Sales Forecasts

48. BScheduling. Scheduling involves setting a timetable for implementing the various activities that need to be completed in order to achieve the objectives of a marketing plan. Once the activities are identified, a hospitality business needs to decide who will perform each activity, how long each activity will take to complete, and in what order each activity should be performed. Scheduling helps a business to control the implementation of marketing activities in order to make sure they are completed effectively and on time. Positioning is a product-mix strategy in which a business creates a certain image or impression of a product in the minds of consumers. Forecasting involves predicting what will happen in the future. Training is teaching or developing a specific skill.SOURCE: MP:019SOURCE: Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd

ed.) [pp. 538-539]. Boston: Irwin/McGraw-Hill.

49. DKnow its marketing objectives. A marketing plan is a set of procedures or strategies for attracting the target market to the hotel chain. Marketing objectives are the goals or the desired outcomes that the chain wants to achieve with its marketing plan. To determine if the marketing strategies in the marketing plan are working, the chain must know what it wants to achieve with the marketing plan; it must know its marketing objectives. The chain would identify its competitors and determine market trends before it develops its marketing plan. The chain would not develop an operating budget to evaluate the performance of its marketing plan.SOURCE: MP:022SOURCE: Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [pp. 53-54]. Upper


50. BAutomated telephone call placement and posting. The call accounting system is a computerized, automated way for large lodging facilities to manage guest telephone calls. The software has the ability to place, price, and post the telephone call to the guest's folio. Operator-assisted calls are not fully automated because a third party is needed to connect the two parties via telephone. A calling card is a prepaid card that the guest uses to acquire telephone service. Because the guest has already purchased the calling card, pricing and posting the telephone call to the guest's folio is not necessary.SOURCE: NF:034SOURCE: Educational Institute of the American Hotel & Motel Association (1999). Lodging

management program: Year one (pp. 102-106). Lansing, MI: Author.


2151. D

Compare the signature on the check with the one on a form of photo identification. Hospitality businesses should establish policies and procedures for authorizing and accepting personal checks from guests for payment. Because of the high risk of check fraud, hospitality employees should verify that the information (e.g., name, address) on the check matches the information on a photo ID (e.g., driver's license). The employee should check the signature presented on the form of identification with the signature on the check. In addition, the employee should make sure that the photo looks like the person who is writing the check. A check is generally endorsed by the person or organization for whom the check is made payable. Employees should not accept postdated checks. The payment of check processing fees is determined by each business's policies and procedures.SOURCE: NF:075SOURCE: Vallen, G.K., & Vallen, J.J. (2000). Check-in: Check-out (6th ed.) [pp. 384-388]. Upper


52. CClosing the store. Sales supervisors for resort gift shops oversee the hiring and management of salespeople and make sure customers are receiving good service and quality merchandise, among a variety of other duties. Their schedules often include working some erratic hours, including weekends and evenings, and they are responsible for closing the store. Depending on the size of the store, it is likely that management would perform functions such as monitoring competitor activity and placing advertising, while warehouse or stock employees would take care of the actual warehousing of merchandise.SOURCE: OP:131SOURCE: U.S. Department of Labor, Bureau of Labor Statistics. (n.d.). Sales Worker

Supervisors. Retrieved November 9, 2007, from http://www.bls.gov/oco/ocos025.htm

53. BFull-service metropolitan hotel. Full-service hotels located in major cities are most likely to provide transportation to the airport. People often travel via airplane to conduct business activities and do not have automobiles to get to their hotels. Therefore, many full-service hotels run shuttle busses to and from the airport to accommodate guests traveling by aircraft. A bed and breakfast located in a remote area and economy motels do not generally offer shuttle service. Extended-stay lodging facilities generally service guests who are staying for long periods of time. Many of these guests have their own transportation (e.g., car). Therefore, extended-stay facilities do not usually provide shuttle service to the airport.SOURCE: OP:140SOURCE: Vallen, G.K., & Vallen, J.J. (2000). Check-in: Check-out (6th ed.)

[pp. 20-22, 26, 33-39, 77-79]. Upper Saddle River, NJ: Prentice Hall.

54. BWearing disposable gloves when handling the items. Employees can protect their hands from bacteria-ridden waste or dangerous cleaning chemicals by wearing disposable gloves. For example, direct contact with strong or dangerous chemicals (e.g., cleaners) might irritate skin or cause an allergic reaction. To reduce contamination, it is preferable to store recyclables outside the premises. Waste or trash is usually not sanitized. To reduce the risk of contamination, employees should wash their hands after handling trash.SOURCE: OP:134SOURCE: Mill, R.C. (1998). Restaurant management: Customers, operations, and employees

(pp. 254, 256). Upper Saddle River, NJ: Prentice Hall.


2255. C

Reduce bacteria levels. The sanitizing process takes place after the food preparation equipment is cleaned and rinsed. Sanitizing involves the use of hot water or chemical compounds and is needed to reduce bacteria to a safe level. Food preparation equipment that is not properly sanitized may accumulate bacteria that will contaminate other food items and may cause customers to become ill. Sanitizing equipment will not remove lime deposits which are caused by hard water. Regular rinsing eliminates soap residue. Rinsing before cleaning loosens dirt particles.SOURCE: OP:082SOURCE: Mill, R.C. (1998). Restaurant management: Customers, operations, and employees


56. AStore all food in tightly sealed containers. Pests are attracted to food that is not properly stored. In order to eliminate a pest problem, resort restaurants should store food in tightly sealed containers. Dirty dishes should either be washed immediately or put in soapy water until they are washed. Food scraps should not be placed in paper bags. Leftovers should never be stored in newspapers.SOURCE: OP:106SOURCE: Mill, R.C. (1998). Restaurant management: Customers, operations, and employees


57. DBoxes stacked in front of a fire exit. Nothing should ever block a fire exit. If a fire breaks out and the building's fire exit is blocked, employees may not be able to vacate the premises. Proper lighting, wide aisles, and secure locking systems promote workplace safety rather than present a workplace hazard.SOURCE: OP:008SOURCE: Ryerson College. (n.d.). Ensuring a safe work environment. Retrieved November 9,

2007, from http://www.ryerson.ca/rta/handbook/health&safety/safe_environment.htm

58. CFraud. Fraud is deceiving or cheating a business out of money or property. Price-ticket switching is one form of fraud. Robbery is theft that involves the use of force, violence, or fear. Shoplifting is the theft of goods by customers. Pilferage is the theft of small sums of money or inexpensive items from the business or office supplies for home usage.SOURCE: OP:013SOURCE: RM LAP 4—Security Precautions

59. BMake adjustments. Operating systems are ways a business functions, and a procedure is a step-by-step process for performing a specific task. A hotel supply business performs many tasks to keep operating, such as purchasing supplies, advertising, and dealing with customers. To make sure that the business is functioning efficiently, it may evaluate its operating systems and procedures to determine if it should make adjustments or improvements in order to reach its various goals. It is usually illegal to try to eliminate the competition and fix prices. Businesses usually count inventory at least once a year.SOURCE: OP:022SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)

[pp. 288, 330]. Cincinnati: South-Western.


2360. B

Control costs. An effective project plan helps to control costs by considering potential problems that may arise. By addressing problems in the planning stage, a motel chain is able to develop a method of dealing with potential problems, which often eliminates the need to make costly changes while completing the project. Scheduling employees is a routine part of developing a project plan but does not involve considering future problems. Considering future problems does not help a chain to negotiate contracts or eliminate resources. SOURCE: OP:001SOURCE: DuBrin, A.J. (2003). Essentials of management (6th ed.) [pp. 114-115]. Mason, OH:

South-Western.

61. C$1,340. Employees can help hotel gift shops control expenses by charging all customers the correct amount. Giving employee discounts to friends is a type of theft that costs businesses thousands of dollars each year. In this example, calculate the loss to the company by multiplying the value of goods sold to friends by the employee discount ($6,700 x 20% or .20 = $1,340). Although two employees are involved, the total amount for both employees is $6,700.SOURCE: OP:025SOURCE: MN LAP 56—Employee Role in Expense Control

62. AMy job includes keeping the sales area clean. Most salespersons for ski resort gift shops are expected to do a certain amount of housekeeping in their own selling areas in order to keep the store neat and clean for customers. This would include dusting, straightening merchandise, checking displays, and sorting sizes. Displays are helpful to the sales effort but cannot be relied upon to do the entire job.SOURCE: OP:032SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)

[pp. 318-320]. Upper Saddle River, NJ: Prentice Hall.

63. BSituation that you want to change. A problem is a situation that you want to change. A decision is a selection that fits your objective. A problem is not a feature you do not desire, nor a factor that affects your decision—though, you may feel as if undesirable features and influencing factors cause a problem.SOURCE: PD:017SOURCE: PD LAP 10—Weigh Your Options

64. DIncreased stress. Stress is a mental or emotional feeling of pressure or tension. Hotel employees who do not manage their time effectively often experience increased levels of stress. They find that they do not have the time to complete their tasks at work and feel overwhelmed and under pressure to get everything done. The stress may follow them home and impact on their relationships with family and friends. Employees who are unable to effectively manage their time often experience increased pressure and tension, and decreased self-esteem.SOURCE: PD:019SOURCE: OP LAP 1—About Time (Time Management in Business)


2465. A

Yes, he should already have sent a follow-up letter. A follow-up letter should be sent as soon as possible after a job interview. Since the company has had time to make a hiring decision and notify Matt of its choice, we can assume that he did not write immediately following the interview. However, it is never too late to send a follow-up letter. Businesses do not generally expect to hear from job applicants after an interview, but they receive a positive impression of those who do write.SOURCE: PD:029SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp. 71-72].

Mason, OH: South-Western.

66. ASupport services. Back-of-house operations are those activities that do not require contact with guests. Hotels employ many people in these positions in order to keep the facility operating. These positions may include accountants, lawyers, human resource personnel, buyers, etc., who handle the business aspects of the hotel. Hotel employees who work in back-of-house operations do not provide food service, room service, or guest services. However, they purchase the food, buy the supplies for the rooms, and hire the employees who serve guests.SOURCE: PD:093SOURCE: Vallen, G.K., & Vallen, J.J. (2005). Check-in: Check-out (7th ed.) [pp. 81-82]. Upper


67. CYes, customers may feel product quality is also low. Quality and price are often considered the same by customers. For example, high-priced items are usually perceived as high-quality products. Customers are not necessarily offended by low prices, but those who feel low prices reflect low quality will not buy more of that product or feel it is a bargain.SOURCE: PI:001SOURCE: PI LAP 2—Pricing

68. CPrice discrimination. Price discrimination is an illegal activity in which a hotel supply business charges different customers different prices for similar amounts and types of products. The United States passed the Robinson-Patman Act to protect consumers (buyers) from this unethical business practice. Price segmentation is setting prices on the basis of market segment factors (e.g., geographical location). Market penetration pricing is a strategy in which a business sets the initial price of a product very low in order to attract a lot of buyers quickly. When a business makes decisions about how to price its products in its product line, it is known as product line pricing. The Robinson-Patman Act is not a legal provision that addresses pricing segmentation, market-penetration pricing, and product-line pricing. SOURCE: PI:017SOURCE: Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [pp. 330-331, 344].

Upper Saddle River, NJ: Prentice Hall.


2569. C

Pure competition. In a pure competitive market, there are a great many buyers and sellers of nearly identical products, and marketers have very little control over pricing. More competition exists in this kind of market than in any other. Most products are sold at market price—the actual price that prevails in a market at any particular moment. The market price is controlled by supply and demand. In an oligopoly, competition is more likely to be based on style or brand than on price. In a monopoly, there is virtually no competition because there is only one seller or provider of a good or service. In a monopolistic competitive market, there is competition because there are many buyers and sellers offering different types of products at different prices. There is less competition in this kind of market than in a pure competitive market.SOURCE: PI:002SOURCE: PI LAP 2—Factors Affecting Selling Price

70. BIntroduction. In the introduction stage, advertising is used to attract customers to a new hospitality product. In the growth and maturity stages, planners must be ready to adjust advertising according to consumer acceptance. The decline stage will focus on whether to keep the product or remove it from the market.SOURCE: PM:001SOURCE: PP LAP 5—Product/Service Planning

71. CAchieve $2 million in sales next year. Marketing objectives are the goals a hospitality business seeks to reach with its marketing plan. To be effective, a business must develop specific objectives that it intends to achieve within a certain time period. Therefore, achieving a certain amount in sales next year is an example of a marketing objective. Once a business has established its marketing objectives, it develops strategies to achieve those objectives. Increasing advertising by 10 percent, hiring five new salespeople, and maintaining competitive prices are examples of marketing strategies that a business might develop in order to achieve its goal of $2 million in sales next year.SOURCE: MP:007SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 89-94]. Upper Saddle River,

NJ: Prentice Hall.

72. CScreening. The screening process involves reviewing product ideas and making a decision about which ideas should be kept and which ones should be discarded. During the screening process, a hotel supply business determines if there is a need or want for the product. The business also decides if it has the resources to make and distribute the product. If there is not enough desire for the product or the business does not have the appropriate resources, it is not practical for the business to produce the product. Brainstorming is a creative-thinking technique that is used during the idea-generation stage of new-product development. Production and consumption occur after the screening stage.SOURCE: PM:129SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an

e-commerce world (7th ed.) [pp. 287-288]. Mason, OH: South-Western.


2673. A

Recognize opportunities. Hotels often use a variety of processes to understand guests' buying behavior and find out what they might want in the future. Interviewing guests and conducting surveys are processes that many hotels use. The intent is to obtain information that will help hotels recognize opportunities. Hotels need ongoing information to be able to respond to changes in the marketplace and take advantage of new opportunities. Hotels do not use these processes simply to collect information but to use the information to recognize opportunities. Hotels may develop and send out questionnaires to find out what guests might want in the future. Hotels do not find out what guests might want in the future to generate advertising.SOURCE: PM:136SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 237-239). Tinley

Park, IL: Goodheart-Willcox.

74. BGrading. Grading helps consumers by indicating the quality of the raw materials used to make consumer products. Counting enumerates quantities in inventory. Purchasing is a marketing function which involves the planning and procedures necessary to obtain goods and services for use in the operation of a business or for resale. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.SOURCE: PM:019SOURCE: PM LAP 8—Grades and Standards

75. CLegal recourse. There are many different kinds of benefits from warranties and guarantees. Consumer benefits from warranties and guarantees include legal recourse if a company does not fulfill its obligations under a warranty or a guarantee. The courts will uphold a legitimate claim and see that the customer obtains satisfaction. The benefits of warranties and guarantees do not include lower prices, personalized service, and free training.SOURCE: PM:020SOURCE: PP LAP 4—Warranties and Guarantees

76. DCredit. Many businesses that sell services, such as law offices, offer their customers extended credit or payment plans. Credit is an extra service that businesses offer rather than the service that the businesses sell. For example, a law office sells legal services to the owners of a hotel chain but may allow those clients to pay for those services over a period of time. Advice, counsel, and advocacy are types of legal services for which law offices charge their clients rather than extra services.SOURCE: PM:036SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 682-


77. BPlan various activities. Large hotels and resorts often plan activities to enhance their guests' experience during their stay at the facility. Guests frequently stay at hotels or resorts for several days or more and expect that there will be activities in which to participate. For example, the properties may offer exercise classes, tennis lessons, or other recreational activities. The intent is to provide a pleasant experience for guests so they will want to return. SOURCE: PM:097SOURCE: Silva, K.E., & Howard, D.M. (2006). Hospitality and tourism (pp. 99-100). Woodland

Hills, CA: Glencoe/McGraw-Hill.


2778. D

Product quality. Positioning is a product-mix strategy in which a golf resort pro shop creates a certain image or impression of a product in the minds of consumers. One type of product-mix strategy uses quality and price to position its products in the marketplace. By charging high prices for luxury or upscale products, the pro shop is emphasizing the product's quality. If the shop wanted to emphasize value to consumers, it would use low prices to position the product. Place utility is the usefulness created by making sure that the goods and services are available at the place where they are needed or wanted by consumers. Product seasonality refers to goods and services (e.g., snow shovels) that consumers need or want during a certain time or under certain circumstances. Seasonal intensity is not a common positioning strategy that shops use to create an upscale image for a product.SOURCE: PM:043SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 645).


79. CWhen consumers have a pleasurable experience, they will spend extra time and will often spend more money than intended. Store atmosphere is the overall sensory and emotional effect that consumers experience with all their senses: visually, as well as with sound, scent, touch, and taste. Ski resort gift shops know that when consumers are enjoying themselves, they will be more likely to buy. The goal of the shop is to use cues in the store environment to put consumers in a frame of mind that promotes the buying spirit. It is true that the look and feel of a store are elements which draw consumers into the store; however, it is also true that the store's atmosphere does have a clear impact on buying behavior. Consumers experience a store's environment with all of their senses and are thinking, feeling, seeing, smelling, and touching the whole time they are shopping. Some stores may want to win awards and gain publicity, but the most important outcome of creating a pleasurable environment is the day-to-day effect it has on sales.SOURCE: PM:032SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)

[p. 454]. Upper Saddle River, NJ: Prentice Hall.

80. BNo, the name must be legally available for use. The hotel chain needs to make sure the brand name is not the property of another company since it is illegal to use another company's brand name. Brand names can be registered with the federal government in order to protect them, but this is not necessary in order to use a brand name that is legally available.SOURCE: PM:126SOURCE: PM LAP 10—Building Your Business's Brand

81. CAfter product, price, and distribution. Before hospitality businesses can make promotional decisions, they should develop and price the product and decide how it will be distributed. Businesses need information about product, price, and place before making promotional decisions. For example, it would be useless for a business to promote a product without being prepared to produce and distribute it.SOURCE: PR:001SOURCE: PR LAP 2—Promotion


2882. A

Institutional. Institutional, or corporate, promotion aims to create a certain image in the eyes of consumers. The hotel supply business is using institutional promotion because it is providing customers with information about the company. Product promotion informs customers about products. Frequency and incentives are not types of promotion.SOURCE: PR:002SOURCE: PR LAP 4—Know Your Options (Types of Promotion)

83. CPersonal selling. Personal selling is the form of promotion that uses planned, personalized communication in order to influence purchase decisions. It is generally used for products that are expensive, highly technical or require demonstration or installation. Advertising is any paid form of nonpersonal presentation of ideas, goods, or services. Sales promotion is activities other than advertising, personal selling, and publicity which stimulate consumer purchases. Publicity is a nonpersonal form of promotion that is not paid for by the company or individual that receives it.SOURCE: PR:003SOURCE: PR LAP 1—Promotional Mix

84. BRemoving merchandise carefully. One of the first steps in the process of dismantling displays involves carefully removing the merchandise in order to return it to the sales floor. It is usually necessary to remove the merchandise first because it is attached to or placed on the display props and fixtures. Once the merchandise is safely removed, display workers can begin to dismantle the remainder of the display, which involves taking down background scenes, returning fixtures to storage, and replacing burned out lights.SOURCE: PR:054SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 393).


85. DExternal. An external analysis is an examination of what is occurring outside the motel chain. It examines not only the chain's target market but also the competition. The information gathered in the external analysis helps the chain to prepare a promotional plan that will appeal to current and potential customers and make the chain competitive. An internal analysis is an examination of what is occurring within the chain. Personal and regional are not types of analysis used in developing promotional plans.SOURCE: PR:073SOURCE: PR LAP 12—Nature of Promotional Plans

86. DHospitality products advertised on television are featured in a display. Promotional activities are coordinated when two or more different types of activities, such as advertising and display, are combined in order to achieve a goal. Cooperative advertising occurs when advertising costs are shared by members of the distribution channel. Inviting customers to a sale and placing an advertisement in two media are each examples of only one type of promotional activity.SOURCE: PR:076SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 367).



2987. B

Selling. Skilled salespeople can create desire for new or established hospitality products through the use of planned, personalized communication. Financing is a business function that involves understanding the financial concepts used in making business decisions. Distribution is a function that is responsible for moving, storing, locating, and/or transferring ownership of goods or services. Risk management is not a marketing function.SOURCE: SE:017SOURCE: SE LAP 117—Sell Away (The Nature and Scope of Selling)

88. CShipping and delivery. The Motel One coffee shop's situation is an example of the shipping and delivery aspect of customer service. The product arrived damaged, and the salesperson promptly addressed the problem. This is not an example of customer training (no training is necessary), technical assistance and support (product does not require technical support), or credit/financing (problem is not with payment).SOURCE: SE:076SOURCE: SE LAP 130—Go Beyond the Sale (Customer Service in Selling)

89. CLack of courtesy from salespeople. Salespeople are the key to building a clientele. Therefore, salespersons must be careful of their behavior. Complicated business policies, overstocks of merchandise, and inappropriate operating hours are operational problems that, in and of themselves, do not typically alienate customers.SOURCE: SE:828SOURCE: SE LAP 115—Keep Them Loyal (Building Clientele)

90. DA salesperson offers a discount to a friend. Offering discounts to friends (often in violation of company policy or manager's instructions) can cause hotel gift shop profits to decrease. An increase in customer purchases and the avoidance of legal costs would likely have a positive effect on profits. A competitor's comment, whether positive or negative, may not have any effect on profits.SOURCE: SE:106SOURCE: SE LAP 129—Keep It Real—In Sales (Selling Ethics)

91. DConsumer-protection laws. Governments develop consumer-protection laws to reduce the risk of consumer fraud or personal injury by products that businesses sell. Consumer-protection laws address selling activities. For example, if a hotel supply company's salesperson does not tell a customer about a product's limitations and the customer misuses the product and receives injuries due to the misuse, the customer could sue the company. As a result, the company may experience consumer credibility problems and financial losses. Failure to disclose information about a product during the selling process is not a violation of customer-service regulations, false-labeling policies, or exclusive-dealing statutes.SOURCE: SE:108SOURCE: Greene, C. (2000). Selling: Business 2000 (pp. 104-105). Mason, OH: South-Western.


3092. B

Reading company promotional materials. Hotel supply salespeople should regularly read company promotional materials, such as advertisements and brochures, in order to obtain useful selling information. These materials provide salespeople with information about product prices, features, benefits, and financing that will help them sell the goods to customers. Reading promotional materials as they become available keeps the salesperson up-to-date and able to answer customers' questions. Stockholders' reports and executives' speeches are not likely to contain in-depth product information. The local library would also not be a good source for detailed information about products.SOURCE: SE:062SOURCE: Burrow, J.L. (2006). Marketing: Instructor's wraparound edition (2nd ed.) [pp. 465-466].


93. ATypes of services needed and the cleanliness of high-traffic areas. When conducting a tour of a lodging facility, it is customary to show the facilities to the prospective client. For example, a client might want to book the facility for a large professional conference. Therefore, the lodging representative might consider showing the client all meeting rooms and banquet facilities, restaurant, pool, and one of the sleeping rooms. A client who wants to book a room for a small group of local people to meet during the day might need to view only the meeting rooms and restaurant facilities. Therefore, the tour should incorporate amenities that meet the clients' needs. Before showing the client these areas of the facility, the lodging representative should make sure that the appearance of the hotel is neat and clean. The appearance of the facility can have a great impact on the client's willingness to book the property for a function. Although the employee might review information such as meeting room size, occupancy rate, sleeping room size, menu, transportation services, and checkout policies with the client as part of the entire sales package, these elements are not usually a primary consideration when evaluating the property for an upcoming tour.SOURCE: SE:222SOURCE: Kotler, P., Bowen, J., & Makens, J. (1999). Marketing for hospitality and tourism (2nd

ed.) [p. 57]. Upper Saddle River, NJ: Prentice Hall.

94. BSuggestion selling. Suggestion selling benefits the resort gift shop by building sales volume and profits. At the same time, it satisfies the customer to a greater degree by enabling him/her to make several purchases at one time and place. High-pressure tactics and too much talking produce negative results. Advertising attracts the customer to the shop so that the salesperson can complete the selling job.SOURCE: SE:875SOURCE: SE LAP 110—Using Suggestion Selling

95. COwnership. Using words such as "you" and "your" have been proven to be much more effective than generalized terms and usually create a higher response rate. Using these words in a sales presentation conveys confidence, an ability to solve problems, and assures customers that they should buy your product. The use of these words does not indicate hesitancy, introversion, or incompetence.SOURCE: SE:073SOURCE: Lontos, P. (n.d.). How to Give a Group Presentation That Sells. Retrieved November

12, 2007, from http://www.justsell.com/content/sales/gs0017.htm


3196. D

Putting some of it away somewhere safe. By putting some of the cash away in a safe place, such as a vault, the motel coffee shop can minimize the risk for theft. Exchanging the smaller bills for larger ones might result in a situation in which the correct change cannot be given to customers, especially since change is usually given in smaller denominations. Practically everybody at a motel coffee shop is a stranger, and so a better choice would be to watch for anyone who looks suspicious. Concentrating on looking at the floor for dropped cash rather than protecting the cash drawer would provide an opportunity for theft.SOURCE: SE:248SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 345-


97. DAlphabetically according to guests' last names. An alphabetical listing of expected arrivals is the most common way to make sure that all reservations are accounted for and to identify guests who require special recognition. Reporting expected arrivals numerically according to confirmation numbers is likely to result in clerical errors, since these numbers are often long and difficult to remember. Guests' estimated arrival times are not always identified, and so using them to organize the day's arrivals is impractical. The same is true of reservation codes. Besides, reservation codes often consist of numbers only, so alphabetizing them would be impossible.SOURCE: SE:262SOURCE: Vallen, G.K., & Vallen, J.J. (2000). Check-in: Check-out (6th ed.) [pp. 247, 456]. Upper


98. DTo prioritize rooms that need service so that early arrivals or walk-in guests are accommodated. Some guests arrive before the preferred check-in time and would like their rooms as soon as possible. To accommodate these types of requests, the front desk must notify housekeeping to clean or service an appropriate room if one is not available. Generally, executive housekeepers do not order all cleaning supplies every day. Inventory for cleaning items is usually conducted during a slower time of the day (e.g., after all rooms have been cleaned). Usually, the maintenance department is notified when rooms need maintenance service (e.g., leaky faucets, broken locks). Cleaning standards and polices are documented procedures that indicate how employees should carry out tasks so that each unit of work is done in the same way. Cleaning standards and procedures are usually developed by hotel management.SOURCE: SE:277SOURCE: Vallen, G.K., & Vallen, J.J. (2000). Check-in: Check-out (6th ed.) [pp. 76-77]. Upper


99. CManagers. Managers are individuals in business who perform management functions. Managers are responsible for supervising the work done by finance, accounting, marketing, and production. They usually do not perform the actual work of the hotel chain but coordinate the chain's resources so that others can carry out the work. Stockholders own shares of stock in a hospitality business. Employees are individuals hired by a hotel chain to work for wages or a salary. Creditors are individuals to whom a chain owes money.SOURCE: SM:001SOURCE: BA LAP 6—Manage This!


32100. C

Prepare for an expansion. A hotel supply company that hopes to expand its product line, office space, or workforce can prepare for the change by planning ahead. Building a new facility is certainly an expansion that warrants a business plan. Writing a business plan forces the company to analyze the effectiveness of new products or promotions. If business owners want to sell the company, they can use the process of writing a business plan to help them set a value. To snag a valuable client account, companies can write a business plan that describes how successful they intend to be.SOURCE: SM:007SOURCE: SM LAP 1—Plan Now, Succeed Later

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